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Global Channel MarketingMulti-channel vs Omni-channel
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What are your expectations?
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Jeff Bezos, CEO amazon.com - 1994
“You could build a store online that simply could not exist in any other way.”
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1999 2007 2016201220112009
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Amazon's Profitability Can Further Decline
In The Future Forbes, 12/2014
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$317B market capitalization
Source: Yahoo Finance
January 2016
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$317B market capitalization $319B market capitalization
Source: Yahoo Finance
January 2016
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42,5%Share of online sales in the US - nov./dec. 2014
4,3% 3,1% 2,9% 2,7% 2,4% 2,2% 2,0% 1,9% 1,8%
1,0% 24,9%
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€ 21,1bEurope TOP10 Internet Retailer - 2015 / Websales - 2014
€ 6,5b
€ 4,0b
€ 3,4b
€ 2,8b
€ 2,6b
€ 2,3b
€ 2,2b
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High revenue doesn’t equal high
net income
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+$595m
-$241m
+$1,1b
+$107b+$88,9b
+$34,2b
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Evolution of net income
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Evolution of net income
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Evolution of net income +$88,9b +$473b
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worldmap
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
11 global market places
109 fulfillment centers
Buying customers in
180 countries
More than 30 listing categories
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Jeff Bezos carefully assessed the true advantages the internet would give him, and push them to their boundaries.
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Jeff Bezos carefully assessed the true advantages the internet would give him, and push them to their boundaries.
1 Limitless inventory
2 Customer care
3 High margin, low prices
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1 Limitless inventory
2 Customer care
3 High margin, low prices low prices
customer experience large selection
Jeff Bezos carefully assessed the true advantages the internet would give him, and push them to their boundaries.
Old school business model
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1 Limitless inventory
2 Customer care
3 High margin, low prices low prices
customer experience large selection
Jeff Bezos carefully assessed the true advantages the internet would give him, and push them to their boundaries.
Old school business model on steroids
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1995Amazon starts with 1 product categorie, books.
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1999Amazon has 3 product categories, books, music and films.
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1999Amazon has 3 product categories, books, music and films.
large selection over 130k collection with 280 subgenres
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1999Amazon has 3 product categories, books, music and films.
large selection over 130k collection with 280 subgenres
convenience most efficient search engine (NYT)
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1999Amazon has 3 product categories, books, music and films.
large selection over 130k collection with 280 subgenres
convenience most efficient search engine (NYT)
low prices up to 30% discount on some albums
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1999Amazon has 3 product categories, books, music and films.
large selection over 130k collection with 280 subgenres
convenience most efficient search engine (NYT)
low prices up to 30% discount on some albums
120 days to become the largest
online seller
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each year Amazon introduces 2 new categories
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each year Amazon introduces 2 new categories
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each year Amazon introduces 2 new categories
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each year Amazon introduces 2 new categories
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each year Amazon introduces 2 new categories
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2016Today, Amazon has 30 listed product categories
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2016Primary product category Amazon seller study 2016
18%Hom
e & kit
chen
11%Toy
s & ga
mes9%
Books
8%
Health
8%
Beauty
7%
Electro
nics
7%
Clothing
6%
Sports &
outdo
or
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1998“Commerce is the simple find it, buy it, ship it action.E-commerce is much more about online customer behavior”
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“Be afraid of our customers, because those are the folks who have the money. Our competitors are never gonna send us money. ”
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“Be afraid of our customers, because those are the folks who have the money. Our competitors are never gonna send us money. ”
“If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”
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Customer centric innovations
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1995Customer centric innovations
Customer reviews
Selection proces
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1997Customer centric innovations
Recommendations & bundles
Selection proces
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2001Customer centric innovations
Look inside the book
Selection proces
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2003Customer centric innovations
Search inside the book
Selection proces
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1997Customer centric innovations
1-click ordering
Order proces
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2001Customer centric innovationsReceiving proces
Where’s my stuff?
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2002Customer centric innovationsReceiving proces
Free super saver shipping
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Logistics are Amazon’s secret weapon
chooses the cheapest origin in real-time.
Amazon warehouses
Amazon warehouses
Third party sellers
fast moving are stored in all FChard to find in small quantities in 1 or 2 FC
easy movable are stored in highly automated FC
Drop shipping. If applicableAmazon asks supplier to ship
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Logistics are Amazon’s secret weapon
chooses the cheapest origin in real-time.
Amazon warehouses
Amazon warehouses
Third party sellers
fast moving are stored in all FChard to find in small quantities in 1 or 2 FC
easy movable are stored in highly automated FC
Drop shipping. If applicableAmazon asks supplier to ship
Interconnected supply chain
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Logistics are Amazon’s secret weapon
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is a paid service ($99 per year, plus a free 30-day trial or $10.99 per month) that gives Amazon shoppers a few distinct advantages. Members of Amazon Prime are eligible for free one- or two-day shipping on most items, among several other perks.
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2015Amazon opens brick & mortar
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2015Amazon opens brick & mortar
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2015Amazon opens brick & mortar
Amazon’s goal is to learn about how it can use data from its online e-commerce
operation to boost sales at a retail store.
