Online shopping had a great run with Amazon and eBay but growth has somewhat stalled . Blame it on recession but no one can deny that fresh ideas are much needed to make it really 2.0.
Historically , eCommerce was first enabled by ERP systems with primarily business to business (B2B) models. Electronic data interchange (EDI) has been the corner stone of modern supply chain. Traditional ERPs, however, couldn't deliver the promise of a true B2C experience. Despite powerful tool kits from likes of IBM and ATG, merchants typically perceived eCommerce as "just another" sales channel.
Amazon is the first generation of true "business to consumer" model that really works. While Amazon continues to innovate it still remains the same paradigm of products, shopping carts and online payments aka eCommerce 1.0.
Social networks can play a lead role in ushering online buying experience to the next level . Some key things that social networks can enable
Historically , eCommerce was first enabled by ERP systems with primarily business to business (B2B) models. Electronic data interchange (EDI) has been the corner stone of modern supply chain. Traditional ERPs, however, couldn't deliver the promise of a true B2C experience. Despite powerful tool kits from likes of IBM and ATG, merchants typically perceived eCommerce as "just another" sales channel.
Amazon is the first generation of true "business to consumer" model that really works. While Amazon continues to innovate it still remains the same paradigm of products, shopping carts and online payments aka eCommerce 1.0.
Social networks can play a lead role in ushering online buying experience to the next level . Some key things that social networks can enable
- Promotions overload - Who wants to read every single mailer from Lowes and Sears ? Facebook can filter the promotions to match demographics and search patterns. We already see these features at Amazon in terms of cross or up selling but Facebook and Google plus have much better visibility and tools to understand and forecast consumer behavior.
- Aisle walk - See what your friends are buying and what they say ?
- Group discounts - Lets say four people in your network want to buy the same product . Will buying together get you a group discount?
- Wish lists and bragging rights - Share your shopping lists with friends . Whats the point of buying those jewels if there is no one to see and appreciate :-)
- Loyalty programs 2.0- No matter what card you use, all your reward points are tracked by social networks and are interchangeable. And you can use them for buying real needs rather than the gifts for cousins and kids at Amex rewards.
- True mobile shopping - Social mobile apps are more powerful and have better return rate than the online store. Adding shopping features to social networks automatically increases the visibility.
Shopping is a fundamental social activity. We have seen many attempts in past - recall Circuit City's 3D shopping store in Second Life. It didn't catch up for it was way ahead of its time. I think the time for social networks to cross the line has come. No wonder why Google is investing huge in G+ and Facebook has the most awaited IPO .