Make million Selling Online Products

Selling your product over the internet can be very rewarding and exciting but it will also require you to put in much time and effort inorder to succeed.

A lot of products can be sold online but not all products can be sold online.

It is important that you develop a product that you are passionate about, create a product that your customers need and will solve their problem, build traffic to your website and position yourself as an expert and professional in your field.

Let’s look at some successful corporations in this area.

Microsoft is by far the largest technology company worldwide. The company relays on innovation and acquisition of companies that allow it enter new markets.

Innovation: Microsoft Office is still its most successful product and is a suite of products that include Excel, Access, Microsoft Word, Publisher, PowerPoint and the email service Outlook.

Its other sources of revenue relate to advertising, the Bing search engine and LinkedIn.

Microsoft segments include:

· Productivity and business processes segment – which consists of products and services in the productivity, communication, and information service

· Intelligent cloud

· Personal computing

· Corporate

Its distribution channels include:

· Direct sale – to small, medium and corporate customers.

· Indirect sale – through licensed Microsoft distributors and resellers.

· Pre-install Microsoft software on new devices and servers sold.

Based on innovation Apple makes most of its revenue from the sale of iPhone.

It also makes revenue from the sale of Beats products, iPods, iPads, Mac and other Apple branded accessories.

Services provided include Apple watch and Apple television.

These are supported by Apple Digital Content and Services, iCloud, AppleCare and Apple Pay and run by Apple operating systems iOS, macOS, watchOS and tvOS.

Its business model is based on the sale of its innovative products.

Products are sold through retail shops, online stores, direct sales, third party sellers and wholesalers and retailers.

Netflix founder and CEO Reed Hastings wanted to create a mail movie rental business.

Product and innovation: Netflix has changed the way we consume media content with its subscription services.

Products include the basic subscription plan, the standard subscription plan and the premium subscription plan provided at different rates that users can choose from.

Netflix focuses on exclusive and original programming.

Netflix has a business model that is subscription based with three simple subscription packages.

The company segmented its market into three:

· The domestic market in the United States

· The international market which is outside of the United States

· The domestic DVD that focuses on customers who still use and need DVDs in the United States

Operational costs include:

· Provision of more exclusive and original programming

· Costs related to the acquisition, licensing, production of content and streaming delivery expenses

· Costs associated with customer service call centers and payment processing fees

Other costs associated with DVD deliveries include:

· Packaging and postage costs

· Content expenses

· DVD processing costs

· Cost associated with customer service centers

Business model and growth: Netflix is dependent on technological advancements in the market such as internet speeds and how fast technology is developing. As such their business model depends largely on technological progression and expansion.

Nike makes most of its revenue from the sale of sports footwear.

Products include running products, Nike basketball products, the Jordan brand, the Converse brand, football products, children and young athletes sports products, men training products, ladies training products, action sports products, sports lifestyle products, sports equipment, golf products and products for other sports such as tennis, cricket, walking, volleyball, outdoor and wrestling.

Its business model is designed to create demand for its products and the company spends billions in campaigns meant to drive up demand for its products.

Demand creation expenses include advertising and promotion expenses, endorsement contracts expenses, television ads, digital advertising, print advertising, brand building events and retail brand presentation expenses.

Products are sold through external wholesalers and internally through their own wholesale operations.

Operational costs: Nike manufactures its footwear from outside of the United States mostly from China, Vietnam and Indonesia by making use of contracted manufacturers.

A lot of products can be sold online but not all products can be sold online.

Cheers,

Peter Kirimi Mburugu.

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