On March 2, 2021, I was asked to sit on a panel for one of the best Retail and Technology events on the planet – DX3. In light of the global COVID pandemic, it was their first virtual edition. The panel’s topic was Ecommerce, Now and Always, which discussed how the pandemic has changed the Ecommerce, Digital, and Retail landscape. Below is a transcribed version of my answers to some of the moderator’s questions.
How has e-commerce changed over the past year?
Well, everyone is talking about it. Those who didn’t believe in it are now leading the charge. Less selling is needed when talking about Digital. Investments are being made. Talent is being brought in. For those leaders and companies who were trying to delay their entrance or launch into Digital, they are now trying to figure out a way to leapfrog their competitors. I’ve been in Retail for almost 12 years. I’ve always been in a Digital capacity. And I remember the discussions about social media’s impact, the importance of reviews, and email as the best Marketing channel. And it was always like “Johnny, we know…. But we’re going to keep investing in TV, flyers, and billboards, all the things that got us here in the past.” And I kept thinking 5% market share today is going to be 15% next year, and 50% in a few years. And that’s exactly what was going to happen. But COVID made us all fast forward at least 3 years in our planning. I truly believe those that are the most nimble and best at adapting to this wave, will be the ones to win. Not necessarily the biggest or ones with the most cash.
What are we expecting in the future?
A built-in excuse many companies had for not embracing Digital sooner, was legacy ERP systems, or just legacy technology in general. Well, those same leaders of those same companies now have to step up to the plate and swing for the fences. They need to build a future proof tech stack as much as possible, or at least ones that are adaptable. I once had a large email provider quote for $30k implementation fee for an abandoned cart program. We obviously changed providers after that insane quote. But today, especially if you are using Shopify, you can turn on cart emails instantly, with a number of providers of your choosing. Technology today is setup to help the users and business leaders drive business, rather than constantly worrying about things breaking, or trouble implementing different technologies together.
So I think the pandemic has ushered in a different way of doing things for the future. One that is technology-enabled and not disabled.
“Ecommerce isn’t the cherry on the cake, it’s the new cake”
Jean Paul Ago CEO L’oreal
Is e-commerce the default?
I think if you’re starting a business in 2021. And you don’t first understand how Digital and Ecommerce will play a pivotal role, a central role in your company, you’ve already failed. Your business has to be developed with digital as a central core, and that goes for retail, it goes for restaurants, it goes for gyms even (think about virtual training classes and an app and recurring revenue potential). So yes, I think we’re over the 50% tipping point. And I think the digital natives have always known this day would come. So we’re ready for it. Some may say it came sooner than expected. And for sure COVID helped usher it in quicker. But I also think that some countries have been slower to adapt to Ecommerce. And Canada is among them in some sectors. So it took a pandemic to force us to pivot. Digital was becoming so central in our lives, but I think what happened is that those who were never comfortable shopping online, are now more than comfortable. So Ecommerce has gained mass scale quite quickly, and that generation of people who didn’t feel at ease shopping online, most of them are now converted to checking out virtually.
Is there a blurring the lines between B2C and B2B?
I saw someone in my network who works at Adidas post numerous jobs for their Digital Partner Commerce team. It’s essentially building out their Digital Wholesale department. And this wasn’t 1 or 2 positions. It’s a whole team of them. They are ramping up their B2B portal.
I know for The Kersheh Group, we’re both a wholesaler and D2C company, and from a wholesale perspective, that likely means a lot more of our retail partners using us to drop ship to their customers or provide Omni Channel solutions, rather than just product.
And then you look at all these drop shipping businesses popping up on Shopify. Essentially, they are selling to consumers, but buying directly from wholesalers who ship the product. These Shopify business owners never hold the product. So yes, a definite blurring of the lines between B2B and B2C, and what is now known as B2B2C.
How about you? Have you seen major pivotal shifts take place since the pandemic?
Leave a Reply