Ecommerce business models change organizations.

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.

  1. Consumers are looking for cheaper products and convenient ways to get them. The eCommerce is the answer for majority of their needs.
  2. 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.
  3. ” 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 ecommerce business 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.

eCommerce changes business models because:

  1. your website needs to available for purchasing 24×7
  2. your website starts to be the main point of contact
  3. your products and services can bought globally – it means your delivery and payment options should take it into account. New delivery options can complicate the business.
  4. you need to secure your knowhow and designs which is difficult online where everything can be easily copied and pasted

If you need any analysis of your opportunities in the eCommerce world, we help.

We helped several firms to move their business to the next stage: music companies, CPG, software, and professional services companies.

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Let’s have a meeting to discuss it.

We are happy to discuss all aspects of your ecommerce business.

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