1 st year

Bba
English
Teacher : zenith Montero
Topic :business online
 Introduction

Online business is any kind of business activity that happens over the internet. Running an
online business can include buying and selling online or providing an online service. Anyone
can start an online business.
All activities where products and services are negotiated and paid for across the Internet are
examples of online business. If somebody asks whether you are involved in online business,
they want to know whether you buy and/or sell goods or services electronically.
Electronically, in this case, means online or through the Internet
Consulting, starting an e-commerce store, becoming a web designer, and launching a
blog are examples of online businesses you can start easily. Online business growth is
predicted to continue as more consumers access digital environments for personal and
business needs

The term online business may refer to the activity of buying and selling goods and
services online, or specific companies. In other words, the focus might be on what a
company does or what it is.

When talking about an activity, i.e., doing business online, it means the same as e-
Commerce. E-Commerce is a type of business model where commercial
transactions occur through digital or electronic networks. In most cases, this means
through the Internet.

For example, e-Bay is involved in e-Commerce, it is an online business. PayPal,

Netflix, and Booking.com are online businesses; they are also involved in e-
Commerce. When the term refers to a company, we place the indefinite article (the
word ‘an’) before it. When referring to just the activity, there is no definite article.
Look at the two sentences below:

 PayPal is an online business. (we use the word ‘an’ when talking about a
company)
 PayPal is involved in online business (we don’t use ‘an’ when talking about its
activity).

When an online business refers to a company, it means the same as an e-Business.

Online business includes goods and/or services

All types of business activities that take place via the Internet are examples of online
businesses. Somebody who provides a service online and has paying customers has
an online business, as does an entrepreneur who sells products over the Internet.

What is e-commerce?
E-commerce (electronic commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network, primarily
the internet. These business transactions occur either as business-to-business
(B2B), business-to-consumer (B2C), consumer-to-consumer or consumer-to-
business.

The terms e-commerce and e-business are often used interchangeably. The term e-
tail is also sometimes used in reference to the transactional processes that make up
online retail shopping.

In the last two decades, widespread use of e-commerce platforms such as Amazon
and eBay has contributed to substantial growth in online retail. In 2011, e-
commerce accounted for 5% of total retail sales, according to the U.S. Census
Bureau. By 2020, with the start of the COVID-19 pandemic, it had risen to over
16% of retail sales.

How does e-commerce work?

E-commerce is powered by the internet. Customers access an online store to
browse through and place orders for products or services via their own devices.

As the order is placed, the customer's web browser will communicate back

and forth with the server hosting the e-commerce website. Data pertaining
to the order will be relayed to a central computer known as the order
manager. It will then be forwarded to databases that manage inventory
levels; a merchant system that manages payment information, using
applications such as PayPal; and a bank computer. Finally, it will circle
back to the order manager. This is to make sure that store inventory and
customer funds are sufficient for the order to be processed.

After the order is validated, the order manager will notify the store's web
server. It will display a message notifying the customer that their order has
been successfully processed. The order manager will then send order data
to the warehouse or fulfillment department, letting it know the product or
service can be dispatched to the customer. At this point tangible or digital
products may be shipped to a customer, or access to a service may be
granted.

Platforms that host e-commerce transactions include online marketplaces

that sellers sign up for, such as Amazon; software as a service (SaaS)
tools that allow customers to "rent" online store infrastructures; or open
source tools that companies manage using their in-house developers.

Types of e-commerce
Business-to-business (B2B) e-commerce refers to the electronic
exchange of products, services or information between businesses rather
than between businesses and consumers. Examples include online
directories and product and supply exchange websites that let businesses
search for products, services and information and initiate transactions
through e-procurement interfaces. A Forrester report published in 2018
predicted that by 2023, B2B e-commerce will reach $1.8 trillion dollars and
account for 17% of U.S. B2B sales.

Business-to-consumer (B2C) is the retail part of e-commerce on the

internet. It is when businesses sell products, services or information directly
to consumers. The term was popular during the dot-com boom of the late
1990s, when online retailers and sellers of goods were a novelty.

Today, there are innumerable virtual stores and malls on the internet selling
all types of consumer goods. Amazon is the most recognized example of
these sites. It dominates the B2CConsumer-to-consumer (C2C) is a type of e-
commerce in which consumers trade products, services and information with each
other online. These transactions are generally conducted through a third party that
provides an online platform on which the transactions are carried out.

Online auctions and classified advertisements are two examples of C2C platforms.
EBay and Craigslist are two well-known examples of these platforms. Because
eBay is a business, this form of e-commerce could also be called C2B2C --
consumer-to-business-to-consumer. Platforms like Facebook marketplace and
Depop -- a fashion reselling platform -- also enable C2C transactions.
Consumer-to-business (C2B) is a type of e-commerce in which consumers make
their products and services available online for companies to bid on and purchase.
This is the opposite of the traditional commerce model of B2C.

