Do you need two people responsible for e-commerce and the marketplace? The task areas of e-commerce and platform business should be clearly separated, but both aspects have to be considered together.
E-commerce and platform business are booming. Big players such as Amazon, OTTO and Zalando continue to dominate the market – not least information such as “Every minute, 6,659 shipments are sent on Amazon” show that more than clearly. More and more retailers have to take the step towards digitization. And with this big step, many questions about the online shop and the platform business also arise. Which strategy is the right one? Should I be represented on platforms in addition to an online shop? And what personnel do I need for this anyway?
Companies are not represented enough on platforms yet
Despite the enormous potential, brands still find it difficult to be represented on platforms. One often hears comments in companies like “the marketplace is taking buyers away from my webshop.” Many fear that their own online shop will be cannibalized and that direct access to their customers will be lost. At this point, you should first of all ensure clarity about the advantages of the platform business and which strategy is the right one for the company.
And here it has to be said very clearly: There must be a good reason for a brand not to participate in the platform economy. The market development in recent years shows that the topic is sustainable and that it is changing the business model of every brand. It doesn’t matter whether they are actively involved or are only affected by the effects. Platforms are more than just another sales channel. Companies have to face this challenge – the sooner, the better. This shows, among other things, these advantages:
- The expansion of supplier contacts on the one hand and customers on the other increases the benefits of a platform for both sides.
- In addition to reach and relevance, brands and retailers on platforms also benefit from the trust of customers, especially in the areas of delivery, payment and after-buy services.
- In addition, providers are now more self-sufficient. In the platform business, you can determine your range and the associated prices yourself, instead of being dependent on retailers in these two aspects.
- Another advantage that is offered is that many platforms such as eBay and Amazon are already set up internationally and internationalization is simplified – even if the pitfalls are often in the details.
Strategy vs. Technology: Multiple sales channels require different experts
If a brand has ultimately decided to be represented on platforms in addition to its own online shop, then many central points must be taken into account. One of the most important is to form a special team that is responsible for the implementation, the control of the platform business and the optimization of the KPIs. In order to avoid conflicts between the requirements for your own online shop and the platform business, the areas of responsibility should be divided between different shoulders. The desired objectives can be achieved more effectively through a clear separation of staff. Both sales channels require different processes and skills, which is why different experts are required who are familiar with and work in the respective area. While your own online shop has to be optimized very strongly in terms of SEO, traffic and marketing, the platform business requires an overarching strategy with a strong focus on your own supply chain.
Chief Platform Officer und Chief E-Commerce Officer
Ideally, there is a Chief Platform Officer who manages the platform ecosystem, and a Chief E-Commerce Officer who takes care of his own online shop. With the platform business there are new requirements. Due to the new platform roadmap, processes and organizations have to be optimized and guided by a role that has to take this strategic challenge into hand. This person must create and monitor the strategy across all platforms, set up processes and link the individual areas with one another. It starts with the product presentation and extends to the different logistic requirements of the individual platforms.
Conclusion
The platform business and your own online shop are two aspects that should not be seen separately from each other. It is important to build the entire business together instead of competing against each other. Because many basic services are provided jointly and must take into account the requirements of both sides – such as content production or the basics of logistics services. As in other parts of life: Cooperation leads to more success.
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20 years of experience in digital business models have shaped Brindöpke to this day. At OTTO, he helped set up the curated platform Otto.de early on. In 2011 I took the step to self-employment as an e-commerce consultant. In this role, Brindöpke further developed the online business for well-known customers such as OTTO, Breuninger, Peter Hahn, eBay, the drugstore Müller and Quelle. With the idea of a new online retail model that enables fashion brands to be connected to large marketplaces, Brindöpke finally founded heyconnect together with Florian Curdt in January 2012. Today, heyconnect looks after more than 150 brands from the areas of fashion, living and cosmetics.
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