The media has devoted enough columns that talk of disruption and disintermediation for the terms to be dismissed as mere buzzwords, but buzz aside, it is been proven that disruptors have entered the market that will be impossible to dislodge: customers, says Claire Cobbledick, head of Marketing, Gumtree.
The big players who have spotted this trend are scrambling to take part in the new sharing economy – Facebook has jumped at the chance to partner with Airbnb as an “identity on demand” provider, whereas Verizon in the States launched an automated car rental service and app. The smart phone is allowing consumers to take charge of aspects of business that seemed untouchable.
Apps allow us to rent cars (or rent them to others), share holiday homes and transact safely…industries that had remained unchanged for centuries are being threatened by a hive of small players, enabled by big platforms.
Trade will find you in the comfort of your own home, with a veritable flood of merchants – next door. Individuals are thinking differently about the dead capital in their homes – choosing to sell them or rent them to offset the cost. Big business has been firmly pitted against micro-entrepreneurs and it’s anyone’s fight at this moment.
Who will the new big players be
Online trade, from the comfort of your home, is the perfect model for the current economic climate. Those who have assets can leverage them by renting it out or selling unused assets, while consumers with limited means gain access to assets they haven’t been able to afford before – by buying second hand items or swopping items.
The appeal also lies in the ability that a seller has to scale their efforts up or down as they chose. If eBay is anything to go by, the emergence of “power sellers” that make a living entirely from buying and selling is inevitable in these markets. Peer-to-peer selling is going to shake up the way we travel, shop, and manufacture goods in a big way.
The barriers to entry – safety, for one – are diminishing. Partly because customers are becoming smarter at spotting scams, partly because as they keep transacting safely and successfully online, customers see the platform as more trusted. And partly (or frankly, largely) because peer-to-peer trade is a low context sales environment…if you want to buy a new sofa, you don’t care who is selling it to you. Users are happy to forgo complex registration and ratings in favor of quick transacting.
Tapping into the new economy
We don’t know where the new barter and sharing economy will take us – perhaps there will be regulation and restrictions applied at a later stage as governments adapt and respond to the new status quo. In any event, the time to participate is right now.
Consumers would do well to start acquainting them with the possibilities while it is free and accessible to do so. (The benefit of Web-based trade is that is isn’t time or location-based, making it easy to dabble). Businesses, on the other hand, should explore ways of partnering with the platforms that provide the venue for these entrepreneurs to flourish – not only to tap into potential new sources of revenue, but to explore ways and means of creating a new business model flexible enough to adapt to the rapid adoption of this trend.