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TheJasonandScotShow
ScotWingoExecu5veChairmanandCo-Founder
ChannelAdvisorCorpora5on
Presented:September27,2016atRetail’sDigitalSummit
JasonGoldbergSVP,CommerceandContent
Razorfish
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JasonandScotDebateRetail’sBiggestChallengesJason ‘Retailgeek’ Goldberg – SVP Commerce, Razorfish
Scot Wingo – Co-founder and Executive Chairman, ChannelAdvisor
Shop.org Edition
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Shop.org Edition
JasonandScotDebateRetail’sBiggestChallengesJason ‘Retailgeek’ Goldberg – SVP Commerce, Razorfish
Scot Wingo – Co-founder and Executive Chairman, ChannelAdvisor
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Introducing Jason and Scot…
The Forrester Wave™: B2C Global Commerce Service Providers, Q1 2015
Gartner Magic Quadrant™: Global Digital Marketing Agencies, March 2016
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Introducing Jason and Scot…
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Jason and Scot Show
• WeeklyE-commerce/digitalretailpodcast
• Started11/12/15• Jasonandscot.com• iTunes,soundcloud,• Facebook• 45Episodesandcoun5ng!
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Retail’s Biggest Challenge 1:
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• #1Onlineretailer($107bin2015,growing26%y/y)• #2OVERALLretailerfor2015(2ndonlytoWalmart)• 310mac5vebuyers(growing13%y/y)• 60%US,40%Intl• Media:9%,ElectronicsandGeneralMerchandise(EGM):80%(Otheris11%)
What do we KNOW about Amazon?
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Amazon, Retail Sales, E-Commerce
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Source:comScoreandAmazonpublicdata
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Amazon – FC Footprint – 104FCs -> 75m sq-ft
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Amazon – Europe – 34, 25m sq-ft
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Amazon – APAC- 35, 25m sq-ft
That’s104+69=173FCs,>100msq-i
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Putting it All Together
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Pro
duct
Vol
ume
LOW Low
HIGH
High Amazon Sales Rank
Amazon 1P
Amazon 3P+FBA
Amazon 3P
Total Inventory: 288m items
Prime Eligible: 32m (13%)
1P: 2.8m / 3P: 285m Head: 2.8m items
Torso: 29m items
Long Tail:
256m items
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CanyousurviveinanAmazon-dominatedWorld?
• Scot:Gameover…Ifyoucan’tbeat‘em,join’em• Jason:Notsofast....
Amazon Debate: Scot vs. Jason
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Amazon Debate: Scot
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Amazon – Dominating E-commerce ALL RETAIL
“Amazon captured more than 51% of all applicable retail growth dollars in the U.S. during Q4 [and] 42% of all applicable retail growth dollars in 2015, nearly double the 22% it captured in 2014.” -WellsFargoEquityResearch
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Amazon Debate: Jason
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Amazon Debate: Jason
44%
Within 20 miles
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Amazon Debate: Jason
44%
Within 20 miles Within 15 miles
90%
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BestBuyGet’sFasterThanAmazon
Amazon Debate: Jason
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Amazon Debate: Jason
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Amazon Debate: Jason
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Amazon Debate: Jason
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Amazon Debate: Jason
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Retail’s Biggest Challenge 2:
Mobile Conversion
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Mobile Traffic Last Month
68% 50% 55% 52%
Source:ComscoreMobileMetrixFebruary2016
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Time on retail properties
65% 5meonallretailwebsitesisonmobileortablet
Source:ComscoreMobileMetrixFebruary2016
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Mobile Gap: Conversion Rates
4.43% 3.75% 1.53%
Source:MonetateEcommerceQuarterlyQ42015
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0
0.5
1
1.5
2
2.5
3
3.5
4
Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015
Mobile Gap
Mobile Gap Over Time
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WillMobileConversionRatesImprovetoDesktopLevels?
• Jason:Yes,DigitalWallets,Op5mizedMobileExperiences,andChatbotstotherescue
• Scot:No,unlessyouareAmazon,eBayandWalmart.
Mobile Debate: Jason vs. Scot
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Mobile Debate: Jason
-7% +47%
RetailTrafficGrowth
Source:ComscoreMobileMetrixFebruary2016
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
CheckoutFric5on
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
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Mobile Debate: Jason
22INPUTS 8INPUTS 4INPUTS
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Mobile Debate: Jason
AvgCheckout23Fields
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Mobile Debate: Jason
Use as billing address
FULL NAME (FIRST NAME LAST NAME)
SHIPPING ADDRESS APT/BLDG. (OPTIONAL)
EMAIL ADDRESS
PHONE
CREDIT CARD DETAILS EXP DATE | CVV
5Fields
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Mobile Debate: Jason
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Mobile Debate: Jason vs. Scot
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Mobile Debate: Jason vs. Scot
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The Mobile Debate: Scot
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Source:Amazonpublicdata
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The Mobile Debate: Scot
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The Mobile Debate: Scot
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The Mobile Debate: Scot
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Retail’s Biggest Challenge 3:
Brands Going Direct
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Brands Background
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Source:Amazonpublicdata
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Brands Background
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Brands Background
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Source:Amazonpublicdata
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DoesBrandsGoingDirectMeantheEndofRetail?
• Jason:No!• Scot:Probably….
Brand Debate: Jason vs. Scot
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Brand Debate: Jason
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RetailersBrands
Today
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Brand Debate: Jason
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RetailersBrands
Tommorrow
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Brand Debate: Jason
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BrandssBlltheworstplacetobuytheirownproducts
• Price/MAPCompliance• Assortment• Delivery
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DoesBrandsGoingDirectMeantheEndofRetail?
Brand Debate: Scot
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Retail’s Biggest Challenge 4:
(BONUS!)
THE FUTURE…
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The Only Constant: Change^2
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WhatistheFutureofRetail?
• Jason:DistributedCommerceandCogni5veCompu5ng• Scot:ARandDrones
Future Debate: Jason vs. Scot
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Future Debate: Distributed
In store
Lockers
Instant delivery
Store finders
VR
Voice ordering
Mobile pos
At home
Auto replenishment
At work
Watch Dash button
Clientelling Dash
Social buy button
Outdoor advertising
Google buy button
In store
On the go
Commute
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Future Debate: Cognitive
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Future Debate: Visual Search
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AmazonFirefly
Future Debate: Visual Search
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Future Debate: Visual Search
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Hololens
Future Debate: Scot AR
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MagicLeap
Future Debate: Scot AR
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Future Debate: Scot AR
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Future Debate: Scot AR
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Future Debate: Scot Drones
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Future Debate: Scot Drones
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THANK YOU!
scot@channeladvisor.comTwirer:@scotwingoBlog:channeladvisor.com/blogLinkedIn:/in/thescotwingo
jason.goldberg@razorfish.comTwirer:@retailgeekBlog:retailgeek.comLinkedIn:/in/jasongoldberg