In its October annual earnings, Amazon posted a 37% year-over-year increase in earnings controlling a 38% share of the US ecommerce market. Other market players are following suit in their own development.
With marketplaces being among those very important vehicles for ecommerce earnings, should brands focus their efforts on it as a sales channel?
The solution is”NO” because marketplaces and branded manufacturers while profiting from earnings increases, have opposite aims.
Brands want customers to see ANY retailer to find their product.
Marketplaces want customers to pick ANY brand that is available at their store.
Marketplaces have complete control over the consumer travel along with the way that products are rated and displayed. Along with this, 70 percent of users never go beyond the first page of the search results, and brands normally have almost no tools to deliver unique experiences. As a result of this, it is tough for manufacturers to distinguish themselves to stick out from the crowd.
To avoid becoming too dependent on a strong market player, manufacturers need to make sure that they have a strong channel strategy spanning which includes additional stations:
Direct to Consumer channel provide manufacturers complete control over the customer experience and customer relationship. The station’s challenge is that, unlike marketplaces, a brand new is fully accountable for driving traffic and customer acquisition.
Social networks are emerging shopping channels that will be extremely valuable in the long run, especially for B2C brands. While now the trade capabilities continue to be basic, each the significant networks are keen on commercializing their extensive customer base.
The approach promises quantifiable gains, as Gartner forecasts that by 2022 organizations employing multiple go-to-market approaches for electronic trade will outperform non-commerce institutions by 30 percentage points in earnings growth.
What does it mean for branded manufacturers?
To execute a successful channel strategy, branded manufacturers Need to Have a trade solution that allows them to support it:
Support any touchpoint, be it website, mobile, connected equipment, or social networking, to promote extensive channel approach. This is accomplished with headless API-first architecture that enables programmers to onboard new sales channels. Not all APIs are created equal, so if the APIs are RESTful, well-documented, and easy to use are important factors because they will significantly influence the speed to market for new sales channels.
Deliver unique experiences across different steps of the customer journey to differentiate against the competition. With legacy commerce platforms, it generally takes considerable time and effort to customize the solution due to their rigidity. To overcome this challenge, branded manufacturers call for a trade solution that could be immediately extended by the developers to accommodate new experiences.
Leverage marketplaces as a sales channel by allowing the business to deal with all products and content in a centralized fashion and then publish it to the marketplace. It will permit the group to offer a consistent experience across sales channels and improve speed to market for new offerings.
How to Build a Composable Commerce Solution in Public Cloud
Utilization of individuals cloud has continuously increased during the past few decades, building on the promise of flexibility, scalability, and cost optimisation. At precisely the exact same time, brands across companies face growing pressure to differentiate against the competition with inspirational digital commerce encounters. Composable Commerce emerged as a new approach designed to provide brands the ability to quickly build, deploy, and optimize unique digital commerce experiences that unlock new revenue across B2B and B2C business models.
There are 5 steps to earn a Composable Commerce solution in the cloud. Each with its distinctive challenges:
Select. The first step in the Composable Commerce journey is to decide on the perfect applications for your best of breed solution. The challenge here is to identify which applications can easily be deployed from the public cloud.
Contract. Next, you’ll have to contract all the independent vendors chosen. This involves commercial negotiations and legal reviews, which might have a significant amount of delay and time initiatives.
Deploy. you wish to configure and deploy applications to the public cloud of you choose. This often requires specific skills and knowledge, based on the cloud.
Integrate. Now all of the applications need to be incorporated into one best of bundle solution. This involves network integration and configuration of any additional tools and applications provided by the cloud infrastructure provider.
Handle. After the solution is set up, you need to handle vendors, including billing and support. In case of multiple applications composing a best of breed solution, this could be somewhat cumbersome.
As a result of this, the whole process of composing a best of breed solution is perceived as insecure and for this reason, often branded producers elect to abide by full-stack trade platforms served as SaaS. The drawback of this approach is that all in one platforms limit brands’ ability to create differentiated experiences.
To take the danger from the Composable Commerce execution on people cloud infrastructure, you need to streamline each stage of the process:
Select. Have an ecosystem of applications compatible with your preferred cloud at your fingertips to pick from. By doing this, you will be confident that all of the applications they select can be composed in a best of breed solution.
Contract. Contract each the independent vendors through one single thing. It will decrease the purchasing procedure time and accelerate the overall commerce initiative.
Deploy. Have all of the applications to be pre-configured for installation from the public cloud of your choice to reduce the time required for this measure.
Integrate. Have ready access to a pool of experts who can help integrate the application into one best of breed solution.
Handle. Have one point of contact for administering the very best of breed solution, such as billing and support.
Possessing these elements allows branded manufacturers to rapidly pick the perfect applications, deploy them into a public cloud, compose them into a single trade solution, and efficiently manage it. While at first glance, this sounds like wishful thinking, the recent venture between AWS and Elastic Path makes this a reality.