Saturday, April 26, 2014

Basics lesson no-1. Can you make reasonable surplus called profit on eCommerce marketplaces?

Rule no 1: eCommerce was invented to compliment physical retail & not to compete with it. It was created for convenience of buyers. (most research studies prove this)
Why giants keep on forgetting, basic lesson? Why is it being run like  a flea market?
Whether it is b2b, b2c or some other format, calculation & valuations of almost all companies is a massive bubble, larger the company, more colorful & beautiful the bubble.

Honorable exception being eBay & niche (small) players on ecommerce usually dealing in customised products (fashion, apparels, jewelry, rare items, art & decor, health/medicines)

The most abused category is publications-books....more about the same.Strange Revelations, Essential Strategy for High Traffic, actual pricing of books & How eCommerce companies play with pricing? Is it Ethical Market behaviour?

The same is being replicated with mobile phone category. (is it worth the time, risk & ROI) selling mobile on internet.

If we do not nurture the new baby. will it survive? Will it grow & live a healthy life?

Biggest fallacy by online sellers is thinking buyer's only want lower price, perhaps this is partially true for branded products & books, online sellers have contributed to this mindset.