Digital commerce platform or also referred to as e-commerce platform is used for selling and buying of goods and services over mobile networks, internet, and commerce infrastructure. Digital commerce platform allows merchants to host and build a digital storefront related to a specific set of services or products. It involves ordering digital content for its immediate online consumption. A wide range of digital products can be sold through digital commerce platforms, which includes business to business (B2B) software namely Google G Suite and Microsoft Office 365, products developed for Salesforce.com, consumer apps, etc. Growing proliferation of new digital technologies and connected devices has increased the adoption of digital commerce platforms in the recent past.
The global digital commerce platform market is estimated to account for US$ 7,542.8 Mn in 2019 is expected to exhibit a CAGR of 15.1% during the forecast period
Market Dynamics- Drivers
Increasing demand for digital commerce has prompted enterprises to invest in new digital business designs, in order to enhance customer experience. Companies are exploiting benefits of social media platforms, in order to gather more information about customers and serve them better by understanding the customer satisfiers and dissatisfiers. Digital commerce has transformed customer experience in terms of accessibility and visibility. Moreover, organizations are transforming internal processes such as ERP which has transformed the way organizations were handling various transactional, supply chain and financial processes. Increasing number of smartphones, tablets, and broadband connections is expected to support growth of the global digital commerce platform market in the near future. For instance, according to the GSM association in 2015, it is estimated that there are approximately 2 billion smartphone users in the market. In emerging countries such as India online sales are primarily driven by the growing adoption of a portable device.
Over the years, cloud computing evolved immensely, which now brings significant savings by lowering the opportunity cost of in-operation technology. As a result of this, a vast number of vendors have started to offer cloud services to customers. In recent years, industries like e-mail marketing service providers (iContact, Mailchimp), CRM (salesforce.com), support (Zendesk) and customer engagement (Hybris, Marketo) have almost completely moved to the cloud as large businesses are profiting from this trend. Furthermore, cloud services have emerged as a leading technology with the development of hybrid cloud. Hybrid cloud is a cloud computing environment that is a mix of private cloud, on premise, and public cloud services. Therefore, increasing demand for cloud services is expected to drive the market growth over the forecast period.
Asia-Pacific region of the the digital commerce platform market in 2019, accounting for 16.7 % share in terms of value.
Source: Coherent Market Insights
Market Dynamics- Restraints
Since the industry is quite new, many retailers lack digital marketing skills and thus, lag behind in the competition. On average, about 60% of the marketer’s working time is spent on managing digital activities due to which retailers need to acquire those skills to be competitive. Moreover, the unavailability market governance structure is expected to restrain growth of the global digital commerce platform market during the forecast period. For instance, lack of a uniform tax structure in many developing countries including India leads to issues such as double taxation or obstructions in the free flow of goods inside the country.
Nature of online transactions limited by instability due to insecure transactions, insecurity, and trust. There are policies at work, which will incorporate technical and legal standards for security and data protection. Furthermore, a significant increase in spyware intrusions, compromising of personal data and phishing attacks might result in internet users restraining their online commerce activities. Thus, these factors are expected to hamper the market growth in the near future.
There is a constant demand for a unified platform where consumers can search, buy, share experiences and be rewarded. The digital commerce platform fulfills all those requirements of the consumer. Furthermore, digital technologies are focused on bridging the existing gaps in the consumer’s purchase journey. These technologies provide consumers a seamless shopping experience they are looking for. With the flexibility to choose delivery from various offline and online commerce routes and to make the ultimate purchase, consumers are finding the purchase process simplified. It is attracting new consumers to online shopping portals.
The touch points are where customers get in contact with the seller, which directly or indirectly contributes to customer experience. From customer’s point of view, the buying experience is equally crucial as contact points after the purchase. Conventional ways of working B2B sales results in sales force inefficiency and incompetent levels of customer satisfaction. Business to consumer (B2C) organizations also need to modify its customer experience to meet evolving buying preferences of customers. Customer experience plays key role in the development of an organization. For instance, an airline company has come up with an amazing technology where potential customers can view the business class through a 360-degree video. Moreover, virtual reality can enrich the customer experience of children. For instance, Swedish branches of McDonald's ran a pilot project with a happy meal which can be built into cardboard VR glasses called Happy Goggles.
