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What is Microcommerce?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
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  • Last Modified Date: 01 December 2016
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Microcommerce involved the purchase and selling of goods and services that are understood to be soft content. Generally, the cost involved with buying and selling soft content is relatively low. The concept of microcommerce makes it possible to engage in commerce activity that is usually considered too small for a standard credit card charge.

In understanding microcommerce, it is important to grasp the concept of soft content. Essentially, soft content is any type of access to information, software, or general services that is priced at very low rates. The price range for soft content may be only a few dollars per unit, or even be priced at rates of a fraction of a penny per unit. The ability to make use of the model of microcommerce allows companies to create and sell soft content in order to earn what is sometimes a substantial profit based on the sheer volume of purchase transactions that take place. When an individual chooses to purchase one of the goods or services in a microcommerce environment, he or she is in effect delivering what is known as a micropayment.

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One of the best examples of microcommerce environments that thrive on the collection of micropayments is pay-per-click advertising. Pay-per-click is used extensively on the Internet as a means of generating revenue in small increments. Generally, a pay-per-click strategy will generated anywhere from a fraction of a cent of revenue all the way through to several cents for a single click. If the ads or icons are clicked frequently, this can lead to a steady flow of revenue for the owner of the web site where the ads reside.

Microcommerce continues to evolve as the Internet becomes more popular as a means of conducting all sorts of business transactions online. Companies may choose to employ microcommerce as a means of gaining authorization to place advertising on various private and business web sites, effectively creating another sales tool that can be used to reach new customers. In exchange for this privilege, the owner of the ads will share revenue with the web site owner through pay-per-click or similar methods.

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