What Is An Online Business?

What Is An Online Business - Header

What Is An Online Business?

What Is An Online Business?
What Is An Online Business?

Before Internet, all businesses were done in the physical world. Today, with the arrival of the Internet, businesses can be done online.

What does this mean? What are the types of online businesses? Are you thinking of starting an online business? How can you do it? What are the courses or training available that can teach you how to do it successfully?

All this I will discuss with you in this article titled – What Is An Online Business?

* Note – This blog post is part of a series titled – How to Start and Grow Your Successful Online Business. Click the link to check it out.

What Does An Online Business Mean?

An online business is also known as e-business. Simply put, it is any kind of business activity that happens on the Internet.

Online Businesses have websites
Online Businesses have websites

A business owner can choose to do it in the physical world (also known as offline), in the world wide web (also known as online), or both offline and online. When a business owner does any or all of their business on the Internet, he or she is doing business online. We can also say that it is an online business.

An online business can include buying or selling a product or service on the Internet. These days, most businesses are found online. And they are from a wide variety of industries.

Today, anyone can start a business on the World Wide Web. You simply start a website and sell a product, service or idea on that website.

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An Online Business Is Similar To A Traditional Brick and Mortar Business

Address of the Business

To help you understand more about online businesses, let us see it from a perspective of a traditional brick and mortar business. Let us start with the business address.

In a traditional brick and mortar business, the address would be the physical address where the business is located. On the Internet, there is something similar. It is the URL – the uniform resource locator. It is also known as the web address.

Just like the brick and mortar business’ physical address is how people locate the business in the physical world, the web address is used to locate the online business on the Internet. For example, the URL or web address of Passive Online Revenue is passiveonlinerevenue.com. When you type this in a browser, you will be able to find this website.

Appearance of the Business

What Is An Online Business? - Office Building
Office Building

When you go to the physical address of a traditional brick and mortar business, you should find the physical structure where the business is running. It can be a building or an office.

In that structure, you will see physical aspects that represent the business; e.g. logos. You will also see physical elements such as doors, decorations, tables, chairs, staff working there, etc. All these in the physical world communicate to you about this business – what they sell, who they are, what is the brand, what is their value proposition, etc.

In the online world, it is about the same, except everything is online. When you reach the website, you will see the ‘front’ of the business, which is the homepage.

Usually, there will be an About page to show and tell you about the business and who are the people representing it. The products and services offered will all be displayed on the website just like how products are displayed in a showroom in the physical world.

And just like in the physical world, the website will have Contact information for you to reach the respective party in the business. Nowadays, with e-commerce, you can even make purchases online. Just like you make purchases at a physical store.

Types of Online Businesses


All online businesses have a website. What type of website it is relates to what type of online business it is. And vice versa.

For example, if the online business is to share a particular topic that the owner is an expert at, then it can be a Blog. If the online business is to sell or buy products and services, then it becomes an Ecommerce website.

Some websites are also strictly just a business front. What this means is that they simply provide information about the business. Any transaction will then be conducted offline, in the physical world.

An example can be a manufacturing plant’s website. The website will feature all the experience and expertise at manufacturing a particular physical product; such as integrated circuit wafers.


A blog is a website that provides information on a particular topic. For example, a travel blog like Asia Travel Gems contains useful information about cities in Asia, and where are the places to see, what are the good local food to try and where to find them as well as which are the good hotels to stay so that a traveler can get a good night’s sleep.

The information is helpful, and visitors drop by the website to consume it. Over time, as the number of visitors grow, the owner of the blog monetizes the site through various methods; such as selling advertising space, Google Adsense, and the best passive income way is Affiliate Marketing.


One of the Online Businesses - An Ecommerce Store
One of the Online Businesses – An Ecommerce Store

These days, unless you are living under a rock, you would have come across an Ecommerce online store. These are businesses that sell products, and even services, online. An easy example would be Amazon. It is also called an online marketplace, where you can find many products to buy.

An example of a business selling a service online can be Wealthy Affiliate where you can purchase membership to gain access to the valuable courses there that can teach you how to start on online business and be your own boss.

Social Media

Today, anyone can go on social media and become An Influencer. As an Influencer, the person can get paid by companies to promote their products and services. For example, an Influencer on Instagram with thousands of followers can get paid a nice sum of money simply by promoting a product or service for a brand.

In this sense, the Influencer has an online business. He or she is providing a service; that is digital marketing, for a client. Some Influencers even have websites to promote their talents further.

Advantages and Disadvantages of Online Business

There is a lot to consider before starting your own online business. Here are some pros and cons to help you decide which is the best direction and option for you.


Advantages of Online Business

  • Cost Saving – rent, furniture, salary for staff
  • Greater flexibility and efficiency in product and service delivery
  • Accessible to consumers all over the world
  • 24/7 availability to consumers



Disadvantages of Online Business

  • Requires technical knowledge
  • Requires knowledge about the Internet
  • Software and hardware expenses
  • Risks of encountering online scams


Need Help To Start An Online Business?

As you can see, there can a lot to consider, especially if you are not a computer or Internet expert. Or if you have not started a business before, whether offline or online.

There is a solution to this. It is my #1 Recommended Online Training for anyone who is starting an online business. And it is Wealthy Affiliate. You can read my review of this superb online training platform.

I highly recommend Wealthy Affiliate because I too have learned a lot from this awesome platform. I have had 26 years of digital marketing experience, and I find I still have much to learn from Wealthy Affiliate.

With the training provided, I have created a few online businesses. In addition, I also do Digital Marketing projects for clients; such as Facebook Advertising, Designing & Developing Websites, Email Marketing, Video Marketing, and more. And what I learned at Wealthy Affiliate has helped me helped all my clients.

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If you have ANY questions about this article – What Is An Online Business, ANY at all, please submit your questions as comments below. I will be happy to help you out.

Also, if you are a current or former member, and would like to leave your own review or feedback below, I would love to hear from you, too.

Thank you for reading this.

Best wishes!