The Tipping Point for the shift from physical to digital retail is occurring due to significant advantages e-commerce has over brick-and-mortar retail. But which e-commerce model will win in the long run? Ebay /Alibaba / Rakuten type marketplaces or a more controlled retail platform like Amazon, which also has a marketplace? Will the emerging “asset light” models, such as Instacart, PostMates, eBay Now, Uber(?), and Google Shopping Express, enable physical retailers to team up and provide instant gratification to beat the e-commerce giants? Let’s discuss the evolution and future of e-commerce – exciting times!
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8. Stores require a minimum
footfall to cover their fixed
overhead!
1!
As more people shop online, it creates a Vicious Cycle
9. Stores require a minimum
footfall to cover their fixed
overhead!
As traffic is diverted from store to
online (RedMart or competitors),
the store becomes more and more
expensive to operate
1! 2!
As more people shop online, it creates a Vicious Cycle
10. Stores require a minimum
footfall to cover their fixed
overhead!
As traffic is diverted from store to
online (RedMart or competitors),
the store becomes more and more
expensive to operate
The store’s offering and
service becomes weaker
and less efficient
1! 2!
3!
As more people shop online, it creates a Vicious Cycle
11. Stores require a minimum
footfall to cover their fixed
overhead!
As traffic is diverted from store to
online (RedMart or competitors),
the store becomes more and more
expensive to operate
The store’s offering and
service becomes weaker
and less efficient
Causing more people
to move online
Vicious
Cycle!
1! 2!
4! 3!
As more people shop online, it creates a Vicious Cycle
16. Platforms / Business Models and Trends
Platform Players
B2C
Traditional Marketplace
"Asset Light", Instant
Delivery Marketplace
Subscription
C2C
17. Platforms / Business Models and Trends
Platform Players
B2C
Traditional Marketplace
"Asset Light", Instant
Delivery Marketplace
Subscription
C2C
18. Platforms / Business Models and Trends
Platform Players
B2C
Traditional Marketplace
"Asset Light", Instant
Delivery Marketplace
Subscription
C2C
19. Platforms / Business Models and Trends
Platform Players
B2C
Traditional Marketplace
"Asset Light", Instant
Delivery Marketplace
Subscription
C2C
20. Platforms / Business Models and Trends
Platform Players
B2C
Traditional Marketplace
"Asset Light", Instant
Delivery Marketplace
Subscription
C2C
21. Platforms / Business Models and Trends
Platform Players
Private Label and Value
Added Services
Daily Deal / Flash Deals
Price Comparison and
Social Shopping
Fulfillment / Delivery
E-commerce Software
Platforms
+
22. Platforms / Business Models and Trends
Platform Players
Private Label and Value
Added Services
Daily Deal / Flash Deals
Price Comparison and
Social Shopping
Fulfillment / Delivery
E-commerce Software
Platforms
+
23. Platforms / Business Models and Trends
Platform Players
Private Label and Value
Added Services
Daily Deal / Flash Deals
Price Comparison and
Social Shopping
Fulfillment / Delivery
E-commerce Software
Platforms
+
24. Platforms / Business Models and Trends
Platform Players
Private Label and Value
Added Services
Daily Deal / Flash Deals
Price Comparison and
Social Shopping
Fulfillment / Delivery
E-commerce Software
Platforms
+
25. Platforms / Business Models and Trends
Platform Players
Private Label and Value
Added Services
Daily Deal / Flash Deals
Price Comparison and
Social Shopping
Fulfillment / Delivery
E-commerce Software
Platforms
+
26. Platforms / Business Models and Trends
Platform
Website /
Mobile
Back End Merchandising Marketing Fulfillment Delivery Payment
B2C
Traditional
Marketplace
"Asset Light",
Instant Delivery
Marketplace
C2C
Private Label and
Value Added Services
Daily Deal / Flash Deals
Price Comparison/
Social Shopping
Fulfillment Some
E-commerce
Software Platforms
27. “The Everything Store”
VS
Fight head on
VS
Team up and provide instant gratification
+
E-Commerce Trends
VS
Sell your own products or provide value
added service & convenience