Online Business, Advantages and Examples

Online Business

In everyday life in cities and villages, it is very familiar with the phrase "online business". So, what is an online business? what are the advantages and examples?

Understanding Online Business

Referring to the Big Indonesian Dictionary, business is a commercial business in the world of commerce. People who do business are called businessmen. Experts try to define the meaning of this business, including:

Business According to Prof. Owen

Business is a company that deals with the production and distribution of goods for sale to the market or providing prices for each of its services.

Business according to Hooper

Business is any and all complexities that exist in various fields such as sales and industry, basic industry, processing, and manufacturing and networking industries, distribution, banking, insurance, transportation, and so on which then serve, and enter the business world as a whole. overall.

Business According to Griffin and Ebert

Business is an activity that provides goods or services that are needed or desired by consumers.

Business according to Hughes and Kapoor

Business is an organized individual activity to produce and sell goods and services in order to make a profit in meeting the needs of society.

Business According to Jeff Madura

Business is a company that provides products or services desired by customers.

Business According to Brown and Pretello

Business is an institution that produces goods and services needed by society and all things that include various businesses carried out by the government and private sector, regardless of pursuing profit or not.

Business According to L. R. Dicksee

Business is a form of activity whose main purpose is to gain profit for those who seek or have an interest in the occurrence of these activities.

Business According to Huat, T. Chwee

Business is a system that produces goods and services to satisfy the needs of society.

Business According to Allan Afuah

Business is an organized individual business activity to produce and sell goods and services in order to make a profit in meeting the needs of the community and existence in the industry.

Business According to Musselman and Jackson

Business is an activity that meets the economic needs and wants the community and organizes a company to be involved in these activities.

From the definitions of the experts above, it can be concluded that business is a business activity that produces, buys and sells goods or services in order to generate profits for business people and to meet the needs and satisfaction of the community. The online business is a business activity that is carried out through the internet on a cyberspace.

Advantages of Online Business

Broadly speaking, there are 4 advantages for online business people, including:

Minimizing Operational Costs

Operational costs are costs or funds incurred to carry out daily activities of a business. With an online business these costs can be minimized. For example, if we do business offline or conventionally, we need daily transportation costs to come and go from our company or place of business. But with an online business, these costs can be minimized because we just need to be at home with only internet network.

Minimizing Business Capital

Capital is property, be it's money, goods, or other things that are used to produce something or add to something. With an online business, the costs used for capitals can be minimal. If with a conventional business such as a bookstore business, then we need capital to rent a land or place that will be used as a bookstore. But with an online business, it is enough for us to create a website or create a seller account in the marketplace, it can minimize the cost of capital and can even be free.

Minimizing Employees

Employees are people who work in a company or business. The bigger the business, the more employees will need to manage it. However, with an online business, this can be minimized because the work in an online business is not as much as compared to a conventional business.

Can Get Customers From Various Regions

Because the space of an online business is the virtual world or the internet, then we can get customers from various regions even though they are far away. This is made easier by the delivery service between regions. In contrast to conventional businesses, our business area will be limited and difficult to reach customers from far away areas.

It Can be done anywhere and anytime

This one advantage may not be possible if we choose a conventional business. Because conventional business is limited in space and time. While online business, our space and time is very free. Because the business is on the internet network which we can access in an instant.

Examples of Online Business

There are several examples of online businesses, including: Online Stores, Online Home Industries, Online Auction Places, Online Information and Knowledge Businesses, Online Agencies and Online Services, and Online Advertising Businesses.

Online Stores

Online stores are roughly the same as regular stores, which are places to sell a product to consumers. However, online stores are created on virtual networks and the internet so they don't need real land or places. An online store can be created on a website. Now it can be easier because we can create shops and sell on Marketplaces such as Shopee, Tokopedia, Bukalapak and others.

Home Industry Online

Home industry is a home industry in the real world that produces an item or product. Such as the handicraft industry, accessories, shoes, clothes and so on. Home industry online is a home industry that markets its products in cyberspace online. By creating a website that contains product information or creating an online gallery, it can reach customers who are far away and even from other parts of the world.

Online Auction Place

With online media we can create a business where goods auction. This is done by creating a website that can bring together auctioneers and customers. If there is a transaction or purchase of auction goods, then we can get a fee.

Business Information and Knowledge

Information and knowledge is something that can be turned into a business. Where we can create a website or online media that contains information and knowledge that many internet users are looking for. With so many internet users visiting our website, we can place advertisements there. From this ads we can get income.

Online Agency and Service

The online agency in question is a sales site that sells other companies' products. For example, we can create a travel site or website while we help sell tickets for an airline company and so on. The online service here is a business selling services online. For example, product design services, website creation services and so on. Online Advertising The working system of this business is that we advertise a company's products. Such as affiliates and product reviews.

Writer : Penadiksi
Job : Businessman (Online Store "Penadiksi Shop")
Editor : Pena Malam