This chapter provides a comprehensive overview of the fundamental components of digital retail strategies and the processes of creating competitive advantage, tracing the historical evolution of e-commerce to its contemporary applications. Initially limited to electronic data interchange and simple online transactions, e-commerce has transformed into a multidimensional ecosystem with the commercialization of the internet, the rise of digital platforms, and the advancement of mobile technologies. This transformation has reshaped not only the way businesses conduct trade but also their business models, customer relationships, and value creation strategies.

Different types of e-commerce such as B2B, B2C, C2C, C2B, and B2G present distinct opportunities and challenges for businesses and consumers alike. This diversity highlights that competitive advantage cannot be achieved through a single strategy; instead, firms must design tailored value propositions depending on the context. In this regard, the analysis of consumer behavior lies at the heart of e-commerce strategies, as consumer choices are influenced not only by functional factors such as price, quality, and accessibility but also by speed, security, personalization, and sustainability.

The chapter further discusses the importance of digital customer experience and the role of personalization in building competitive advantage. AI-powered recommendation systems, augmented reality applications, and omnichannel strategies emerge as critical tools for strengthening customer loyalty and brand attachment. Moreover, logistics, speed, and delivery strategies serve not only as operational advantages but also as symbolic signals of trustworthiness and customer-centricity, thereby reinforcing competitive advantage.

From a strategic positioning perspective, Porter’s generic strategies—cost leadership, differentiation, and focus—are reinterpreted in the digital age to align with the dynamics of e-commerce. Amazon’s logistics-driven cost leadership, Apple’s prestige-oriented differentiation, and Etsy’s niche market approach exemplify this transformation. Additionally, brand identity and online positioning enhance the emotional and symbolic dimensions of digital value propositions, enabling deeper connections with customers.

In conclusion, this chapter argues that e-commerce should not be regarded merely as a sales channel but as a dynamic field that shapes strategic positioning, generates competitive advantage through digital value propositions, and redefines customer relationships. In an era of accelerating digital transformation, businesses must continuously renew their competitive strategies, strengthen customer-centered value propositions, and effectively integrate technology into their processes to achieve sustainable success.