In this comprehensive analysis, Jeff Towson delves into the ongoing struggle for profitability faced by leading eCommerce companies such as Grab, Dingdong, Meituan, Didi, GoJek, and iFood. Highlighting recent business model shifts, he discusses the newfound strategies these companies have adopted to strive for profitability. A major focus is placed on the crucial concept of geographic density, underlining its role as a significant type of economies of scale in the eCommerce industry.
In Part 1, I laid out some of the challenges of doing ecommerce in groceries. And two innovative business models that attempted to make it work. One by Alibaba Freshippo and one by Dingdong. Both very interesting. Both, especially Dingdong, being unprofitable. In the past month, both companies have announced operating profits. That was really […]
Alibaba’s Freshippo and Dingdong are two of the leading ecommerce grocery companies in China. They have achieved profitability by reducing costs and improving margins. Some of the strategies they have used include:
Opening physical stores that serve as fulfillment centers for online orders
Using data analytics to optimize inventory levels and pricing
Offering same-day delivery
The strategies that Freshippo and Dingdong have used can be applied to other ecommerce grocery markets around the world.
Oriental Trading Company is a successful business that has been around for over 50 years. And has now become a clever specialty ecommerce business. Digital strategy consultant Jeffrey Towson summarizes what he learned on his visit.
The company focuses on quality products, low prices, and a large selection.
Jeff Towson’s Podcast 147 provides a detailed comparison of Mercado Libre and Magazine Luiza (Magalu) in the Brazilian e-commerce market. The podcast delves into their individual strategies, offering unique tech insights. Tune in to understand the dynamics of this thriving digital retail landscape.
I recently visited Mercado Libre’s headquarters outside of Sao Paolo and had some interesting discussions with management. It was a great visit and Mercado Libre is really an interesting company in terms of strategy. The core ecommerce business is what you would expect for a large regional, multi-country marketplace. And the expansion from ecommerce into […]
Jeff Towson discusses three strategy questions for Magazine Luiza (Magalu) in Brazil in this podcast. These questions include how to compete with Amazon, how to expand into new markets, and how to build a strong brand. Listen now to learn more!
I’ve mentioned externalizing capabilities as a strategic move many times. I thought I would detail that out. It’s common strategy in digital business models. And it has been very effective at Alibaba and Amazon in particular. Several years ago, I summarized the evolution of Alibaba’s platform business models in 7 graphics. The Rise of Alibaba […]
I’ve discussed Amazon’s basic business model in an article and podcast. What Amazon Should Copy from Alibaba and Pinduoduo (Tech Strategy – Podcast 124) Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article) And I basically argued that I look for 3 things in this type of […]
Amazon can learn a lot from Alibaba and Pinduoduo in terms of how to improve its consumer experience. Alibaba has integrated its ecommerce products with entertainment, payment, credit, and wealth management products, while Pinduoduo has focused on social commerce and group buying. Amazon could benefit from adopting some of these strategies in order to stay ahead of the competition.