E-Commerce Trends from 2013 to 2014

eCommerce Buyers in 2013 (in Million)

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Source: http://www.rishabhsoft.com/blog/e-commerce-growth-statistics-and-forecast

eCommerce Buyers by Region

Venture Capital in e-Commerce •  2012: –  554 venture capital deals, agregate value of $4.4bn

•  2013: –  589 venture capital deals, agregate value of $5.2bn

•  The countries that have received the most e-commerce investment during 2013 are: –  USA ($2bn), China ($800mn), India ($680mn).

•  75% increase in average deal size, from $6mn in 2012 to $10.5mn in 2013.

3 Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013

Venture Capital – biggest investments in their class

4 Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013

360Buy, a Chinese e-commerce firm which offers consumer electronic products, Kingdom Holding Company invested SAR $400mn

Zozi, a discount e-Commerce busines, $7.1mn multi-investor deal

Fab.com, a homeware e-commerce business, $150mn Series D investment

16 Companies that are leading a Retail Revolution – by Morgan Stanley

1.  Amazon 2.  Blue Nile 3.  eBay 4.  Costco 5.  Macy's 6.  Nordstrom 7.  Walmart 8.  Williams-

Sonoma 9.  Urban

Outfitters

10.  Under Armour 11.  ASOS 12.  MercadoLibre 13.  Rakuten 14.  Belle 15.  Intime 16.  Sun Art.

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Source:http://www.businessinsider.com/morgan-stanley-best-ecommerce-companies-2013-1?op=1#ixzz2oEvl6Mzg

MercadoLibre - Largest pure player marketplace in Latin Amerina. www.mercadolibre.com

E-Commerce startups to watch •  Level Money

https://levelmoney.com/ Personal finance.

•  Routehappy https://www.routehappy.com/ Helping travelers compare flights in new ways.

•  Uber https://www.uber.com/ They may expand into same-day delivery

•  Datasift http://datasift.com/ Process and deliver social data to business

•  Clinkle https://www.clinkle.com/ Uses a high-frequency sound to process m-payments.

6 Source: http://mashable.com/2013/12/16/startups-to-watch-in-2014/

•  Flipboard https://flipboard.com/ They just added shoppable magazines

Oyster https://

www.oysterbooks.com/ e-book

subscriptions

The new project methodology: The Lean Startup

•  The new project methodology is based on the constant optimization of key project indicators .

•  Minimum Viable Product ( MVP). –  Instead of investing in research - just

quickly create a simple version of the product and put in to the market.

•  You should use techniques such as A / B testing to optimize your e-business.

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Source: http://theleanstartup.com/

Growth Hacking •  Standing in opposition to

traditional marketing, growth hacking is gaining popularity.

•  Main points of this philosophy are: –  stable growth engine –  efficiency –  experimenting instead of planing –  focusing on sales rather than brand.

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Source: http://www.amazon.com/Growth-Hacker-Marketing-Advertising-Portfolio-ebook/dp/B00BPDR3JM http://thedigitalexperiment.wordpress.com/2013/04/12/growth-hacking-2013-hack-to-the-future-mindset-or-skillset/

Big Data

Reco engines

reMarketing + reco

Marketing automation

eCommerce & CRM

integration

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•  Personalization. Data from multiple touch points can be processed in real-time to offer a personalized experience, including content and promotions.

•  Dynamic pricing This requires gathering data from competitors, on-line and off-line.

•  Predictive analytics Big Data is helping retailers predict events before they occur.

Source: http://www.practicalecommerce.com/articles/3960-6-Uses-of-Big-Data-for-Online-Retailers

Smarter prices •  Amazon is changing prices of

some goods even few times a day. –  In the future, companies will work

harder to put on the intelligent control of the price. You can try tools like WisePricer (https://www.wisepricer.com/amazon-repricer ).

•  Some retailers use really complex techniques to set prices. –  For example - their change prices

based on your locationhttp://venturebeat.com/2012/12/24/staples-online-stores-price-changes/.

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Price differences at staples.com. The dot sizes mark the mean price surplus for the locations, from 0%(small dots) up to 3.9% (large dots). Morehttp://conferences.sigcomm.org/hotnets/2012/papers/hotnets12-final94.pdf

SEO – is it still alive? 1.  Paid is where Google

wants to be. 2.  Technical SEO isn’t

working anymore. 3.  Building links and social

media shares is more expensive than ever.

