performance 2014 - barney willis - channeladvisor
TRANSCRIPT
Four Trends Disrupting E-Commerce
Presented By: Barney Willis, Commercial Director, ChannelAdvisor
20 November 2014
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E-Commerce Overview
Marketplaces
Cross-Border Trade
Google’s Shopping Campaigns
Mobile and Social
Q&A
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Agenda
In simple terms, a marketplace is somewhere that you sell your product online, that is not your website.
Marketplaces are dominating the e-commerce landscape because they offer consumers
Selection
Value
Convenience
Confidence
Why Marketplaces Are Growing in Popularity
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Why Amazon Matters
237 million active accounts
around the world
Outpacing the growth rate of overall
e-commerce by
2-3X
Amazon recognised$74bn in revenue in
2013
Sources: Forrester, Amazon Public Data and Internet Retailer
Number 1 mobile site
in the UK
2 million sellers and expanding marketplace programs
and categories
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Why eBay Matters
Sources eBay Media Centre
19 millionactive users in the UK
every month
In 15 years eBay.co.uk has sold
three billion items, worth
£65bn
75% of items are
sold at fixed prices.
In the UK an item is bought every 1 second via
the eBay app
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UK businesses export to
an average of
39 countries on
eBay
Over 200,000businesses large and
small sell on eBay in
the UK
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Emerging marketplaces
The global success of Amazon and eBay’s third-party marketplace models has led to an explosion of emerging marketplaces from new players and global retailers.
Expanding to these new marketplaces continues to be one of the safest and quickest ways to scale your e-commerce business.
Their built-in customer base and established infrastructure allows retailers to focus on other priorities such as sourcing, pricing, promotion and fulfilment.
Tip: Check out emerging marketplaces
MarketplaceHome Region
Year Established
Traffic Information Sellers
US 2011 487 million+ visits per year 4,000
US 2009 2.4 billion page views per year 10,000+
US 1997 12 million shoppers each month 3,000+
US 2011 1 billion visitors per year 100+
US 2009 (3P) 45 million visits per month 6+
UK 20124 million+ unique visitors per
month50+
UK 1998 2.8 million visits per week 3,000
France 2010 9.2 million+ visitors per month 1,000
Brazil 199933 million unique visitors per
month52,000+
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Tip: Check out emerging marketplaces
MarketplaceHome Region
Year Established
Traffic Information Sellers
US 2010 (3P)1.2 million unique visitors per
month
Notdisclosed,
10,000 listings*
CN 2008 40 million daily visitors 70,000
NZ 19991.4 billion page impressions
per month2 million+ listings*
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*Providing listings here as seller information is unavailable.
• Build your brand
• Boost sales
• Extend product seasonality
• Open a world of opportunity
14
Why Do I Need To Expand?
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Top CBT Routes
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Location Number of Shoppers Shopping In
US 16.7 million UK
China 15.1 million US
US 13.2 million China
US 11.6 million Canada
UK 11.1 million US
China 10.4 million Hong Kong
China 9.4 million Japan
China 7.7 million UK
China 7.0 million Australia
US 6.8 million Hong Kong
Survey: Where do retailers see the best CBT opp?
USA
UK
China
UK
USA
France
Germany
©Copyright ChannelAdvisor 2014Source: ChannelAdvisor commissioned RedShift Survey
Hurdles that prevent CBT
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Internal politics
Translation
Limited internal resources
Lack of knowledge about selling internationally
Technology limitations
Limited inventory
Tariffs
Currency issues
Regulations
Shipping/logistics concern
US
UK
Total
Limitations in
shipping/logistics
are biggest
hurdles.
©Copyright ChannelAdvisor 2014Source: ChannelAdvisor commissioned RedShift Survey
Tip: Test CBT through marketplaces
Marketplaces have established infrastructures and programmes for sellers looking to expand internationally.
