The sudden emergence of e-commerce has changed how businesses operate, sell, and engage with customers. Accelerated by the COVID-19 pandemic, companies across industries were compelled to rethink traditional business structures and embrace digital channels. Even though going online presents new growth possibilities, many organizations face difficulties in the process. The right operating model is one of the most important factors of success in e-commerce nowadays.
An operating model of e-commerce determines the way a business provides value to the customers by integrating strategy, processes, people, and technology. Global e-commerce experienced record growth as the pandemic altered the consumer trend towards online shopping. The international reports also show that the percentage of e-commerce in the global retail trade increased sharply in 2020 as consumers depended on online services to obtain the essentials, convenience, and security. This change has led to the realization that digital presence is not sufficient; a structured operating model is required to enable the businesses in terms of scale, efficiency, and customer satisfaction.
Various types of e-commerce systems include B2C, B2B, C2C, C2B, B2B2C, and B2G that meet different market demands. Both models have their own set of requirements on how to operate, sales cycles, and customer expectations. An example is that B2C platforms should be fast, user-friendly, and offer delivery to the door, whereas B2B models need to be long-term and large-volume with predictable demand. The improper choice of the model may cause the disruption of the supply chain, the ineffective handling of inventory, and the lack of positive customer experiences.
The developed operating model is crucial in the control of the main processes like supply chain management, warehousing, inventory management, order fulfillment, logistics, and customer service. It also gives an understanding of the way products are sourced, stored, processed, and delivered. The operating model should also be adjusted to accommodate omnichannel approaches, multi-warehouse distribution, and modern technologies as e-commerce businesses are growing.
Organizations commonly build the operating model using either the role-based approach or the process-based approach. With a role-oriented approach, emphasis is placed on organizational structure and responsibility, whereas in a process-based approach, the entire customer journey and operational flow are mapped. The correct decision will be determined by the purpose of a business, its size, and the presence of resources.
Ultimately, choosing the right e-commerce operating model enables businesses to adapt quickly to market changes, improve operational efficiency, and deliver consistent value to customers. In an increasingly competitive digital economy, companies that invest in building and refining their operating models are better positioned for sustainable growth, resilience, and long-term success.
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