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Decoded: The Vertical Limit: Commodity vs Complexity

Future Commerce
Future Commerce
Episode • Jun 15, 2022 • 27m

High Complexity, Low Commodity

  • Online experiences have become more commoditized over time; low and no-code platforms have displaced the need for a “developer,” and instead require feature configurations and tweaks
  • Software development thrives where experiences have high complexity. High complexity often means that there are no de facto “standards” or best practices that need to be employed. This requires developers to build, test, refine, and iterate. This is the best-case scenario for a developer in eCommerce.
  • eCommerce platforms have become increasingly prescriptive in UI and UX as customers have become “used to” certain purchasing patterns
  • Ecommerce needs to become more complex in certain industry verticals. Specific sectors such as automotive, food, furniture, manufacturing, and pharmaceuticals all have sophisticated requirements, complicated purchase paths, long consideration times, unique regulatory requirements, or other challenges that make them a poor fit for off-the-shelf software, but a great fit for developer innovation.
  • A shopper’s identity in high-commodity environments is tied to the retailer. You’re not a grocery shopper, you’re a Walmart shopper or a Target shopper. However, in high-complexity environments, the identity of the shopper is found in the brand of the product itself. You’re not a car driver, you’re a Tesla driver.

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