Take consumer electronics site Woya, for example. When faced with the daunting task of buying a new laptop without the requisite Gs needed to make that process sufficiently simple, I have been paralyzed into procrastination. In about 30 seconds, Woya showed me inexpensive, well reviewed laptops I wanted from eBay, Craigslist, Overstock, Amazon, and other sites. It did the legwork and analytics for me, making the process entirely painless.

Users can check out results from retail sites, auction sites, and online classifieds from three simple tabs on the product page. They can scope out specs and reviews for a given product, and Woya lets the user know if they think now is a good time to find good deals on the product. The Deal Digger function is particularly useful, similar to Priceline's name-your-own-price function. Users can select parameters and get real-time updates if and when the selected product becomes available at a given price point.

Woya also shows trends and analytics for the product:

Of course, there are social sharing options, and the site apparently allows users to login via OpenID (although this process was a bit buggy and ultimately dysfunctional on my end, perhaps because of a Chrome-related browser incompatibility issue).

All things being equal, Woya's consumer-friendly, ad-free, highly detailed, comparison shopping approach reminded us of discount travel sites such as Priceline, Travelocity, Expedia, and their like. Those sites enjoy their tremendous popularity for good reasons: They have taken a boring, painful process and made it easier, faster, and less expensive for the end user. For a small, Bay Area-based startup barely six months old with just one full-time employee, Woya has done a great deal to simplify and streamline online shopping in a powerful and unique way. We'd love to see the site grow to encompass all verticals of consumer products.

We had 4 expert guests on the podcast: Baynote (collective intelligence platform for online shopping), ModCloth (online retailer of vintage clothing), Retrevo (vertical search for electronics), and Cartfly (social commerce store network).

Implicit Social Recommendations

RWW Live host Sean Ammirati asked the guests whether e-commerce has changed much over the past few years. Kurt Collins, VP of Business Development of Cartfly, replied that there is now a lot of implicit social recommendations across social networks and blogs. Jack Jia, founder and CEO of Baynote, noted that "99% of the crowds" are silent and so the implicit recommendation data that Kurt referred to is very valuable. It's crucial, said Jack, to tap into the interests, likes and dislikes of that invisible crowd. He added that that it may not be 'friend' data either, as we currently tend to think of it in social networks.

Eric Koger, CEO of niche clothing retailer ModCloth, said that they pay close attention to what their customers do across social sites - e.g. in their case their users activities in Flickr, StyleHive and social networks.

Expert-Driven or Crowdsourcing?

Where there was some disagreement among the guests was on the value of crowdsourced recommendations and reviews. Jack Jia, founder and CEO of Baynote, said that traditional e-commerce and commerce in general has been expert-driven, but now the crowds are driving decision-making in retail. Andrew Eisner, Director of Community and Content, Retrevo, took issue with this - saying that user reviews are key, pointing to the expert reviews at Retrevo. It's worth noting here that Andrew also used to work in the content arena, at PC World.

We'd be interested in our reader's opinion on this issue. Clearly consumer reviews in aggregate represent very valuable data for big online retailers especially - e.g. Amazon has virtually built its entire business off the back of crowdsourced user reviews and recommendations. What's more, this type of data is highly trusted by consumers - one of the factoids perhaps lost in the commotion about Forrester's report on trust in corporate blogs, is that consumer product ratings and reviews are the second most trusted data online, behind only email from someone you know:

Yet we can also see Andrew's point of view, that there is a big place for expert reviews when it comes to consumer products online. For example, I'm more likely to read and take notice of a review of Bose headphones by a CNET reviewer who specializes in music electronics, than a review written by "lolcatzndogz67". What do you think? Perhaps in aggregate, crowdsourced data is key; but when it comes to decision-making on certain types of products, we still want to read expert reviews before we buy.

How Can Existing E-commerce Vendors Tap Into the Social Web More?

A RWW commenter called Mark commented on the original RWW Live post that he has just relaunched a social/e-commerce website. He used to have an eBay site, but now he wants to tap into the social web more. Here is what Mark wrote:

"In our previous site launch, we spent months building a database of products, opened the doors of the site, and it was just too much product, and not enough interaction with our customer base.

In our relaunch, we decided to go social first, e-commerce second. Working on our customer relationships first. The site is a transition from our successful eBay business to a more controllable blog/e-commerce solution."

