Digital commerce vs eCommerce– the epic showdown
Any entrepreneur will tell you that selling items online is only half the battle. If a startup only has a simple website and no order fulfillment mechanism, it will be doomed to fail before it ever gets off the ground. This was true a decade or so ago. The modern retail environment is full of peaks, valhttps://concordcommerce.com/product/leys, and unexpected turns. Customers want to interact with brands whenever and wherever it’s most convenient for them and can use whatever payment method they like, and have a pleasurable, stress-free experience from start to finish. Consumers want to interact with and learn about a brand before shelling out their hard-earned cash, so businesses must provide a reason to do so.
To put it simply, the digital marketplace is only the beginning. If you want to satisfy the demands of today’s consumers, you’ll need to go beyond the basics of eCommerce platforms. Maybe that’s why many companies are currently pouring money into digital commerce platforms.
Precisely what does “digital commerce” mean?
eCommerce has been replaced by digital commerce platforms (buying and selling online, usually on a website).
The term “digital commerce” describes the practice of making purchases online without the need for a middleman. The distinction is slight, but digital commerce would be what you get if you were to automate everything about eCommerce, from advertising to sales to shipping. While the idea of fully automating a store may sound far-fetched, some of the most significant retail corporations in the world have already begun to adopt it.
Different Facets of Digital commerce
All aspects of consumer decision-making can be accounted for in digital marketplaces. Having all of these features is essential, as the online shopping experience would suffer significantly without them.
Digital strategists typically focus on designing consumer journeys that deliver a smooth experience to the end-user by mapping the whole consumer journey, regardless of the product or service being purchased. Not limited to, the following are some elements of m-commerce:
- Advertising with written content
- Explanations, pictures, and other media of the product
- Using social media, running ads, and other forms of marketing
- A Mapping of the User Experience
- Providers of Services to Customers
- Managing the Supply Chain and Completing Order
What is the process of digital commerce
Automation is critical for online businesses to thrive, and this feature works best when data back it up. Automating digital commerce properly requires a high level of expertise, as does the availability of large amounts of data and the capacity for in-depth analysis.
While global supply chains have the potential to save money and time, they are also very vulnerable to a wide range of external factors such as weather, pandemics, political upheaval, and more. Data provides the foundation for predictive analytics in this context, enabling online merchants to anticipate unfavorable occurrences with ample lead time by considering factors like frequency, seasonality, and more.
Omnichannel describes how digital commerce may be accessed by the consumer regardless of location. This granularity is only achievable with cloud commerce through scenario-based roadmaps and automated systems for managing inventories and customer satisfaction.
Customers typically don’t give much thought to the specifics of their order, such as the fulfillment center from which their goods ship or the protective packaging they may arrive in. Customers care more about speed (how quickly they receive their orders), quality (whether the product is worth the price), and relevance (how accurately the product delivered matches the product represented).
Automation at the supplier and warehouse levels, representing m-commerce in its purest form, is essential for a global retailer to meet its fulfillment targets of several thousand orders per second.
Let’s understand the concept of “E-commerce”
eCommerce, or electronic commerce, is the practice of conducting commercial transactions (such as the sale or purchase of goods or services) using electronic means, namely the World Wide Web. Everything from monetary transactions to the transmission of necessary data is part of this.
Electronic funds transfer, m-commerce, internet marketing, supply chain management, online transaction processing, Electronic Data Interchange (EDI), and automated data collecting systems are all utilized to suit the needs of these activities.
Although “eCommerce platform ” is most often used to refer to the online sale of tangible goods, it can also describe any business transaction conducted online. These exchanges may take place in one of four formats: business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), or consumer-to-consumer (C2C) (C2C).
Online business models vary, with retail, wholesale, drop shipping, crowdsourcing, and subscription models all possible. Physical goods, virtual goods, and services are all fair game. In contrast to e-business, which encompasses all facets of running a firm online, headless commerce refers primarily to exchanging goods and services.
What makes digital commerce platforms different from eCommerce platforms
eCommerce goods and services can be either physical or digital, while digital commerce platform goods are solely available in digital formats for use with digital devices.
