BUSINESS DIVERSITY IN E-

COMMERCE
Team E

Abdul Maalik Jacobs

Kim Eden
Ebraheem Dien
Azraa Stemmet
Aneeqah Miller
M. Uzair Noormahomed
Table of Contents
Introduction ................................................................................................................ 2
Understanding Business Diversity ........................................................................... 2-3
The Evolution of E-commerce Business Models ........................................................ 3
Diversity in Product Offerings as a result of Business Diversity .............................. 3-4
Globalization and Internationalization...................................................................... 4-5
Inclusivity and Representation ................................................................................ 5-6
Strategies for Embracing Business Diversity ........................................................... 6-7
Conclusion ................................................................................................................. 7
References: ........................................................................................................... 8-10

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Introduction

Everyone should have the opportunity to fulfill their dream of starting a business,
regardless of race, class, gender, or nationality. As the world of e-commerce rapidly
evolves with more customers and consumers performing transactions at the click of a
button, it has become evident that incorporating business diversity into e-commerce
models are no longer a voluntary desire, but a cornerstone for businesses to thrive
within this ever-growing landscape (E-Commerce in South Africa, 2023). This paper
explores the phenomena of business diversity and how it has changed our e-
commerce environment throughout the years. This will be done by discussing the
Evolution of E-commerce, the Diversity of Product offerings as business diversity
increases, the globalization of e-commerce and how it has allowed business to reach
customers from all nations, as well as the inclusivity and representation that e-
commerce promotes. Finally, we will conclude with Strategies for embracing business
diversity in e-commerce.

Understanding Business Diversity

Before progressing in this report, it is important to understand what exactly diversity is

and what it entails. Diversity itself refers to “the variety of differences among people,
encompassing race, gender, age, experiences, talents, skills, and opinions”
(Workable, 2019). Business Diversity in e-commerce encompasses the inclusion of all
types of businesses, regardless of their size, industry, or business model
(Bloomenthal, 2024).
E- commerce facilitates this with its easy access to online platforms where business
can promote and display their products to the increasing number of internet users
(Bloomenthal, 2024). Whether you’re a simple niche store selling perfumes at local
markets or a broker firm selling stock solutions, e-commerce has made it possible to
showcase your products and increase your outreach no matter where you are. Some
of the business models that business diversity include are:
• Business to Consumer models: businesses selling readily available products
to their consumers (Flores, 2023).
• Consumer to Consumer models: business which facilitates transactions
between users (Flores, 2023). Examples of these in South Africa include
Gumtree and Bid or Buy.
• Consumer to Business models: platforms that allow consumers to sell
products and services to businesses (Flores, 2023).
• Business to Business models: platforms that allow partnerships to be made
and products to be sold among businesses (Flores, 2023).
• Business to Government models: businesses that sell products and services
to government agencies or public administrators (Flores, 2023).

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 • Consumer to Government models: business that facilitate transactions
between consumers and government agencies (Flores, 2023).
Observing the list of business models above being able to take advantage of e-
commerce to sell their products online, it is quite evident that business diversity in e-
commerce opens many opportunities and encourages innovation.

The Evolution of E-commerce Business Models

South Africa has seen a sharp increase in online trading in recent years, and this trend
is anticipated to continue. This company model's remarkable growth was facilitated by
several variables. With smartphones and other mobile devices becoming more widely
used, there is an increase in internet usage (Flores, 2023).
Additionally, the COVID-19 pandemic has helped online businesses. Because of the
ensuing lockdowns, more people were using e-commerce platforms, which turned
internet purchasing into a need rather than a luxury. This has led to a corresponding
surge in digital and economic transformation (Spooner, 2023). Customers have started
to experience the joy of having the things they wanted delivered to their doorstep in a
matter of hours without having to leave their comfort zone, thanks to the growth of e-
commerce in African markets. Buyers now have more options, and sellers can target
more customers by expanding their geographic reach. With more options, people may
shop in what best suits them and get more value from their purchases (Flores, 2023).
For South African enterprises, e-commerce software has many benefits. Through their
online storefronts, sellers may contact customers all throughout South Africa and the
world, opening broader marketplaces beyond merely local clients. Starting an online
business is significantly less expensive than opening a typical brick-and-mortar store.
Actual storefronts, retail employees, utilities, and other costs related to actual stores
are not required (Jancheski, 2023).
E-commerce business models in South Africa have changed significantly because
more people are using the internet and COVID-19 has had a big impact. This has not
only changed how people shop online but has also made it possible for consumers to
find a wider variety of products in categories like fashion, electronics, and groceries as
business diversity expanded.

