DSI Blog


Vertical Integration Among Biggest Ecommerce Opportunities

Posted by on May 29, 2014 2:28 pm

There’s no doubt that eCommerce is continually changing the way that goods and services are bought, sold and discovered, which is why it’s so important for eCommerce retailers to stay dialed into the space and aware of the biggest drivers for opportunity and change. A good starting place? A recent infographic that examines the six biggest opportunities in eCommerce, as revealed by retail experts interviewed by eCommerce writer Drew Sanocki.

These opportunities highlight new tools, techniques and behaviors on which eCommerce retailers can capitalize to not only better serve their customers, but also positively impact their company’s bottom line. Here’s a closer look at some of the more critical areas of focus:

Changing Landscape: Vertical Integration

The more quickly and efficiently a company can get goods or services into the hands of a consumer, the better — especially in today’s rapidly moving digital marketplace. The solution? Vertical integration, the combination of two or more stages of production that might otherwise be operated by separate companies. The result is a supply chain in which one company controls all stages of production, a model that can boost supply chain transparency, cost-effectiveness and efficiency.

Additionally, the Internet continues to change and disrupt traditional distribution channels, creating increased opportunities for niche retailers and small manufacturers to unite and serve a specific customer base.

Conversions Are Key

When you talk about a website — especially an eCommerce website — traffic is typically at the top of the priority list. And although consistent (and, ideally, increasing) web traffic is important for any site, eCommerce retailers should be equally (if not more so) focused on conversions. After all, if site visitors aren’t buying, there’s a problem—and one that your eCommerce site and strategy should address. Analytics are an important piece of the puzzle, which is why you should regularly collect and analyze your site’s data so that you can see how customers and prospects are getting to your site and what they’re doing once they’ve arrived. Understanding their behavior can help you refine your site’s experience to give your customers what they need.

Understand — And Prepare For — The Evolving Digital Landscape

Unless you have a crystal ball handy (and if so, let’s talk), it’s virtually impossible to know exactly what’s ahead in the ever-evolving digital marketplace. That being said, however, it’s important to stay dialed into your industry so that you can get a sense of coming changes and proactively adapt accordingly, rather than lagging behind in a reactive state.

Mobile is a prime example. If you haven’t yet optimized your website and your online store for mobile technology and mobilized your supply chain, you’re missing out on a glaring opportunity to not only conveniently serve your customers, but to also make your internal processes and workflow more efficient, productive and effective, which translates to a better experience for your employees, suppliers and customers.

For details on these and other eCommerce opportunities, take a look at the full infographic here:

biggest ecommerce opportunities infographic

eCommerce retailers, we’d love to hear from you. Which opportunities are most prevalent on your radar screen? And what are you doing to adapt to and thrive in today’s digital marketplace? Feel free to share your perspective in the comments.


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