Market Challenges And Opportunities

Global Digital Commerce Platform Market- Drivers:

Growing adoption of digital commerce platforms by commercial users:

Enterprises are investing in innovative digital business models as a result of the growing demand for digital commerce, which will improve consumer experience. Companies are taking advantage of social media platforms to learn more about their customers and better serve them by identifying their customers' satisfaction and dissatisfaction levels. The accessibility and visibility of the consumer experience has changed due to digital commerce. For instance, according to data from IBEF, a trust established by the Department of Commerce, Government of India, on July 4, 2023, India Post and Canada Post, the government operated postal service companies in India and Canada respectively, have partnered together to develop an online portal for the e-commerce companies to effective track the packages. This shows that the adoption of various services related to e-commerce is increasing among public corporations as well as private companies. This is expected to boost the market growth of the global digital commerce platform market during the forecast period.

Increasing demand for cloud services:

Cloud computing has greatly developed over the years, and as a result, it currently offers significant savings to its users by reducing the overall cost incurred by the organizations due to improved efficiency. As a result, numerous suppliers have begun to provide cloud services to clients. Large organizations are gaining from this trend, thus in recent years, sectors like e-mail marketing service providers (iContact, Mailchimp), CRM (salesforce.com), support (Zendesk), and customer engagement (Hybris, Marketo) have almost entirely shifted to the cloud. Furthermore, the emergence of hybrid clouds has elevated cloud services to the status of a cutting-edge technology. A cloud computing infrastructure known as a hybrid cloud combines private cloud, on-premises cloud, and public cloud services. For instance, according a blog published on January 31, 2023 by Appinventiv, a global software development company, the adoption of cloud services in the e-commerce industry has a shown a significant growing trend pertaining to benefits like scalability, increased speed of activities, and cost optimization. This is expected to expand the global digital commerce platform market during the forecast period.

Global Digital Commerce Platform Market- Restraint

Lack of digital marketing skills and nascent stage of the market:

The digital commerce platform is has emerged as a result of the significant pace of technological development in the recent past. As the concept is relatively new, majority of the players operating in the market are still working towards gaining the knowledge of the market. Especially, in the developing countries, the advent of technology is a new concept and the technology infrastructure is still in its development phase. The merchants using the digital commerce platform usually, tend to have lesser knowledge regarding the digital marketing practices that are essential to make the optimum use of the software platform and gain maximum returns. This tends to decrease the effectiveness of the market and the merchants tend to stop using the services after a specific time period. This may affect the growth prospects of the global digital commerce platform market during the forecast period.

Counterbalance: To cater to this challenge, the companies providing digital commerce suites or software can integrate with the companies which provide online learning and development services to incorporate certain digital marketing related learning tools on the platform. The concepts like social media marketing and search engine optimization can be taught to the merchants using the digital commerce platforms to ensure their continued loyalty.

Concerns associated with safety and security of user data:

Owing to unsafe transactions, security concerns, and lack of confidence, the nature of online transactions is unstable. There are rules in place that include the technological and legal criteria for data protection and security. Additionally, a sharp rise in spyware incursions, the theft of personal information, and phishing assaults may cause internet users to limit their online shopping. For instance, according to a report published by University of Michigan, a public university in the U.S., there is a rising concern among the users with respect to the privacy of their personal and financial data with e-commerce platforms. According to the report, around 41% of the respondents agreed to have taken down their personal information from e-commerce websites, citing concerns regarding the misuse of data. If the trend continues, increasing number of customers would limit the usage of e-commerce platforms which would adversely affect the growth rate of the global digital commerce platform market.

Counterbalance: To cater to the challenge of issues related with data security and privacy, the companies operating in digital commerce platform market need to ensure that they set-up stringent privacy policy while handling user data. The companies should take a holistic approach and promote these poliies with the third parties with which they interact to ensure complete security and adherence to organizational policies.

Global Digital Commerce Platform Market- Opportunity

Growing demand for universal purchasing platform to present lucrative growth opportunities:

Digital commerce platforms provide users the access to virtual marketplace. This virtual market place is an abstract phenomenon referring to the market place over the internet. This virtual marketplace is away from the limitations of the traditional marketplace with respect to limited space and offerings. The concept of universal purchasing refers to the platform where a variety of commodities are available for buying and selling online. This concept allows users to satisfy their varied demands with one solution. For instance, according to a research report published on European Payment Institutions Federation, an international non-profit association established to monitor the adoption of Payment Service Directive (PSD), points out the factors that are leading to the growing demand for universal e-commerce platforms which include virtual wallet and universal account management. This increased demand for universal purchasing platform would provide an opportunity for the global digital commerce platform to grow during the forecast period.