E-Commerce, Competition and Business Strategies

Investing in automatic learning systems to offer the most appropriate products for each consumer and to strengthen the relationship between customers and manufacturers, are strategies that could improve the income of online stores.

Friday, January 8, 2021

With the arrival of a new commercial reality, e-commerce passed from being the future of several businesses, to the present of companies dedicated to the commercialization of all types of products and services.

The restrictions on mobility decreed by the propagation of covid-19, the changes in people's consumption habits and the preference for staying at home, were factors that gave e-commerce a boom at a global and Central American level.

You may be interested in "How do Purchasing Intentions Evolve?"

For several companies it has been a challenge, because some had not yet bet on sales through digital channels, a situation that forced them to launch their electronic systems in a few months.

Another challenge that companies face is to compete with platforms that operate globally and have experience, as is the case with Amazon or Aliexpress.

Given these challenges, Josh Silverman, CEO of Etsy, advises that to "... remain relevant in the online sales ecosystem it is important to bet on the additional value of the products sold. Show that these are things that express themselves, that have a sense of identity, a history, you feel you have a connection with the manufacturer."

According to the Etsy executive, there are market opportunities, since the more people focus on large mass distribution companies such as Amazon, the more consumers crave the antithesis of all that.

See "How is the Interest in E-Commerce Platforms Evolving?"

In the case of stores that manage a large number of products, investment must be made in automatic learning systems, so that customers are presented with the most appropriate options.

"How do you find the right coaster among more than 200,000 options? If you sat in the middle of a soccer stadium and looked around, there would be two sets of coasters in each seat. And yet, on the mobile screen we have to show you the thirty that are perfect for you" this is possible with automatic learning systems, explained Silverman to Elpais.com.

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