Online Business Activity

Definition of Online Business Activity

Online business activity refers to transactions that are completed over the internet, using applications, websites, or other digital platforms.
It includes advertising, selling, buying, customer support, and supply chain management.
Online business activity can drastically decrease the costs of managing a business.

Operating an online business presents the opportunity for a larger customer base. This is because the internet provides the ability to reach customers worldwide.
Online business often offers lower operating costs. Physical retail space, and the associated overheads, are generally not required.
There is the potential for businesses to operate 24/7, allowing customers flexibility when choosing when to shop.
Online activity allows for easy access to data on customers, which can be used for marketing purposes and to make informed business decisions.

The risk of cybersecurity breaches is elevated for any online business. Keeping customer data secure is the utmost priority.
Managing an online business may require technical competencies and digital skills.
Competition is much higher in the online world, with businesses competing on a global scale.
Legal aspects such as electronic contracts and customer rights in an online context must be understood.

Website Traffic is a common metric used for measuring online business activity. It indicates the number of people visiting a business’s website.
Conversion Rate measures the percentage of visitors who complete a desired action (such as making a purchase).
Social Media Engagement, covering likes, shares, comments and followers, can reflect a business’s online presence and influence.

Internet shopping has challenged traditional retail by providing a more convenient and often less expensive shopping experience.
The increase in online business activity has also forced many traditional businesses to create their own online presence.
The rise in online business activity has led to a decline in high street shopping and store-based retail.
Many businesses now adopt a mixed approach, combining traditional and online business activity. This is referred to as a multichannel approach.

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