Technology for e-commerce is geared to drive some big battles, like the one engaging Amazon and Wallmart for the world´s biggest retailer title.
Not long ago people were thinking that online commerce would replace the traditional way of shopping. They also thought stores would disappear, and then got all excited about it. That has not happened yet, and it seems will not, completely, at least not in the foreseeable future. Physical stores are not going to disappear because people really enjoy taking walks to the nearest mall just as much as they like window shopping downtown, or being able to touch and feel the quality of the products they are getting. Online stores have not come up with a better alternative to that, so far.
On the other hand, there is no substitute for efficiency, excellent customer care, logistical speed, and the comfort of being able to purchase something that is only available in far away locations, even if that means across the globe. These are aspects where Amazon started to make a huge difference years ago, and since then many others have tried following, either successfully or otherwise.
As a sign of the times we are living, Walmart has decided to develop Polaris, which is its own e-commerce search engine designed to help it compete at a large scale with online giants like Amazon or Google. The idea is to produce more relevant results for customers' queries on the
company website, and the strategy includes producing videos inviting customers to publicly share personal details about items they have bought via the online store.
Forrester Research has indicated that online shopping in the United States will increase 45% by 2016. They also predict that, by the same year, sales from e-retail will shift from 7% in 2012 to 9%.
Amazon's sales are growing five times faster than Walmart. Besides, only 2% of Walmart's revenue comes from e-commerce. That must be why CEO Mike Duke has stated "We're building a new global platform to take our assortment and services to every one of our markets simultaneously." and has added "Our goal is to have a deeper relationship with our customers to drive greater loyalty and e-commerce is key to that strategy."
The technological distance that separates both companies so far is rather wide. An example of this is how advanced Amazon's e-commerce infrastructure has gotten, cloud computing platform for partners, clients and customers included; or how they are approaching their online users to help them not only purchase but also be part of a large and well organized community, which includes giving them tools to sell their own products via Amazon.com, thus, motivating them to start new businesses and taking advantage of this platform.
In terms of software development centers, Amazon has locations in 20 cities across North America, Europe, Asia and Africa. Contact centers in fifteen cities across the globe. Amazon also has fulfillment and warehousing centers in dozens of cities in the world. I could keep going, but that is how big it has gotten so far.
I remember some people joking about Amazon's initial business model when the Seattle company decided to begin selling books online. It seemed to have quite an uncertain future then, but a long time has passed since its founding in 1994, paradoxically, not as long as Walmart's 1962. Now, I do not hear anybody being humorous about it anymore. Amazon.com is the undisputed leader in global multinational electronic commerce, and eight years from now who knows how far yet it could reach, but according to Andy Bond, now chairman of the web-based bicycle retailer Wiggle and fashion company Republic, emphasizing that we are in a "period of vast change" in terms of people's buying habits, concludes that "Almost certainly Amazon will have toppled, or at least be vying with, Walmart for the top slot in 2020. 10 years ago people would have said that was ridiculous."
Copyright Esteban Dobronsky 2012 © All Rights Reserved
Not long ago people were thinking that online commerce would replace the traditional way of shopping. They also thought stores would disappear, and then got all excited about it. That has not happened yet, and it seems will not, completely, at least not in the foreseeable future. Physical stores are not going to disappear because people really enjoy taking walks to the nearest mall just as much as they like window shopping downtown, or being able to touch and feel the quality of the products they are getting. Online stores have not come up with a better alternative to that, so far.
On the other hand, there is no substitute for efficiency, excellent customer care, logistical speed, and the comfort of being able to purchase something that is only available in far away locations, even if that means across the globe. These are aspects where Amazon started to make a huge difference years ago, and since then many others have tried following, either successfully or otherwise.
As a sign of the times we are living, Walmart has decided to develop Polaris, which is its own e-commerce search engine designed to help it compete at a large scale with online giants like Amazon or Google. The idea is to produce more relevant results for customers' queries on the
company website, and the strategy includes producing videos inviting customers to publicly share personal details about items they have bought via the online store.
Forrester Research has indicated that online shopping in the United States will increase 45% by 2016. They also predict that, by the same year, sales from e-retail will shift from 7% in 2012 to 9%.
Amazon's sales are growing five times faster than Walmart. Besides, only 2% of Walmart's revenue comes from e-commerce. That must be why CEO Mike Duke has stated "We're building a new global platform to take our assortment and services to every one of our markets simultaneously." and has added "Our goal is to have a deeper relationship with our customers to drive greater loyalty and e-commerce is key to that strategy."
The technological distance that separates both companies so far is rather wide. An example of this is how advanced Amazon's e-commerce infrastructure has gotten, cloud computing platform for partners, clients and customers included; or how they are approaching their online users to help them not only purchase but also be part of a large and well organized community, which includes giving them tools to sell their own products via Amazon.com, thus, motivating them to start new businesses and taking advantage of this platform.
In terms of software development centers, Amazon has locations in 20 cities across North America, Europe, Asia and Africa. Contact centers in fifteen cities across the globe. Amazon also has fulfillment and warehousing centers in dozens of cities in the world. I could keep going, but that is how big it has gotten so far.
I remember some people joking about Amazon's initial business model when the Seattle company decided to begin selling books online. It seemed to have quite an uncertain future then, but a long time has passed since its founding in 1994, paradoxically, not as long as Walmart's 1962. Now, I do not hear anybody being humorous about it anymore. Amazon.com is the undisputed leader in global multinational electronic commerce, and eight years from now who knows how far yet it could reach, but according to Andy Bond, now chairman of the web-based bicycle retailer Wiggle and fashion company Republic, emphasizing that we are in a "period of vast change" in terms of people's buying habits, concludes that "Almost certainly Amazon will have toppled, or at least be vying with, Walmart for the top slot in 2020. 10 years ago people would have said that was ridiculous."
Copyright Esteban Dobronsky 2012 © All Rights Reserved
