Earlier today, I read an interesting post by Josh Kopelman of First Round Capital and subsequent comments from Fred Wilson, at Union Square Ventures. Both men are well respected early stage investors and have demonstrated significant investor acumen.
Josh Kopelman pointed out some fascinating empirical evidence to support the need for massive innovation in the ecommerce marketplace.
- More than half of today’s top 15 most trafficked websites today did not exist back in 1999. That is not a surprise, as Facebook, Youtube, Wikipedia, Myspace, Blogger, Live.com and Twitter are all new — and are representative of the massive amount of innovation and disruption that has occurred in the last decade.
- Yet, of the top 15 most trafficked eCommerce websites today, just one of them did not exist back in 1999 (NewEgg – which launched in 2001). Which means that over 90% of the top eCommerce websites are over 12 years old! That is pretty remarkable to me — and reflects an amazing lack of external innovation (and disruption).
As Josh Kopelman further points out, the online shopping paradigm is finally changing. In the past year, there has been an increasing amount of innovation, including, group buying, private shopping sites and alternative payment technologies.
As an entrepreneur and ecommerce innovator, I believe the best is ahead of us. The future of ecommerce a/k/a Commerce 2.0 is a future whereby the service itself will be able to generate traffic in much of the same ways that Twitter and Facebook have transformed social media.
At my company huvi, we are developing a next generation digital media marketplace that will transform how consumers buy, share and consume digital content.
No related posts.