What’s an Internet Trader?

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Internet merchants can start with a smaller capital outlay and sell a variety of products and services online. However, they need to set up a payment processing system and manage shipping. Successful merchants find a product niche and market themselves well.

An internet merchant is a person or company that does business online. The widespread penetration of broadband and the acceptance of Internet entrepreneurship led to an explosion of Internet merchants in the 2000s, ranging from global corporations to people doing business outside the home. Working as an Internet trader has some distinct benefits, although there are some downsides to consider as well.

A big advantage of working online is that a much smaller initial capital outlay is required. An Internet merchant does not need physical premises and all the costs that come with it, including liability insurance and general expenses such as utilities and cleaning services. Additionally, people can get started with a small online business, working their way up to bigger deals as they start to generate money. Conversely, someone with a physical store needs inventory to fill the store, which can require a substantial investment just to open the doors.

Some small businesses with brick and mortar stores also do business online, and these Internet merchants may end up doing more business on the Internet than they do in their own facilities. People can also sell a variety of products and services from home, running their own open websites, or working with sites like Etsy and eBay to sell their goods to members of the public. Such sites usually collect a commission for handling the sale, but offer promotion and a secure space for Internet transactions.

Some disadvantages of doing business online include the need to set up a payment processing system; for a small business with a store, sales can be handled with cash and checks, but to do business online, people need to be able to process credit cards. This requires an internet merchant account with a bank and payment processor who will process credit cards on behalf of the business. Doing business online can also expose people to risks such as fraud. Also, internet merchants have to manage the shipping which can get quite complicated especially when an internet merchant is working with international clients.

Internet traders appear and disappear every day. The most successful ones find a product niche and sell themselves well to ensure they gain a large following as quickly as possible. Less successful merchants may find that they are trying to break into an oversaturated market or that they can’t handle their marketing well and as a result are not attracting the customers they need to survive. Many aspiring internet traders start out in the online business world as a side business, building the internet business on a stable footing before doing their day job.




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