• Alibaba
• Amazon
• China
• Digitalisation
• Platformisation
• social commerce
• Usa

The rapid advancement of digitalization has profoundly transformed global commerce, reshaping business models and consumer behaviors. This thesis explores the evolution of digitalization and its impact on commercial platforms, analyzing the fundamental differences between Western and Chinese digital ecosystems.

The study begins by examining the historical trajectory of digital transformation, highlighting the technological innovations that have driven the transition from traditional commerce to e-commerce and, subsequently, to platform-based economies. The increasing role of artificial intelligence, big data, and cloud computing has facilitated the rise of digital platforms that dominate today’s global marketplace.

A key focus of this research is the theory of platforms, which provides a framework for understanding the mechanics of digital marketplaces. Platform economies are characterized by network effects, data-driven decision-making, and ecosystem integration, elements that differentiate them significantly from conventional business models. By comparing platform development in China and the West, this thesis illustrates how cultural, regulatory, and infrastructural factors have shaped divergent approaches to digital commerce. In China, platforms such as WeChat, Alibaba, and Xiaohongshu have embraced an ecosystem-oriented strategy, integrating social media, financial services, and e-commerce into a seamless user experience. Conversely, Western platforms like Amazon and Facebook operate within a more fragmented regulatory environment, leading to distinct user behaviors and business strategies.

The research then delves into traditional e-commerce giants, including Amazon and Alibaba, which have played a pivotal role in defining the online retail landscape. Their business models, centered on efficiency, scalability, and logistics optimization, have set the standard for digital transactions. However, while these platforms continue to dominate, new trends in digital commerce are emerging, challenging established paradigms.

One of the most significant developments in recent years is the rise of social commerce, a fusion of social media and e-commerce that leverages user-generated content, influencers, and interactive engagement to drive sales. This thesis examines the mechanics of social commerce and its growing influence, particularly in China, where platforms such as Xiaohongshu and Douyin have revolutionized the consumer journey. Unlike traditional e-commerce, which prioritizes search-based purchasing, social commerce thrives on discovery, recommendations, and community-driven interactions. The thesis also explores the challenges faced by social commerce in Western markets, where cultural and regulatory barriers, alongside consumer skepticism, have slowed its adoption.

Furthermore, this study investigates the implications of these digital commerce transformations for businesses and consumers. While digital platforms offer unprecedented convenience and accessibility, they also raise concerns related to data privacy, market monopolization, and ethical considerations. The research highlights how regulatory frameworks, particularly in the European Union, are responding to these challenges by imposing stricter data protection laws and antitrust measures to curb the dominance of major platforms.

In conclusion, the digital commerce landscape is in a state of continuous evolution, shaped by technological advancements, cultural influences, and regulatory policies. The findings of this thesis underscore the dynamic interplay between traditional e-commerce and emerging social commerce trends, emphasizing the need for businesses to adapt to these shifts to remain competitive. By understanding the structural and operational distinctions between Chinese and Western platforms, this research provides valuable insights into the future of global digital commerce and its potential trajectories