Business
How the atomisation of retail will impact ecommerce business models
Published by Jessica Weisman-Pitts
Posted on October 11, 2021
5 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 11, 2021
5 min readLast updated: January 29, 2026
Retail atomisation drives ecommerce growth, urging retailers to diversify across digital platforms and global markets for long-term success.
By Tony Preedy, Managing Director of Fruugo
The global pandemic has fast-tracked the acceleration of digital shopping, with a significant increase in the proportion of retail sales being conducted online since the first lockdowns were imposed. UK online retail sales reached a record £10bn in July 2021, marking a record for the highest ecommerce sales ever for the month of July, while global ecommerce revenue a 63% uplift in the first quarter of 2021.
Many consumers are expected to stick to their new e-commerce shopping habits even when restrictions are removed. A recent Adobe survey of 1,000 consumers indicated that as many as 40% of shoppers are still avoiding shopping in brick-and-mortar environments even though restrictions have lifted, with a further 56% said they were avoiding high street settings completely. Billions of further transactions predicted to migrate to online channels in most major economies over the next decade.
Yet today’s sellers cannot bank on just having one digital platform. If the past year or so of uncertainty has proven anything, it’s the importance of diversification. Retailers of any kind must focus on creating a dynamic and flexible balance not only between physical and digital, but even within the mix of online platforms available, in order to fully take advantage of changing consumer behaviours.
Atomised buying
Traditionally, retailers have planned in terms of seasons and seasonal ranges, with consumers expecting these releases and planning to shop a curated assortment. However, the pandemic-lockdowns, coupled with the availability of online marketplaces, has driven a shift in how consumers buy. Instead, today’s shoppers are increasingly searching online for specific solutions to a problem they’ve encountered or a need they want to immediately fulfil. This is shopping at the atomic level.
Many buyers are completely agnostic about who sells it to them, as long as they can get the product they want, where they want, at a price that suits them. This is evidenced by the rising popularity of marketplaces. Research firm Forrester estimates marketplaces are growing by 16.5 percent each year compared to sales on retailer’s own websites, which are only expected to rise by ten percent. By 2026, more than two thirds of all online shopping revenue will be generated through marketplaces.
In fact, many consumers will purchase a product regardless of where the retailer is located – as long as it reaches them. Digital marketplaces make this possible by operating the bulk of the logistics required for sales, catalysed by the advent of a very active market in international eCommerce logistics. While small and light items are the most traded type of goods across borders, even heavy and bulky items can now be shipped economically, particularly to mainland Europe. This competitive environment makes it possible and practical to sell most types of consumer goods internationally.
This paradigm shift towards atomised shopping means retailers must ensure to diversify across channels and borders in order to not get left behind. Ultimately, this is a blessing in disguise for retailers, as it helps to de-risk their business models by expanding the range of customers reached and preparing them for future uncertainties.
Broadened revenue streams
Another benefit of marketplaces is that historically, retailers have also engaged with a particular type of customer who they assume are most likely to be interested in their products and are therefore more likely to make purchases. However, today’s online marketplaces are accessible to consumers across the globe, meaning the types of customers who are exposed to a retailers’ set of products expands exponentially. Retailers no longer need to rely on a certain kind of customer for revenue, which leads to increased revenue streams and profits, providing for a stronger long term business outlook.
Business across the world have indeed been faced with unprecedented uncertainties over the past couple of years. Unpredictability is unfortunately a kryptonite for retail businesses, who rely on a long supply chain all the way through to consumers willing to hand over their hard-earned cash to keep their business running. British retailers in particular, however, not only suffered through stumbling blocks driven by the COVID-19 pandemic such as lockdowns, supply chain shortages and recessions, they’ve also been faced with the end of the Brexit transition period, placing even more pressure on the supply chain, as well as consumer nervousness.
One method of protecting against the unknown is to broaden the reach of revenue opportunities by taking advantage of international markets, giving retailers a wider range of consumers to target, so that any issues facing a local market do not have as big an impact on sales. If sales on one starts to reduce, or one region is experiencing particular difficulties, you can ensure there are other channels and regions to rely on. While each region has its own requirements and regulations, with the right marketplace platform and ecommerce digital tools, these adaptations can often be automated and easily overcome.
The rise of digital marketplaces also means retailers can diversify revenue streams at no risk to capture the consumers that have ‘atomised’ their shopping, as many only require a fee once they deliver a sale. This strategy has helped many retailers maintain sales throughout crises, while benefiting smaller businesses for who expanding internationally might seem risky.
If the past year has taught the retail industry anything, it is that all retailers must not limit their opportunities and ensure they are prepared for changing shopping behaviours driven by unpredictable events. Only those the agility built in to adapt to any changes in consumer demands, and the diversified business model to broaden revenue streams, will be able to continue to grow.
The article discusses how the atomisation of retail impacts ecommerce business models, focusing on diversification and global reach.
Consumers are increasingly shopping online for specific needs, often using digital marketplaces rather than traditional retailer websites.
Diversification helps retailers reach a broader audience, reduce risks, and adapt to changing consumer behaviors and market conditions.
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