The Department of Commerce’s Quarterly Retail E-Commerce
Sales report (http://dtn.fm/G4a7J), issued last month, shows, as expected, that
online commerce continues its relentless growth. E-commerce sales for the first
three months of 2016 registered an increase of about 15 percent over the
comparable period in 2015. E-commerce continues to bite into traditional sales.
The first quarter of 2016’s growth of 15 percent far exceeds the 2.2 percent
rise in total retail sales. Additionally, online sales in Q1 2016 were 3.7
percent higher than those in Q4 2015. This is remarkable. The last quarter of
the year is always the peak period when many retailers ‘go in the black’, or
become profitable, while first quarter sales are historically the lowest.
However, despite its phenomenal growth, e-commerce still
comprises a minor share of the overall retail market. E-commerce sales for Q1
2016, at $92.8 billion, were just 7.8 percent of total retail sales for the period.
Future development of online commerce depends on the increased acceptability of
transacting online and the extent to which brick and mortar establishments
migrate to the Web. Many such establishments are building an online presence
through websites and social media channels, yet being found on the Web is the
obverse to finding the proverbial needle in a haystack. A search for ‘handbags’
returns over 72 million results, while one for ‘ties’ produces more than 279
million pages. Being found through organic search on the internet is a major
challenge for small enterprises.
The story is the same in China, where Moxian, Inc. (OTCQB:
MOXC) operates at present. With a population three times the size of the U.S.,
both the pitfalls and opportunities are much larger.
Census figures (http://dtn.fm/9PgmV) for the U.S. reported
1.1 million retailers of all kinds in 2008, a figure that must be higher now
since the 2008 measure surely reflects the depressed economic conditions of the
Great Recession. Taken together with the ‘102,728 e-commerce retailers in the
United States that are generating at least $12,000 per year in revenue’,
offered in an informative Forbes piece (http://dtn.fm/8GWsn), it appears that
just about 10 percent of retail establishments have managed to successfully
establish an online salient. These numbers reveal opportunities that Moxian
plans to exploit as an intermediary. That’s because, as a 2014 article
(http://dtn.fm/gMJ86) in Forbes has prophesied, vertical marketplaces are
coming into their own. Citing the ascent of ‘large vertical services
marketplaces like Uber, Airbnb, Upwork and HomeAway/VRBO’, the author explains
these successes by suggesting that the ‘secret sauce’, as he calls it, is
focus.
“The secret sauce is not the technology, although that plays
an important supporting role. It is the single-minded obsessive focus on
solving one big universal problem for the buyers, and removing that friction
that existed in transacting offline. When the solution is understood, built and
solved at scale, this ‘secret sauce’ enables marketplaces to grow
exponentially,” reads the article. The idea here is that horizontal
marketplaces, in trying to be all things to all men, will be nothing to no one
in the end.
There is more to this idea than just hype. The Moxian+
online platform does what all good intermediaries do; It matches buyers and
sellers. It provides a support infrastructure so customers can pay safely and
engage with others, and it helps merchants promote their goods and analyze
buying patterns. The Moxian+ platform reduces informational asymmetries and
increases transparency of price and quality. Overall, consumers spend less time
searching and have a more satisfying shopping experience.
Moxian, Inc. engages in the business of providing social
marketing and promotion platforms designed to help merchants accelerate and
advertise their business growth through social media. These products and
services enable merchants to run targeted advertising campaigns and promotions,
and aim to enhance the interaction between users and merchant clients by using
consumer behavior data compiled from the Moxian database of user activities.
The company has two primary core products: Moxian+ User App and Moxian+
Business App.
For more information, visit the company’s website at
www.Moxian.com
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