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You should consider more traffic sources because Google strategy is “pay per click” and sooner or later – You will pay for all your clicks. The best case scenario is that one source of traffic should not exceed 20-30% of overall traffic of Your site. To do this, you should test marketing tools such as affiliations, RTB, mailings to external databases, building own mailing list, call-center . The ultimate way to stability is building a strong brand.

Source: http://wrightimc.com/blog/2013/11/21/future-seo-complicated-seo-trends-2014/

E-Mail Marketing •  Customer acquisition

by email marketing has quadrupled over the last 4 years.

•  The average customer lifetime value (CLV) of users acquired via email is higher than those coming from social media.

•  Email marketing ROI is around 4300% (according to the Direct Marketing Association)

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Source: http://blog.custora.com/2013/06/e-commerce-customer-acquisition-snapshot/

http://www.shopify.com/blog/9196929-why-email-marketing-is-the-key-to-ecommerce-success#axzz2oEyzmw3r

Content Marketing •  In 2014 we will see

brands stop talking about 'acting like a publisher' and start actually acting like one. -Justin Pearse, head of marketing at Bite and board member of the British Interactive Media Association

Source: http://www.theguardian.com/media-network/media-network-blog/2013/dec/10/experts-digital-content-trends-2014

Source: http://www.smartinsights.com/content-management/content-marketing-strategy/the-content-marketing-matrix-new-infographic/

Technology •  Variety of devices, user contexts, and

interaction paradigms. •  HTML5 and the browser as a

mainstream enterprise application development environment.

•  Growth of 3D Printers - 75 percent in the 2014, and 200 percent in 2015.

•  Many firms have cloud strategies and mobile strategies, but the Forrester Top Technology Trends report makes the point that the benefits of the cloud are still limited by old applications.

•  Mobile is becoming only one part of a broader omni-channel approach.

14 Source: http://www.forbes.com/sites/peterhigh/2013/11/25/forrester-top-technology-trends-for-2014-and-beyond/ , http://www.forbes.com/sites/peterhigh/2013/10/14/gartner-top-10-strategic-technology-trends-for-2014/

Source: http://store.makerbot.com/replicator2

eCommerce Platforms

•  Magento - stable, scalable, flexible platform - 1 of every 4 online businesses choose Magento.

•  Enterprise platforms - Gartner Magic Quadrant for E-Commerce - Leaders: IBM, Oracle, hybris

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Source: http://www.google.com/trends

Shopify

Magento OsCommerce

Volusion

Responsive Web Design

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Source: http://www.business2community.com/online-marketing/10-awesome-examples-of-ecommerce-sites-using-responsive-web-design-0465157#!qqdM6

•  RWD is a standard now. •  Today users prefer to use

mobile websites than apps.

•  Build an app when you have something extra to offer.

•  Mobile first approach is getting popular http://www.lukew.com/resources/mobile_first.asp. http://global.tommy.com/en

New Business Models •  In 2013 we saw a lot of new

business models in e-Commerce. •  One of our clients promotes

recipes for homemade cosmetics by content marketing. To each recipe they add set of products (ingredients). Just one click and all these ingredients end up in the cart.

•  Another customer - LOT Airlines, created the duty-free online store . Buy on-line from home and pick up the product on board when you fly.

•  In the coming year FMCG companies will try some new ways of selling on-line.

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Source: http://airkiosk.lot.com/

Digital Content

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Source: http://www.siia.net/blog/index.php/2013/09/10-digital-media-trends-you-cant-ignore/

•  Freemium is main acquisition model in software and content. –  Paywalls doesn't work.

•  Free To Play Games are taking over the world.

•  Streaming services - new distribution platforms.

Supercell (Finnish startup) is generating $1 million in gross revenue a day from just 2 games - Hay Day and Clash of Clans. http://www.insidemobileapps.com/2013/01/10/supercell-generating-1m-a-day/

Same-day delivery •  Amazon, Walmart,

Nordstrom, Macy’s, Google, and eBay all launching it already.

•  Amazon found that merely displaying an icon touting same-day availability increased conversions by 20 to 25 percent!

