Profitability has always been a question in the eCommerce industry. It still is, but the questions regarding profitability have shifted focus.
In the earlier years of the Internet, when Ebay constituted the extent of personal eCommerce, it wasn't necessary about running a business. Users would typically buy products and try to sell them at a markup, but that didn't always work. It became increasingly difficult to make money selling products and services over the internet as more people signed online and the market became saturated, because it became harder for individuals to markup their merchandise.
"There are different levels of profit in the consumer internet space," wrote Forbes contributor Alok Mittal in a recent article. "At the first level, are you selling products for more than what you're buying them for? Till last year that was a problem because many eCommerce companies were buying products and selling them for less. Thankfully, that has mostly disappeared this year."
Today, online shopping has shifted from a primarily person-to-person transaction. Instead, virtually every company has an eCommerce portal, and more people are buying online than ever before. The practice has even shifted to the B2B sphere and vendors are selling to procurement specialists in addition to the standard online shopping junkie.
However, the question of profitability still remains. Businesses are wary of increasingly high payment processing fees, which cuts into their net gains. It's crucial for vendors to implement B2B eCommerce software that can process p card payments with level 3 data. This will allow these companies to save on payment processing fees and keep up their profits.
One of the reasons the Internet was invented was to create more money-making opportunities for individuals and businesses. The nature of online sales shouldn't hinder those efforts.
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