eCommerce Trends for 2015

Retail

grant-morrow
The present document can't read!
Please download to view
30
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Description
An explanation of eCommerce Trends for 2015. Discussion of eCommerce on Mobile, Responsive Design, UPS and FedEx Dimensional Weight Changes, and advice for eCommerce Startups. Presented at #TechCampMemphis 2014 on November 1st, 2014.
Text
  • 1. Where is eCommercegoing?1Trends, pitfalls, and whereeCommerce will go in 2015PRESENTED BYGrant MorroweCommerce2015
  • 2. 2 Meet meGrant MorroweCommerce Program ManagerOrgill, Inc.About me: Grant MorrowManaged hundreds of web and eCommerce implementations, directed eCommerce businessunits and logistics operations. MBA from the University of Memphis.SkilleCommerceSEOLogisticsBusiness Analyticsexperience10 years working in eCommerce, web development and logistics Currently: eCommerce Program Manager for Orgill, Inc.Directed eCommerce business units from ground up to profitability Consults with retailers of all sizes at all stages of eCommerce growth cycle
  • 3. 3 Agenda01 TRENDS OVERVIEW 2015General eCommerce Trends in 201502 MOBILE, MOBILE, MOBILE!Mobile is affecting everything in eCommerce now03 SHIPPINGLogistics and how it will change in 2015DESIGN 04Responsive design is here, embrace immediately!PRODUCT MIX, MARKETPLACESAND SEO 05What works for overall? What works for startups?SUMMARY 06eCommerce in 2015 and beyond
  • 4. 4 eCommerce Trends 2015Subscription & Curation ServicesContinual growth of “boutique in a box”Amazon Subscribe and SaveShopping behavior?Where do users start?ResearchFrom using mobile to research prices to using SocialMedia, Users will be smarter shoppers than everGrowthYear over YearLogistics ChoicesWhat do you users want?MarketplacesAmazon, eBay, Sears, Newegg, Walmart.comPinterest: New Entrant
  • 5. 5 Total Internet Retail Sales in the U.S.2012 201313%Year over Year10%Of All Retail PurchasesAre now made online$211BTotal InternetRetail 2012 $184 Billion2013 $211 Billion1Q14 Mobile11% of all eComm salesSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 6. Logistics Choices693% Take Action forFree ShippingThe leading action is adding more items tothe cart83% of Shoppers will wait2 more days to get free shippingDelivery Speed is the4th most important• 50% of shoppers will choose a slower transit time for free shipping• 7 Business Days is the average time shoppers are willing to wait• 50% of shoppers abandoned carts that did not give an estimate on deliveryFREESHIPPINGfactorSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 7. Marketplaces 718%Retailer28%Amazon10%PinterestRetailers Sites18% of online shoppers start off on a retailers web site to begin searching.Importance of brand LoyaltyAmazon Dominance & Business Model Changes28% of online products searches are on Amazon.com. Amazon has become by far thelargest marketplace, larger than eBay, Sears.com and Walmart.com combined.Many online retailers have ditched having any website themselves.Emerging: Pinterest20% of online shoppers say that Facebook helps influence their decisions. 10% say thesame of Pinterest. Pinterest will be rolling out eCommerce functionality this holidayseason Pinterest being more product focused will move much faster into eCommerceSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 8. 8 Curation & Subscription ServicesCurationPersonalization TacticBoutique-In-A-Box:• Trunk Club (Sold to Nordstrom for $350M)• Birchbox• ShoeDazzle.com• Nature BoxSubscriptionOrder again and save money• Amazon Subscribe & Save• Dollar Shave Club (Gillette already has responded)22% of usersHave already signed up for this type of serviceAnd 47% say they would consider enrollingSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 9. 9 Shopping Behavior44% Prefer to buy on a desktop or laptop computer41% Still would prefer to purchase in brick and mortarstore55%11%Regular Online shoppers would preferto buy onlineWould prefer to buy on a tablet orSmartphoneSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 10. 10 Smarter Shoppers Research More36%22%27%Price Comparison ShoppingPercentage of shoppers who check prices online while in thestoreResearch on ProductsPercentage of shoppers who will research aproduct on their Smartphone while in storeReviewsPercentage of shoppers who will read online peer reviews of a product while inthe storeSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 11. 11 MOBILE, MOBILE, MOBILEOMNICHANNELMobile fuels the ability of a retailer to interfacewith their customer on a variety formats andDeveloped societies now sit within arms reach situationsof the world’s information and almost anyproduct with a few touches,24 hours a day.MARKETINGSMS, Mobile Coupons, Mobile AppsHUGE GROWTHMobile Commerce represents $25 Billion
  • 12. 12 Mobile Activities22%65%Where are we seeing opportunity/growth? Everywhere.40%51%Holiday ShoppingMarketing E-mailsMobile CouponsTablet Purchases1 in 4 OrdersLast Holiday Season were from mobileshoppersSeek OutPercentage of Mobile users who lookfor or redeem mobile coupons.Have Used Mobile to PurchaseOpened on MobilePercentage of where Marketing e-mails 41% Have used their Smartphonewere openedSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 13. 13 Mobile OpportunitiesMobile CouponsMobile Coupons are 10X morelikely to be redeemed thanregular coupons1 in 5 made a purchaseAfter opening a retailer’s email on their mobile device6 out of 10 kept ShoppingWhile using a retailer’s mobile shopping appMobile Shopping AppLowers propensity of users toleave to “shop around”. 59% ofusers say they will generallystay within the appSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 14. 14 Where are retailers with mobile?If Not Optimized38% Say they will not return toa retailer’s website if it is notmobile optimized38% 73%Image Pictures43% of shoppers prefer to shopon a desktop or laptop becausethe pictures are still too small43% 51%Mobile OptimizedRetailers surveyed who saythey already had or were goingto implement in 2014Retailers with a mobile app51% of retailers surveyedalready had a mobile or wereworking on implementing onein 2014Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 15. 15 SHIPPINGUPS/FEDEX RATE CHANGESUPS and FedEx have moved to recoup money fromshipping large packagesUS POSTAL SERVICEThe Postal Service finally moves to packagesFREE SHIPPINGBuyers are less willing to pay shipping
  • 16. 16 UPS/FedEx Dimensional Rate Change17%Averageincrease2014 2015LxWxH166DIMENSIONAL WEIGHTINGUPS and FedEx as of 2015 will now rate packages based ondimensional weight calculationsSource: U”PS plans 4.9% Increase for US, Canada” Wall Street Journal. http://online.wsj.com/articles/ups-plans-4-9-average-price-increase-1413840309Oct 20, 2014.