Amazon Fulfilment by Amazon (FBA) Benefits:
All FBA products become Prime eligible
FBA products have a greater chance of winning the Buy Box
Amazon handles the picking, packing, shipping and customer service
EBay Global Shipping Program
Announced for the UK in eBay’s recent product release
Free to sellers, buyer pays VAT and shipping
Sell to 53 countries globally
Sellers do have to handle returns
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Mandatory as of September 2014
Pros
More granular data
More accurate campaign management
Better reporting capabilities
Competitive information
Cons
Have to rebuild your campaigns
Time-consuming to update
See our Shape Up your Shopping Campaigns infographic for a roadmap of how to make the switch: http://bit.ly/GSCRoadmap
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Changes to Google’s Shopping Campaigns
It’s easy to start leveraging the advantages of Shopping campaigns. Making the transition effectively will take someinitial effort, but once you’re off and running, you’ll be glad
you spent the time.
It’s a simple, three-step process.
Create a Shopping campaign
Customise your Shopping campaign
Pause your old PLA campaign
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Tip: Begin to leverage new format ads
22% of retailers said that social media is how consumers are most often finding their products.
What are retailers’ business goals for social media?
Increase brand awareness
Reach a new generation of customers
Which social channel leads to the greatest number of conversions?
We’re seeing the leading social channels test e-commerce functions on their sites over the past few months…
Social Influence
Source: ChannelAdvisor commissioned RedShift Survey and AddShopper
Just add #AmazonCart to a reply in twitter
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Amazon Cart
#AmazonCart is
currently seeing around
5,000 tweets a day, on
average*
Source: Dowitcher Designs
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Twitter Buy Now button
• “Buy Now” button spotted June 30th
• Linked to checkout in Twitter
• Appeared to be a test
• Could there be a Twitter
Marketplace by Christmas?
Source: Re/code
Buy button announced July 17
Limited to a few small and medium-sized businesses
Will show up in newsfeed
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Facebook Buy button
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Source: Addshoppers
Pinterest generated the
greatest amount of social
commerce revenue in 2013;
accounting for a quarter of all
revenue.
• Take advantage of Rich Pins
• Can include title, price, availability, brand name and
logo
• Can also send price notifications to users that pinned
a product alerting them of a price drop
Add social sharing buttons to products on your website (shares convert more than twice as often as “Likes”)
Prepare your feed for potential social sales, so you’ll be prepared when buy buttons are fully launched
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Tip: Socialise your products
Source: Addshoppers
40% say that 21-30% of their traffic comes from mobile devices.
38% spending 6-10% of budget on mobile advertising
37% plan to increase mobile ad spending slightly, 33% to increase significantly
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Retailers’ Mobile Traffic
Source: ChannelAdvisor commissioned RedShift Survey
We’d recommend
increasing budgets by at
least 20% over last year.
Both Amazon and eBay are amongst the UK’s most popular mobile retail apps:
Amazon is the most popular app with 8.12 million users
eBay.co.uk comes in 4th place with 2.71 million users, separated only by Argos and Tesco.
These marketplaces are popular amongst consumers as they curate content into one place, offer an easy to use interface and payment system. Rather than downloading individual apps for every brand or shop, customers get the selection they crave from one installed app.
By listing on marketplaces, retailers become visible on the mobile versions of marketplaces, without any additional costs.
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Tip: Mobilise with Marketplaces
Source: comScore
Marketplaces: Customers are increasingly shopping on marketplaces. Capture this traffic by optimising your eBay and Amazon sales and consider new emerging marketplaces.
Cross-Border Trade: As consumers are no longer limiting by borders, neither should you! Test your expansion to new countries, using marketplaces if you are just starting out.
Google’s Shopping Campaigns: With the transition date looming, ensure you are preparing for the change without dropping existing traffic.
Mobile and Social: Consumer habits are evolving for mobile and social, make sure you are optimised and prepared!
©Copyright ChannelAdvisor 2013 33
Wrapping Up