3 Companies Disrupting Online Tech in 2015
Innovating online is both a simple and difficult process.
Many companies have grand visions for how they’re going to disrupt their chosen industries, but ultimately fail due to poor execution.
Others start with a simple goal in mind, little funding, and yet end up becoming worth $1 billion or more. Here are a few examples of companies that have both grand visions, simple goals, and great execution.
Is the direct linking model better for consumers?
Since the dawn of eCommerce, there have been companies that have made it their business to generate leads to be purchased by other companies. It was a great model because the companies that sold products or services didn’t always have good websites that could get the visibility they needed. It was easier to buy leads than to generate a powerful web presence.
Today, most companies that rely on the internet at all have taken steps to create a better presence online. They use search marketing, social media marketing, and better websites that allow them to generate leads for themselves. Now, they’re often faced with competing with the very companies that once sold them leads (and in some cases, that still sell them leads today). That’s not to say that the lead-selling companies are obsolete, but do they need to rethink their business models for the sake of consumers?
A perfect example occurs in the automotive industry. Many of the third-party sites take inventory from car dealers, draw traffic to these inventory listings, and then try to capture lead information to sell to the dealers, the manufacturers, and even other lead providers. It once made perfect sense. Today, it adds a step to the process that may be unnecessary.
Traffic-generation company LotLinx takes a different approach. Rather than selling leads to dealers generated from third-party websites like AOL Autos, they drive visitors from these sites directly to the dealerships that have the inventory. When someone does a search and clicks on the listing, they go to the details page for the vehicle itself located on the dealer’s website. This “deeplinking” takes the visitor out of the lead-selling cycle and isolates them on the page that they would actually like to see.
For dealers, it’s a matter of protection. There are times when their inventory can generate a lead that is sold to other companies. This open marketplace model is often justified by saying that people should have more choices, but the thinking is flawed. The reality is that consumers who find a vehicle they want would rather be contacted by the dealership that has that vehicle rather than having their information sold to other companies that may or may not have the same vehicle. This makes it a better experience for the consumer and protects the dealership from missing out on sales that most would agree should have gone to them in the first place.
Perhaps the most important component is the transparency. In the direct-linking model, consumers can know that their information is only going to the entity that they’re requesting to contact. It may be up to the consumer to protect their information and carefully read the terms of service on these websites, but that doesn’t mean that they will. With companies like LotLinx, they’re getting what they expect without having their information sold to companies because of a legal loophole.
As internet technology continues to evolve, the need for third-party sites will likely continue. However, they should consider shifting to a better model that takes the middlemen out of the equation.
“Linking” image courtesy of Shutterstock.
An exploration of eCommerce
Most people who are interested in starting their own companies are focused on building a successful track record that will allow them to stay in business long term. One of the main reasons why there are so many people that choose not to follow these dreams and turning them into realities is because of the fear of failure.
Studies have proven that over 30 percent of small businesses fail within the first two years, according to the Small Business Administration. However, a lack of substantial financing and excessive overhead expenses are two of the key factors that cause these businesses to close basically just as fast as they open. Opening an eCommerce business allows these individuals to fulfill their dreams and have a better chance of achieving success in the long run.
The magnetic appeal of eCommerce
With the increasing popularity of online shopping and the progressive advancements in mobile technology that have been made in recent years, there has never been a better time to get involved with eCommerce sales than right now. The number of people that use the Internet to shop for different products and services is expected to exceed 190 million people within the next three years with sales surpassing $320 billion, according to Mashable.com.
Therefore, not only would you be able to save a substantial amount of money on overhead expenses and other costs associated with traditional businesses, but you would also be positioning your business to make money in the years to come by doing so.
A growing network of support
Another key benefit that you can experience by opening an eCommerce business is the growing support network that can be easily accessed to assist you along the way. There is a wide variety of ecommerce forums and online support groups that are filled with members that either have had successful online businesses for many years or that are also interested in pursuing a career within this emerging market.
Many business owners have failed to achieve long-term success primarily because of their lack of expert assistance, knowledge and overall support. By relying on these forums to give you the guidance that you need, you will be able to make wise decisions and become more effective at increasing sales and maintaining a substantial profit margin.
The popularity of social media
Social networking websites have made it easier than ever for companies to reach new and existing customers and clients on a regular basis. Within the profile page of a Facebook account, for example, you will be able to market your products and services, advertise upcoming promotions and specials and stay in direct contact with your customers through real-time feedback and online messaging.
This will not only allow your company to become more efficient at fulfilling the needs of your customers but is a great way to market your business on a global scale as well. Traditional methods of advertising will never be able to generate the type of consistent exposure that is available through these online websites, so they can prove to be essential marketing tools for you and your company for many years to come.
