Ecommerce has enabled new categories of services and products to be sold to customers around the world. Without any constraints on inventory or shipping, some of the most innovative business models have been created to sell everything from a night on a couch to standing in a queue.
Freelancers and Trades.
One of the areas where online selling has transformed the way people work is the ability for expertise to be aggregated and sold. Sites like People per Hour and Envato Market sell all manner of services – from designing a company logo to transcribing audio into text, to building a distributed hotspot network.
These marketplaces for services use Social Media and other recommendation signals to allow customers to choose the best people for the job. Similar sites exist for Builders, Plumbers and Electricians.
Cars, Couches and Queues.
Ecommerce has spawned a range of new products that have not been possible before. Services like Careem have turned industries like Taxis upside down. Mobile phones that are connected to 4G with GPS that can track an individual to a few feet make the customer experience more convenient. Here are the advantages from a customer point of view.
- The customer can see how long it will be before a pick-up.
- The customer can pin the destination on the map and driver can use navigation to get to exact location without needing to ask directions or take the wrong route.
- Credit card is kept on file so that no cash is required.
- Drivers can be rated to ensure highest level of service.
AirBnB has asked the question, what if Hotels didn’t have to be Hotels? What if people rented out their houses, spare bedroom or couch to travellers? Social media trust indicators help to determine safety, cleanliness and other factors that make a stay enjoyable.
Is there anything that you can’t sell as a service? How about getting someone to wait in line for you. Want to get the new iPhone but don’t want to queue? There is an app for that.
Virtual Goods.
Some of the very first E-commerce transactions were for virtual goods. Mobile Phone ringtones were big business 15 years ago. Of course, music and video are now commonly paid for and consumed online, again making the most of being able to satisfy the Long Tail of demand for songs and films that require no stock to be held.
More recently, in-app purchases have created an economy for things that in some cases defy the laws of markets. Some upgraded guns in shooting games can cost over $500 – real dollars. Other games make you pay per bullet – a revenue model that adds up very fast.
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