Digital Commerce vs. E-Commerce - What Are the Differences?

Digital commerce and e-commerce are still often used interchangeably. However, there are practical and strategic differences between the two. Digital commerce, in particular, is much broader because, as with e-commerce, the holistic purchasing experience plays a key role in addition to the pure sale of goods.

The term "digital commerce" encompasses all common retail activities, such as the purchase and sale of goods, paired with associated services, which in turn take place within digital channels - just like retail itself. However, this reasoning alone does not clearly distinguish between e-commerce and digital commerce. This only arises when another aspect of digital commerce is taken into account: Reaching customers across a variety of channels and touchpoints.

If the term digital commerce does not only refer to pure retail activities, but also the entire framework in which they take place. How attention is generated for your own product range within and outside the target group, how conversion rates can be measured and improved on individual channels as well as individual product segments, and how existing customers are reactivated and subsequently transformed into valuable regular customers - these are all additional areas of the entire digital commerce spectrum.

From a retailer and company perspective, the aim is to place your own (future) customers at the center of your own digital activities in order to remain competitive in the future, even if your direct competitors are only a few mouse clicks away from your customers.

"Electronic commerce" is defined as e-commerce, which inevitably falls into the world of digital commerce as a generic term. In a direct comparison of e-commerce vs. digital commerce, however, it becomes clear that e-commerce primarily encompasses a retailer's "classic" activities, which in this case take place in an electronic (and, therefore, digital) framework.

In addition to the pure purchase and sale of physical or digital goods, payment processing and pricing also fall under this sub-area. A closer look at the key points illustrates this.

The market research and analysis institute Gartner clarifies why the further development and expansion of the scope from the original e-commerce to holistic d-commerce is necessary: with new technological possibilities, consumer demands are also changing for obvious reasons, as is consumer behavior. Companies and retailers must react to this. The following aspects deserve particular attention due to current developments:
 

1. Personalization

   According to Gartner, almost 90% of customers expect a personalized, highly personalized, and tailored shopping experience—extensive data analysis is required for retailers to achieve this.

2. Integrated marketing

   Almost half of consumers want a consistent and seamless shopping experience across all devices. This requires symbiosis and coordination between marketing activities and channels.

3. Digital self-service

   Three-quarters of shoppers prefer digital self-service to face-to-face communication. Online chats are an excellent example of this.

4. Inventory monitoring

   Inventory data must be continuously recorded and analyzed, and correct actions must be taken to optimize one's own logistics and supply chain sustainably.

5. Interactive products

   Interactivity, such as virtual or augmented reality, can positively impact the shopping experience - for example, in the form of virtual or augmented reality.
    

Source: Gartner for Marketers - The State of Digital Commerce - Ant Duffin, Senior Director Analyst - Published 29 October 2021 - ID G00755786

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