Diversity in Product Offerings

As business diversity in e-commerce has evolved over the years, it has led to an
increase in production of consumer needs, including fashion, groceries & electronics,
which successively affects sales. Electronic products include smartphones, laptops,
tablets, and other gadgets from various brands, allowing consumers to compare the
specifications and functionality of the different items. The fashion industry has become

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diversified by implementing many different brands that consumers can choose from,
in a variety of styles and sizes. Food and beverages have expanded to cater for
specific diets and religious preferences, which makes businesses more reputable
(Chaffey,2023).
To appeal to a wider target market, companies expand on their existing products to
ensure that those with specialised preferences are met. For example, Coca Cola offers
their original Coke products, but have expanded to include items in different flavours,
such as Sprite, Fanta, and sourcing bottled water (SwiftERM, 2021). This increases
customer loyalty, resulting in an influx of revenue.
Implementing product diversity also allows businesses to stay up to date with
delivering market trends, which attracts consumers from different demographic
backgrounds. Without offering a range of products, certain companies would risk
depending on one product that is only desirable during one season of the year, such
as companies that offer heating products – this may pose as a business challenge
(Keerthika & Saravanan,2020:721). Diversity can also occur through making items
more accessible, by providing a broad price range & catering to different individuals
from contrasting income backgrounds.
To attract more customers, businesses can offer customised product solutions to the
public, such as altering product attributes. This can be done by strategically tracking
user preferences across websites that are user friendly, to manage their activity.
Implementing the use of cookies allows for direct marketing, making it easier for
customers to find products that align with their interests (Chaffey,2023).
Product diversity created from business diversity enables businesses to appeal to a
wide range of consumer needs, by presenting products that are accessible to the
public & match their desires, subsequently, increasing business growth rates, which is
pivotal for innovation & successful e-commerce business models (Kochan, et
al.,2003:9).

Globalization and Internationalization

Globalization and Internationalization contributes to business diversity through the

following ways:
• Selling Across Borders: Through digital platforms and digital money
transferring systems, companies can easily move products or services within
and outside the country. This is the case as it gives them a wider market and
the opportunity to constantly grow and expand (Kraemer, Gibbs, & Dedrick,
2005).
• Adapting to Local Markets in other countries: The fact that businesses
should understand and provide the solutions that consider the preferences and
languages in a particular area should be understood (Penu, Boateng, &
Babatope, 2022). By this it is implied to design products and services such as

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 marketing campaigns and customer service to meet the specific cultural
differences and language requirements for every target audience.
• Working with International Partners: Working with partners from other
countries is the main phase for getting over with the intricacies of the
international trade. It also consists of collaboration with suppliers, distributors,
and retailers in different countries for smooth transfer of supplies, distribution
networks, and market outreach.
• Understanding Cultural Differences: The cultural respect and appreciation
are in high demand when entering the new markets. In one country what may
succeed, in another most probably will not be successful (Penu, Boateng, &
Babatope, 2022). Companies must conduct rigorous market research and
modify their strategies depending on the situation to not encounter cultural
offenses and misconceptions.
• Following Regulations: Bearing the local regulations and trade laws
requirements becomes mandatory to be able to operate legally in foreign
markets. International trading can be complicated by various regulations and,
therefore, one needs to be keen to every detail or hire the services of the legal
experts who are knowledgeable about international trade laws (Penu, Boateng,
& Babatope, 2022).

