Small changes happen all the time, but every once in a while we get to witness a big change. Jean-Paul Ago, CEO at L’Oréal since 2011, came up with a humorous yet striking analogy when he said that: “e- commerce isn’t the cherry on the cake, its the new cake.” Indeed, the world of retail has witnessed a big change in recent years. A 2017 survey conducted by a subsidiary of the EU concluded that 68 percent of internet users in the European Union shopped online in that same year. A 2018 report conducted by Walkers Sands Communications, revealed that 46 percent of US consumers preferred to shop online. It’s safe to say that e-commerce, or online shopping as some call it, has drastically changed the shopping habits of consumers.
E-commerce can best be described as the business of buying and selling goods and services over the internet. No one knows exactly when the first transaction was done. What we do know is that large e-commerce businesses started flourishing in the 1990s. By the early 2000s, e-commerce had solidified its position as a mainstream phenomenon. Resulting in e-commerce offerings from businesses of all sizes.
Successful e-commerce ventures logically introduced e-commerce jargon. A physical presence of an organization or business is now referred to as a brick and mortar business. Amazon, now the world’s largest e-commerce marketplace, started out without any brick and mortar business locations. Successful brands like L’Oréal quickly realized that their traditional way of doing business was under fire, solely offering products via physical stores was no longer a successful recipe for optimal revenue. In other cases, not implementing a successful e-commerce strategy or failing to do so in time has led to enormous losses and even bankruptcy.
Toys ‘R Us used to be an absolute powerhouse when it came to selling toys. The toy company kicked off the new millennium by signing a 10-year contract with Amazon, agreeing to be the sole vendor of toys on Amazon until at least 2010. Undeterred by their agreement, Amazon began to allow other vendors to sell on its site. Toys ‘’R’’ Us successfully sued Amazon in 2006; receiving $51 million in damages in 2009. Unfortunately, it was too little too late. Toys “R” Us failed to develop a successful e-commerce department in a crucial stage. Following a series of tumultuous years, Toys “R” Us finally filed for bankruptcy in 2017.
So there you have it, getting a slice of the new cake is more than just offering your products online. Finding the right partnership is important because it can make or break your organization. Digital agencies can be great partners for the development and implementation of an online strategy. A partnership with DeltaBlue can give digital agencies several advantages. Agencies get known for work with a particular e-commerce platform, but the associated infrastructure and operational specializations required to maintain the platform limits agility to diversifying to additional platforms. Agencies can’t pivot and change their business easily, which reduces the win rate for new business and cripples early exposure to leading-edge e-commerce innovations. DeltaBlue can solve that problem by using an automated provisioning blueprint. Make sure to check out our demo if you’d like to learn more.