Full Stack's
2021 Technology Trends
Trend Insight 2 - SMBs embracing self-owned e-commerce, either for the first time or to disintermediate marketplace players such as Takealot, Shopify and Amazon
Many businesses, especially those in the specialised or B2B space, saw footfall and in-store contact crater in 2020. But the demand for goods and services remained. Businesses which pivoted quickly to online sales and e-commerce platforms won. Some in the South African context like Bottles saw themselves acquired by the likes of Pick n Pay.
Outside of the pandemic concerns, a menace remains to all businesses which look to buy and sell online – the rise of the marketplace oligarchies such as Takealot, Shopify and Amazon. There are others, but all these businesses blend a model of facilitating the sale of goods on their platforms, charging rents and share of till for small businesses through a 'marketplace fee'.
This, in and of itself, is nothing new. Retail landlords and market makers have done so since the dawn of time. Many sellers are finding themselves being eaten by the marketplaces they have helped diversify. This happens because the marketplace providers can decide which of their SKUs are promoted and shown above those who may be marketplace participants.
We've seen a resurgence in the desire for self-owned and self-maintained e-commerce stores. It was something that had been on the wane for about half a decade with the rise of Shopify and similar platforms.
Merchants not only want, but need their own control of their brands, their stocks, and their value propositions. In 2020, Full Stack saw growth in this area. Businesses are looking to have more end to end integration with their inventory, finance and marketing systems. We expect to see this continue to be the case. And not only with businesses looking to move off the marketplace platforms with their ruinous percentages. It can also be seen with disrupted industries like dark kitchens and restaurant food delivery and traditional brick and mortar businesses that modify their operating models. They see more and more of their sales being directed online.