I put that dilemma to our guests, starting with Kurt Collins - whose service Cartfly addresses exactly that need. Kurt said that the socialization of e-commerce can come in different forms - e.g. embedding a store in a user's social network profile. That won't replace "end destination e-commerce", but Kurt said it will "augment sales tremendously" at the edge of the network. It's all about bringing the product to the customers, rather than the other way round.

Eric from ModCloth said that their business started by using a series of open source shopping systems. He says that they still currently use an "archaic" e-commerce platform, but that blogging and direct engagement on external networks are their current tools for reaching out to ModCloth customers.

Favorite Online Shipping Web Apps

Finally, a bit of a tradition we've started on RWW Live is to ask our guests at the end of the show to name one web app in their field of expertise (other than their own) which has caught their eye. So I put this question to our 4 guests: which online shopping app do they recommend to the listeners and readers of ReadWriteWeb?

Andrew said "vertical gadget sites", but he also said that Amazon "does everything right in the world of shopping" - particularly because it recommends products he didn't know he wanted.

Eric mentioned Revolve Clothing, and what they're doing with the "category view" - allows you to see a lot more at a higher level.

Jack mentioned that he buys books from Amazon and other specialist sites, but he still goes to Google for products that he needs to do research on.

Kurt said that ThinkGeek ('stuff for smart masses') is one of his favorite sites and that Zappos is a site that many of his female friends use. He also mentioned that he buys a lot of things from iTunes.

One of my favorite sites at the moment is a new social wish list called Boxedup.com, which I mentioned in our roundup of 10 wish list websites. However, I have to admit that I've since renewed my interest in Amazon Wish Lists - their universal wish list feature pretty much does all I need.

Sean also said that Amazon is his favorite, due to related recommendations. But he had a shout-out for Glue, the browser add-on made by AdaptiveBlue.

Tell us your current favorite online shopping app or site in the comments!

You can listen to the entire RWW Live podcast on shopping 2.0 here:

Download MP3

Image credit: Fosforix

John Donahoe made the very reasonable point that online e-commerce will look like offline commerce: fragmented. Consumers will buy from eBay, Amazon, Walmart.com, Zappos, whatever gets their attention and has the right product at the right price. That rings of common sense.

To illustrate this fragmentation, he told us that the mighty Walmart has only 4% of the market.

For a more extensive discussion of the problems facing eBay's core service, read this very well-reasoned (but long) post on SeekingAlpha.

When queried on these issues, Donahoe simply indicated that the problems did not originate on his watch, that he was aware of them, and that they were complex to solve. That does not seem enough. The bits of insight above may be great, but eBay needs to fix its core service to regain its stature as a leader and give investors a good return. You don't transform a company without fixing the core, and investors clearly feel that eBay needs transforming; that is the message behind a stock price that in the last 12 months trails the NASDAQ and peers like Google and Amazon. eBay is actually in the rather miserable club with Yahoo, as perceived by investors.

PayPal: Jewel in the Crown?

Donahoe contrasted the fragmented e-commerce business with the highly consolidated payments business. Clearly, the latter has greater appeal. One can see why. The payments business is global and dominated by a few players: Visa, MasterCard, and Amex. As the low-cost player best suited to the web, PayPal has enormous potential.

I'm pretty sure I even heard Donahoe say, "PayPal should be bigger than eBay." As he spoke about the global payments system, one could see why.

He described the national banking regulatory challenges, a major barrier to entry. Taking money online is the easy bit, he said. Moving that money in and out of the traditional banking system is hard, because the banking system has to adhere to a maze of local regulations. Donahoe told us that eBay works on penetrating something like 5 to 15 new countries each year. Some, like Japan, remain a challenge.

This is clearly a huge opportunity, but these local regulations are a big barrier to entry. Anyone who has done a lot of international business can attest to how archaic some of the processes are. Wiring money is bad enough, but the processes around letters of credit seem positively arcane, almost 19th-century.

Oh, and a $500 million High-Growth Skype Business

Skype is the eBay business I am most familiar with as a user. We use it all the time here at ReadWriteWeb. It is a core tool for running a small business in which colleagues, clients, audience, partners, and everybody else in the community are all over the world. For entirely selfish reasons, I evangelize Skype to everybody. Now, I want Skype on my cell phone to cut my mobile bills; it is definitely ready for prime-time.

And yes, Skype is a real business. Donahoe told us that Skype generated $500 million in revenue last year, with "high-teen margins" and growth rates of 30% to 40%. Saying "That's not a bad business" got a wry laugh from the audience (all of whom would consider it a totally amazing business). In any other market, that would be a red-hot IPO.

