Blog #2 | Global Commerce

Cross Border Commerce

Continuing from the previous blog of social ecommerce where we discussed about the influence of social media on people's buying behavior and retail disruption, it will also blur the lines of retail landscape for consumers to purchase products from anywhere in the world.  Internet and social media has shrunk the world by virtually removing the geographic boundaries, and this phenomena is now catching on in the world of retail as well.

There are a number of eCommerce websites that offer international shipping to different countries.  But, international shipping offerings are used rarely as most of the sites charge significant amount for shipping.  As people move across countries and with access to internet everywhere (almost), international/ cross border eCommerce would grow at a significant rate. One of the challenges to solve would be the speed and cost associated with shipping across geographic boundaries. Perhaps, it would need some rethinking in terms of global fulfillment solutions including expediting the customs clearance process to satisfy the consumer expectation of "2-day shipping".  Other challenges would include efficient shipping solutions depending on the package weight/ dimensions and the value of items in the package.  Cross border eCommerce would require new solutions for taxation, and perhaps greater synergies between countries to boost commerce.

It would result in global business models that not only account for currency conversion (perhaps digital currency could bridge that gap) but also personalize the experience across geographies. It would require advanced inventory and supply chain models heavily dependent on regional demands and at same time make regional products available globally at a competitive price.  It would foster new relationship between countries, and would play an important role in establishing "One Global Market".  The change is coming and nobody can stop it.

Authors: Aishwarya Garg, Kaushik Sampath

**** Disclaimer ****

This blog post reflects personal opinions of the authors and is not sponsored by any company or organization.

Blog #1 | Social Commerce

Next Big Thing in Retail - Social Commerce?

Over the last few years, Retail landscape in the US (and across the globe) has been evolving very rapidly.  Digital commerce is disrupting a lot of traditional retail business models.  In today’s world, social media has resulted in a society where content creators are inspiring additional content creators and at the same time resulting in a culture of instant gratification. This is specifically applicable to millennial generation that can’t wait to get with the latest trend whether it is fashion, gadgets or even experiences.

As we know, various technology companies across the globe has already changed the way we think about using our cars whether it is in terms of renting owned cars or driving part time as on-demand cabs or a hybrid model where people rent cars from other people and then drive it as on-demand (app based) cabs.  I think, similar models could be applied to other consumer categories.  Consider the amount of clothes, shoes, and accessories lying unused in your closet, which can be used to make money by renting it for few days/ weeks – TRY before you BUY (or don’t even buy). I think, the lines between social media and ecommerce would be removed to such an extent that we would be renting consumer goods from our online friends and in the process make new online friends to rent/ buy more goods. Perhaps, renting or buying items would become as easy as hitting the “Like” button.

Blurring lines between social media and commerce would create additional opportunities for innovative (or disruptive) business models, and in this process a number of companies would either get disrupted or would scramble to adopt the change in consumer behavior.  On the other hand, I think, it would be a win for the average consumer.   

Author: Aishwarya Garg

**** Disclaimer ****

This blog post reflects personal opinions of the author and is not sponsored by any company or organization.