Decoded: The Vertical Limit: Commodity vs Complexity
Future Commerce · with Boris Lokschin · June 15, 2022 · 27 min
Summary
This episode dissects the dichotomy between commodity and complexity in e-commerce, highlighting how low-code/no-code platforms have commoditized basic online experiences while complex verticals like automotive or pharmaceuticals still demand bespoke development. It explores how digital commerce needs to evolve beyond basic transactional models to cater to specialized industry needs and foster deeper brand-shopper identity connections, moving beyond mere product consumption to brand affiliation.
Key takeaways
E-commerce platforms are increasingly prescriptive in UI/UX due to customer familiarity with certain patterns; however, this stifles innovation in complex verticals requiring distinct user journeys.
High-complexity industries such as automotive, food, furniture, manufacturing, and pharmaceuticals are ideal for developer innovation, as off-the-shelf solutions fail to meet their nuanced requirements, complicated purchase paths, and regulatory demands.
Shopper identity shifts based on commodity vs. complexity: in high-commodity environments, identity is tied to the retailer (e.g., "Walmart shopper"), while in high-complexity environments, it's linked to the product brand (e.g., "Tesla driver").
Digital commerce should prioritize enabling unique value propositions (easier, cheaper, faster, more convenient) over simply digitizing existing processes, especially when entering new verticals, to drive adoption and differentiation.
Brands should analyze how frequently a product is purchased and how closely it ties to personal identity; high-frequency, low-identity items (like groceries) are ripe for subscription models, while infrequent, high-identity items (like cars) demand highly differentiated, personalized commerce experiences.
It’s no secret: low-code and no-code platforms have displaced the need for a “developer.” Yet, software development thrives with highly complex experiences. This combo means that there is no such thing as a best practice. In episode 4 of Decoded, Phillip and Boris chat about high-complexity environments versus high-commodity environments and their effects on the shopper. Listen Now!
What does this episode say about shopify & ecommerce platforms?
E-commerce platforms are increasingly prescriptive in UI/UX due to customer familiarity with certain patterns; however, this stifles innovation in complex verticals requiring distinct user journeys.
What does this episode say about product & merchandising?
High-complexity industries such as automotive, food, furniture, manufacturing, and pharmaceuticals are ideal for developer innovation, as off-the-shelf solutions fail to meet their nuanced requirements, complicated purchase paths, and regulatory demands.
What does this episode say about brand & content?
Shopper identity shifts based on commodity vs. complexity: in high-commodity environments, identity is tied to the retailer (e.g., "Walmart shopper"), while in high-complexity environments, it's linked to the product brand (e.g., "Tesla driver").
What does this episode say about ai & automation?
Digital commerce should prioritize enabling unique value propositions (easier, cheaper, faster, more convenient) over simply digitizing existing processes, especially when entering new verticals, to drive adoption and differentiation.
What does this episode say about shopify & ecommerce platforms?
Brands should analyze how frequently a product is purchased and how closely it ties to personal identity; high-frequency, low-identity items (like groceries) are ripe for subscription models, while infrequent, high-identity items (like cars) demand highly differentiated, personalized commerce experiences.
