Abstract
E-commerce in the context of sales and distribution strategy has become a heavily used channel and companies need to manage it correctly and integrate it with a variety of other online and offline channels. Based on the literature, two factors are recognized as relevant for the elaboration of a conceptual framework able to explain the actions undertaken by leading companies to effectively get the most from an e-commerce strategy integrated within the overall omnichannel strategy. The two factors are: main distribution channel (direct/indirect) and product value density (high/low). Through the analysis of four case studies (Luxottica, Henkel, Ikea, and Ferragamo), we show that these factors produce different benefits and challenges that companies face when embracing e-commerce. We analyze these benefits and challenges from the viewpoint of both Marketing and Supply Chain Management.
Highlights
The current health emergency situation, which has hit several Countries in the world very hard, has demonstrated the incredible importance of e-commerce to reach customers and preserve/increase sales
For companies that mostly sell through the indirect channel, from the Supply Chain Management (SCM) perspective as well the adoption of e-commerce can be beneficial since it enables downstream integration in the supply chain and the establishment of a direct contact with the end consumer, who can choose to buy online instead of using traditional “brick and mortar” stores
We conducted an analysis aimed at understanding if and how companies can derive value from e-commerce in the context of an omnichannel strategy from the standpoint of both Marketing & Sales and SCM
Summary
The current health emergency situation, which has hit several Countries in the world very hard, has demonstrated the incredible importance of e-commerce to reach customers and preserve/increase sales. Even companies that had already embraced digital selling suffered seriously from the unexpected amount of orders coming from the digital channel, which resulted in severe inefficiencies as well as the inability to fully satisfy demand In this context, it becomes apparent that “brick and mortar” firms need to understand how e-commerce can create value and how to properly manage it to reach satisfactory profitability levels. By leveraging the case studies, the paper enters in-depth into the understanding of the value generated by integrating e-commerce in a traditional sales channel strategy, discussing the drawbacks and the managerial implications of four different archetypes that emerge from our reference framework. The conclusions are stated and the managerial and theoretical implications are discussed
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