The drastic change in people’s shopping habits triggered by the Covid19 pandemic has skyrocketed the popularity of e-commerce. The immense craze for online buying has been a shot in e-commerce companies’ arms as newer companies enter the field. Besides the tech giants like Amazon, Walmart, and other big names, nearly every brand tries to set up its e-commerce store to reap the benefits of the ever-expanding market. Despite the growing popularity of e-commerce, the segment constitutes only 5-10% of the retail business. Tremendous opportunities await companies that create their footprint in the e-commerce segment. But they must overcome the stiff challenge of competing with bigger players who control the game. The lack of equal opportunities in the e-commerce space is triggering a movement for democratizing commerce to ensure a level playing field.
The Need for Democratizing Commerce
In the early days of e commerce, only the giant tech companies with strong financial muscles dominated the e-commerce space by accessing the technology and platform necessary for conducting online business. Disparate and expensive technology created barriers for other retailers to tap into the e-commerce market. It resulted in a duopoly of Amazon and Walmart, and retailers that wanted to participate on the platform had to make considerable investments to access the technology and infrastructure of the business. As a result, money power dominated the e-commerce space, with only a few retailers operating on the platforms. Most small retailers with limited resources had to shelve their dreams of taking their business online. But the growing popularity of ecommerce and technological advancements led to the democratization of e commerce tech industry.
The Change Begins
It is interesting how connected commerce technology helped remove the barriers to entry into the e-commerce space. It paved the way for small retailers to realize their dreams of creating an online business entity and expanding their business quickly for more profits. Technological advancements that drive e commerce businesses led to the democratization of e commerce tech companies. Brands can now easily access the retailer’s online platform without making huge investments, while retailers can include a broader range of products in the catalog. Brands can reach a larger market by showcasing their products across various online marketing channels. Customers, too, have more options and can make well-informed purchasing decisions. Technology facilitates seamless connectivity of the back-end systems so that brands can communicate with one another regardless of the legacy systems.
Beneficial for Brands and Retailers
Let’s examine how e-commerce tech’s democratization in business development has benefited the stakeholders. The ease of accessing technology has given brands greater control over the way retailers showcase the brands on the platform. With more options available ready at hand, brands can now switch over to some other retailers if they are unhappy with the current retailer.
Democratizing commerce has also benefited retailers because greater participation of brands on the platform helps to enrich the product catalog and give more options to customers. The broader brand participation helps retailers grow their business rapidly by ensuring speedier delivery from the brand’s warehouse.
