September 01, 2020

Store Closures: Microsoft

Last week we learned that Microsoft would close all of their stores (click here).

Yesterday I discussed how e-commerce as we know it is burning down, being replaced by what I call BOAR.
  • B = E-Commerce in a Box (Shopify / Big Commerce / MailChimp / Etsy / Marketplaces).
  • O = O-Commerce ... Huge Omnichannel Brands (Target, Walmart, Best Buy). The pandemic is burning down what is left of o-commerce, which was failing in the first place ... leaving just huge omnchannel brands left to dominate.
  • A = A-Commerce ... Amazon. You pay them to ship merchandise that they ship in their own vans. Less exposure to risk from UPS / FedEx / USPS. A giant chunk of e-commerce.
  • R = R-Commerce ... Recurring Revenue E-Commerce (Netflix, Microsoft, heck, even Stitch Fix / Subscription services could fit here).
Microsoft exits any semblance of unprofitable o-commerce in favor of r-commerce, where they have a digital relationship with 1.2 billion customers.

Times are changing.

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