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Marketing Distribution Channels change over time chaped by the evolution of technology and distribution
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Silent Generation
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Silent GenerationBabyboomers
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Silent GenerationBabyboomers
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Silent GenerationBabyboomers
Gen X
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Silent GenerationBabyboomers
Gen X
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Silent GenerationBabyboomers
Gen XGen Y
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Silent GenerationBabyboomers
Gen XGen Y
Gen X
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Silent GenerationBabyboomers
Gen XGen Y
Gen X
1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
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E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.
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E-commerce by region
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World$1.222b+17%40%
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North America$419b+12%72%
Asia Pacific$388b+23%44%
Western Europe$291b+14%72%
World$1.222b+17%40%
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E-commerce by region
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E-commerce by region
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North America$419b+12%72%
Asia Pacific$388b+23%44%
Western Europe$291b+14%72%
Eastern Europe$48,5b+21%41%
Latin America $46b+22%33%
Middle East & Africa$27b+31%31%
World$1.222b+17%40%
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E-commerce - The big countries
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World$1.222b+17%40%
#1China$562b
Shopping is fastest growing online activity
Average internet user is over 25y
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World$1.222b+17%40%
#1China$562b
More purchases on desktop then mobile
72% of small & medium business aren’t selling online
#2 US$349b
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World$1.222b+17%40%
#1China$562b
Online sales represent 30% of the economy
33% of all online sales happen after 6PM
#2 US$349b
#3 UK$93b
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World$1.222b+17%40%
#1China$562b
Favorite online activity is reading e-mail
97% of internet users shop online
#2 US$349b
#3 UK$93b
#4Japan$79b
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World$1.222b+17%40%
#1China$562b
Amazon & Otto represent 50% of all online sales
Highest open rates occur in the morning
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
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World$1.222b+17%40%
#1China$562b
19% of online sales happen on non-french sites
Only 68% of the French use the internet
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
#6France$42b
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World$1.222b+17%40%
#1China$562b
Most online shoppers shop between 10pm and 12pm
Fastest internet speed in the world
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
#6France$42b
#7 SouthKorea
$36b
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World$1.222b+17%40%
#1China$562b
Nearly 70% of smart-phone users shop online
45% of online purchases happen on non Canadian sites
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
#6France$42b
#7 SouthKorea
$36b
#8Canada$29b
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World$1.222b+17%40%
#1China$562b
Most common form of payment is COD
13% of Russians shop online
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
#6France$42b
#7 SouthKorea
$36b
#8Canada$29b #9 Russia
$20b
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World$1.222b+17%40%
#1China$562b
Only 7% of purchases are made on a smart-phone
18% of all online sales are fashion (related)
#2 US$349b
#3 UK$93b
#4Japan$79b
#5 Germany$74b
#6France$42b
#7 SouthKorea
$36b
#8Canada$29b #9 Russia
$20b
#10Brazil$19b
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18% of all online sales are fashion (related)E-commerce - The big sites
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18% of all online sales are fashion (related)
1 601m
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18% of all online sales are fashion (related)
1 601m
2 524m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 104m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m 6 65m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m 6 65m
7 65m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m 6 65m
8 56m
7 65m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m 6 65m
9 44m
8 56m
7 65m
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18% of all online sales are fashion (related)
1 601m
2 524m
3 268m
4 106m
5 104m 6 65m
7 65m
9 44m
8 53m
10 30m
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€2386 average online spending
€11,6b online sales
8% growth Y/Y
80% bought abroad at least once
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E-commerce - TOP 10 of Austrian online shops
342,6m
107,5m72,5m
64,1m
41,5m
40,0m
37,7m35,8m
34,8m
32,6m
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70% of e-buyers reported to have no problem when purchasing online
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E-commerce - Why are people buying online?
38% 35% 33% 31% 30% 29% 17%
Low Prices
Shopping Convenience
Easy to Compare
Free Shipping
Time Saving
Easy to Buy
Range of Products
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E-commerce - What makes you more likely to buy online?
80%
66% 64%
48%42% 42% 41% 39% 37%
Free Shipping
1-day Shipping
Free Exchange
Easier Online
ReturnsPayment Security
Multiple Shipments
Same dayShipping
EasierIn-store Returns
VisualTry-on
Capabilities
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E-commerce - What are barriers to buy online?
60%
See, Touch & Feel
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E-commerce - What are barriers to buy online?
60%53%
33%
25% 22% 20% 13% 13% 12%
See, Touch & Feel
Get Product
Immediatly
Certain AboutThe Fit
More Comfortable
More Easy
ReturnsQuicker Delivery
Support Local Retail
Enjoy Shopping
Experience
Get Lowest Price
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E-commerce - What are barriers to buy online?
60%53%
33%
25% 22% 20% 13% 13% 12%
See, Touch & Feel
Get Product
Immediatly
Certain AboutThe Fit
More Comfortable
More Easy
ReturnsQuicker Delivery
Support Local Retail
Enjoy Shopping
Experience
Get Lowest Price
c
c
cc
c
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E-commerce - The end of brick & mortar?
