Onlineonly

Online-only describes a business model in which a company operates exclusively through internet channels, with no brick-and-mortar storefronts. Products or services are sold via websites or mobile apps, and fulfillment may be digital or require shipping from warehouses.

Online-only firms span e-commerce retailers, streaming services, software as a service, digital marketplaces, and service platforms such as online education or professional marketplaces. Some use drop-shipping or fulfillment centers; others distribute software or media as downloads or streams.

Advantages include lower overhead, broader geographic reach, 24/7 availability, and easier data collection for marketing. Lower barriers to entry can support rapid scaling and experimentation with pricing and product offerings.

Challenges include logistics and returns for physical goods, building trust without a physical storefront, customer service demands, and dependence on web platforms and payment processors. Competition can be intense, and cybersecurity and data privacy are ongoing concerns.

The online-only model emerged with the expansion of e-commerce in the late 1990s and 2000s. It remains common in many sectors, though many online-only firms later adopt omnichannel strategies or establish physical locations, leading to online-first or hybrid models. The trend has been reinforced by improvements in logistics, digital payment options, and consumer comfort with online shopping.