The objective of the course is that students understand the most important aspects of digital commerce activities, for example selling of goods and services via the Internet, mobile networks and other emerging channels, to private consumers (B2C) and to commercial customers (B2B). Therefore, in this course, different aspects of Digital Commerce are presented and discussed. This covers the different players that are active in Digital Commerce and the changes in the competitive landscape, disintermediation and new intermediaries, different business models and business strategies in Digital Commerce (for example market places and the perspective of two-sided markets), theoretical foundations from a business strategy, networks and a customer behaviour perspective, marketing instruments of digital commerce companies, cross-channel and omni-channel strategies and relevant decisions along the value chain, for example with regard to delivery options.
Digital Commerce (or E-Commerce) has become highly relevant in many sectors in the last two decades, gaining market shares and leading to the emergence of new players, like Amazon or Zalando, who have become huge companies. Long established companies have added digital sales channels. In addition to the already established online channels, like ordering over a PC or notebook, new channels emerge like mobile channels, scanning solutions or voice assistants as Alexa. In B2B markets, even more forms of digital ordering appear.
Table of Contents
1. Introduction: Relevance of Digital Commerce
2. Typologies and developments in digital commerce
2.1. Digital commerce typology based on the exchange partners
2.2. Digital channels
2.3. SoLoMo (Social Commerce, Local Commerce, Mobile Commerce)
2.4. Individualisation/personalisation
3. Actors in the Digital Commerce distribution channel
3.1. Functions of intermediaries in Digital Commerce
3.2. Disintermediation vs. intermediation
3.3. Main types of intermediaries in Digital Commerce (B2B and B2C)
3.4. Disintermediation: “Direct-to-Consumer”
3.5. Further (non-intermediating) actors
4. Retail formats and business models in Digital Commerce
4.1. Retail Formats in Digital Commerce
4.2. Retail branding and brand portfolios
4.3. Business models in Digital Commerce
5. Market places as two-sided markets
5.1. Two-sided markets
5.2. Network effects
5.3. Power and market structure
5.4. Marketplaces in the “Sharing Economy”
5.5. Amazon and Alibaba
5.6. Marketplaces and platforms in different B2C and B2B sectors
6. Multi-, Cross- and Omni-Channel-Commerce
6.1. Strengths and weaknesses of different channels
6.2. Characterisation of the three concepts
6.3. Customer Journey
6.4. O2O: Online-retailers opening Stores
7. Selected value chain activities of a digital commerce company
7.1. Architecture of the IT systems
7.2. Marketing in Digital Commerce
7.3. Transactions in Digital Commerce
7.4. Logistics in Digital Commerce
7.5. Returns
7.6. Grocery online in selected countries
7.7. Services in Digital Commerce
7.8. CRM in Digital Commerce
8. Internationalisation of Online-Shops
8.1. Cross-border shopping: Status and Barriers
8.2. Basic decisions in the internationalisation process
8.3. Internationalisation speed
8.4. Market selection
9. Further topics
Objectives & Core Topics
The primary objective of this course is to provide students with a comprehensive understanding of the most critical aspects of digital commerce. It addresses the sale of goods and services via the Internet and emerging digital channels to both private consumers (B2C) and commercial business customers (B2B). The work explores the transformation of competitive landscapes, business strategies, and technological foundations within the digital economy.
- Evolution of business models and strategies in digital commerce.
- Theoretical foundations including business strategy, network economics, and customer behavior.
- Dynamics of intermediaries, disintermediation, and the rise of two-sided markets.
- Cross-channel and omni-channel distribution strategies.
- Key value chain activities such as logistics, marketing, and CRM.
Excerpt from the Book
Functions of an Intermediary in the Digital Distribution Channel
Why does Sony sell through Microspot to the end consumer instead of doing it themselves? What is the value added of an intermediary? You need to understand it in order to decide whether it is worth. The Balight-Richartz-Effect shows that if you are gonna buy 30-40 products, you deal with different suppliers for different product categories (50 different suppliers, 70 customers). If LeShop would not exist, we would have 50x70 business relationships. LeShop = Migros buys from 50, sells to 70 = 50 plus 70 relationships.