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E-commerce - The end of brick & mortar? NO
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E-commerce - The end of brick & mortar? NO
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E-commerce - The end of brick & mortar? NO
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Silent GenerationBabyboomers
Gen XGen Y
Gen X
1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s
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Many touchpoints, same great experience
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E-commerce - A challenge for brick & mortar
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Browse online
Buy in-store
Webrooming
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Browse in-store
Buy online
showrooming
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Browse online
Buy in-store
Browse in-store
Buy online
Webrooming
Webrooming
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Browse online
Buy in-store
Browse in-store
Buy online
73%
Webrooming
showrooming
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Browse online
Buy in-store
Browse in-store
Buy online
73%
Webrooming
88%
showrooming
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73%showrooming
33% check for competitor pricing in store
31% check for product reviews in store
71% purchase form a different companywhen they return home
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73%showrooming
33% check for competitor pricing in store
31% check for product reviews in store
71% purchase form a different companywhen they return home
Webrooming
88%
47% wants to avoid shipping costs
46% wants to touch & feel the product
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Why are we showrooming? Lost of trust in the dealership or sales experience due to previous experiences
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Why are we showrooming? Lost of trust in the dealership or sales experience due to previous experiences
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Conversion rate is a ratio between number of website visitors who made a purchase and total number of website visitors. So if you had 100 in total and 2 of them made a purchase, the conversion rate is 2%.
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So what is an average conversion rate in 2016? It is around 1.3-1.4%.
Average Conversion Rate was 1.12% for multi-channel retailers and 2.00% for pure-play online retailers according
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Conversion rate differs per medium used! Desktop still has the highest conversion rate.
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Conversion rate differs per medium used! Desktop still has the highest conversion rate.
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How does load-time affect conversion rate
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Customer journey in e-commerce
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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Customer journey in e-commerce5 key stages of the buying process and main drivers
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User Experience FAILS which impact conversions
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User Experience FAILS which impact conversions
Absence of Product Page VideosThe average time spent by a user on a particular site is just 6 seconds. Your UX must therefore be designed to convince users they need to spend more time on the site. This is why using a video is absolutely crucial for your efforts
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User Experience FAILS which impact conversions
Insufficient Product Information42% shoppers’ abandon an online purchase because of limited product information
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User Experience FAILS which impact conversions
Product ImagesProduct pages offering tons of information about the product. A user can also click on the product image to view a larger version of the image; coupled with all other information on the page.
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User Experience FAILS which impact conversions
Product ImagesThe use of responsive web design is also becoming prevalent, which ensures a website renders effectively on all screen sizes.
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User Experience FAILS which impact conversions
Product ImagesThe use of responsive web design is also becoming prevalent, which ensures a website renders effectively on all screen sizes.
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User Experience FAILS which impact conversions
Poor customer service pagesThis is another huge mistake made by e-commerce merchants. The customer service area of their site is either non-existent; even if it is there; it gives out a feeling that the merchant couldn’t be bothered about customer service.
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User Experiences which have a positive impact conversions
Mobile responsivenessPeople want to shop while they are on the go, it’s been proven time and time again, if your website is not compatible for mobile, you will have a hard time pleasing your customers. This is an investment that you absolutely must make when starting an ecommerce website.
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User Experiences which have a positive impact conversions
SecurityAs people shop online, they will want to know that their personal information is secure. The data that is collected through your website should definitely not be disclosed to any unauthorized personnel, and you should take measures to demonstrate to visitors you’re your website is secure and legit.
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User Experiences which have a positive impact conversions
SimplicityNo one wants to read a manual to be able to use your website. The design should be simple and very straightforward. The login and sign up options should be very evident, and when someone presses buy they shouldn’t have to jump through hoops to get down the funnel.
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User Experiences which have a positive impact conversions
Product information and images The design of your website should accommodate lots of product pictures and descriptive information. No one wants to buy something that they cannot see or they have no information about. The goal is to make sure that the customers are better informed when they are doing their shopping.
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User Experiences which have a positive impact conversions
Search Make sure that your have a convenient search tool. The first time visitor is likely looking for one particular thing. They do not want to spend the whole day sifting through items that they do not need.
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User Experiences which have a positive impact conversions
Colours No one wants to have their senses assaulted by a cocktail of strange colors. One very common mistake many people make with ecommerce websites is setting white text on a black background. Make it easy to see text and images, and find colors that complement each other.
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User Experiences which have a positive impact conversions
Recommendations When you provide your customers with links to recommended products they might like, then you are going to make shopping easier on your site and promote additional sales. At least six links will make for an easier shopping experience that encourages extra additions to their cart.
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Let’s go to workSouth Africa
Malaysia
Australia
Argentina
South Korea
MexicoPeru
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Let’s go to work
Which online competitors are available to your consumersin your targeted country?
Pick 2 - one marketplace & one direct competitor Make an analysis of their e-commerce website.