The web continues to change and evolve. Whether you just sell on eBay or
if you sell on other sites like Amazon or your own web site it is important
to understand and keep up with the changes. Here is a great article by Ralf
VonSosen from Infopia. At the end of the article is a link where you can
download a free copy of How To Prosper in The New Era of Online Selling.
Web 2.0 Meets eCommerce
By Ralf VonSosen, V.P. Marketing, Infopia
A few years ago, the concept of "Web 2.0" was introduced as a result of a
brainstorming meeting between Tim O'Reilly and Media Live International,
resulting in the first Web 2.0 Conference held in 2004. O'Reilly coined the
term "Web 2.0" to define how the internet affects and shapes the way
software solutions are developed, designed, and used.
The internet has changed the way people communicate, exchange information,
and do business. It has opened a new world of possibilities and has
significantly changed our expectations as a society. Particularly for the
eCommerce segment and the many businesses that use the web as a sales
channel, it has opened up new ways to reach customers, interact with them,
and form relationships.
These concepts of Web 2.0 can be applied to eCommerce. In my book "The
eCommerce 2.0 Handbook: How to Prosper in the New Era of Online Selling," I
provide six specific principles that are vital for eTailers to understand
and utilize in order to stay competitive and thrive. These six principles
describe the new realities of online selling, identify unique opportunities
and how to apply them, and explain how to plan for the future using the
internet as a powerful sales channel.
The Six Principles of eCommerce 2.0
1. Sell Everywhere – Be Seen and Be Shopped
Customer expectations for how and when they buy products have changed
substantially over the past few years. Multi-channel selling was once
limited to managing direct sales, a call center, a website, and possibly a
partner channel. With eCommerce 2.0, this has been expanded and refined to
include various online channels. These new channels include additional
branded websites, various online marketplaces such as eBay, Amazon.com,
Overstock.com, and others, and online shopping comparison engines such as
Shopping.com, PriceGrabber.com, and others.
2. The Long Tail – Target Niche Markets
eTailers who can connect with niche markets and provide a better online
experience are capitalizing on new-found revenue. In the past, the obvious
strategy was to find the bulk of the market and then mass market to them.
With so much competition, many online merchants have adapted by discovering
new methods and tools that target specific niche markets. These niche
markets are not flooded by the big brands and respond well to content and
online experiences directed specifically at them. In many cases, the demands
of these niche markets are simply not being met by big brands. The Long Tail
principle of eCommerce 2.0 is about being able to reach beyond the
traditional prospect base and tap the potential of niche markets.
3. Customers Rule – Build a Community of Raving Fans
Buyers were once along for the ride in the eCommerce process. Now they are
in the driver's seat. The content buyers create through forums such as
product reviews, Blogs, and social networks influences other buyers as much
or more than any promotion eTailers create. Forums like YouTube and MySpace
underscore how content created by consumers has become a viable and valuable
part of the promotional and sales cycle for retailers. The most frightening
aspect of these forums for many eTailers is the perceived loss of control
over content being published.
4. Personalized Shopping – Make It Fun to Shop and Easy to Buy
Shopping has long been considered a recreational activity by many. Shopping
online is no exception. In fact, with the sophistication and speed of online
shopping tools, consumers are spending more and more on eTailer websites.
The best of these shopping tools takes into account that buyers want to be
entertained and pleased. Buyers also—just as in the brick-and-mortar
world—do not like long checkout processes. When building your online brand,
regardless of channel, remember that speedy checkout equates to happier
buyers who are more likely to return and buy again.
5. Mash-ups – Integrate and Collaborate
Integration is nothing new, but what is new is how dynamically these
integrations need to be initiated, modified, and used. The eCommerce 2.0
environment is built upon many interrelated systems and processes that
require information to be exchanged dynamically. This happens between many
systems based on individual user experience and the context of a particular
customer interaction or order. Seamless access and interaction between
systems is what promotes increased conversions and buyer loyalty, as well as
attracts new buyers.
6. Data is King – Collect a Wealth of Opportunities
Gone are the days of looking at purely operational reports. Seeing how many
listings you have in a marketplace is fine, but it does not tell you how you
compare to other eTailers, what your performance is like over time, or what
other channels may be more profitable. eCommerce 2.0 is about collecting and
managing data from all online channels to enable better business decisions.
Discovering product opportunities relies on being able to define business
objectives carefully, identify related key performance indicators (KPIs),
and receive continual data to act on it.
What eCommerce 2.0 Means to Your Business
eCommerce is evolving and growing at a rapid pace. Driven by technology and
consumer needs, keeping pace can be difficult. The principles of eCommerce
2.0 provide guidelines to evaluate your business now, identify untapped
opportunities, and plan for the future.
Mr. VonSosen is a technology executive who has worked for companies such as
Siebel, SAP, Nextance, and Infopia. He is currently a Vice President at
Infopia—an eCommerce technology company—where he leads product and
communications teams. Mr. VonSosen has also served as a Vice President at
SAP, with responsibility for the company's CRM product marketing strategy.
Mr. VonSosen holds a Bachelor's Degree from Brigham Young University and an
MBA from the University of Utah. He is a proud father of four and an active triathlete.
About Infopia
Since 1999, Infopia has provided eCommerce technology to eBay PowerSellers
and online retailers. The Marketplace Manager eCommerce platform from
Infopia enables businesses to fully execute the online inventory-to-cash
cycle. It integrates a full range of critical success factors and is based
on eCommerce 2.0 principles, helping companies optimize product
merchandising, manage the shopping experience, and maximize their presence
through premier online marketplaces and search engines such as eBay, Amazon,
Overstock.com, Shopping.com, Shopzilla, Yahoo!, and Google. Together with
online selling best practices, Infopia provides unique and proven value to a
wide range of clients. Infopia is headquartered in Salt Lake City, Utah. For
more information, visit www.infopia.com.
