This is a big deal for retailers as Shopify, the ecommerce platform that enabled $135 billion in sales in 2019, just launched a new consumer app, Shop. Shop is a digital marketplace for customers to discover local businesses powered by Shopify through recommendations and location filters.
Digital Marketplace vs. Native Mobile App
The benefits of a marketplace like Shop and the Shopify platform include alignment with a large, well-known brand with access to data points it has gathered from retailers like you, who give data in exchange for exposure. The challenge lies in your brand’s inability to fully control the user experience, and getting swamped in competition with the number of retailers listed in the marketplace.
The value of having a branded, native e-commerce app, is being able to design the experience you want to deliver — the kind that builds loyalty and increases the lifetime value of your customers. Owning your mobile storefront means you get to control what products you want to sell, how you want to display them, the frequency of outreach to customers and what the messages say. And of course, your data is owned by you, accessible at any moment.
A Well-Balanced E-commerce Strategy
My recommendation is that you think about a well-balanced e-commerce strategy. One the one hand, how can you maximize the features that come with a digital marketplace? What products can you offer there that will make the most of discovery and recommendation engines?
On the other hand, how can a native mobile app help you deliver a digital-first customer experience that uniquely yours? You will want to ensure that your offers there are designed for your most loyal customers. Also, keep in mind that you’ll need to wrap an engagement strategy around each purchase that reflects who you are and keeps customers coming back for more.
The digital landscape is varied, and no one single tool will get the job done for every goal you as a retailer will have to grow your business and thrive in the way we do business now. Personally, I’m excited to see how businesses will make use of insights from Shop to strengthen their presence on web, social media and apps. The digital toolbox is only getting stronger, and that’s the only way growing retail will continue to thrive.
Also published on Medium.