Trust is the building block of any peer-to-peer relationship. The emergence of a universal online reputation index will be instrumental in the growth of collaborative consumption. 

The excellent piece “Aggregation Not Algorithms Is The Key To Establishing Trust Online” by @kusti raises a key debate. 

The Internet is winner-take-all: this debate almost reminds us of FBConnect vs. OpenID in the online identity war of 2009.

It’s not about aggregation vs. algorithms, it’s about aggregation within the algorithm of choice.

It’s not about transparency, it’s about whose algorithm is dominating.

It’s not about the risk of gaming an algorithm, it’s about the ability of the keeper of the index to be constantly engineering the algorithm while everyone is trying to game it.

It’s all about PeopleRank.

Does the general public argue about the semantics of credit scores? They actually follow suit and work to better their scores as it impacts their financial well-being. Their “social score” will impact their online reputation and allow them to participate in the sharing economy.

When it comes down to building an index, the Dow Jones Industrial Average is a good example. It’s a price-weighted average index of the 30 largest publicly traded companies in the United States. The reputation index that will win it all, is the one that will be able to select the most relevant types of actions in the social web, and weigh them in a secret algorithm reflecting their relative importance.

That’s serious big data engineering, and this exercise cannot be done in a collaborative way by multiple players: one dedicated startup, whose core business is to build that complex algorithm will dominate the space. 

Blog entry by @karimguessous

Source: http://www.flickr.com/photos/suteki/475093875/

(Source: tradepal.com)

While smartphones increase our ability to influence people, places and things through peer-to-peer sharing and location-based services, these devices are also helping to fuel collaborative consumption in many ways:

1. Immediacy: Smartphones facilitate instant communication when it comes down to peer-to-peer transactions
2. Trust: Matching mobile phone numbers helps authenticate peers
3. Payments: Mobile payments fuels the growth of peer-to-peer commerce
4. Reputation: Smartphones increase the use of social networks which in turn increase the social clout of more peers
5. Network effects: More people connected on mobile networks increases the adoption and the use of peer-to-peer services

In 2011 smartphone technology led the way toward fueling the growth of mCommerce as users opted for more advanced devices. According to the latest release from the International Data Corporation (IDC), by 2015 more U.S. Internet users will access the Internet through mobile devices than through PCs.

Car-sharing “Zipcar” Leveraging Mobile Internet

Photo source: http://www.morganstanley.com/institutional/techresearch/pdfs/Internet_Trends_041210.pdf

(Source: tradepal.com)

The New Consumer is seeking to gain a sense of fulfillment by simplifying their lives and taking a holistic approach about their consumption habits.  In 2010, Andrew Benett and Anne O’Reilly launched a study highlighting the permanent shift in peoples’ perceptions about themselves as consumers. According to Euro RSCG’s New Consumer global survey, consumers are embarking on a re-discovery of the basic ideals that were the building blocks of society. As a matter of fact, 70% of the respondents surveyed admire people who live simply, while 71% were actively trying to improve who they are as individuals.

It appears that the New Consumer is focused on limiting their environmental impact while reducing their spending. Indeed, 64% of respondents feel good when making environmentally friendly consumption choices and 70% feel great about saving money. The undeniable trend is that the new consumer is rejecting hyper-consumption in preference for more sustainable alternatives.

One encouraging statistic in this survey is 48% of respondents have stated that they will not revert back to their old consumption habits - even after the economy rebounds. This proves a permanent state of change has occurred in the mind of the New Consumer. 

The New Consumer has made a conscious effort to shift priorities and revolves most decisions around their communities. They want to better themselves, their families and their future. 

Will collaborative consumption become the economic model of the New Consumer as they transform the way they shop and spend? Will they adopt the latest trends in transportation (sharing and renting car and bikes), accommodation (peer-to-peer short term rentals), travel (car pooling), space (workspace, storage, and parking sharing), neighborhoods (tool rental, swaps, garage sales) and work (workspace sharing, part-time tasking)? 

To review the survey, visit Euro RSCG’s New Consumer

TRADING ON TRADEPAL:

SENDING A TRADE OFFER ON TRADEPAL:

“We cannot run a linear system in a finite planet indefinitely!”, Annie Leonard bluntly states in The Story of Stuff. She even goes further by stating that recycling is not a permanent solution as it does not reduce the waste generated by the production cycle. The materials economy has impacted our wallets while our wasteful behaviors have devastated the environment. Her video compels viewers to evaluate their habits and to make a conscious shift in their consumption choices. 