Source: Coherent Market Insights
Currently, majority of organizations are laying emphasis on customer satisfaction, which is about fulfilling and creating new and individualized experiences. There are three major strategic trends that describe the current digital customer, self-service, co-creation, and personalization. Considering these trends, Infosys digital commerce offers end-to-end capabilities that disintermediate channels, warehousing, inventory, merchandising and transaction processing. Furthermore, Episerver’s intelligent personalization platform offers a full suite of digital commerce personalization tools which includes automatic behavioral alerts, product recommendations for email & web, behavioral ranking and actions that increase conversions and average order value.
An integrated digital platform interacts with other related systems such as enterprise resource planning (ERP), logistics and order fulfillment systems. This platform was created to cater to all the requirements in one platform. Furthermore, functionalities such as newsletters and marketing strategies were considered to be outside the purview of the platform. However, integrating it with other technologies has incorporated these systems into the digital commerce platforms. For instance, Elastic Path’s digital commerce platforms are often used for enterprise-wide capabilities and provide various fulfillment, licensing inventory, and post-transaction support. Elastic Path commerce integration platforms are also used to generate unified business APIs that power these applications in real-time.
In global digital commerce platform market, by deployment model segment, On-premises sub segment dominated the global market in 2019, accounting for 67.1% share in terms of value
Source: Coherent Market Insights
Key players operating in the global digital commerce platform market are Magento, Inc., Elastic Path Software Inc., IBM Corporation, NetSuite Inc., Oracle Corporation, Apttus Corporation, Adobe, Inc., Hybris AG, CloudCraze Software LLC, Demandware, Inc., Salesforce.com, Inc., and Digital River, Inc.
Digital commerce platform is a type of e-commerce platform used by organizations for selling and buying of goods and services over mobile networks, internet, and commerce infrastructure. There are different features of digital commerce platform such as analytics, customer service, content development and product description, research and development, social media, marketing, and promotions. The digital commerce platforms provides various method to sell digital products online includes business to business (B2B) software namely Google G Suite and Microsoft Office 365, products developed for Salesforce.com, consumer apps, etc. Growing penetration of new digital technologies and connected devices has increased the adoption of digital commerce platforms in the recent past.
Increasing demand for digital commerce platform from Asia Pacific is expected to boost growth of the global digital commerce platform market during the forecast period. Various organizations are using online digital platforms for buying and selling of good and services. Due to advancement in the technologies the digital platform provides easiest gateway for payment to the consumers. Increasing number of smartphones, tablets, and broadband connections is expected to support growth of the global digital commerce platform market in the near future. For instance, according to the GSM association in 2015, it is estimated that there are approximately 2 billion smartphone users in the market. In emerging countries such as India online sales are primarily driven by the growing adoption of a portable device.
Moreover, increased penetration of internet and adoption of smartphones are also increasing the demand of this market. Most of the companies are investing on digital channels as consumers are attracting towards online shopping more than offline shopping. For instance, according to the association for the video industry and ecosystem in Asia- Pacific, China is the largest subscription television TV market with 155.4 million subscribers globally.
This report segments the global digital commerce platform market on the basis of by business model, deployment model, by verticals, and region. On the basis of business model, the global digital commerce platform market is segmented into business to consumer (B2C), business to business (B2B), consumer to business (C2B) and consumer to consumer (C2C). On the basis of deployment model, global digital commerce platform market is segmented into on-premises, software as a service and fully managed. On the basis of verticals, global digital commerce platform market is segmented into BFSI, retail communication, airline + travel and others. On the basis of region, global digital commerce platform market is segmented into North America, Latin America, Europe, APAC, Middle East and Africa.
Key features of the study:
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