Decoding ecommerce business models
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Ecommerce business models decoded. Which model is most suitable and appropriate.
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Decoding ecommerce business models
- 1. Decoding ecommerce platform business models Abhijit Anand Prabhudan abhijit@gmail.com
- 2. Branding and identity • Separate brands or interfaces for b2b and b2c • Let's call them cataloghub and catalogforge • Each has its USP and market focus clearly defined
- 3. Premises • Long term business perspective • Not burning money • Being profitable • Steady market growth • Scalable back-end processes
- 4. What analysts have written in media • Exclusive & differentiated product categories found to be more profitable • Marketplace model found to be more profitable • Long tail dominated by few blockbuster products • Focusing on niche market is beneficial in face of giants
- 5. Catalog building • Highly selective merchandise • Carefully curated merchandise • No race to list everything in order to show maximum numbers of products in different categories
- 6. Prudent pricing • No unsustainable discounts or mark-off • Include aspects of crowd funding to assess demand for selected products
- 7. Metrics • Depending on model, TAM, CAC, LTV, ARPU, GMV, GTV, cash conversion cycle, operating cycle, inventory conversion, receivables conversion besides others are measured in dashboard but One Metric That Matters OMTM approach outlined in Lean Analytics is desirable
- 8. Employee value proposition • Striving for better work-life balance for employees • Leveraging automation for warehousing and logistics operations • Holacracy model is desirable?
- 9. Future potential of blockchain • Granular accounting and unprecedented accuracy in tracking under supply chain management by use of blockchain • Far better tracking of contract production, supplies, sellers, warehousing, logistics & CRM activities
- 10. SMEs should focus on? • Intermediary models are replicable • Business model imitation is more relevant than business model innovation in Indian context?
- 11. Open source software • Most technology infrastructure can be based on open source software • Software like Akeneo, Pimcore, Drupal commerce and Magento • But simplicity and intuitive UX of Microweber stands out
- 12. Conclusion • This slide deck is my attempt to sense ecommerce platform business models • I am Abhijit Anand Prabhudan • Contact me abhijit116@gmail.com