  • 17. 17 Industry Overall – US Postal Service3rd52%15%30%3%UPSFedExPostal SvcRegionalsMarket Share of all parcel shippingPostal Service hasdropped it’s prices onPriority Mail forbusiness customersby up to 58%Source: “US Mail Cutting Rates to Win eCommerce Business” http://online.wsj.com/articles/u-s-mail-cutting-rates-to-win-e-commerce-business-1409850185 Wall Street Journal, Sept 4, 2014,
  • 18. 18 Free Shipping Is King58%Will wait extradays for freeshippingAbandon the cartafter seeingshipping charges 50%100.00%90.00%80.00%70.00%60.00%50.00%40.00%30.00%20.00%10.00%0.00%2 Days 3 Days 4 Days 5 Days 6 Days 7 Days 8+ DaysNumber of Days Consumer is willing to waitSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf
  • 19. 19 DESIGNRESPONSIVE DESIGNMust be embracedAVOIDING NAVIGATION BARSNavigation is getting staleIMAGESBigger is better
  • 20. 20 Responsive Design01All elements mustresize04All experiences are equalAssume the User Experiencecould happen anywhere02 “Mobile site”should not be used03Static ideas dead, urgeto control must be easedMobile SiteDesignUserExperienceElements
  • 21. BIG GRIDExamples of what designers are trying to avoid a navigation bar.Image: http://www.lowes.com Accessed 10/31/14
  • 22. HUGE IMAGEExamples of what designers are trying to avoid a navigation bar.Image: http://www.tommybahama.com Accessed 10/31/14
  • 23. 23 SEO, PRODUCT MIX, MARKETPLACESSEARCH ENGINE OPTIMIZATIONCan control the fate of the entire enterprisePRODUCT MIXShotgun approach doesn’t work at firstMARKETPLACESWhy beat them if you can join them?
  • 24. 24 SEO and Product MixVSSEO Standard Internet MarketingBest ROI Extremely necessary early on when launching a newventure, new service, new product offeringSEO is by far the most effective over the long runYour product mix and offering, combined with how unique your products are willhelp drive the ease of your SEO
  • 25. 25 Combine01 SEARCH ENGINEOPTIMIZATIONGoogle shopping feeds, Google stars,reviews services02 GOOD PRODUCTMIXAnalytics and Market Research03 SUCCESSContinue to leverage yourgood relevancySales Success
  • 26. 26 Marketplaces02Business ModelListing instead of any site03CommissionsRazor thin marginseBay, Sears.com, Walmart.com,Newegg.comMore channels than everMarketplaces have to be leveragedPinterest01AmazonLarger than all other marketplacescombined
  • 27. 27 2015: What should eCommerce startups do?Ramp54LaunchTest32BusinessExplore1 CaseFind niches underservedExplore what offerings are missing fromcertain demographics or traditionalretailersTest MarketingSell some of the products on a trial orsmall scale to see how the marketresponds. Use MarketplacesRamp MarketingCapacity planning is important, butramping the marketing is mostimportant. Suppliers and Partners canprovide a safety valveThe Business CaseDo you have the logistics orprogramming capability todeliver your goods/service?Launch sellingLaunch your product listings, siteor service
  • 28. 28 SUMMARYFree shipping is kingAdd Shipping into price of productsConstant changeKeep abreast of what competitors do and what changes happen in the marketMobile is necessaryMobile technologies will continue to evolve and be used by consumers more andmore, retailers must adapt
  • 29. 29 Contact InfoeCommerceSocialMediaSEOGrant MorroweCommerce Program ManagerOrgill, Inc.Consultant, Burning RootPhone: 618-534-9303Email: [email protected]: Granto101
  • 30. THANK YOUQuestions?
  • Comments
    Top