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Can Small Businesses Still Make Money On The Internet?

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Can You Still Make Money On The Internet?
(I mean, look at the Dot-Coms...)

You've heard of enough bad news. Economic downturn, dot-com fallout, weak stock market, all the online scams...Some people just don't believe this "e-business" kind of thing any more.

But before you walk away, I want you to think about something for a moment. Did you know that between 1998 and 2000, Online Shopping Within US Grew A Staggering 580%? It's true. Forrester Research reported growth from $7.8 billion US in 1998 to $45 billion US in 2000. And online sales reach $5.7 billion in December 2001, - up 14% from December 2000, in spite of bad economy.

You can read more detailed and latest report here.

And I don't think Singapore is an exception. 

Now think about this. Online consumers couldn't care less about the dot-coms dropping off the Web. More and more people are coming online to shop, and the number of purchases that they're making each year are continuing to increase. Those new to e-shopping are making 9 purchases a year and those with more web experience (5+ years online) are making 20 purchases a year.

So what's going on? Online spending is growing at fantastic speeds. e-Shopping is becoming a routine part of consumer life. Yet all we're hearing about right now is failed dot-coms. One by one, companies like Furniture.com, Pets.com, MotherNature.com, Toysmart.com, Living.com, Mortgage.com, Garden.com, etc...have closed their doors, and each time the pink slips are handed out, the media has a feeding frenzy. Feature stories promising easy wealth and overnight success have now turned into the dot-com obituaries. It's enough to make your head spin.

And that's why these statistics I've just shown you are important. Obviously the whole story is not being told. If online shopping has reached 5.7 billion per month, all of this money must be lining someone's pockets.

But Whose?

A large portion goes to small businesses who sell unique products directly at their web sites!

Small is a big advantage. Big businesses dominate the traditional business world. The Wal-Mart's and Microsoft's have steadily forced smaller businesses out of the way. Not so on the Internet. Three out of four Internet businesses are very small, often only one person working from home.

You can find many direct sales web sites popping up online everyday. Some will fail. The ones making money all have something in common:

  • focus on a well-defined, easy-reachable niche market
  • sell a unique product or have a unique selling proposition
  • streamlined sales process
  • active and effective web site promotion
  • develop backend products

There is still plenty of room for new businesses on the Internet. Now is an excellent time to be starting or promoting your e-business. Now you can take advantage of your competitor's hesitation at this dramatic turning point and scoop up your share of the market!

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Article by Zac Hewlett at SingaporeWebHosting.com
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