Home Start Online Business

What Really Involves In Online Business ? Classification or Types of Online Business


Online business, referred to as e-business or electronic business which uses the Information Technology or the Internet as a platform for all kind of business activities. Normally, online businesses are product based or service based or information based much similar to the real world business. In short, any business runs over Internet is termed as an online business.

So what is really involved in online business ?

To simply explain, any online based business involves any of the following.

Product based business. Involves promoting, marketing and selling a product either in electronic form or a real world product over Internet. Customer pays money online and receives the product.

Service based business. Involves fulfilling the need of the customers much similar to the real world business. Initiating a real world service through Internet or directly an Internet based service.

Information based business. Involves giving out information about something or anything and getting money for giving that information. Also, giving out information to promote a product or a service online.

So these are the 3 classifications or types of online business. This may look much more vague don’t worry, you will be into clear mode soon. Basically, when seeing all these types of online businesses one common fact is that “you are paid money for providing something”. That’s the business here.

Its Colorful!

image: josef.stuefer

To make the statements clear , online business earns money

  • for selling a product,
  • for providing a service,
  • for providing information.

First selling products, as told before you could sell electronic products (products that are downloadable directly from Internet) or selling a real world product (involves product shipment to customer’s address). This involves selling your own product or selling others product. As a beginner or an individual entrepreneur, you could easily sell a product online. There are build-in systems using that you could sell a product over Internet easily. Earning depends on the quantity of products sold and the commission for each sale. You will know about these systems while going through this course.

Second providing a service, if you have a real world business you could promote that over Internet. Open up an entry for your existing service based business through Internet. This may not be suitable for an individual entrepreneur at this earlier stage. To provide a service through Internet, you should have the ability to serve. For example, to provide a web designing service, you should have the ability or knowledge to do that work for others. Otherwise, its tough to go in this way unless you have the ability or experience to serve. Either you could open a service center online or enroll into an online job to serve others for money.

Third comes the information based business, which is purely giving out information. What kind of information ? Any information that you know about a product or about a business or about a hobby that you love or about any topic that you are interested. Internet users are information seekers, if you provide the information to the right people (for those who are seeking the information) that’s the business. Information seekers arrives to you, finds your information useful. In turn, buys a related product from you or takes a related service from you.

For example, if you are providing information about finance you could sell software products or books related to finance or you could promote a finance based service offered by some online financial firms & get paid.

Now you are very much clear about online business, understood the major categories or types of online business and how it works. One thing that you could identify here, on providing information you could make a way to sell a product or service. So out of these three, an information based business sounds good, right ? That’s much more simple ie., giving information to others on what you know !

What you need for online business, the platform ?

As you know, any kind of Internet based business needs a website (the platform) to run. So you may need to setup a website of your own to start an online business that’s simple too. Now we have decided to start an information based online business.

Our next step is the Preparation and that’s the key step in starting an online business, we have to prepare good before start.

Steps To Start Online Business – A Beginners Course


  1. Simply need to say your article is stunning. The clarity in your put up is simply hanging and i can take as a right you might be an skilled on this subject. Properly with your permission permit me to grab your rss feed to maintain up to date with incoming post. Thanks a million and please sustain the sound work.

  2. I was really happy to visit your site, for it’s really very much informative for the beginners; and, at the same time, it’s worth recommending others–whoever is interested! At the end I may say, that after studying your said site properly, I’m sure I may come out with my own site/blog helping serve society. So, in nutshell, I appreciate yours inducing, encouraging, and helping others to be useful to humanity at large by being indivisible part of the said humanity!

    My best wishes to you for whatever tasks you may think of taking up hereafter.

    With Love,

    (Ever in service to humanity)

    • hi arun nandode, thanks for your comment and i will continue towards helping people with whatever i learn…also, good luck for you too…


Please enter your comment!
Please enter your name here