In contrast to a traditional eCommerce platform, which often involves a single transaction per item, digital products can be sold several times by simply sharing a link to their cloud commerce or social commerce
eCommerce platform products can be anything sold in a traditional store. In contrast, digital commerce platform products are limited to eBooks, learning courses, photography, multimedia content, digital assets, themes, templates, extensions, software, software components, digital arts, web development, and mobile app development.
In the context of digital commerce platforms, products and services are made available exclusively through digital means. There is no need for warehousing, inventory, or shipping management because the products are created and posted on a hosting platform or digital marketplaces like websites and mobile applications or social commerce. Higher operating costs are a necessary consequence of these prerequisites for successful online commerce.
Another perk of doing business online is never worrying about your products going bad or getting damaged in transit. D-commerce doesn’t have the same problems with exchanges and refunds as e-commerce.
On Digital commerce platforms, automating the sales process and growth into affiliate platforms are less hassle. A potential drawback of the eCommerce platform is the need for substantial customization based on the digital goods sold and the intended audience’s preferences regarding the user interface, features, and functioning.
What has driven the shift to digital commerce?
The ever-increasing accessibility of information and communication technologies is a significant factor propelling businesses toward online transactions. Mobile applications, intelligent speakers, live chat, and two-way messaging (referred to as “conversational commerce”) are just some of how today’s consumers interact with brands. We’re not just talking about people spending more time buying online; instead, we’re discussing the rapid development of hyper-connected, omnichannel commerce that welcomes direct customer participation and places them squarely in the driver’s seat. The IoT economy is reshaping the retail sector, and digital marketplace is all about taking advantage of the opportunities presented by the Internet of Things (IoT). For example, customers’ preference for digital self-service has surpassed speaking with an agent as their preferred method of interacting with retail businesses. This highlights the significance of cloud commerce touchpoints such as online chat, intelligent speakers, mobile apps, and websites that are easy to navigate and provide customers with all the information they require.
However, just because digital commerce platform is focused on the customer doesn’t imply that merchants can’t benefit from it. You may improve your brand’s discoverability, engagement, and conversion rates by being present at several customer touchpoints and channels.
Studies have shown that companies with multi-channel marketing strategies (consisting of at least three channels) have a greater conversion rate than those with single-channel strategies. Customers are more inclined to do business with your firm if they have unrestricted access to your brands across different touchpoints, such as mobile apps, voice commands, and a website suited for various devices and displays. Those that have an easier time locating and interacting with your business through a medium of their choosing are more likely to make a purchase, and you’re much more likely to keep them as repeat customers.
Digital Commerce and its enabling technology
If headless commerce were a line, digital marketplace or digital commerce platform would resemble a complex web that would be nearly impossible to travel without the proper infrastructure and methods. Headless commerce has grown so common that numerous all-in-one commerce systems have been developed to facilitate the rapid launch of online goods sales for firms. However, in today’s era of customer-centric retail, that hardly scratches the surface of what’s required to connect with your audience. Traditional, monolithic platforms aren’t flexible enough to accommodate frequent updates, rollouts, and removals of products and services or to adapt quickly to market demands. But what if your company suddenly needs to accept a different payment when customers check out? Or distribute new catalogues to multiple devices simultaneously. What if you want all of your customer data from every channel to be aggregated in your CRM mechanically, and you want to add additional channels to your CRM to accommodate evolving consumer preferences?
Here is where “composable technology,” the foundation of modern online trade, comes into play. As its name implies, “composable” technology enables businesses to “compose” the rollout of new features and services in a more refined and nuanced manner than is possible with a conventional, monolithic legacy system. Composable technology uses headless commerce and microservices to centrally compose and orchestrate end-to-end business operations with distributed, de-centralized tools instead of merely amassing software and “bolting it on” to an old-fashioned setup.
The top e-commerce websites are always in development.
As technology develops and consumers’ expectations rise, you’ll have to step up your game in digital commerce. In this way, Concord commerce equips you to always be on the lookout for new ways to improve your digital and social commerce experience. The first step in starting a successful business is adopting the best technology for your industry.