What is a Sharing Economy?

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The title of Lisa Gansky’s book, Mesh: Why the Future of Business is Sharing, hints to the change in the business industry from solo to sharing. In general, a sharing economy in business refers to peer-to-peer involvement in transactions and interactions. In detail, it is much more than that.

A sharing economy is sometimes referred to as a democratized marketplace; a market in which the consumer can also play the role of a vendor. It also refers to the sharing of information. When you are transparent and informative about a product online, it will lead to increased sales. The concept is somewhat derivative of millennial generation morals; rather than being a “victim of hypo-consumerism”, buyers want to informed and in control of their purchasing power. The more you know about a product or company, the more you are able to trust them/it to be reliable and honest. This is crucial for companies that want to build brand loyalty from their consumer base.

Some examples of successful forms of sharing economy businesses are Ebay, Etsy, Uber, as well as freelance client-worker connection websites like Upwork and Fiverr.