The Wall Street Journal cartoon called "Pepper... & Salt" recently featured a stockbroker talking to a client, "Why so downcast? You had a very good year - you broke even!"
Many retailers can relate to that cartoon, but online retailers had a better year than brick & mortar outlets according to research reports.
The end of the year is a good time to look back at what worked and what didn't in your online sales business. What items netted the biggest profit given the costs and time involved in acquiring them? Were some items "losers"? Successful businesses analyze sales metrics and make adjustments accordingly.
Also, consider developing new strategies for the year ahead: Can you reduce costs, try new marketing techniques, become more efficient? A little investment, whether it's money or time, can make 2003 more profitable and can also motivate you.
What's ahead for the coming year? I looked into my Crystal Ball (purchased online, of course), and came up with some "Predictions for the Online Auction Industry in 2003 and Beyond":
Online shopping will continue to grow as consumers opt for convenience. Shoppers will begin to use tools like Google's new Froogle shopping engine to find bargains and unique items while continuing to shop on eBay, Amazon and other powerhouse ecommerce sites. Froogle will help smaller marketplaces gain visibility with online consumers.
Victims of online fraud will continue to band together to coordinate efforts and work with law enforcement. Online fraud will get the attention of legislators, who will begin inquiries into how fraudsters are able to remain on sites like eBay. The international aspects of online fraud will cause special concern. Pressure will be put on credit card providers, ISPs and domain registrants to coordinate their efforts in fraud prevention and identification. Law enforcement agencies will continue to get better at catching and prosecuting Cyber-criminals.
eBay will be forced to examine ways to improve its feedback system and policies. Now that Cyber-criminals from all over the world have caught on to the Internet and online auctions, eBay's mantra "people are basically good" is not enough. (To participate in a survey about feedback, please visit http://websurveyor.net/wsb.dll/10226/feedback.htm.)
eBay will continue to wield control over third-party vendors. It will continue the push to require all vendors to sign on to its API licensing program. Small and "casual" eBay sellers who use free tools may lose some options in 2003. Sniping tools may be left alone, as it's not clear how eBay will approach vendors that provide tools for buyers.
Online sellers will have to cope with increasing regulations and taxes as government agencies look for ways to fund their dwindling coffers.
PowerSellers will learn that they have more clout by lobbying together, and sharing information will become acceptable. New services will spring up to serve these growing businesses.
My crystal ball is clouding up and I'm out of quarters - but I also see some exciting announcements coming from AuctionBytes in the near future, too. Here's hoping 2003 brings you health, happiness and prosperity.
Ina Steiner is co-founder and Editor of EcommerceBytes and AuctionBytes.com and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @auctionbytes and send news tips to ina@ecommercebytes.com.
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