Globalization and Internationalization demonstrates how crucial e-commerce is for

enhancing diverse types of business, especially in South Africa. Through online
platforms businesses can go beyond the borders and reach customers in all corners
of the world.

Inclusivity and Representation

Figure 1: Impact of diversity on business performance (Baran,2020).

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Promoting diversity and inclusion within e-commerce is essential, it is not only the right
thing to do ethically but also enhances a positive market environment. The most
impactful way that e-commerce businesses can ensure inclusivity and representation
within their online business is by purchasing their products from a diverse range of
suppliers.
E-commerce businesses should ensure that they support local and upcoming small
businesses when choosing their suppliers, as well as women-owned and minority-
owned businesses. This will support the growth and empowerment of
underrepresented communities and give small businesses a chance to thrive and
enhance economic development in diverse communities. Embracing supplier diversity
aligns with CSR initiatives and demonstrates a commitment to fair business practices.
By supporting underrepresented suppliers, e-commerce businesses contribute to
social and economic equity and will be following the proper regulations. (Alphonso,
2023).
Following that, diversifying the supplier base will allow for the business to offer a wide
and unique range of products and services, making it a more inclusive experience for
the consumers.
Building sustainable and mutually beneficial relationships with diverse suppliers will
ensure long-term stability and resilience for e-commerce businesses. Investing in
supplier diversity strengthens the supply chain ecosystem, promotes economic
resilience, and ensures continued growth and success for the business.
Commitment to supplier diversity will not only benefit the communities being supported
but also strengthens the business's reputation and market position in the long term.

Strategies for Embracing Business Diversity

Exploring techniques and strategies to diversify the use of e-commerce in South

African businesses. Here are a few simple steps to think about when strategizing your
e-commerce business in South Africa.
1. Product Selection-selecting the right product to sell is the key factor for the success
of an online business. In South Africa the main sectors that rules the e-commerce
market are: the tourism and entertainment industries, consumer goods, and
professional services sectors. The top-selling shopping categories in South Africa are
clothing/apparels, and groceries. (Green, 2023)
2. Market Research- research on the market is vital for e-commerce organizations,
as it gives the marketers a deep understanding of the customers and competitors in
that market. To gain valuable and reliable information, a market analysis must be
carried out. Through the market research, remember to ask yourself who your target
consumers are, what their needs and wants are, as well as if there are any gaps in the
market that your product can fill. Having an insight into your niche market will enable

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you to personalize your online store and marketing campaigns to attract more
customers and increase sales. (Green, 2023)
3. Creating a trustworthy e-commerce store- Some South Africans still have doubts
when shopping online because of security-related issues. One of the ways to persuade
customers into using your store is to build the feeling of trust. Here are some effective
ways to make customers feel secure and confident when buying from your website: -
Validate your website by installing an SSL certificate to demonstrate to visitors that
your website is safe and that you can be trusted (SSL certificate is a certificate that
authenticates a websites connection is encrypted). Your privacy policy should be
clearly communicated to guarantee the protection of your customer’s personal
information. Lastly, use a trusted payment gateway only. (Green, 2023)
These are just a few strategies that companies could use to boost their business and
increase revenue.

Conclusion

To conclude, business diversity is no longer a” nice feature” for e-commerce platforms

to have but rather a must for business to take advantage of the e-commerce
landscape. The evolution of e-commerce models along with the increased diversity in
products it has created, and the expansion of global markets illustrate the significance
of business diversity in e-commerce. The opportunities for entrepreneurs and business
of all backgrounds are directly proportional to the increase in business diversity.
Harnessing business diversity also allows e-commerce platforms to facilitate the
needs and wants of various consumers as more business models are included into
the landscape. This also leads to increased customer satisfaction and loyalty.
Harnessing business diversity not only accelerates the growth of e-commerce
platforms but also plays a crucial role in creating a more inclusive global economy.

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ChatGpt:

ChatGpt was used in this project to provide the outline of the topic and its

sections. It was also used to format the reference list in APA7 format.

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