A popular example of a C2B platform is a market that sells royalty-free

photographs, images, media and design elements, such as iStock. Another example
would be a job board.

Business-to-administration (B2A) refers to transactions conducted online

between companies and public administration or government bodies. Many
branches of government are dependent on various types of e-services or products.
These products and services often pertain to legal documents, registers, social
security, fiscal data and employment. Businesses can supply these electronically.
B2A services have grown considerably in recent years as investments have been
made in e-government capabilities.

Consumer-to-administration (C2A) refers to transactions conducted online

between consumers and public administration or government bodies. The
government rarely buys products or services from individuals, but individuals
frequently use electronic means in the following areas:

 Social security. Distributing information and making payments.

 Taxes. Filing tax returns and making payments.

 Health. Making appointments, providing test results and information about

health conditions, and making health services payments.

Mobile e-commerce (m-commerce) refers to online sales transactions using

mobile devices, such as smartphones and tablets. It includes mobile shopping,
banking and payments. Mobile chatbots facilitate m-commerce, letting consumers
complete transactions via voice or text conversations.
Advantages and disadvantages of e-commerce
Benefits of e-commerce include its around-the-clock availability, the speed of
access, the wide availability of goods and services, easy accessibility and
international reach.

 Availability. Aside from outages and scheduled maintenance, e-commerce

sites are available 24/7, enabling visitors to browse and shop at any time.
Brick-and-mortar businesses tend to open for a fixed number of hours and
may even close entirely on certain days.

 Speed of access. While shoppers in a physical store can be slowed by crowds,

e-commerce sites run quickly, which is determined by compute
and bandwidth considerations on both the consumer device and the e-
commerce site. Product and shopping cart pages load in a few seconds or less.
An e-commerce transaction can comprise a few clicks and take less than five
minutes.

 Wide availability. Amazon's first slogan was "Earth's Biggest Bookstore." It

could make this claim because it was an e-commerce site and not a physical
store that had to stock each book on its shelves. E-commerce enables brands
to make a wide array of products available, which are then shipped from a
warehouse or various warehouses after a purchase is made. Customers will
likely have more success finding what they want.

 Easy accessibility. Customers shopping a physical store may have difficulty

locating a particular product. Website visitors can browse product category
pages in real time and use the site's search feature to find the product
immediately.

 International reach. Brick-and-mortar businesses sell to customers who

physically visit their stores. With e-commerce, businesses can sell to anyone
who can access the web. E-commerce has the potential to extend a
business's customer base.

 Lower cost. Pure play e-commerce businesses avoid the costs of running

physical stores, such as rent, inventory and cashiers. They may incur shipping
and warehouse costs, however.
 Personalization and product recommendations. E-commerce sites can track a
visitor's browse, search and purchase history. They can use this data to
present personalized product recommendations and obtain insights about
target markets. Examples include the sections of Amazon product pages
labeled "Frequently bought together" and "Customers who viewed this item
also viewed."

The perceived disadvantages of e-commerce include sometimes limited customer

service, consumers not being able to see or touch a product prior to purchase and
the wait time for product shipping.

 Limited customer service. If customers have a question or issue in a physical

store, they  can see a clerk, cashier or store manager for help. In an e-
commerce store, customer service can be limited: The site may only provide
support during certain hours, and its online service options may be difficult to
navigate or not answer a specific question.

 Limited product experience. Viewing images on a webpage can provide a

good sense about a product, but it's different from experiencing the product
directly, such as playing a guitar, assessing the picture quality of a television or
trying on a shirt or dress. E-commerce consumers can end up buying products
that differ from their expectations and have to be returned. In some cases, the
customer must pay to ship a returned item back to the retailer. Augmented
reality technology is expected to improve customers' ability to examine and
test e-commerce products.

 Wait time. In a store, customers pay for a product and go home with it. With
e-commerce, customers must wait for the product to be shipped to them.
Although shipping windows are decreasing as next-day and even same-day
delivery becomes common, it's not instantaneous.

 Security. Skilled hackers can create authentic-looking websites that claim to

sell well-known products. Instead, the site sends customers fake or imitation
versions of those products -- or simply steals credit card information.
Legitimate e-commerce sites also carry risk, especially when customers store
their credit card information with the retailer to make future purchases easier.
 If the retailer's site is hacked, threat actors may steal that credit card
information. A data breach can also lead to a damaged retailer reputation.

What is internet marketing

Internet marketing is an all-inclusive term for marketing products and

services online. This includes a variety of methods and platforms for
communicating with customers, such as website, email, social media, and
online advertising.

Internet marketing refers to the strategies used to market products and

services online and through other digital means. These can include a
variety of online platforms, tools, and content delivery systems, such as:

 Website content and design

 Email marketing
 Social media
 Blogging
 Video/podcasting
 Online ads
 Sponsorships and paid promotions

While internet marketing's apparent purpose is to sell goods and services,

or advertising over the internet, it's not the only reason a business will do it.

