https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Strategy


How to Take Advantage of the Booming E-Commerce Market

  • Written by Chris
  • June 16, 2016
The global e-commerce market has been booming for a number of years, with key drivers of merchant success including mobile, omnichannel and marketplaces. In 2016, global online retail sales will hit $1.6 trillion rising to $3.5 trillion in 2019.

The global e-commerce market has been booming for a number of years, with key drivers of merchant success including mobile, omnichannel and marketplaces. In 2016, global online retail sales will hit $1.6 trillion rising to $3.5 trillion in 2019. The interaction between online and offline sales has never been so important to consumers and potentially fruitful for technology providers.

When we discuss big retail numbers, we most commonly think about online giants such as Amazon, eBay and Walmart. However, the remarkable course of e-commerce has been a small business (SMB) phenomenon. In fact, if we look at Amazon, some 45 percent of all goods are sold on the Amazon Marketplace by SMB retailers. On eBay, SMB merchants have accounted for a 20 percent annual growth rate over the past 5 years.

The market for retail technology is surging as a result. Recently, Salesforce acquired Demandware for $2.8 billion in pursuit of a slice of the e-commerce market. According to Forrester, spend on e-commerce technology globally stands at $2.6 billion today and will double by the end of the decade.

At a time when the demand for cloud business applications is rising by 20 percent a year, it seems remarkable that many web hosts and service providers still do not fulfill e-commerce.

Advancements in e-commerce platforms mean that it is now possible for any web host or telco to offer a powerful, yet easy to use e-commerce solution with ease. As a result, we are seeing more hosting providers of all shapes and sizes, seeking to adopt or update e-commerce offerings in light of this potential.

Addressing the e-commerce customer has some excellent benefits for the reseller. The e-commerce user offers a high level of ARPU and customer lifetime. Value-added resellers have much potential to combine with other value added services. In fact, the market for associated design, implementation and support services comprises an additional 6 billion dollars today, rising to 10 billion by end of 2019.

This attractive market has not gone unnoticed. E-commerce pure players such as Shopify, have seen remarkable growth. The valuation of these providers serves to underline the high value of e-commerce customers. For example, Shopify achieves a market value of two and a half billion dollars from a relatively modest installed base of 275,000 SMB merchants worldwide. This is opposed to a market value of only five billion for GoDaddy with more than 14 million hosting clients. So how does a reseller explore e-commerce for the first time and what should they look for in a platform partner? It is true that e-commerce means rapidly evolving technology.

The strongest platforms today will fully enable cloud agility and ensure the widest set of merchant needs can be fulfilled.

While there are options with both open source and SaaS platforms, the right choice will depend on a reseller’s customer needs for design, maintenance, security, etc. There are now very effective plug-ins for site builders and CMS platforms like WordPress, as well as feature-rich stand alone shop packages. A fully managed white label SaaS platform will deliver the end user a high quality, robust, all-inclusive service whilst freeing up the reseller to focus on sales.

The best platforms make powerful e-commerce solutions plug and play. It is essential that your e-commerce partner works hard to evolve in line with all the best and fully localized integrations, payment and shipping methods and apps that shoppers demand.

Philbert Shih of Structure Research, a leading analyst to the cloud industries agrees. “To keep up with the requirements of online retailers and their customers, the best e-commerce platforms will have to be current with features and functionality related to payment and shipping features. Today’s demanding consumers desire and trust only the latest tools,” he said. “This is crucial to the user experience, which in turn goes a long way to determining success for merchants”.

Of course, successful merchants will mean successful resellers. Customers that thrive will seek further e-business products and services. Partner with a global-scale provider whose experience and technology partnerships benefit you. For example, SaaS platforms with their own Apps Store and development programs can deliver your customers timely access to the latest tools for competitive advantage online.

For the reseller, the right e-commerce partner will offer a multi-discipline, integrated approach to implementing or modernizing your shop offerings. Consult the e-commerce platforms that specialize in serving the hosting and telco space. They naturally prioritize your needs as a reseller. You should expect tailored consulting, solution design, technical implementation, and application management and marketing. The best e-commerce partners will be also able to offer you quality white-labelled options for hosting, design services and customer support.

With so much potential to share in the retail success of your hosting customers, now is certainly a wise time to scope out your options.

Join me at HostingCon Tuesday, July 26 to learn more about how e-commerce can grow your hosting or service provider business. I will discuss e-commerce market growth more in depth and share how to take advantage of it to grow your business in the session, “How Service Providers Can Take Advantage of the Booming E-Commerce Market.”

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Strategy

Related


  • No Racism
    Racially Charged Tweet Costs Alteryx CRO His Job
    Numerous individuals, including a customer, criticized Alteryx for the tweet, which led to the CRO's resignation.
  • Select a Hire
    AvePoint Taps Ingram Micro, Palo Alto Networks Vet to Lead Channel
    He held channel exec roles at Ingram and Palo Alto Networks
  • Vendors: How Do You Measure a Partner Relationship?
    Vendors still struggle to gain a genuine insight into their partners’ needs. So what can they do?
  • Public sector IT
    Public Sector IT Funding Outlook for 2021--and What It Means for Our Reseller Partners
    Public sector IT resellers must anticipate customers’ changing priorities to most effectively position offerings.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • The Smart Money’s on a Staged Approach to Security Services Provision
  • Xerox Financial Services Launches to Help Enterprise, SMB Customers
  • Protegrity Partners Get New Program with Added Training, Certification
  • Getting Clients Ready for an 88% Increase in Cloud Adoption

Galleries

View all

Channel Partners Virtual 2021 Is the Hottest Ticket in Town

February 26, 2021

Industry Perspectives

View all

The “Roaring 20s” Are Coming

February 25, 2021

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 17, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Ready To Add Cutting Edge IoT Solutions To Your Portfolio?

  • 1
February 25, 2021

What Is The Value Of Distribution For The Internet Of Things?

February 25, 2021

The Internet of Things (IoT): Where do You Begin?

  • 1
February 25, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Amazon WorkSpaces @awscloud DaaS client will be available on @IGEL_Technology virtual endpoint client OS.… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@VMware cutting more workers in California as part of ongoing #workforcerebalancing. #layoffs… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

#CPVirtual is March 2-4. It’s the hottest ticket in town — any town, since it’s 100% online — so make sure you have… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@datto, @ThreatLocker partner to streamline #MSP secure business operations. dlvr.it/RtYvJK https://t.co/nKGnwbblNO

February 26, 2021
ChannelFutures

Infographic: Why Partner with Sierra Wireless and GetWireless? dlvr.it/RtYh1m https://t.co/KcBFzXIx7l

February 26, 2021
ChannelFutures

Infographic: The Sierra Wireless Essential Series dlvr.it/RtYgxv https://t.co/CatxbRHzXr

February 26, 2021
ChannelFutures

#Threatprotection is no small matter for #MSSPs. Find out what vendors say you have to do this year to protect your… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

Cloud strategies and cybersecurity are key, and #COVID19 will have more impact than #Brexit on U.K. channel, says… twitter.com/i/web/status/1…

February 26, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X