Tuesday, May 15, 2012

Service As A SKU

Screen Shot 2012-05-14 at 11.42.25 PMThe biggest ecommerce opportunity today involves taking offline services and offering them for sale online (O2O commerce). The first generation of O2O commerce was driven by discounting, push-based engagements, and artificial scarcity. The still-unfulfilled opportunity in O2O today is tantamount to tacking barcodes onto un-warehousable services by standardizing and normalizing the units being sold, something I call "Service as a SKU." Just as Amazon figured out how to build the best warehouses and technology in the world for delivering boxes, somebody will do this for "unboxed" services, with customers driven not by discounts or scarcity, but rather by the Internet?s hallmarks of customer experience and convenience. And unlike how "ship stuff in a box" ecommerce seems to be gravitating towards a few winners, Service as a SKU is still a wide open playing field.

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