In general, digital business is a business model that utilises digital technology that we can find today. In short, it is a modern or futuristic business.
This business model will last and replace the old, traditional business model. It has various benefits, such as being more effective, profitable, and easy to start.
Currently, there are at least three types of businesses that we can include in the digital business category.
Therefore, this article will explain everything about each type of business. Because if you want to start a digital business, we want you to understand and be able to apply to or choose the type of business you want to try.
E-Commerce Business
From the name, we believe you already know what e-commerce is. This is a business that uses digital platforms to promote and sell its products.
In general, the easiest example is an online shop. because you can build a website, install your product on the website, then promote and sell it using the online transaction method.
while another example is a delivery application. In short, your customers use this platform to order products from you, and then you ship them to them after they complete the transaction.
This digital business has a wider reach compared to the old and traditional business platforms.
other than that. As long as the customer has the device and internet connection to access the platform, the opportunity for the transaction will be higher than on the old business platform.
Because of that, many business owners use this model to run their businesses today. Besides that, the COVID-19 pandemic has also accelerated the use of this business model.
Related: B2B Marketing Strategy Framework for Startups
Subscription Business
Interestingly, in general, this digital business uses the same concept as the old business model, namely subscription services.
Therefore, you may have experienced subscribing to newspapers or magazines; of course, this business model remains the same.
So, using digital technology, most of them also sell digital products. In fact, it has the advantages of range and portability.
Besides that, you can find many businesses that use this model. For example, Netflix, Amazon Prime, Disney+, and many more.
Then they charge users a membership or subscription fee to use their services. As you can also see, the products they sell are digital products, which are like movies.
However, even though most subscription business models sell digital products, this does not mean that this digital business is limited to that product.
Because you can also find many companies trying to use the subscription model to sell their physical products.
Besides that, you can also find types of subscriptions that sell snacks, healthy food for diets, and much more.
Ad-Supported Business
We can say that the ad-supported business was born because of the rapid development of digital businesses.
So the demands of this business model allow the ad-supported business to run and make a profit from it.
Therefore, the ad-supported business tries to provide a platform that can reach more people. So that will increase the effectiveness of the advertisements that other companies put there.
On the other hand, most ad-supported businesses provide services that many people can use, such as social media or communication platforms.
last The best examples of this model are Twitter, Facebook, Instagram, and WhatsApp. They provide their services for free, but they put advertisements on their platform.
Related: The Top Social Media Platforms for Advertising Your Business
Conclusion
As you can see, you can find this type of business almost everywhere. today You might also use it a lot and feel many benefits from it.
In short, digital business will last longer, especially when digital technology becomes the foundation of people’s lives.