Ecommerce requires changes in business models. It is a major outcome from my experience working with various customers.
I also read the Economist’s report „Supply on demand: adapting to change in consumption and delivery models” that proves my findings.
According their research over 50% of companies are changing their business models once they start their journey with eCommerce.
- Consumers are looking for cheaper products and convenient ways to get them. The eCommerce is the answer for majority of their needs.
- Consumers want to try (7-14 days free trails) or rent some products without buying them and getting full ownership. Subscriptions model is more and more popular now. For example I also use Adobe or Zoho subscription models. According authors this model will work only for limited type of services and products. Currently only 10-12% companies in USA and UK are using such model but its popularity grows year by year.
- ” Financial constraints, technological complexity, shifting regulations and the need for new marketing strategies and extensive change management are just a few of the challenges that companies must address to succeed in this transition.”
According to the survey, the leading business benefits of these new delivery models are:
- access to new revenue opportunities (37%).
- Differentiation from competitors (27%),
- accessing new customer segments (27%)
- increasing customer loyalty (25%)
Even in sectors such as hard goods with a one-off sale, companies are creating add-on services that are bundled with the core product. They can be easily offered online.
General Motors’ subsidiary Onstar, for example, is a subscription based roadside assistance service that car owners can pay for through a monthly fee.
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