PRODUCT OR SERVICE – WHICH ONE IS PROFITABLE?

Apparently, the internet as we know is increasingly utilized to communicate, entertain, educate, and research a wide variety of materials needed. Therefore, it is no wonder that non-perishable informative products such as computers, software, books, travel, electronic goods, and magazine subscriptions are the most popular choices in today’s present. After all, some of the content-rich sites ranging from subscription-based to advertiser-supported which focuses on a wide variety of topics discussed have been taking place and scattering rapidly all over the internet.

Basically, such hospitality services as hotel reservations, air travel arrangement, and other related online investments have successfully transformed themselves into the e-commerce business models through the use of internet. In fact, some diverse unique services such as online driving schools, for example, have been prospering and quite booming. Many states in the USA have already set up online payment services for their government services. As a result, the vast majority of American citizens now can have their own convenience and flexibility to pay most of their bills and other expenses instantly, thanks to the sheer magic of virtual services.

Furthermore, any products can also be profitably marketed and sold on a virtual basis. However, not all the kinds of services can be run entirely via internet because it may cause some business activities to be diminished and less executed, especially when face-to-face selling is needed to seal a commercial deal. In this case, the role of internet can only provide lots of preliminary useful information in setting the scene for the initial stage, but the actual type in many conditions for wrapping up a business transaction usually takes place offline and not on the virtual circumstances.

Apart from that, the typical products and services that can sell best over the internet are commonly those which can take an advantage of user convenience through the effective internet utilization. For this purpose, to provide a user convenience of website utilization is the primary aspect and the objective of why consumers are willing to flock themselves in the first place. Due to the fact that people nowadays can perform their contemporary shopping activities at any given hour, the risks of dealing with crowded stores, annoying sales clerks, and even protect their money from pickpockets can ultimately be diminished.

Lastly, most of the items sold by product catalogue and mail order are able to perform well in selling, even though many people may prefer or would rather acquire them when they can be shipped at a very reasonable price. And we know that higher shipping costs practically reduce the price competitiveness, turning off future potential buyers, and are often found to be the major factor that discourages people from doing online shopping more than any other reasons. Therefore, it is no surprise to witness that roughly around 53% of online American shoppers were naturally concerned with the high shipping costs, compared to those who were worried about their credit cards’ information being stolen according to one business report published by Ernst and Young.