For several years now, the online marketplace has been one that has proven to be increasingly profitable for both chain and independent retailers alike. As well as using social networking to promote start-up businesses, sites like eBay and Amazon have provided a platform accessible by millions of consumers the world over.
Now, with the majority of people able to access the internet through laptops, tablet computers and smartphones, e-retailing has taken off like never before. Internet sites frequently outperform their physical competitors to the extent that the majority of retailers today have counterpart online shops running in conjunction with their stores, with many consumers preferring to shop from the comfort of their own homes rather than tackle the high street and the more limited choice to be found there.
EBay has become one of the most popular sites for both retailers and consumers over the past few years, with the online company recently releasing bumper profits for the third quarter. Revenue climbed by 15 per cent to US$3.4 billion, with eBay recording a huge £445 million in profit, up by 14 per cent when compared to the last quarter.
The growth in mobile shopping is largely to thank for this, as around 800,000 made their first ever eBay purchase through a mobile device in this quarter alone. This allowed both the eBay marketplace and Pay Pal businesses to expand rapidly throughout the period, giving hundreds of thousands of new consumers access to both branches of the company.
For several years, it appeared that rival online retail site Amazon would overtake eBay as the most popular shopping site online, but the appointment of new Chief Executive John Donahoe allowed the company to make changes to the site. He oversaw changes such as improving the search capabilities, and also worked with sellers to encourage incentives like free shipping and easier returns in order to draw customers back on to the site.
Yet Mr Donahoe is still pushing for further expansion and improvements to the company, with the aim of making customer satisfaction the top priority. He hopes that this will encourage yet more online shoppers to visit eBay.
He said; “While I’m pleased with the acceleration, I’m not satisfied.
“There is no reason why our active users should not double over the next three to five years.”
Mr Donahoe also revealed that eBay intends to expand into countries such as Russia and Brazil, whilst improving personalised product recommendations for existing customers at the same time.
There are also rumours that the preferred payment method of many users of eBay, Pay Pal, will be branching out from its online roots and becoming a payment tool in retail commercial properties in the near future. Although no one at eBay confirmed this, it is the logical next step for a business trusted by hundreds of thousands of online shoppers.
Perhaps, then, the future of retail really does lie online. Not restricted by opening hours or holidays, consumers may shop at any time of the day or night on a device of their choosing, thus making the online marketplace an ideal platform for even the most impatient shopper. Additionally, the parking charges that are becoming a highly contentious issue in many town centres across the country do not apply to online shopping, nor does the weather – a major cause in the washout summer experienced by high street retailers this year.
However, with high street retailers and chain stores nationwide valiantly fighting the e-takeover using a variety of sales and promotions on the run up to Christmas, it may not be time to write off the traditional retailer just yet.
Do you think online shopping will eventually become the norm, with stores becoming obsolete as technology progresses? Have you become an avid online shopper, or do you still enjoy a wander around the local town centre shops as a more personal experience?