Skype is perfectly positioned for a long recession, too. That already shows in the numbers. In the last quarter, Donahoe told us that Skype-to-Skype grew 73% and Skype Out grew 63%. I can personally attest to seeing many smart people, who had not used Skype previously, see it and say, "OMG, it's amazing."

$500 million was only 6% of eBay's total $8.5 billion revenue in 2008. But with Skype growing at 30% to 40% and eBay's core service hurt by a slow-down in consumer spending, this percentage could change significantly in 2009.

How much could eBay get for Skype, a business that already has scale, good revenue growth, decent margins, and a model and technology that are disrupting the massive telecom market globally? It is not entirely outrageous to think that Skype could become the biggest telecom company in the world at some not-too-distant point in the future. At some point, the IPO market will come back. All of eBay (including PayPal and Skype) is currently valued by the market at $15 billion. How much would the market value of Skype as an independent entity be? More than 6% of $15 billion? I think so.

eBay spinning off Skype was one of the three web-tech market events that I wished for (not predicted) for 2009. It looks possible. Methinks it is simply a matter of timing and market conditions.

The VC Portfolio

As well as being a collection of great but unrelated businesses, a kind of online conglomerate, eBay also looks like a VC with a strange but interesting mix of minority stakes. The most interesting and oft-discussed is its 28% stake in Craigslist. It is clearly not a happy relationship. But that 28% must be worth something.

The Economic Question

The underlying question for everybody at the Accel Symposium was, "What about the effect of the economy on your business?" Donahoe pointed out that they saw the downturn in their PayPal and eBay lines as early as May. Signals from millions of small buyers and sellers are far more reliable than any GDP numbers. So they were able to take corrective action early.

eBay's biggest action was to offer coupons to buyers, to help sellers. As he pointed out, small sellers have weak balance sheets, so a downturn can make them vanish quickly. eBay moved quickly to support its sellers.

Asked if eBay was recession-proof, Donahoe pointed to Skype as being perfectly positioned, but he noted that if consumer spending slows, then even e-commerce is affected. And e-commerce is down.

Time to Fix E-Commerce While it's Down

eBay needs to have a compelling core proposition for e-commerce that unites auction, fixed price, and classified ads. Donahoe pointed out that search is the obvious unifier. But it is not clear how eBay can use this to its advantage.

E-commerce still makes up only 7% of retail. Given the amount of time we spend online and the obvious opportunities, this could grow to 15% to 20%. A big prize awaits here when the economy turns around. eBay has the financial strength to build through the downturn.

Donahoe also painted a vision of mobile e-commerce. It is one that others have painted before: you go into a real-world retail store; see an item you like; scan the barcode to get the price; find a better price online; then decide whether to buy it in the store or online, depending on whether you prefer convenience or lower price.

As he pointed out, this could encounter a bit of resistance. I can envision videos popping up on YouTube of irate shopkeepers throwing out barcode-swiping bargain hunters! Physical retailers will have to adapt, but online folks such as eBay will have to be sensitive to their needs. This will be interesting to watch.

We had 4 expert guests on the podcast: Baynote (collective intelligence platform for online shopping), ModCloth (online retailer of vintage clothing), Retrevo (vertical search for electronics), and Cartfly (social commerce store network).

Implicit Social Recommendations

RWW Live host Sean Ammirati asked the guests whether e-commerce has changed much over the past few years. Kurt Collins, VP of Business Development of Cartfly, replied that there is now a lot of implicit social recommendations across social networks and blogs. Jack Jia, founder and CEO of Baynote, noted that "99% of the crowds" are silent and so the implicit recommendation data that Kurt referred to is very valuable. It's crucial, said Jack, to tap into the interests, likes and dislikes of that invisible crowd. He added that that it may not be 'friend' data either, as we currently tend to think of it in social networks.

Eric Koger, CEO of niche clothing retailer ModCloth, said that they pay close attention to what their customers do across social sites - e.g. in their case their users activities in Flickr, StyleHive and social networks.

Expert-Driven or Crowdsourcing?

Where there was some disagreement among the guests was on the value of crowdsourced recommendations and reviews. Jack Jia, founder and CEO of Baynote, said that traditional e-commerce and commerce in general has been expert-driven, but now the crowds are driving decision-making in retail. Andrew Eisner, Director of Community and Content, Retrevo, took issue with this - saying that user reviews are key, pointing to the expert reviews at Retrevo. It's worth noting here that Andrew also used to work in the content arena, at PC World.

