Introduction
According to a recent industry report, global eCommerce rose from 15% of total retail sales in 2019 to 21% in 2021. The figure slightly bumped up to 22% in 2022. Now, it is estimated that this percentage can go up to 23% by 2027. This shows that the world is slowly advancing into the digital era.
As we move into this digital era, where speed and access are essential, having an online business is critical. Join us as we dive deep into the energising world of eCommerce and explore the various types of online businesses.
Types of online businesses
The e-commerce industry in India is projected to grow at a CAGR of 27% from 2020 to 2024, reaching $99 billion in 2024. Thus, we can say that the market is expanding aggressively. When it comes to the types of online businesses, the list is highly extensive. The following is a list of various e-commerce business models:
Digital product businesses
Digital product businesses include those companies that sell products digitally or let users access their products online. These include e-books, software, music, courses, etc., with several digital formats. The key benefit of a digital product business is that it doesn’t involve extensive warehousing, transportation, or shipping fees.
However, on the flip side, it requires physical storage space for servers. Furthermore, their regular maintenance is another concern. Lastly, keeping your business safe from cybercrimes is another ordeal. Such businesses require specialised marketing strategies to gain customers.
Subscription-based business models
In online service businesses, a product or service is provided on a monthly or yearly subscription fee basis. Some examples of this kind of business are Netflix and Spotify for entertainment content, Nykaa and MAC for cosmetics, and Zomato & Swiggy for food.
The critical part of the model’s success is providing high-quality products or services as long as the subscribers are happy and willing to pay.
Dropshipping
Dropshipping is an online business model where the seller sources products from the manufacturer/retailer based on real-time demand and sells those products at a markup to the customer.
Some dropshipping ideas include electronic accessories, fashion products such as handbags, and other electrical items. These items are often fast-moving, attracting a large base of customers and generating decent revenue.
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Affiliate marketing niches
Affiliate marketing niches mean promoting somebody’s services or goods through your link, where you will receive a fixed commission on every sale made through your link. According to a survey by Forbes, only 15% of people in affiliate marketing can bring up to $50,000 annually in affiliate income.
This is the perfect starting point for those who wish to avoid dealing with customers directly and keeping inventory. All you need is to lead the visitors to your affiliate partners’ websites through numerous online mediums, which primarily include social media.
E-learning platforms
E-learning platforms provide learning data through digital modes, such as virtual lectures, e-books, etc. The demand for online learning platforms skyrocketed, specifically during COVID-19, because traditional classroom learning settings were suspended globally due to health and safety concerns.
Various e-learning platforms provide learning content for varied industries and levels. These range from school-oriented content to foreign language learning, coding, graphic design, etc. One prime example of an e-learning platform is PhysicsWallah.
Niche market online ventures
This content creator business deals with a single product category and provides its consumers with a wide range of products being covered in that category.
Finding your niche and doing in-depth competitor analysis is a prerequisite for a Niche Market Online Business to survive among competitors. Some prime examples of this are Nykaa in cosmetics and Nike in apparel.
Local online business
A local online business sells its products or services to customers in a particular geographical area through online means. Various home-based online businesses also come under the scope of local online businesses.
Some examples of these include local brands providing customised apparel like t-shirts and firms listed on platforms like Meesho.
What are the benefits of online business?
The following table shows the benefits of online businesses along with a brief explanation for your easy understanding.
| Benefit | Description |
| Low operating costs | Online businesses often have lower startup and operating costs since they do not have to procure land or hire staff or pay any sort of rent. |
| High scalability potential | Online businesses can reach a global customer base, offering the potential for high scalability |
| Freedom to work from anywhere | With an online business, you can work from any location. All you need is the internet. |
| 24×7 customer support | Online businesses can provide round-the-clock customer support. |
| Ease of marketing | Digital marketing tools make it easier to promote online businesses. |
Conclusion
The digital age has given different types of online businesses a platform, each with its own specific benefits. This article discussed various possibilities you can explore regarding online businesses. As the digital economy develops, so will e-commerce business opportunities.
Online entrepreneurship is the one to watch as it leads the future! If you liked this article, share it with your friends and family, and even those who wish to start their own online business soon. For more such content, visit StockGro.
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