The Advantages and Disadvantages of Using Crowdsourcing to Improve Your Ecommerce Business

In June of 2006, Jeff Howe first coined the term “crowdsourcing”, mentioning how tasks that would previously have been outsourced were now being performed by crowd outsourcing, or crowdsourcing. In essence, by harnessing the power of group intelligence (i.e., the power of the masses), businesses gain valuable information and commodities at a fraction of their usual cost. Such information and commodities might include stock photography, product and/or improvement ideas, feedback, logos and branding, complaint resolution, etc. Individual members of the crowd can also vote and comment on submitted ideas and products, helping define what is most popular and likely to apply to a sizeable majority of consumers. The originators of the best ideas and products might be compensated monetarily or they might be awarded prizes or recognition. Overall, crowdsourcing saves substantially on the time and other resources required to gain such information while also generating significant consumer interest and brand loyalty. [Read more…]

eCommerce in a Nutshell

eCommerce is defined as the buying and selling of products and services via computers and/or networks. In the late 1970’s, development of technologies such as electronic data interchange (EDI) and electronic funds transfer (EFT) paved the way for electronic commercial transactions. However, it was not until the early 1990’s, when the Internet was opened to commercial use, that eCommerce truly began. Since that time, eCommerce activity has been steadily increasing every year. According to the U.S. Census Bureau, over $47 billion was spent via eCommerce retail transactions in the second quarter of 2011 alone. [Read more…]