While most businesses were still figuring out how to get their companies online, Amazon and eBay were enjoying success by finding new ways to look at old paradigms. EBay took the garage sale/rummage sale concept and put it online where millions of people could bid on used or overstocked items put up for sale. Amazon struck back against conventional bookstore thinking by using its infinitesimal amount of shelf space to stock practically every book in print.
While these two industry heavyweights have had their share of ups and downs throughout the years, the fact that both are still going strong is a testament to their business model and the vision of their leadership.
Online Security Issues Threaten an Industry
It is hard to imagine it now, but only several years ago, the entire online shopping industry was at a major crossroads. Hackers had begun to infiltrate thousands of websites and the term "identity theft" found its way into the mainstream media. Shoppers began to flee the web over concerns about the safety of the credit card information and the industry looked to collapse under the stress. Flash forward to 2008. Although information safety is still a primary concern, and hackers still lurk behind many corners, innovations in web encryption have helped businesses protect their online customers like never before, and the sales are back in the growth column.
Faster Connections and Technology Lead to Better Shopping Experiences
With over half of the United States now using broadband connections to surf the web, online stores are able to provide a more robust, interactive shopping experience. Customers can now use cutting-edge technology to customize their purchases online and see what the finished product will look like. E-commerce sites can now use powerful algorithms to predict shopper's tastes and make recommendations about purchases they might like.
The Next Wave of Online Shopping Sites
Now individuals can order products from their favorite brands and stores with the click of a mouse. And new shopping sites are popping up every day that change the way we think about online shopping. One of the fastest growing business models is the deal of the day website, where alert customers can grab a low price on a limited quantity item by checking the site on a regular basis. These sites place a single item up for sale every day, and open up small number of the item at the "opening bell." It's one of the fun, innovative ways that consumer are shopping online, and a reason why the e-commerce industry continues to grow.