We'd be interested in our reader's opinion on this issue. Clearly consumer reviews in aggregate represent very valuable data for big online retailers especially - e.g. Amazon has virtually built its entire business off the back of crowdsourced user reviews and recommendations. What's more, this type of data is highly trusted by consumers - one of the factoids perhaps lost in the commotion about Forrester's report on trust in corporate blogs, is that consumer product ratings and reviews are the second most trusted data online, behind only email from someone you know:

Yet we can also see Andrew's point of view, that there is a big place for expert reviews when it comes to consumer products online. For example, I'm more likely to read and take notice of a review of Bose headphones by a CNET reviewer who specializes in music electronics, than a review written by "lolcatzndogz67". What do you think? Perhaps in aggregate, crowdsourced data is key; but when it comes to decision-making on certain types of products, we still want to read expert reviews before we buy.

How Can Existing E-commerce Vendors Tap Into the Social Web More?

A RWW commenter called Mark commented on the original RWW Live post that he has just relaunched a social/e-commerce website. He used to have an eBay site, but now he wants to tap into the social web more. Here is what Mark wrote:

"In our previous site launch, we spent months building a database of products, opened the doors of the site, and it was just too much product, and not enough interaction with our customer base.

In our relaunch, we decided to go social first, e-commerce second. Working on our customer relationships first. The site is a transition from our successful eBay business to a more controllable blog/e-commerce solution."

I put that dilemma to our guests, starting with Kurt Collins - whose service Cartfly addresses exactly that need. Kurt said that the socialization of e-commerce can come in different forms - e.g. embedding a store in a user's social network profile. That won't replace "end destination e-commerce", but Kurt said it will "augment sales tremendously" at the edge of the network. It's all about bringing the product to the customers, rather than the other way round.

Eric from ModCloth said that their business started by using a series of open source shopping systems. He says that they still currently use an "archaic" e-commerce platform, but that blogging and direct engagement on external networks are their current tools for reaching out to ModCloth customers.

Favorite Online Shipping Web Apps

Finally, a bit of a tradition we've started on RWW Live is to ask our guests at the end of the show to name one web app in their field of expertise (other than their own) which has caught their eye. So I put this question to our 4 guests: which online shopping app do they recommend to the listeners and readers of ReadWriteWeb?

Andrew said "vertical gadget sites", but he also said that Amazon "does everything right in the world of shopping" - particularly because it recommends products he didn't know he wanted.

Eric mentioned Revolve Clothing, and what they're doing with the "category view" - allows you to see a lot more at a higher level.

Jack mentioned that he buys books from Amazon and other specialist sites, but he still goes to Google for products that he needs to do search on.

Kurt said that ThinkGeek ('stuff for smart masses') is one of his favorite sites and that Zappos is a site that many of his women friends use. He also mentioned that he buys a lot of things from iTunes.

One of my favorite sites of the moment is a new social wishlist called Boxedup.com, which I mentioned in our roundup of 10 wish list websites. However, I have to admit that I've since renewed my interest in Amazon Wish Lists - their universal wish list feature pretty much does all I need.

Sean also said that Amazon is his favorite, due to related recommendations. But he had a shout-out for Glue, the browser add-on made by AdaptiveBlue.

Tell us your current favorite online shopping app or site in the comments!

You can listen to the entire RWW Live podcast on shopping 2.0 here:

Download MP3

Image credit: Fosforix

We have a two-part post summarizing the highlights from the show. In this post we discuss why and how shopping 2.0 sites are targeting very niche customers and how that's helped them increase revenues.

We had 4 diverse guests on the podcast: Baynote (collective intelligence platform for online shopping), ModCloth (online retailer of vintage clothing), Retrevo (vertical search for electronics), and Cartfly (social commerce store network).

One of the questions we asked the guests was about the type of audience that their websites attract. I theorized that their companies might reach a wider, more mainstream audience than a lot of the web apps we write about on ReadWriteWeb (Twitter, FriendFeed and the like). However, it turned out that all of the guests viewed themselves as targeting very narrow niches.

Niche Audience Leads to More Detail About Your Users

Eric Koger, CEO of niche clothing retailer ModCloth responded that "the power of ModCloth is that we're not hitting a broad audience, but we're focusing in on a customer with a specific lifestyle" - in their case a specific type of women who buys vintage clothing. Koger explained that having a specific niche audience allows ModCloth to target customers on specific platforms - e.g. perhaps they are on Facebook and these are their interests, and they're on these blogs and looking at these websites. Having this level of detail allows them to "build lifetime value" for their customers and enables them to reach out to them in very targeted ways.