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Source: http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveries-matter/ http://storefrontbacktalk.com/e-commerce/the-amazon-same-day-delivery-mystery-great-conversions-few-actual-users , http://amazon.com, http://www.mypersonalfinancejourney.com/2010/02/review-of-amazon-prime-program.html

Same-day delivery

To enable quick home deliveries we need to start forecasting what will be ordered by day, what the volumes will be on those days, and where those consumers live; based on the forecast, a routing optimization engine then prebuilds routes for the next day that include inventory locations (stores) and homes. - Victor Allis, the CEO of Quintiq

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Source: http://www.forbes.com/sites/stevebanker/2013/12/03/same-day-deliveries-by-amazon-drones-ridiculous-what-really-makes-sense/

Buying local •  Amazon uses huge warehouses that serve a whole metro

area to offer same-day delivery. A local retailer might have several stores in a particular city, enabling shorter delivery paths.

•  Local stores will bring the web right to where shoppers can psysically touch it.

•  Local stores will merge digital with retail to offer a more personalized shopping experience

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Source: http://www.ibm.com/smarterplanet/us/en/ibm_predictions_for_future/ideas/index.html http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveries-matter/

Buying local •  Shutl couriers make point-

to-point deliveries from a store directly to the customer.

•  Approximately 75% of commerce happens within 15 miles of the consumer’s home

•  Aquired by eBay in october 2013

22 Source: http://shutl.com/uk/

Buying local

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Source: http://postmates.com/

Postmates is a revolutionary same-day urban delivery platform. It enables anyone to ship any product within a city in under one hour.

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Source: https://www.uber.com/

Mobile payments are growing fast. Uber is pushing payment transactions further into the background. The flat fare is deducted automatically.

mPayments

•  Now there are many new payment methods. •  Braintree processes about $4 billion in mobile

payments annually for Uber, Airbnb, TaskRabbit and others.

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Source: http://www.informationweek.in/informationweek/perspective/285724/practices-commerce-emerging-markets

NFC didn’t solve any real-world problems - says David Marcus, PayPal’s president.

mCommerce

•  Mobile is the only media time that is growing – based on U.S. Consumer Media Consumption Share

•  52% of tablet users now say that they prefer to shop using tablet than PC.

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Source: BI Intelligence, eMarketer 2013 http://www.supermonitoring.com/blog/2013/09/23/state-of-mobile-2013-infographic/#tt

Top commercial venues where people use their mobile devices: 1.  Retail (31%), 2.  Restaurants&Cafes

(19%), 3.  Service (19%), 4.  Financial (15%)

Showrooming •  80% of consumers use

mobile in-store to enhance the shopping experience.

•  Best Buy CEO: „Let's embrace showrooming” –  Plans for that include converting

more online and offline shoppers from browsers to buyers through redesigned stores, better trained employees and other incentives like online price matching.

–  http://www.cbsnews.com/news/best-buy-ceo-lets-embrace-showrooming /

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Source: http://www.supermonitoring.com/blog/2013/09/23/state-of-mobile-2013-infographic/#tt

On-line – Off-line connection •  Sensor-based analytics and

engagement platforms. •  Bluetooth and WiFi give us

opportunity to understand how people behave in stores.

•  Bluetooth Low Energy is supported by Apple, Google, and Nokia.

•  Internet of Things. http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_internet_of_things

28 Source: http://estimote.com/

Bitcoin – new possibilities in on-line payments

•  Bitcoin allows any bank, business or individual to securely send and receive payments anywhere at any time, with or without a bank account.

•  Payments are possible without slow and costly middlemen.

•  Can process payments to the scale of a dollar and soon even much smaller amounts.

•  Can be used in a new generation of automated services.

29 Source: http://bitcoin.org/en/ , https://bitpay.com/

Over 12,000 businesses and charities accept bitcoin with BitPay.

New markets •  BRIC (Brazil, Russia, India and China) is the future

of e-Commerce growth. •  The penetration of smartphones and tablets is

rapidly increasing in BRIC countries. •  Smartphone penetration: China (59%), India

(37%), Brazil (35%), Russia (28%). •  This channel of communication with the

potential customer will force retailers to use m-commerce.

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Source: http://www.informationweek.in/informationweek/perspective/285724/practices-commerce-emerging-markets?utm_source=referrence_article

About Divante •  Full-service e-Commerce

Agency.

•  Our blog: http://divanteltd.com/blog/

•  Twitter: https://twitter.com/DivanteLtd

•  Slideshare: http://www.slideshare.net/DivanteLtd

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