Providing an assortment of products and services is a key function. Nespresso vs. LeShop: Nespresso = getting capsules and that’s it. LeShop = you get way more services. One-stop-shopping means we can buy from LeShop and get everything in one place instead of having to go to 50 different suppliers. Choice: More choice/ assortment in one place (Nike = only Nike shoes) – we can compare.
Enhancing efficiency is another pillar. Why would the service like transportation be cheaper if they do it than if I do it myself? Because they have economies of scale. Economies of scope: Sports retailer as compared to as manufacturer in skiing equipment. Sports retailer is going to have year-round product and sell according to seasons and demand curves which leads to more efficiency. Smoother demand curve than one specific manufacturer.
Summary of Chapters
1. Introduction: Relevance of Digital Commerce: Provides definitions of E-Business and E-Commerce, while highlighting the growth and seasonal patterns of the sector in the USA, Germany, and Switzerland.
2. Typologies and developments in digital commerce: Analyzes the classification of exchange partners (B2C, B2B, C2C) and the increasing trend toward personalization and individualization in marketing.
3. Actors in the Digital Commerce distribution channel: Explores the role of intermediaries, the process of disintermediation, and the dynamic nature of "pure players" in various market segments.
4. Retail formats and business models in Digital Commerce: Examines different retail formats, from category killers to niche concepts, and introduces the Business Model Canvas as a tool for structuring organizational value creation.
5. Market places as two-sided markets: Investigates the economic mechanics of two-sided platforms, network effects, and the dominance of major global players like Amazon and Alibaba.
6. Multi-, Cross- and Omni-Channel-Commerce: Discusses the integration of online and offline channels, including the customer journey and modern supply chain solutions like "reserve & collect".
7. Selected value chain activities of a digital commerce company: Analyzes operational activities including marketing, pricing strategies, logistics, and the role of web analytics and data mining in driving sales growth.
8. Internationalisation of Online-Shops: Covers the strategic considerations for expanding online shops into international markets, including cross-border barriers and market selection.
9. Further topics: Offers a concluding look at emerging trends and final considerations for digital commerce strategy.
Keywords
Digital Commerce, E-Business, B2B, B2C, Business Model Canvas, Intermediaries, Disintermediation, Two-Sided Markets, Omni-Channel, Customer Journey, Personalization, Logistics, Conversion Rate, Amazon, Alibaba
Frequently Asked Questions
What is the core focus of this work?
The work focuses on the fundamental aspects of selling goods and services through digital channels, specifically addressing both B2C and B2B market dynamics.
What are the primary themes discussed?
Central themes include retail formats, business model architecture, the role of intermediaries, multi-channel distribution, and data-driven marketing strategies.
What is the main research question or objective?
The objective is to provide students with a deep understanding of how digital commerce activities function, how value is created, and how companies navigate the transition from traditional to digital-first business models.
Which scientific methods are primarily mentioned?
The text employs theoretical frameworks such as the Transaction Cost Approach (TCA) and Principal-Agent Theory to explain firm behavior and the delegation of functions to intermediaries.
What aspects of the value chain are covered in the main section?
The main section covers key operational areas including IT system architecture, marketing, transactions, logistics, customer relationship management (CRM), and advanced data analytics.
Which keywords best characterize the work?
The work is best characterized by terms like Digital Commerce, B2B/B2C, Two-Sided Markets, Omni-Channel, Customer Journey, and Business Model Canvas.
How do "Pure Players" differ from traditional retailers in this study?
Pure players operate exclusively online, offering high agility and dynamic scaling, whereas traditional retailers must balance physical store costs with the integration of digital sales channels.
Why are Amazon and Alibaba highlighted as examples?
They are highlighted as the world’s leading "digital giants" that utilize two-sided market platforms to orchestrate value creation between vast networks of sellers and buyers.
What is the significance of the "Hockey Stick" scenario?
It represents the potential for exponential growth in digital sales, creating a strategic dilemma for store-based retailers regarding whether to continue investing in physical assets or shift focus to online channels.
- Quote paper
- Carole Gobat (Author), 2019, Digital Commerce in B2B and B2C Markets. Relevance, Development and Actors of Digital Commerce, Munich, GRIN Verlag, https://www.grin.com/document/503786
