Back in early July this year I was fortunate enough to
attend a small section of a conference in Sydney called Online Retailer. One
presenter, Josh Goldman, talked about how online retailing evolved, the now
obvious trends and consumer models that the short history of e-retailing was
revealing. This presentation was
truly awe-inspiring! As an
experimenter with all things online I was blown away by this insightful look into online shopping models.
Below is the first of a three part series of Josh Goldman’s presentation.
A few notes on: Extreme
Retailing: Disruptive Business Models That May Turn Shopping On Its Head!
The wave of innovation hitting online shopping is know as E-commerce 1.0 and started out in the
mid 1990’s. Sites such as Amazon and eBay were simply catalogues online that allowed you to purchase
from them. This model evolved into
on-line auctions and very successful consumer-to-consumer models such as eBay.
Millions of people have participated in eBay providing a way to sell personal
items to anyone in their country, even in the world, especially if you are a
collector. But can you remember what eBay has replaced in Australia?
During the late 1990’s we saw the rise of the first real
shopping platforms like Yahoo, and the rise of the provision of secure on-line
transactions as sceptics worried about hackers getting their credit card
details! A decade on and this concern has not gone away.
The next stage of online retail innovation Goldman has decided
to call E-commerce 1.5. Here he refers to ‘Aggregates’ and ‘Search
Engine Models’ that allowed consumers to scrutinise online shopping offers,
just as they would if they were walking around a mall, only much faster! Sites emerged such as NexTag and mySimon. These sites didn’t really impact Australia as they were
locally driven. Along with these
came different ways to buy evidenced in the emergence of Coupon Sites. These evolved
into very powerful business models, which continue even today. Have you accessed one of these?
This period, from roughly 2000 to 2005, also saw Comparison
Shopping Engines, Product Review sites, Merchant Review sites where you can find
a merchants location and indication of products they sell. This
latter model is now used in our online phone directories in Australia, or via Whereis? Once again all of these tools were to support the shopper as
they used their fingers ‘to do the walking’ and visual images to help in decision-making.
This type of tool has influenced how we actually shop now, giving us more information to
make informed decisions, to decide between choices, to examine and compare.
The final move in this segment of customer support tools are the Product Recommendation sites. Examples are Epinions.com and Rate it all. Being able to compare product specifications,
prices and delivery costs between stores is well advanced in the UK and the
US. It is yet to be a strong force
in Australia, but with our tremendous uptake of mobile phones it can’t be far
off as a tool we can call up while in a store on our mobile phone!
You might like to search for these models when you are
shopping on line. Let me know if you find anything different or if you have a
different opinion.
Next time I’ll report on the big stores using online and
what is developing in 2005 to 2010! See you then!