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Do E-Business: Making Money Online: Selling Products

Selling Products Online

Thousands of e-stores now thrive on the Web, providing people with a way to purchase goods and services electronically. For small businesses, the Internet can deliver a global market. Depending on which survey you believe, there may be more than a billion people worldwide who use the Internet. If the demographics of the online community match your customer profile, that's a lot of potential new business. While the promise is there, challenges loom large.

According to a study by the Pew Internet Project, 67% of American Internet users shop online.

First of all, how do your potential customers learn about your website? That can be difficult given the amount of online competition. To attract customers, you have to aggressively market your website. While guerrilla strategies keep costs down, running a promotional campaign, buying ads, either in print or online, can be costly.
Second, what kind of products do you sell? The answer is critical, because online shoppers are reluctant to buy big ticket items, such as furniture. The exception seems to be commodities like electronic gear and computer equipment. What's selling well? Airline tickets, hotels rooms, music, books and software--goods and services that are already familiar.
Remember, it takes time for people to adopt to new technology and modes of transactions. Some people remain reluctant to give out their credit card numbers over the Internet. But as previously noted most analysts project healthy growth for online sales, especially as security issues are addressed.
The poster child dotcom business, Amazon.com has a lot to teach aspiring Internet entrepreneurs. It has grown from a bookseller to a purveyor of thousands of diverse products, pioneering ways to improve convenience and customer service. After years of hemorrhaging millions of dollars, the company has seen its revenues soar.

The Resource Center at Internet ad agency Double Click offers a wealth of information for aspiring Web publishers.

Subscriptions

Some websites now charge subscription fees, starting as low as a few dollars per month. Subscriptions can be on a monthly or yearly basis. One newspaper that does this, The Wall Street Journal, charges US $20 a year for its print subscribers and US $79 for nonsubscribers.
Subscriptions, however, run contrary to the culture of the Internet, where most information remains free. According to a survey from Jupiter Communications, a majority of respondents claimed that they were unwilling to pay a monthly fee for website access. Apparently they don't perceive enough value from the experience to pay for it, at least not yet. That could change dramatically as multimedia hits the Web. But some information, even text, does have value and some people are willing to pay dearly for it. Lexis, a legal online database, charges $2.00 per minute. While incremental billing isn't practical on the Web right now, it soon will be.

A good resource for Internet business is eCommerce Trends.

The Web is still in its adolescence, little more than 15 years old, an unexplored territory with great potential and few rules. Despite uncertainty and high risk, opportunities abound for electronic entrepreneurs.



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