… Ecommerce, Internet Security, Economics, and Entrepreneurship

Category: eCommerce Page 2 of 7

Daily Roundup for 2008-03-19

  • A woman who claims the recording industry’s anti-music piracy campaign threatens and intimidates innocent people has filed a new complaint accusing record companies of racketeering, fraud and illegal spying.
  • One of the great things about the Internet is the way people post reviews on just about anything you are considering trying, whether it is a movie, a new restaurant or the local florist.  This also introduces one of the worst things about the Internet: trying to figure out which reviews to trust. Was that effusive praise written surreptitiously by the merchant? Was that anonymous online slam posted by a devious competitor?  The dilemma might be unavoidable in this age of abundant user-generated content, when we have to be smarter about separating signals from noise. But a startup called RatePoint Inc. begs to differ. It wants to play referee, giving consumers more clarity into a business’ reputation and protecting the business from unwarranted blights on its credibility.

Daily Roundup for 2008-03-08

  • The U.S. Presidential race has reached a critical juncture. The Republicans have a confirmed nominee in John McCain; as for the Democrats, Hillary Clinton has bounced back, while Barack Obama retains a marginal lead in terms of delegates. How the presidential race evolves will be shaped in part by the increasingly worrisome state of the U.S. economy. Consumer prices are rising, oil has crossed $103 a barrel and gold is nudging $1,000 an ounce — suggesting that the economy could be entering a phase of 1970s-style stagflation. Fed chairman Ben Bernanke, however, told Congress last week that he doesn’t anticipate stagflation, and he continues to indicate his willingness to keep cutting interest rates. What lies ahead for the U.S. and world economies? Knowledge@Wharton discussed these questions and more with finance professor Jeremy Siegel, author of The Future for Investors.[youtube http://www.youtube.com/watch?v=WeDUeIBomzM&rel=1&border=0]
  • Last month I talked about blogging platforms and the value blogging can bring to ecommerce sites. When a website makes the decision to begin a blog and decides upon a blogging platform, it will then have to decide who will blog and how often. Time allotted to blogging is also a relative issue, as is subject matter. So why bother at all?  Relative to static ecommerce sites, search engines consider blogs more real and trusted because blogs tend to have fresh content and there is a less financial, more informational link between a blog and its readers. An ecommerce site should take advantage of this tendency by adding a blog to augment the overall site.

Daily Roundup for 2008-03-07

  • When a small padlock appears in the corner of your Web browser’s address bar or the entire bar turns green, it seems like a powerful signal you’re safe to proceed.  But experts say the SSL certificates those green lights signify — digital stamps of approval that Web sites buy to prove they’re running a legitimate business and can send and receive encrypted data safely — don’t provide the safety they seem to.  "They instill some sense of security, but that could be a dangerously false sense of security," said Paul Mutton, a researcher with UK-based security firm Netcraft Ltd.  The site itself could still be riddled with security holes for hackers to exploit. And the certificate could simply be bogus: Criminals have been forging them to get the padlock icon and dress up fraudulent sites.
  • During the Web’s heyday, a profitable Internet company nearing $100 million in annual sales while luring a million new customers a month would have found itself on the IPO fast track. But that’s hardly the case for LinkedIn, a professional networking site that has cleared those hurdles and then some.  Instead, LinkedIn is hewing closely to the Web economy’s new motto on initial public offerings: Easy does it. Founded in 2003, LinkedIn may not sell shares until some time next year. Likewise, social networking site Facebook, worth $15 billion on paper, may not go public until 2010,

Daily Roundup for 2008-03-03

  • By giving an audience widgets that provide a service and make their lives more interesting or convenient your brand will be on its way to far more free real estate than you ever expected.  In helping brands develop widget presences, I can say that for brand managers and agencies alike, the first time through can be an emotional roller coaster. Early in the process, brainstorming sessions are filled with far-flung, fantastic ways to bring enterprise information into the everyday lives of the audience.
  • Comparison shopping engines are an important part of the e-commerce channel marketing mix, Scot Wingo, CEO of e-commerce channel management services vendor ChannelAdvisor Corp., tells Internet Retailer. But they’re a better spend for some categories than for others, he adds.  Wingo says, for example, that comparison shopping engines are strong in categories such as consumer electronics, less so with products such as apparel and jewelry. That disparity is partially a function of how matching on the engines works. Consumer electronics products have a multitude of hard attributes that lend themselves to point-to-point comparison, for example, while jewelry and apparel selection relies more on a shopper’s subjective opinion.  That said, ChannelAdvisor customers spend anywhere from 15% to as much as 40% of their online marketing dollars on comparison shopping engines

