Performance 2014 - Barney Willis - ChannelAdvisor

Four Trends Disrupting E-Commerce

Presented By: Barney Willis, Commercial Director, ChannelAdvisor

20 November 2014

©Copyright ChannelAdvisor 2014

E-Commerce Overview

Marketplaces

Cross-Border Trade

Google’s Shopping Campaigns

Mobile and Social

Q&A


Agenda


Comparison of E-Commerce in 2013

Sources: comScore and

IMRG

Trend 1: Marketplaces


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


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


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


UK businesses export to

an average of

39 countries on

eBay

Over 200,000businesses large and

small sell on eBay in

the UK


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+


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*


*Providing listings here as seller information is unavailable.

Trend 2: International Expansion


Five Year CBT Growth Trends


• Build your brand

• Boost sales

• Extend product seasonality

• Open a world of opportunity

14

Why Do I Need To Expand?


Top CBT Destinations


Top CBT Routes


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


Trend 3: Google’s Shopping Campaigns



Google Shopping

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


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

©Copyright ChannelAdvisor 2013 23

Tip: Begin to leverage new format ads

Trend 4: Mobile and Social


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?

Facebook

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


Amazon Cart

#AmazonCart is

currently seeing around

5,000 tweets a day, on

average*

Source: Dowitcher Designs


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


Facebook Buy button


Pinterest

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


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


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.


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

Questions?

Thank you for attending!


Performance 2014 - Barney Willis - ChannelAdvisor

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