Prerequisites of e-commerce platforms

PurposeElectronic commerce has come a long way in the last quarter of a century. The information and communication technology solutions, which initially drove this development and facilitated e-commerce transactions, were largely proprietary and individually designed and programmed software. However, the continuing trend towards digitalization and the consequential need for enhanced e-commerce activities has led to the emergence of platforms that dominate and influence the industry. Advantages of platforms include standardization and facilitating digitalization, such as information logistical handling, networking, interactivity and immediacy.In addition to the general digitalization trend, there are always business processes that cannot be mapped in IT. This occurs particularly when specific business models are novel and not accommodated yet in e-commerce solutions. The decision to develop new software in-house may not only be due to the lack of finding suitable alternatives in the market. It may be made with regard to the possibility of also offering a dominant platform solution in the future. Here it becomes important to understand, which factors contribute to the success of platforms.Research ApproachThe paper evaluates 20 e-commerce platforms available in the market. The evaluation is a practice-based research, including an analysis of recent literature on platforms, evidences collected by the authors and complemented by an analysis of current trends. Criteria include setup and further development of the e-commerce platform, its components, interfaces and continuing advancement. These are complemented by social interaction opportunities and e-service quality. The evaluation, thus, considers the perspectives of providers and potential producers and consumers.Findings and OriginalityWe expect that open standards are progressing fast and will surpass proprietary solutions. Retailers, who open up their retail architecture and collaborate both ways with other services, will generate benefits. New services will emerge at the interface of retail and online interactions. Thus, open platforms enhance the primary e-commerce activities and the value chain of a company.Research Impact The paper contributes to the knowledge concerning platformization and open standards and enhances the understanding of innovation processes.Practical ImpactThe paper also contributes to better decision-making in business and industry. Accordingly, managers will push to implement the features that are seen as success factors in the development and implementation of e-commerce software. The results will streamline business operations and boost economic growth