Changing business models by E-commerce

Let me ask you a question. When you want to buy something, what are the first steps you take? You “google” your product. You ask your friends. Or you visit the website where you think they’ll probably have. Right? This creates a standard for your searching pattern. If you are predictive in your search pattern, big companies can use this in their advantage, especially if you use Google for everything. Google’s entire business model runs because of this.

Since the latest generation “Z” is used to use the Internet all the time, you see signs as online shopping is growing tremendously. E-commerce is thereby becoming more and more important. Companies as Amazon and Alibaba are now growing every day. Due the economies of scale and higher efficiency, they manage to keep their costs low and therefore sell items at low prices as possible.
The E-commerce business also relies on the reviews consumers place. Other people’s experience also does matter. Thus, consumers are connected in a social level.

Big platforms, such as Google, are making advantage of their information power. Google sees an opportunity, by launching Google Shopping, in helping webshops selling items through their platform. Instead of browsing through various websites as a consumer, checking for the cheapest items, hoping for the website to be reliable; Google takes all those concerns away by making it more convenient for the future shopper.
The same goes for Facebook. Facebook isn’t all about social media anymore. They implemented Facebook Shopping (helping webshops) into their website and you can purchase the items with your Facebook credits. That’s right; Facebook also has a paying system. The new sunglasses you asked your friends with a Facebook update, is now advertised through Facebook and you can pay for it, again with your Facebook account.

You can easily stick to less websites since business models from various platforms are expanding. What’s next: YouTube will take over television and start streaming everything? This is already happening over time.
Normally, I think a company should stick to one secure business model by doing where they are good at. Somehow, Google and Facebook found their way in doing this in a good way.

Are they loosing their focus? Or is this the way they can take over people’s mind and let them use their platform for almost everything? What does this mean for small companies if these big players take over a large market share and are active in several markets? Is it a battle between the giants such as Facebook and Google?

Not that I’m concerned, but I’m pretty curious about this. What I can give you as a tip is to use your common sense. Don’t forget about other players than Facebook and Google in the E-commerce world.

What do you think?

Hicham Gouiza


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