The tablet takeover of eCommerce
![The tablet takeover of eCommerce 4 Ecommerce Vacuum](https://www.techi.com/wp-content/uploads/2011/10/Ecommerce-Vacuum.jpg)
In so many things, understanding comes by following the money. It works in many criminal cases, political decisions, and societal sentiment. It also happens in the world of eCommerce. That being the case, it makes sense that as more money is being spent on tablets, more money is being spent through tablets.
That’s the premise supported in this study by our friends at Monetate:
It’s easy to dismiss tablet computers as a passing fad, used only by hobbyists with time and money on their hands. But in reality, tablets are sweeping the nation – and, in many ways, totally re-inventing ecommerce. Here’s how the iPad has changed the way retailers think about the online shopping experience.
Click to enlarge.
![The tablet takeover of eCommerce 5 10_26_11_monetate_tablet1](https://www.techi.com/wp-content/uploads/2011/10/10_26_11_Monetate_Tablet1.png)
Amazon’s 7-Eleven locker system starts speculation
“Heading out for a Big Gulp and a Kindle,” you might end up saying to your loved one soon.
In an eCommerce world where just about anything that people need can be purchased online and mailed to us, logistics and risk of theft of packages left at the door make for concerns, albeit minor for most. There’s the PO Box option, but the post office isn’t always located conveniently.
One thing that is located conveniently in many cities across the country are 7-Eleven convenient stores. In an apparent partnership between Amazon and 7-Eleven, these delivery lockers are starting to roll out in Seattle.
Geekwire writer John Cook decided to find the one that was mentioned in last week’s TheDaily article. Everybody is keeping it relatively quiet, but expect that this will go live soon and allow you to put order your item, print our a bar code or receive a number, and pick up your merchandise while out for gas.
As these types of partnerships often do, combining the real world with online purchases will act as a cross-branding relationship that adds value to 7-Eleven and convenience to Amazon.
Walmart creates its own social media startup
Evernote, LinkedIn, Mint….Walmart? The retail giant is now among Mountain View’s leading startup companies following its purchase of Kosmix, the company behind real-time Twitter filter site TweetBeat, medical search engine RightHealth, and topic-specific engine Kosmix. The company has now been transformed into Walmart’s @WalmartLabs division, which aims to create technologies and businesses around social and mobile commerce.
Kosmix founders Venky Harinarayan and Anand Rajaraman, as well as the entire Kosmix team, are expected to stay on-board as part of the newly formed @WalmartLabs. Walmart hopes this division will better integrate the shopping experience between bricks and mortar stores and e-commerce.
“The world of social media is exploding and for millions of consumers their social connections matter hugely in their daily lives,” said Anand Rajaraman, co-founder of Kosmix. “Our work has focused on developing a social genome platform that captures the connections between people, places, topics, products and events as expressed through social media — be it a feed, a tweet or a post. We are thrilled to join one of the world’s largest companies and combine our work with Walmart’s vast online and offline retail businesses.”
Officially, terms of the agreement have not disclosed, but AllThingD reports the retailer paid more than $300 million for Kosmix. @WalmartLabs is expected to remain in Kosmix’s Mountain View headquarters.
“We are expanding our capabilities in today’s rapidly growing social commerce environment,” said
Eduardo Castro-Wright, Walmart’s vice chairman. “Social networking and mobile applications are increasingly becoming a part of our customers’ day-to-day lives globally, influencing how they think about shopping, both online and in retail stores. We are excited to have the Kosmix team join us to accelerate the development of our social and mobile commerce offerings.”
Get an upbeat introduction to @WalmartLabs via the video below.
Online shopping is soaring (as if you didn’t know)
Brick and mortar stores are closing on nearly a daily basis. We have all seen companies like Blockbuster and Circuit City lose their wars to the online variations of their products. It isn’t just eBay and Amazon. Social sites like Groupon and Facebook are pushing online transactions, while other giants like Google and Apple are moving more products online than off.
This graphic by our friends at BuySellAds takes a long look at the Ascent of E-Commerce, exploring the history of buying and selling online. Knowing where we’ve been can help give clues about where we’re going. Click to enlarge.
The Death of the Shopping Cart
The thing that truly sparked the initial growth of eCommerce has become the greatest point of abandonment on sites that try to sell us stuff. The online shopping cart – a once cool and integral part of the retail end of the Internet – has devolved over the years to cause many to walk away from shopping from their computer.
What happened?
“What didn’t happen” is the better question. It hasn’t changed. What once made things easier has failed to improve in functionality and ease and as a result, more people “bail” from the shopping cart page than any other on retail websites. People find products, prepare to buy, then leave at the last moment.
Social media has been the primary culprit. It’s not the replacement issue (even though Facebook eCommerce is on its way) or the time-drain factor. It’s the mindset. Logging in, joining various sites, and participation have been streamlined through social media integration into many sites. You no longer have to fill out long forms or answer questions about your mother’s maiden name to participate.
Shopping carts are just as challenging today as they were from the beginning.
This infographic by our friends at Kissmetrics takes a look at where the challenges are as well as offers advice on how to fix it. Click to enlarge.