Reactie van Rick Rodriguez op 20 Oktober 2021 op 11.18

An online trading company is a trading company that primarily operates through the internet and its e-commerce tools. Like any normal trading company, online trading companies specialize in buying goods from manufacturers and reselling them to consumers or other retailers. However, the online nature of this business makes it different and has specific advantages and limitations. Selling goods online offers tremendous opportunities and benefits that allow you to trade worldwide and save on organizational and administrative costs such as wages, office rents and others.

The main difference is that a 100% online trading company (with no physical stores, just headquarters and warehouses) requires virtual rather than physical infrastructure. An offline trading company needs offices, stores, storage rooms and a logistics network that connects suppliers, offices and points of sale; An online trading company needs offices, storage rooms, powerful servers and websites as well as a flexible logistics system to serve customers in many locations.

As you can see, online trading companies require less physical infrastructure, but they also need to be much more flexible to serve their customers. In addition, a website is a useful addition to a regular trading company, but an indispensable tool for an online trading company, without which the company cannot function - hence the high demands on the capabilities of the website and the host server.

Functions of an online trading company
The main function of an online trading company is to buy goods from a manufacturer and resell them to dealers and consumers. A secondary but essential task is the delivery of the goods to the customers, since online trading companies usually do not lack any physical infrastructure such as shops, outlets and other sales points.

In order to buy and sell goods, an online trading company must set up a hub for the transfer of products from manufacturers to customers. In this case, that hub is a website. Just as a physical shop requires designers and marketing specialists to optimally arrange and present products, a digital shop also needs specialists who guide the customer through the possible purchase options.

When delivering goods, an online trading company can either set up the delivery network itself or outsource this task by concluding a contract with a logistics company. The online trading company then hands over its goods to the logistics company, which takes care of the delivery of the goods via its own network.

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