No matter how diligently and meticulously you take care of
your online business, it is always possible that some
greed-mongers half-way across the world pillage their
country's coffers or that someone starts a war and sends
petrol prices shooting up. As soon as that happens, the
global marketplace which in good times works in your
favour, allowing you to sell online all over the world,
becomes your greatest foe, allowing outside factors and
forces to affect your business adversely.

The online marketplace business model, where consumers
transact directly with other consumers, to some extent
thrives in a recession environment. In difficult economic
times, people will be more than ever looking for bargains
and will come to online marketplace. The new sellers will
come too, looking to sell whatever it is they can sell. And
on online marketplace, sellers very quickly become buyers.

While people will forego purchases of luxury goods when the
times are hard, they will not stop spending for birthday
gifts or household appliance that broke down. However, they
will be more than ever looking for great deals, which is
where online marketplace comes in. Buyers can actually save
money by shopping on online marketplace. They will search
for second hand goods instead of new ones or for last
season's model instead of the latest version. Above all,
they will take advantage of the fact that even the new
items and the newest models will be cheaper on online
marketplace than in shops, because online marketplace
sellers sell directly to the user, doing away with
expensive overheads like shop retail space.

Even so, you as a seller may need to adjust to the changed
economic climate. You may want to switch your product
portfolios. It is usually recommended to focus on the
products that are in demand and likely to sell fast, while
getting rid of the slow moving items by offering discounts.
The "buy cheap - sell cheap" philosophy may serve you well
when the consumers are strapped for cash. However, before
you rush to mark down prices on all your products, consider
some other options first. Research has shown that people
simply love prices ending with the number nine. So, revisit
all the items you sell at a fixed price and change the
final digit to nine. And yes, you can go up. On average,
people are 30 per cent more likely to buy something that
costs R49 than something that costs R44 - meaning that you
can increase the price and increase sales!

Economic downturn is also the time to trim the costs, for
example the packaging and stationery expenses. Little
things like printing in draft quality with black ink do add
up and can make a difference.

Though sad, the fact that not all businesses will survive
recession can work to your advantage. There are pickings to
be had from bankrupt or liquidation stock. Look out for
bargains and keep an eye on your competition.

Because, in the end, the economic woes will make many
people forego expensive vacations and socialising. In other
words, they will stay at home more - possibly in front of
their computers. That is when they may stumble upon online
marketplace. They may decide to sell something to raise
much needed cash. That is all good for online marketplace
sellers - because everybody knows, from their own
experience, how quickly new online marketplace sellers
become new online marketplace buyers. That means a wider
customer base - and more potential customers for you.