Koger said that "there are a lot of tools on the Internet to tell you where users are going, so if you can hone in on a specific target [audience], then there are ways to follow them across the Internet, understand their habits and really reach out to them where they are and where they're spending their time online".

Know & Support Your Users

Jack Jia, founder and CEO of Baynote, followed up by saying that they have close to 200 websites which they power, and a lot of them are e-commerce. What they've found is that for websites to increase revenue and other site success indicators, site owners have to "get the invisible users of your site working together" - in other words have your audience form community. This makes the site much more sticky.

Kurt Collins, VP of Business Development of Cartfly, agreed and said that they are "hyper-focused on merchants", who are in turn hyper-focused on their own niches. Those merchants "know who to approach, but not necessarily how to approach them". So that is where Cartfly comes in, helping them with sales and marketing. He mentioned that niche music and indie bands accounts for a good portion of their merchants and sales. He said "the mainstream stuff hasn't been doing that well for us, in general, but the long tail stuff has been doing great".

Andrew Eisner, Director of Community and Content, Retrevo, said that the key is to strike the right balance between content and commerce. On Retrevo they have reviews and supporting content, so that their users can be assured they're buying the right product.

Coming up tomorrow, in the second part of our podcast wrapup: How E-commerce Vendors Can Transition to The Social Web. In the meantime you can listen to the entire RWW Live podcast below:

Download MP3

Image: Giorgio Montersino

One thing many sellers are doing, is sticking with eBay. Rather than change horses mid-stream, some sellers are transitioning their auction businesses to the fixed-price model that is now favored by the ecommerce giant. Others are listing their wares at eBay's cross-town (on the web, anyway) rival Amazon.

Online Craft Fairs

New York based Etsy is part of a new breed of online marketplace startups targeted specifically at the needs of independent artists and crafts makers. With more and more people pledging to buy handmade goods, marketplaces like Etsy are taking center stage and becoming important hubs for small merchants. We've even wondered if Etsy might be the next eBay. Be sure to check our lists of Etsy alternatives here and here, as well.

If you enjoy this post, please digg it by clicking here

Classifieds

Craigslist has been accused by some of single handedly sinking the entire newspaper business by doing for classifieds what eBay did for auctions in the 90s -- putting them online and making them dead simple and accessible. Craigslist started as a local events email list for San Francisco in 1995 and has grown to an online classifieds powerhouse serving more than 500 cities in over 50 countries across the world. 40 million people visit Craigslist each month, generating more than 10 billion page views, according to the company. It's no wonder that an ad on Craigslist is an extremely effective way to generate sales, especially in large local markets.

Online Informercial

If you're like me -- and that would be a bummer for you -- you're often awake at 4am. If you happen to flick on the TV, you'll quickly notice that in the wee hours of morning, the airwaves are dominated by a certain variety of program: infomercials. Most of the time, it's hard to wonder how anyone could be suckered into ordering stuff peddled by late night hucksters. But infomercials have inundated the television airwaves since the 1970s, so they must work. Could they also work on the Internet? One company thinks so. Talk Market lets anyone host their own video sales channel on the web. Amazon thinks enough of the idea to have invested in it.

Social Networks

Yes, it doesn't seem that any of the big social networks have yet figured out how to monetize all that traffic. Facebook gave up on Beacon, and MySpace isn't living up to Google's expectations, but that doesn't mean you can't try to sell to your friends, family, and fans via social networks. Buy.com thinks they have the best way, with their Garage Sale application for Facebook. The best part of this option, though, may be the irony of their intro video which calls eBay a "thing of the past" -- apparently Buy.com's top brass didn't get the memo... they closed a huge product listing deal with eBay last month.

Your Own Storefront

Sellers with an adventurous spirit may opt to set up their own storefront. There are a number of free or open source projects, such as osCommerce, that can be used to power an online shop. There are also all inclusive small business hosting solutions, such as Yahoo! Merchant Solutions, that can get sellers up and running with their own stores with a lot less headache. We like Shopify, an all in one hosted ecommerce suite that has become one of the showcase apps for Ruby on Rails (don't worry -- we've never heard of anyone having trouble scaling their store on the service).

How else do you sell online? Let us know in the comments.