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Do
e-business companies really differ from traditional
firms in physical markets?
Some e-businesses
work pretty much exactly the way they work offline and
just use the Internet as a communication medium. Other
businesses exist ONLY because the Internet exists, and
still others use the a Web site in a very minimal way.
Some people don't
grasp how service or regional businesses can use the
Internet. While it is true that in person services must
serve a given region, regional Web sites are popping
up every day across the globe.
Certain service
businesses may be more difficult to fulfill with an
online business; however, there are some industries
that have been gaining some success such as online tutoring,
various types of consulting (where site visits are not
needed), language translation, computer programming
including web design, and several others. To have an
online-only service business, you will need to be able
to fulfill the service from your location. One cannot
wash a customer's windows from France if he or she is
in San Diego.
It is ideal to
be able to close the sale without a physical meeting,
however regional B2B business service providers may
just be able to do this successfully.
Proven
to sell well online:
The most successful products and services are those
offering the consumer a benefit, such as convenience.
Frequently, they are within these categories:
- Commodities
(see list below)
- Products that
appeal to enthusiasts (cooking supplies, sports memorabilia)
- Low-touch services
(travel services, online trading)
- Frequently
purchased items (manufacturing parts, office supplies)
- Technology
products (software, computers)
- Unique, Rare
or Difficult to find items (out-of-print publications,
rare stamps)
- A known brand or product. People
love to comparison shop. The items are
accompanied by considerable additional information
to aid decision-making. This
is particularly true for more expensive items, such
as electronic and other types of technology
Here are just
some of the popular products that businesses
sell online (and offline)
- Consumer Electronics
- Video &
Accessories
- Home &
Portable Audio
- Home Office
& Office Supplies
- Telephones
& Communications
- Computer Hardware
& Software
- Toys &
Video Games
- Gifts &
Gourmet
- Jewelry &
Fragrances
- Home &
Garden
- Luggage Sports
- Outdoors
- Fitness
- Small Appliances
- Personal Care
- Health, Beauty
& Wellness
- Books, Movies
& Music
Drop-shipping
is the key to selling products online without an inventory.
Many manufacturers around the world will fulfill your
customers' orders as they come in and put your label
on the box before sending it out. You don't have as
much gross profit per product, but you are saving money
since you don't have to warehouse items, maintain staff
to package and ship products or fulfill any other demands.
All you have to do is sell the product.
What does
and doesn't sell online
Before you create
your Web site, you must have something to offer your
customers. Unfortunately, selling online is not as simple
as merely offering your existing products and services
on your Web site As many dotcom era businesses discovered,
not all products and services are attractive to the
online consumer. Additionally, your products have to
be presented in a way that appeals to the customer,
as well as providing a profit for you, of course.
Products that
don't sell well over the Internet are frequently those
requiring some interaction by the buyer before a purchase
is made. Additionally, buyers
are reluctant to purchase online if they think this
will inconvenience them in anyway. Consequently, products
which don't sell are generally those that:
Difficult
to sell online:
- Products that
are difficult to ship (furniture)
- Services that
focus on a local market (hair salons)
- Highly regulated
items (explosives)
- Products requiring
a high level of customization (tailored suits)
- Items that
benefit from "hands-on" assistance (wedding
dresses)
- Need to be touched, smelt,
held, handled, tasted, etc in order to assess their
worth
- Are not accompanied by sufficient
information to reassure the customer about quality
- Are not as convenient to purchase
online as they are offline. Are not accompanied by
a convenient way to return the product if it proves
unsatisfactory.
- Fabrics are a good example.
A fabric purchaser usually goes through a process
of touching, weighing, comparing colors, and assessing
how the fabric hangs before making a final decision.
Make the
buying experience convenient
Because today's
pace of life is so hectic, people value anything which
makes their lives easier. Most people will often take
the easiest course of action when making a purchasing
decision, even if this means the product ends up costing
them slightly more than they would have paid elsewhere.
Convenience, therefore, is often the key as to why and
where people choose to shop. It is unlikely consumers
will change their existing shopping patterns unless
they feel they will gain considerable benefit from doing
so.
Now that you have
a better idea of what does or doesn't sell online, you
should consider your own products and services. Analyze
the products or services you want to offer online. See
if there is any way in which you can add value to them
so they’ll be more attractive to your online customers.
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