E- commerce “the King” of online business is considered to be dead today. Once revolutionized the whole online platform is now on the verge of being obsolete. Technologies follow the trend of change and development, since decades. Once reaches its peak and just in a few years gets obsolete. From the past three decades, E-commerce has metamorphosized the whole market scenario.
Whether its sales and purchase, money transaction, inventory management or marketing. It has been responsible for market globalization and helped companies like- Amazon, Alibaba and e-bay to reach its pinnacle and become global leaders. But as the market changes, customer behavior and response also change, completion comes into force resulting into technological shift and exactly what has happened with E-Commerce.
It needed some revamp and digital commerce is born, popular as D- Commerce. It has been a technological as well as alphabetical shift in the online format; E- commerce to D-commerce.
What is Digital Commerce (D- Commerce)?
Like e- commerce, D-commerce is also an online format for selling, delivering and purchasing goods online but the difference is D- commerce deals with digital goods only, it doesn’t include tangible goods and its services. Digital commerce products include; digital assets, learning courses, e-books, online audio and videos, web development and mobile application development etc. D-commerce is popular with the companies involved in selling news, documents, software etc. It also includes online payment collections, handling customer refunds and billing of products.
Why shift has initiated?
Consumer is the reason this shift has initiated, today consumers have the taken driver’s seat in the market. Now each consumer is smarter, analytical and expect seamless services online as well as offline. With hands on technologies at their disposal, most of the purchase and product analysis before purchase is done on their smartphone. It has been found that around one in four product purchase is done by consumers through smartphones. Smarter customer and enormous market competition have led companies to drive their business according to the needs and demands of the modern buyer.
If you want to be ahead, you will have to analyze, what services a consumer wants from you? even before they ask for and this trend is on the rise. By 2020 it has been reported that 70 million households will add up in online consumer list and most of them will be under 30 years of age.
In this paradigm the e-commerce is lagging to analyze consumer demands and solving problems of each consumer with varied approach.
E- commerce vs D- commerce
Although, working pattern of D-commerce sounds similar to its predecessor E-commerce but it has many significant differences.
o E- commerce includes both tangible and non- tangible products ranging from clothes to software. Whereas, D-commerce deals only with tangible products like- mobile app development, selling of software, online learning solution etc.
o Unlike e-commerce digital commerce offers passive income in a lower overhead expenditure.
o Marketing patterns for the digital products is pretty much different from that of products of e-commerce, as target audiences are different.
o Payment mode of D-commerce products is either advance or online. Hence, transaction issues fall almost null.
Digital Commerce and Its Edge Over E-commerce
Digital commerce possesses unique functionality and due to a customized format, it surpasses e- commerce in many ways.
o With only non- tangible goods included, issues like – product damage, wears & tears and other similar issues are eliminated.
o D- commerce marketing is done in digital format which is a low risk offering providing easy refund and other payment related issues.
o Automation of selling process can be done very easily on D-commerce sites and easy expansion is possible on its affiliate sites.
o D- commerce products are free from physical storage issues like warehouse, inventory and shipping management which is troublesome task for any e-commerce sites.
o Delivery related issues are nullified as online delivery system is adopted.
o Payments for the purchase of D-commerce products are made online or in advance so payment related issues minimize.
Summing Up
D-commerce needs meaningful engagement for consumers in every mode. Analyse straight or cross channel leads to enhance customers understanding about products and services. D-commerce platform develops and serve right content at the right time enhancing brand image and awareness.
D-commerce’s advantage and problem-solving approach has made it as a replacement of E-commerce in digital format, and surely its needed looking into changing customer behavior and response. In today’s market scenario, where customer is the king its vital to fulfill customer’s demand and to stay ahead.
Syncrasy is a Global IT Solutions company with major competence on Pimcore Digital Experience Platform. We are a Pimcore Gold Partner with one of the largest and most experienced development teams that has delivered multiple projects on the Pimcore ecosystem including PIM, DAM, CMS and E-commerce for businesses across industry verticals.
We also work on cutting-edge technologies including Blockchain and Salesforce.
Top comments (0)