Is our system in a crisis due to our old school throw-away mindset or are we transitioning into a new era of mindfulness where we make more conscious decisions as we evaluate their future impact?

Formerly reluctant consumers are now adopting the latest trend of selling seldom used items to offset the cost of being fashionable, pay bills or to giveaway rather than dump in landfills.The attributes we were raised on such as thrift, trust and goodwill are definitely making a comeback as the foundation of our communities. Consumers are increasingly adopting new services that allow peer-to-peer sharing, renting, and swapping. 

One intangible benefit from these peer-to-peer startups is they strengthen our communities while minimizing some of the negative impact on the environment. There is a lot of buzz happening around Collaborative Consumption, and 2012 seems to be the year where it might go mainstream, as evidenced by the NBC Nightly News segment ”In a down economy, sharing takes off”, as aired on Jan 15th, 2012. 

We consider “The Story of Stuff” video to be a founding block in the emergence of the Sharing Economy. It has been an inspiration in building our people-centric marketplace at Tradepal. 

(Source: storyofstuff.org)

“We must rapidly begin the shift from a ‘thing-oriented’ society to a ‘person-oriented’ society.” - Martin Luther King Jr.

(Source: kplu.org)

When it comes to purchases, consumers vote with their pocketbooks. When it comes to “stuff”, a shift is underway as women are making wiser purchases while taking the lead in how to part with what they no longer need. But this isn’t your run-of-the-mill stuff as these savvy shoppers have their eye on items that will hold their value in the resale market. Following the emergence of the Mommy-blogger and Mom-preneur, the latest consumer trend is women whose purchases include a preplanned exit strategy — the future resale of the item. These shoppers will either utilize a peer-to-peer marketplace or do a swap, depending on the item.

A study conducted by Women at NBCU points out the growing trend of women who view themselves as more than just consumers, they consider themselves to be curators, collectors and even experts. Here are some key insights:

• Two-thirds prefer to spend $100 to get a resale of $35 rather than $5o with no resale value
• 76% are presently buying and selling via peer-to-peer marketplaces
• 60% were interested in selling on their Facebook page 
• 77% would write about a product in exchange for a discount

The study also stated that as many as 89% of those surveyed prefer to own and then resell items rather than to rent or lease. Additionally, almost a quarter of those surveyed believe that within the next 10 years, the majority of purchases will be peer-to-peer transactions. These curators know their way around the marketplace and also know quality items and powerful brand names are key in the resale marketplaces.

Are you looking for something fun to offer guests at your NYE party? 

While champagne is necessary to complete the requisite toast to the New Year, Tradepal offers a little twist to the cocktail selection with vodka soaked Gummy Bears.

Gummy Shots Recipe:

To make this concoction, just get a large bag of gummy bears and a bottle of vodka (other clear spirits will work also) and let ‘em swim in it a few nights.

Here is how you do it:

1 - Start with a medium bowl, add the gummy bears and then pour the vodka (or other alcohol) over them until it is filled about an inch over the top of the bears. These bears will absorb the alcohol and swell up, so make sure the bowl can contain this size increase.

2 - Give the bears a stir and then cover the bowl and let ‘em soak in the refrigerator

3 - Over the next 2 to 3 days give ‘em a stir each day and watch them get bigger 

4 - Serve the Gummy Bears at your Soiree and enjoy!

                       Have a happy New Year from your friends at Tradepal!

Did you miss National Regifting Day last week?

Ah, yes it really does exist… While regifting has been growing trend as many Americans felt their wallets tighten due to the slowing of the economy or job changes, it isn’t necessarily a bad thing.

The pressure to finalize holiday purchases is growing and each day we read about the challenges that plague Americans such as a recent article that mentioned, “50% of Americans not able to shop for the holidays this year as they could not afford it…” This is a startling number given that the average U.S. household harbors over $7,000 in unused items. This excess could be sold, traded for other items or even better, given away.

Many of us will be receiving a few new gadgets this year, maybe an Apple iPod Touch or iPad, or Let’s Rock! Elmo for the kids. Whether you receive the latest Kindle Reader, a camcorder, flat screen television or surround sound system, there is the old model that is destined for the Island of Misfit Toys now that it has been upgraded.

Were you wondering what to do with this outdated item …. or maybe items?

Here’s an idea! Since most of us are connected to our friends and family on our social networks already…. How about creating a Tradepal online garage sale and list these items for sale, trade or as a giveaway?