Future of Internet Business

What is digital (internet) business?

Likely, most people are equating this concept with electronic commerce. However, these two things are not the same. This concept is broader than typical electronic commerce. It usually includes mobile commerce, e-commerce, electronic publishing, e-consulting, and more.

Digital business is business process transformation through information technologies and their tools. Therefore, business people tend to use traditional ways of sales and service providing. Now such a business type of communication has obtained another form that facilitates market relations management.

Nowadays, the Internet is becoming available for the majority of people. Thus, the way of conducting daily operations has changed. It has maximized advantages for business people and allowed them to adjust and accelerate processes within their companies creating a complete and flexible workflow structure.

Such strategy became the standard for many directions, from the specialized markets to the global world industries. As a result, it allowed to deepen globalization of the web-oriented methods, boost productivity and liven competition on the market.

Thousands of the companies offer an enormous diversity of applications and systems which provide flexibility and allow to create effective solutions for the clients far and wide.

Payment service development allows clients to make purchases from all over the world in a few clicks, as well as using digital analytical systems helps to turn a choice of the most desired goods into a pleasant process.

The digital market develops quickly, transforms itself, makes considerable changes and establishes its own rules to which thousands of businesspeople submit worldwide.

Every day, a myriad of people buy goods worldwide, choose the most favorable offers and make gifts to friends or family. And while you are not sure whether creating such a trading platform for consumers is worth trying or not, your competitors take as many advantages of online sales as it is only possible.

The Internet business is not only profitable but also quite convenient as you do not need to spend a lot of time going to each and every shop in your city on your own and choosing suitable goods for themselves. Modern search algorithms allow instant receiving necessary options by certain parameters. Thus, all systems are based on simplicity, minimalism and the simplified user experience.

Capacities of such ventures cover not only modern giants like Amazon and IKEA but also small internet businesses. The main feature is that large businesses absorb small groups of online stores and expand their opportunities through the market. However, the authentic business that offers creative and fresh ideas, but is of small range, will stand out and pierce users’ hearts.

You can notice how many specialized trading areas strengthen their positions on the market actively.

Large, medium and even small businesses are changing techniques of conducting working processes gradually and integrating digital platforms and services for daily use effectively. Fast digital platform customization makes the Internet a basis for all business processes.

Web-oriented methods get on the market and create a new area for a strong relationship not only among the companies that are located in one city but also across the countries.

What about statistics?

• Digital advertising spending worldwide will increase from $333.25 to $517.51 billion until 2023;
• The worldwide number of people who will buy goods online will increase up to $2.14 billion in 2021 (In 2016 the number of global digital buyers was $1.66 billion);
• In 2019, retail e-commerce sales are $3.53 trillion worldwide. We would expect its growth to $6.54 trillion by 2022;
• Retail e-commerce sales will reach 22% in 2023;
• The country with the highest e-commerce CAGR from 2019 to 2023 will be India;
• E-retail revenues will grow to $6.54 trillion in 2022;
• Digital buyer penetration worldwide will increase from 58.3% (in 2016) to 65% in 2022;
• The annual transaction value of the next-generation payment technology market will grow by $4.8 trillion in 2022;
• The number of mobile payment transactions will rise from 0.85 to 1 billion users in 2020;
• The e-book publishing revenue will grow from $5.31 billion to $5.33 billion in 2022;
• The digital Music segment in the United States in 2023 will be around $4.7 million.

Why is it becoming a new trend?

Close connection with internet devices

Let’s face it. Contemporary information technologies are a big part of our life. Someone uses these tools less, someone opens up opportunities wholly and modern business notices it too. The information that can be received through digital algorithms is the main business advantage. Thanks to the information, business owners acquire knowledge about market trends, comprehend all aspects of supply and demand, analyze sales and understand what factors impact their profit significantly. The halt using these opportunities means taking a step back and returning to the past. As a result, they risk becoming less competitive or abandoning the market forever.

Decision-making improvement

The Internet business uses technologies not only to sell products. It is necessary to have the knowledge, that helps to define:

• To whom exactly to sell your goods;
• How to sell goods;
• Via what channels it is best to advance goods;
• How to create an audience and attract the consumer;
• How to minimize expenses;
• How to optimize your resources;

The right decision is 50% of your business success. It not only does promote efficiency but also increases productivity within the company, helps synchronize processes and increase sales.

Trust-based relations

Implementing digital transformations in modern business processes is often viewed as a strong and long-term relationship creation not only with clients but also with other business partners. Internet capabilities allow having continuous communication with business owners worldwide. It promotes the improvement of financial and trade relationships, economic situation strengthening and audience expansion.

Individual approach to customers and their engagement

The Internet business is beneficial since it is based on an individual approach (personalization strategy). It means that consumers and their needs become a basic market element. Without understanding clients’ needs and their pain points you will not be able to make the rational decisions and offer the best solutions for them. For example, having own online store, it is possible to use tools of analytics or a customize additional modules that will make the accurate plan of:

• what the user’s purchases history is;
• what goods customers bought more often;
• what they are interested in now.

Collected information helps you carry out effective marketing analysis and encourage your audience to make more purchases.

Business transparency

As a business owner, you should guarantee transparency for the users. Clients don’t like things they don’t understand completely, or things they haven’t made their opinion yet.

Thanks to the latest digital innovations, business becomes more transparent as the entire information becomes available to the user. On the one hand, such practices motivate business people to make changes so that they have an opportunity to move to more innovative markets. On the other hand, it helps attract new investors or find new business partners having expanded own opportunities.

Thus, entering the world of digital opportunities, you scale the business and broaden your horizons.

The Internet space helps break through the barrier of becoming a part of the market without any significant efforts. However, if you start your business and don’t have enough knowledge and experience, it will be very difficult for you to survive by only using traditional methods of brand promotion.

Fierce competition needs considerable effort and coherent strategy to be a go-getter in business. Therefore, the digital version of your business will be an effective way that helps stay in touch with consumers, get favorable feedback and boost the new economy.