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Sunday December 06, 2020 |Future of ecommerce

Digital commerce will result in fewer successful brands

Digital commerce is sometimes considered to be more open than the physical due to the endless nature of digital properties. While there is the potential for endless opportunity, it's only what comes into each individual's purview that matters. Generally speaking, that's the fist page of search results, the right ad on social media, or an well-timed email. There's far less opportunity to stumble onto something that isn't explicitly working get attention from a very specific action.

If it's not on the first page, it's hardly perceptible. The results may be different for each search but the effect is essentially the same. The very best will rise to the top, and everything else may as well not be there. If Google or Amazon suddenly decided to limit results to only 2 pages, most users wouldn't even notice a difference.

This is far different from the physical world where it's not conceivable for a brand to be on the 'first page'. There are too many variables, too large of an area, and other natural problems that help provide a more competitive landscape.

The best brands establish themselves in specific areas, and there's only room for small number of results. Those winners can win big, with spending far less evenly distributed and instead going to the top.

As physical business continues to struggle, the digital transformation will be the end of many brands. Choices are being reduced, while quality is going up. The winners will win big, and it will become more difficult to coast by on physical proximity.

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