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E-commerce companies improve business through crowdsourcing

August 25, 2014

E-commerce businesses are taking advantage of crowdsourcing in order to improve sales.

E-commerce businesses are taking advantage of crowdsourcing in order to improve sales. 

There are multiple ways to take advantage of crowdsourcing to ensure better business, according to Crowdsourcing.org. The process consists of gathering large groups of knowledgeable people to make decisions that a single mind could not. 

There are several aspects of business that meld well with crowdsourcing. When search results and product categorization are crowdsourced, consumers have an easier time finding the item that they are looking for. In addition, using crowdsourced copy for product descriptions will provide shoppers with the detailed and engaging information that they are looking for. 

Crowdsourcing deliveries 
However, crowdsourcing can go beyond the webpage. Startups have emerged that are attempting to create logistics chains operated through crowdsourcing, Re/Code explained. This allows these companies to offer quick services at a low cost. Crowdsourced deliveries are usually carried out by independent contractors who drive their own car, use their smart phone for directions, and work when they want. Re/code calls this sort of work “fractional employment.”

And what is the biggest benefit to crowdsourced deliveries? Same day delivery. Early evidence shows that people are willing to pay for the service and crowdsourced employment can provide it. A poll from Harris Interactive found that 14 percent of respondents – and 25 percent of millennials – are willing to pay extra for same day delivery services. The mean price those surveyed were willing to pay was $13.90. 

Deliv CEO Daphne Carmeli hopes to have 1,000 times more distribution centers than Amazon, according to Re/Code. She intends to do this through using crowdsourced delivery drivers who take products straight from malls and stand-alone retailers to consumers’ homes. 

“I don’t own trucks, I don’t pay for drivers I don’t use, I don’t pay for hubs,” Carmeli told Re/Code. “The malls are my hubs.”

There are other ways to take advantage of e-commerce as well. Startup Fancy crowdsources customer preferences in order to create educated product recommendations, according to Crowdsourcing.org. This method allows the company to identify what consumers are searching for, instead of having a computer do it for them. 

Lays has also recently taken advantage of crowdsourcing, allowing people to devise their own chip flavors, the media outlet noted. Crowdsourcing allows customers to get what they want – such as strange chip flavors – which creates a sense of engagement with the product. The method is tool that can be used by e-commerce companies to identify what consumers want, and give it to them. 

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