Posted by Timebusinesstoday.com – As technology develops, now many people are entering the world of digital business. Because digital business is said to be more profitable than conventional business.
Even so, before starting a digital business, you should first know the types. Because running a business cannot be haphazard, thorough preparation is needed so that the company continues to grow.
So, what is digital business? So what are the types? Read the complete discussion in this article.
Understanding Digital Business
Digital business is a business model that utilizes sophisticated technology in a company’s operations. Apart from creating a product, digital business is also used to market products to consumers.
Digital business is a type of business that utilizes sophisticated technology, both internally and externally. So it’s not just about selling products, digital businesses can also sell services.
Advantages of Digital Business
There are many advantages to operating a business digitally. Quoting the site optednetizen.id, here are the advantages of digital business:
- Can reach a wider range of consumers
- Sales of products or services can increase significantly
- Promotion costs are more economical because they are distributed via social media
- Business operational data is more accurate because it uses software
- The relationship between sellers and customers becomes closer because they are connected to the internet
- The capital required is not too large
- Encouraging the creation of better innovation.
A number of the advantages above make digital business more profitable than conventional business.
For example, selling and marketing products conventionally requires a place where we will sell the product. This requires shop rental costs, which are not cheap.
Another example, selling a product using conventional methods is less effective because consumers have to come to the shop to buy the product. Meanwhile, through digital, consumers can buy products anytime and anywhere online. After being paid, consumers just have to wait for the goods to arrive at their home.
Types of Digital Business
There are a number of types of digital businesses that you need to know about. Quoting the Podomoro University website, the following are the types of digital business:
1. Marketplaces
A marketplace is a digital business where business owners provide a means for other people to sell on their platform. In other words, a marketplace is a forum that brings together sellers and buyers and facilitates transactions between the two.
Some examples of large marketplaces include Alibaba, eBay, and Amazon.
2. Ecommerce
Keep in mind that e-commerce and marketplaces have differences. Because, there are still many people who think the two are the same.
For your information, e-commerce is a digital business carried out directly by companies or producers by selling and marketing their products or services to consumers.
For example, the Baju Jaya company which focuses on producing clothing has set up an e-commerce website. The aim is to sell and market their clothing catalog to consumers online.
3. Subscriptions
The digital subscription business is a subscription fee paid by users, either monthly or annually. This digital business model is generally implemented by streaming, reading and other entertainment platforms. Examples include Netflix and Spotify.
4. Ad-supported
This type of digital business relies on profits from advertisements displayed on social media or certain websites. For example, ads on YouTube, Instagram, Facebook, up to X.
The income earned will be greater if more advertisements are placed on the platform. However, there are a number of platforms that provide premium services by subscription, so customers will no longer see advertisements.
Examples of Current Digital Business Ideas
Interested in entering the world of digital business, but don’t know where to start? Don’t worry. Quoting the BFI website, here are a number of examples of digital business ideas that you can try.
- Content writer
- Content creator
- YouTuber
- SEO Consultant
- Web developer
- Graphic design
- Influencers
- Affiliate business
That’s the discussion about digital business, starting from the definition, advantages, types, to examples of business ideas.