A company may be marketing online to communicate a message about

itself (building its brand) or to conduct research. Online marketing can also
be an effective way to identify a target market, discover a marketing
segment's wants and needs, build long-term relationships with customers,
or establish authority and expertise within an industry.

 Alternate names: E-marketing, web marketing, digital marketing

How Internet Marketing Works

Internet marketing uses customers' online activity to connect them with a
business by reaching them in a variety of places on the internet. The types
of internet marketing a business uses will depend on the business model,
types of products, target customers, budget, and more.
Website Content and Design

A business website allows customers to:

 Find your business online

 Learn your business's location or contact information
 Discover your products or services
 Sign up for your email list
 Request more information
 Make purchases

Websites often use search engine optimization (SEO) to ensure that their
content will rank high on search engines and be easy for customers to find.

Email Marketing

You can use email for sending direct mail electronically, rather than through
the post office. Collect customer emails either through purchases or
website sign-ups, then use emails to share important information,
encourage purchases, and build relationships.

Email allows you to reach customers individually and personally. A 2019

retail study looking at more than one billion shopping sessions found that
email marketing had a conversion rate of 2.5%, compared to only 1.1% for
social media. (The highest conversation rate was direct referral, at 3.0%)11

Social Media

Most consumers use some kind of social media, though the type you will
focus on will depend on the behavior of your target market.

More than 90% of 18 to 29-year-olds use social media of some kind, and
while use decreases with age, it can still be used to reach consumers in all
age brackets. More than 60% of those over age 65 use some kind of social
media, and those numbers are likely to keep growing.2

Older consumers are more likely to use a platform like Facebook, for
example; millennials often use Instagram; and younger consumers are
more interested in video platforms, such as TikTok or YouTube.

Find out where your ideal customers spend their time and focus your efforts
there.
Blogging

Blogging allows you to increase your website's SEO by adding articles and
posts around certain targeted keywords. This increases the likelihood that
customers will find and visit your website as a result of online search.

You can also write for other people's blogs, magazines, or websites. This
can increase your audience and put your business in front of more potential
customers.

Video and Podcasting

Some creators who make videos or podcasts use that as their sole

business. Other times, businesses use these platforms to establish
expertise, connect with others in the industry, and create a funnel for new
customers to find and develop an interest in their products or services.

Podcasts especially are growing in popularity. More than 100 million

Americans listen to podcasts every month.3

Online Ads

Online ads can take a variety of forms.

Pay-per-click advertisements placed in search engines target particular

search terms that potential customers might use. Targeted ads on social
media designed to reach specific segments of the platform's users who
might be interested in your business's products, services, and promotions.

You can also place sidebar ads on other people's websites or in their email
marketing. Online ads are most effective when they are "congruent," or
relevant to where they appear or what the target audience is searching for.

Personalization can also increase the response rate to online ads,

especially at the early stages of consumers' decision-making process.
However, personalization is most effective when ads appear in congruent
locations.4

Sponsorships and Paid Promotions

You can take advantage of an audience that someone else has built with
sponsorship or paid promotions. These marketing campaigns allow you to
pay someone whose audience matches your target market to discuss, use,
promote, or share your products and services with their followers.
This can both increase brand awareness and drive sales, especially if you
pair the campaign with a targeted promo code or special offer.

Advantages of Internet Marketing

1. It does not require too much capital to get started. You can easily start
building one with less than a thousand bucks.

2. IM provides you flexibility. Since most of the transactions are done

online, you get to work at your own pace and at your own chosen time.

3. Your business is open 24 hours a day every day. This means you will still
make money online while you are sleeping at the comfort of your own bed.

4. Your customers are not limited to just only in your neighborhood or a

neighboring town, it is worldwide and they can shop anytime they please.

5. Experimenting and testing products or services costs less

6. You will have the ability to make affiliate programs and recruit affiliates

Disadvantages of Internet Marketing

1. Internet marketing requires a great deal of effort and hard work.

2. The net is ever changing. What is in demand and hot now may not be the
same few months from now so you need to be constantly on the lookout
for anything new for your business to survive.

3. A wide array of product competition is out there in the World Wide Web.
Remember that you are not the only person who offers the service or sell
the product. There are many online business owners who sell the same
products you do.

4. Getting the right people to visit your site is as hard as finding a prospect.

5. Most online marketing sites do not have customer service/inquiry

response programs. This is why most people feel deprived of knowing
further information regarding certain products or services because what
they need is an actual person whom they can talk to or inquire about.

6. People tend to be cautious because of the too many scams in the

internet.

7. Online marketing is not a get-rich-quickly scheme as opposed to what

many think it is.

Internet marketing has many other pros and cons. All you need is to
overcome these advantages and recreate them into something of benefit to
your online business. Know who your audience so you will be able to make
money online by providing products and services that they basically need.

MADE BY TALHA ANIS

BBA

1 ST YEAR