e-Trading Reviewed

(Europe – Stockholm, Sweden) For the past week I have been annoyed at an article in a Swedish newspaper, Computer Sweden, about a so called expert in e-trading talking about how many Webshops have to close their operation down. He talked about how the market is overmatured with way to many players on the market and how most of them have to shut the business down. Well, I do not agree on this analysis.

Last month there was a report saying that about 70% of all Webshops are making a profit. The rest expect to at least break even sometime this year. The e-market is still a new market with an amazing growth at about 25% per year in the US alone. The markets value is about 3% - 5% of the total trade. Just by looking at these numbers one can understand that the growth potential is enormous. This means that there is room for many more Webshops than today. The market will evolve and of course anyone who do not have god handling of his own economy will go under, but there is room for many more businesses especially for those focusing on a particular area with a clear value proposal. In the past year we will see many more Webshops arising and will probably see a higher quality on the technical solutions while the distribution options will slowly improve over time. A more global scale of business will be the best bet for those that want to truly prosper in an increasingly competitive world.