Daily Roundup for 2008-03-02

  • The recently launched 7 Billion People is an intriguing application to e-commerce of the real-world psychology behind buying behaviors. As CEO Mark Nagaitis tells us, his new Web analytics system tries to discern in a site’s audience different "buying personalities" that marketers can talk with in very different ways.
  • A new study from the Pew Internet Project casts light on the love-hate relationship many Americans have with e-commerce. In response to the survey, 78 percent of U.S. Internet users said that online shopping is convenient, and 68 percent said it saves time. Yet, 75 percent said they don’t like giving out personal information like a credit card number over the Internet.  The security risks, real or perceived, are hampering the growth of the Internet economy, said John Horrigan, associate director of the Pew Internet Project and author of the report.

Daily Roundup for 2008-02-29

  • The relationship between the venture capitalists of Sand Hill Road and the securities firms and power investors of Wall Street has long been a cozy one. VCs hoping for a return on their investments will need banks eventually, while Wall Street needs VCs to nurture the most promising startups until they’re ready to go public.  Or do they?  Lately, some of New York’s biggest players have been cherry-picking the best pre-IPO investments for themselves.
  • Although the tiny, family-run Joy’s Spa and Nail Salon in Adams Morgan may never get a critique in a newspaper, it’s received 42 reviews on Yelp.com.  Reggie Tull, the owner’s son and a massage therapist, said he noticed an increase in traffic with every new review posted on the recommendation site. He’s also surprised by the time writers invest in each posting.

The eMarket for Lemons at The Wharton School

I had the opportunity to speak at The Wharton School, University of Pennsylvania last week about an article that Dr. Eric Clemons recently authored for the Journal of Management Information Systems, "An Empirical Investigation of Third-Party Seller Rating Systems in E-Commerce: The Case of buySAFE".  My presentation was focused on marketplace economics and specifically about information asymmetry, signaling, the "Market for Lemons" concept, and buySAFE.  In addition, I was able to share a few thoughts about my entrepreneurial experience with buySAFE.

As always, I had a great time as the guest of Dr. Eric Clemons, and I enjoyed hearing the passionate questions, insights and feedback from the students.  One of the students posted an article about my visit on his blog, The Un-Wharton

AuctionBytes Conducts Online Shopping Survey

AuctionBytes.com, one of my favorite ecommerce news sources, is conducting another survey to study online shopping behavior.  The survey explores a number of areas that are important for small business ecommerce merchants to fully understand about their customers.  If you have a few extra minutes, I encourage you to complete this survey.  Ina Steiner, the editor, will publish the survey results in a few weeks, and I will make sure to share with you as well.

You can complete the survey here >> http://www.surveymonkey.com/s.aspx?sm=vX4t6OvcNW0_2fO8NFL8pFuA_3d_3d

The eMarket for Lemons and The University of Maryland

Umd Last week, I had the opportunity to speak to a few hundred business school students at the Robert H. Smith School of Business, University of Maryland.  Michael Beveridge, buySAFE’s VP of Business Intelligence, joined me in speaking at the invitation of Professors Guodong (Gordon) Gao, Peter Weiss, and Mingfeng Lin.  The students had previously read “buySAFE – Creating and Profiting From the Bonded Seller Advantage“, a case study on buySAFE authored by Wharton professor, Dr. Eric Clemons.  Here is the presentation that Michael and I shared with the students… “eMarket for Lemons – The Economics of an Evolving eCommerce Marketplace“.

As always, it was a terrific experience for me.  The students were extremely prepared, and they had definitely done their homework on buySAFE, information asymmetry, and the ecommerce marketplace in general.  If you ever want to get an excellent sense of how well your marketing efforts are working or how well you are educating the market about your solution, I highly recommend inviting a couple hundred college students to study your product or service and let them give you feedback.  I loved it!

Read more about Dr. Guodong (Gordon) Gao >>

A Few Interesting, Recent eCommerce and Entrepreneurship Articles

Good morning everyone!  If you know me well, you know that I am a voracious reader of anything and everything that I believe is interesting or useful either personally or professionally.  My colleagues will attest to the fact that their Inbox usually has at least one article that I have recent found that might be useful for them or buySAFE. 🙂

Today, I have been catching-up on my reading list, and I thought I would share with you a few articles that I found interesting.  Hopefully, you will some of the info interesting as well.

Steve

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