eCommerce 1.0 was all about “Price Discovery” that was accelerated with the adoption of mobile devices and all the laws of physics accelerating computing, storage and networks. Billions of dollars of gap in the middle, from midstream to downstream is where the real value capture and sharing is going to be.
Sample UX design of traditional price discovery companies and you know what’s next.
eCommerce 2.0 is all about aggregation and the v1.0 of of the business models were Amazon, eBay, Uber, Airbnb, Alibaba, et al.
However real aggregation is going to be all about creating economies of scale without scale.
The definition is clear but are there any real aggregators apart from the most successful dominant industries that began and are till today aggregators, BFSI (Banking, Finance, Securities & Insurance). So what about technology & eCommerce aggregators?
That is the 2.0 opportunity where marketplaces move and evolve from price-discovery to demand-supply-fulfillment aggregation. This where the next companies evolve, beyond the Amazon, eBay, Alibaba, Uber, Airbnb, and other non-aggregated models.
Let’s look at what these industries look like.
ii. Perishable Inventory
iii. High concentration
iv. Midstream supplychains lack direct access to markets (no network orchestration)
Agriculture, BFSI, healthcare, education, etc. all display these characteristics as industries.
So what will real aggregators do different that version 1.o of eCommerce look like?
- Aggregated Demand-Supply discovery (buy/sell as 1, achieve as of 1,000s)
- Price/Quantity is the determinant of value
- The User Experience will be what points 1 and 2 above aim to deliver
- Adjacency industries see aggregation of points 1 and 2 above as market to efficiently service with lower Risk/Reward ratios
So the traditional price as the core of the business experience is no longer the competitive advantage. Just look at every 1.0 Inventory, Stock Turn, Cash Conversion Cycle and GMROI or GM/Stock Turn and you know why these companies have to keep raising vast amounts of capital to just stand still.
Make a list of every industry and look at the User Experience. It will tell you whether that company is about to fade into history. This is work in progress and will update you in a while. Watch this space.
DISRUPTING MEDIA, CROWDSOURCING SIGNALS INTO MARKETS.
ACCESS OF BEHAVIORS AS UNITS, DISRUPTING OWNERSHIP?