Online Business Products

This post was written by Tony-Online on March 30, 2010
Posted Under: Uncategorized

Consider, there are two categories of products you can sell in an online business, a physical product or an information product. We could classify a CD as both a physical product and as an information product because the product itself is only a means of conveying information to a customer. In the case of a CD, we’re taking about something that is recorded, music or words.

eBay used to allow sellers to transmit information in the way of electronic downloads and many entrepreneurs made significant revenue selling access to a written document, an ebook (in effect, a text file) and/or music files. eBay discontinued their practice of allowing entrepreneurs to sell electronic downloads and obliged them to fill orders with physical products. In the case of information, that meant a book, a manuscript, CD or DVD.

However, that was only for product sold on eBay; businesses outside of eBay are allowed to sell information products (Info Products) as they wish, which means that you’ll find a wealth of info-products available throughout the web. This might be a type of business you should consider, especially if you are just starting out and there are numerous advantages to this including-
•    You have no physical inventory to consider.
•    No space required to store physical inventory.
•    No potential losses due to damage, spoilage or theft.
•    There is a lot more to what you must do to control, manage and ship physical inventory products than you would guess offhand.
•    No insurance costs.
•    No obsolescence costs – unsold physical inventory may become obsolete while it sits on your shelf.
•    No worries about what quantity to order.

The customer could choose to print out text or to transfer the music to a portable device such as an ipod or burn a CD on their computer or simply store the music or text file on their computer. The huge benefit to a seller (like you) is that they did not have to handle a physical product so most of their revenue was pure profit.

Stay tuned.

An original blog written by Tony Neilson and published at www.strategicbusinesscreationonline.com March 30/10

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