Transforming the Digital Commerce Operating Model

Transforming the Digital Commerce Operating Model: Unlocking the Next Level of E-commerce Success


According to the analytics and measurement company ComScore, Digital commerce just passed the $1 trillion mark in the U.S. in a single year for the first time. E-commerce hit $1.09 trillion in the U.S. in 2022, with the last quarter accounting for $332.2 billion. Social commerce is also growing, with 153% more engagement on retailer and brand-sponsored content on Facebook and a 175% increase on Instagram. [1]. 

In 2021 global retail e-commerce sales amounted to approximately 5.2 trillion U.S. dollars. This figure is forecast to grow by 56 percent over the following years, reaching about 8.1 trillion dollars by 2026 [2].


The E-commerce industry continues to evolve rapidly, from the emergence of online marketplaces to the widespread adoption of mobile commerce and the integration of emerging technologies. 

E-Commerce Solution provider Elasticpaths lists There are six major eCommerce business models:

  1. Business to Consumer (B2C)
  2. Business to Business (B2B)
  3. Business to Government (B2G)
  4. Business to Business to Consumer (B2B2C)
  5. Consumer to Consumer (C2C)
  6. Consumer to Business (C2B)

As consumer behavior and expectations change, businesses must adapt and innovate to stay competitive. One of the critical factors that can take E-commerce to the next level is the transformation of the Digital Commerce Operating model. According to reports, 

87% of customers want a personalized and consistent experience across different shopping channels.

42% of consumers say a seamless experience across all devices and channels is a “top expectation.”

About 75% of buyers say they prefer digital self-service and remote human contact to in-person communication [3]

Digital Commerce vs E-Commerce

While Digital Commerce and E-Commerce are used synonymously, there are significant differences in the scope of the two terms. E-Commerce is a ‘Product and Process-Oriented View’ emphasizing functional capabilities for selling products and services over the Internet, such as digital marketing, advertising, conversion optimization, product search, order fulfillment, payments, etc. 

Digital Commerce, conversely, is about the customers and their preferences, experience, and decision journey from information search to purchase to advocacy to post-purchase and repurchase. Digital Commerce is about understanding the customer context to offer a personalized experience across all digital channels using data and analytics from acquisition to retention. Factors driving Digital Commerce are Personalization, Decision Intelligence, Digital Experience Management, Conversation A.I., Self-Service, Integrated marketing, analytics, and A.I. and automation. 

Reimagining Digital Commerce Operating Model

The digital operating model encompasses the strategies, processes, technologies, and capabilities that drive the business. Businesses can enhance customer experiences, optimize operations, and foster sustainable growth by reimagining and upgrading this model. This article will explore the critical elements of a transformative digital commerce operating model and its potential to unlock the next level of E-commerce success.

Customer-Centricity at the Core

At the heart of a successful digital commerce operating model lies customer-centricity. Understanding and fulfilling the needs and preferences of customers is paramount to driving growth and loyalty. The next level of success requires businesses to embrace customer data analytics and AI-powered insights to gain a deep understanding of customer behavior, preferences, and pain points. With these insights, businesses can deliver personalized experiences, tailor marketing strategies, and offer relevant product recommendations, thus strengthening their relationship with customers.

Seamless Omnichannel Integration

The future of commerce lies in delivering seamless experiences across multiple touchpoints. Embracing omnichannel integration allows businesses to create a unified customer journey, whether customers shop online, in-store, or via mobile devices. Customers demand a frictionless experience where customers can transition seamlessly between different channels, maintaining continuity in their interactions with the brand.

Real-Time Decision Making with Data-Driven Insights

Data is the lifeblood of modern commerce. Businesses must leverage real-time data analytics and A.I. technologies to make proactive decisions to harness the power of data and customer insights to optimize pricing, inventory, and marketing strategies. Real-time insights enable businesses to adapt quickly to market trends, customer preferences, and demand fluctuations, thus gaining a competitive edge in the digital landscape.

Personalization and Hyper-Targeted Marketing

Personalization is no longer a luxury but a necessity for digital commerce success and demands hyper-targeted marketing campaigns that cater to individual customer preferences. AI-powered algorithms can analyze customer data to create highly personalized product recommendations, marketing messages, and promotional offers. By delivering relevant content to customers, businesses can increase engagement and conversion rates, fostering a sense of loyalty and brand affinity.

Integration of Emerging Technologies

Integration and convergence of emerging technologies to deliver cutting-edge experiences. Augmented reality (A.R.) and virtual reality (V.R.) enable customers to virtually try products before purchasing, enhancing the overall shopping experience. Voice commerce, powered by natural language processing (NLP), allows customers to place orders and make payments using voice commands. Embracing these technologies sets businesses apart from the competition and enhances customer engagement and satisfaction.

Flexibility and Scalability for Growth

To reach the next level of digital commerce success, businesses must prioritize flexibility and scalability in their operating models. The digital commerce landscape is dynamic, with market conditions and consumer behavior evolving rapidly. A flexible operating model allows businesses to adapt quickly to changes, while scalability ensures that the business can grow without constraints as demand increases. Cloud-based infrastructure, agile methodologies, and modular systems are vital enablers of flexibility and scalability.

Secure and Trustworthy Transactions

In the digital commerce realm, security is paramount. Businesses must invest in robust security measures to safeguard customer data and protect against cyber threats. Implementing secure payment gateways, encrypted data storage, and compliance with data protection regulations are essential to building customer trust and fostering long-term relationships.

Leveraging A.I. for Enhanced Customer Support

AI-powered customer support solutions, such as chatbots and virtual assistants, have become indispensable in the E-commerce industry. The next level of E-commerce success involves leveraging A.I. to provide instant and personalized customer support around the clock. Chatbots can assist customers in finding products, answering queries, and resolving issues, enhancing customer satisfaction and reducing response times.

Continual Innovation and Experimentation

Stagnation is the enemy of progress in the digital commerce world. To succeed in the hypercompetitive realm of digital commerce, businesses must foster a culture of continual innovation and experimentation and encourage employees to think creatively, embrace new ideas, and experiment with emerging technologies. Failure should be viewed as an opportunity to learn and iterate, fostering a dynamic and adaptive organizational culture.

Measuring Performance and Optimizing Strategies

To unlock the next level of commercial success, businesses must adopt a data-driven approach to measure performance and optimize strategies continually. Traditional KPIs such as customer lifetime value, conversion rates, and customer satisfaction should be closely monitored. In addition, companies should also develop custom decision metrics that would help them navigate uncertainty and take effective decisions with data. AI-driven analytics can provide valuable insights, guiding businesses to fine-tune their operating model and strategies for maximum impact.


The future of digital commerce is filled with opportunities for businesses willing to embrace transformation and innovation. A digital commerce operating model that prioritizes customer-centricity, seamless omnichannel integration, data-driven decision-making, and personalized experiences can unlock the next level of E-commerce success. By leveraging emerging technologies, fostering flexibility and scalability, and ensuring security and trustworthiness, businesses can stay ahead of the competition and meet the evolving needs of consumers in the digital era. The journey toward the next level of digital commerce success requires a commitment to continual innovation, a deep understanding of customer preferences, and the agility to adapt to changing market dynamics. Through a transformative digital commerce operating model, businesses can pave the way to sustained growth, customer loyalty, and a competitive edge in the dynamic world of digital commerce.