EcommerceBytes-NewsFlash, Number 2534 - May 03, 2011     3 of 4

Addoway Uses Social Behavior to Increase Trust in Ecommerce

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Addoway launched its online marketplace one year ago and continues to use social networking activity as an indicator of trustworthiness. Founder and CEO Fredrick Nijm said his goal is to be the first marketplace to nearly guarantee positive transactions from independent merchants by using data in its patent-pending technology it calls Transactionality Predictive Index. Addoway recently integrated the Klout reputation system as part of its efforts to increase trust in ecommerce.

Klout scores can make buyers feel more comfortable buying from strangers, according to Nijm, who said the scores give buyers a glimpse of how long sellers have been online and how active they are. has also partnered with ReplyBuy, a mobile-shopping network that uses SMS text messaging to complete buyer transactions. "We're catering to the masses of today by offering an easy way to make mobile purchases without needing a smartphone," said Nijm. "This exponentially increases the channel sales opportunities for our retailers."

ReplyBuy members receive text messages informing them of items that have recently gone on sale or just been marked down. Each new sale alert can be purchased (based on available quantities) instantly via SMS text message. Sellers on Addoway choose items they wish to make available for instant purchasing through ReplyBuy. Addoway works with ReplyBuy to handle the required scheduling, targeting and transaction-processing to create a seamless experience for the merchant.

Nijm told AuctionBytes that 1 million items have been listed for sale since the site's launch a year ago, and its membership has doubled since January to 10,000 members; 5% of sellers are paying optional Pro Memberships for more exposure, he said, and the site receives 150,000 unique visitors monthly.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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