eBay and Amazon have been in business since the mid-1990’s. The technology-heavy NASDAQ Composite stock index peaked more than eight years ago in March of 2000, followed by the dramatic bursting of the IT bubble. It can be easy to assume that taking advantage of the extraordinary growth of the internet and e-commerce is a thing of the past. While the web is certainly more mature and better utilized than it was a decade ago, data suggests that tremendous opportunities still exist online, especially in the world of retail sales.
Businesses that want to grow their sales can still find an attractive option on the internet. US Census Board data highlights that for every quarter since the first quarter of 2001, year-over-year US e-commerce retail sales growth has been more than triple that of total US retail sales growth. Additionally, online retail sales are becoming an increasingly important part of the US economy as a whole. E-commerce sales as a percentage of total US retail sales are now five times greater than they were at the end of 1999.
One of the largest available markets to sell goods online is through eBay.com. According to statistics compiled by Compete.com, eBay was visited by more than 70 million people in April 2008 alone. This was more than two and half times the number of people that visited Walmart.com. Despite the already impressive size of the eBay auction market, it continues to show signs of strong growth. Financial statements on eBay’s investor relation website illustrate that between 2004 and 2007, eBay saw the number of active users on their site increase by 48%. Over that same time frame, the number of new items listed for sale increased by over 60% and the total dollar amount of merchandise traded increased by over 70%. Even on a platform that has been around for more than decade, exceptional growth opportunities are still available for businesses looking to improve their sales.
For those companies that realize the benefits of eBay’s market, the question becomes how to best take advantage of these opportunities. Creating tools that interface directly with eBay Web Services is one of the most empowering practices a company can undertake. eBay has created a comprehensive Developers Program that allows companies to access many of the market tools that make the auction site so powerful. According to eBay’s website, third party software applications account for over 25% of eBay.com listings. A number of merchants have already realized the benefit of interfacing directly with the auction site and are creating sustainable advantages over their competitors. Integration with internal inventory management systems; quicker and easier ways to manage listing, bidding, checkout and shipping tasks; and improved customer service – these are just some of the ways a custom application interfaced with eBay can help a company with its business processes.
Just as it is necessary to create processes to maximize sales and improve customer support in the traditional brick-and-mortar economy, businesses are also now required to develop the proper tools and systems to optimize their transactions in the online world. As e-commerce continues to become a more significant part of the US economy, a company’s long-term success is increasingly reliant on best taking advantage of the online consumer. Businesses that recognize this are achieving sustainable advantages over their competitors and are positioned to be market leaders for the foreseeable future.
About AllianceTek Inc.
AllianceTek Inc. provides customized information technology solutions to businesses throughout the nation. The firm helps clients to achieve higher levels of efficiency and provides them the tools necessary to grow their business. AllianceTek is equipped to manage a wide range of IT solutions, from standalone and web-based software applications, to business process outsourcing, to multimedia design and creation. The company has extensive experience developing tools that interface with market-leading technologies, including eBay and PayPal. More information about AllianceTek is available at www.alliancetek.com |
Added: Thu Jun 12, 2008 12:25 pm GMT 