e-commerce site deconstruction: strategies for affiliates
DESCRIPTION
As an e-commerce web developer and affiliate marketer for 11 years, Michael Vorel will deconstruct leading e-commerce web sites to uncover strategies and trends that can be utilized by affiliates.TRANSCRIPT
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Affiliate Summit West 2010
E-Commerce Site Deconstruction: Strategies for Affiliates
Michael VorelCEO, Vastplanet Corporation
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Who is Michael Vorel?
CEO / Founder - Vastplanet Corporation, 1998o Ecommerce Developmento Internet Marketing (SEO, PPC, Social Media)o Affiliate Managemento Consulting
Affiliate Marketer since 1999 10 Years experience in computer industryo International product marketing, sales, marketing,
purchasing & management
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Agenda for Today’s Presentation
E-Commerce Todayo Why Learn? o Merchant vs. Affiliate Needso Market Conditions & Trendso E-Commerce Leaderso Conversion Techniques
Affiliate Strategieso Affiliate Exampleso Basic & Advanced
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Why Learn about E-Commerce?
E-Commerce Sites: Create Consumer / Business Demand Invest in Conversion & Acquisition Strategies Understand Shoppers Needs Promote Best Selling Items Follow Trends & Economic Conditions Reward You on Conversion!
Understand Merchant = Affiliate Advantage
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What do Merchants Want?
Customer Acquisition Conversions Pay for Performance Model Reduction of Costs Margin Preservation Behavioral Analysis Ability to Market Directly
Image credit – macys.com
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What do Affiliates Want?
Affiliate Income High Conversions Low Risk Visitor Information Ability to Remarket
Image credit - getentrepreneurial.com
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The E-Commerce Flow
BUSINESS
EcommerceMerchant
Affiliate Affiliate
SearchEngines
Social Media
MobileOther
DIRECT DIRECT
DIRECT DIRECT
CONSUMER
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Market Conditions 2009
Top 500 Merchants Revenue $115.8B (+11.7%) Top 100 Merchants Revenue $98.6B (55% of total) Amazon.com Revenue $19.17B (+29.5%) Economic Forces Luxury is Out & Necessity is In Winners are investing in Technology Social Media & Mobile is changing landscape
Source: Internet Retailer 2009 Edition
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Source: Internet Retailer 2009 Edition
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What’s Selling?
Categories Rising Apparel / Accessories Food / Drug Health / Beauty Mass Merchant
Categories In Decline Teen Clothing & Accessories Hardware / Home Improvement Housewares / Home Furnishings Flowers / Gifts Toys / Hobbies (rising)
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What Categories Lead?
Source: Internet Retailer 2009 Edition
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Retailer Mix in Top 500
Source: Internet Retailer 2009 Edition
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Source: Internet Retailer 2009 Edition
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Holiday Shopping 2009
Heavy Pre-Holiday Offers, Free Shipping Traffic to Coupon Sites (+76% Nov)
Coupons.com, EverSave.com, RetailMeNot.com 4 out of 5 online in U.S. visited a retail site (Nov) $913 million on Tues - Dec 15 (Record) 9 days this year, consumers spent $800+ Million in day 48 Days of Online Shopping = $24.8 Billion (+4%) Largest sales days - midweek (Mon, Tues, Wed, Thu)
Data Source – ComScore
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Holiday Shopping 2009
Toys, Consumer Electronics, Department Stores, each growing more than 30% vs. October 09
Toys Category (+33%) ToysRUs, LEGO, Disney, American Girl
Consumer Electronics (+32%) BestBuy, Walmart, RadioShack, eBay, Buy.com
Online Department Stores (+33%) Walmart, Target, Sears, JCPenny, Macy’s
Data Source – ComScore
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Top E-Commerce Trends
Personalization Mobile E-Commerce Segmentation Behavioral Profiles Sharing - Social Media (Facebook,
Twitter, Email) Building Loyalty Search Product Reviews Video
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Personalization (You, Your)
Welcome, Michael Vorel We have Recommendations for You (behavioral learning) Your Browsing History (cookies & account registration) Rate These Items (social media, reason to return) Remember You Saved these? (wishlist) Your Communities (social media) Want to See Today’s Deals? (Conversion) Individual Treatment Creates Loyalty
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Mobile Trends
Personalization Sync with Account Payment Integrated Product Reviews Select Products Conversion
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Best Buy Mobile – Now think Affiliate…
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Segmentation & Behavioral Profiles
Market Individually Create Email Alerts Convert Later Compile Profile Record Everything Convert Now
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Follow-Up Emails
Should be Personalized Reminds me of purchase Related Products Up-Sell Conversion Alternatives
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Sharing is In
Email Sharing Facebook, Twitter, Other Creates Community Creates Opportunity Creates Conversions
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Social Media (Facebook 5.5% share)
Affiliate Income
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Video
Video Demos Video Guides Live Video
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Amazon.com – Conversion Experts
2008 Sales of $19.1B (+29.5%) 275M visitors/mo (56.5m unique) Converts 3.45% Avg. Sale $170
Traffic Comes from: Search Engines (32%) New Shoppers (30%) Return Shoppers (70%)
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Amazon.com – Formula
Low prices + Great Selection Free Shipping Offers Amazon Prime (loyalty) Personalization to the highest degree Combination of account history and
behavioral learning to convert Combines multiple merchants
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Amazon.com – Related Conversions
More Items to Consider Related to Items You Viewed Inspired by Browsing History Additional Items to Explore Inspired by Your Shopping Trends Customers with Similar Searches Your Recent History Your Recent Searches
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Walmart.com
Connect With Others Like You Save Money, Rollbacks Value of the Day Ship to Store
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Apple.com
Visual Sell Cross Sell, Up-Sell Stay & Learn Free Shipping
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Charlotte Russe
Social Shopping Visual Shopping Community Contests
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Affiliate’s Who Understand
• RetailMeNot.com• Offers.com• CouponCabin.com• eBates.com• CashBaq.com
Image - http://blog.nbc.com/ross_blog
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RetailMeNot.com
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RetailMeNot.com Popular Stores (shows Alternatives) Today’s Top Coupons (related items) Share the Love (Social Media) Win the Gift Card (Email capture) International Aspect
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RetailMeNot.com Excellent Search Quick Poll (Social Aspect) Newsletter & Email Alerts Power Tools to Share
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CouponCabin.com
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CouponCabin.com
Our Favorite Coupons (shows Alternatives)
Social Media Icons (sharing connection)
Most Popular Coupons (community popularity)
Coupons by Email Live Help (Helping before
ecommerce transaction)
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Offers.com
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Offers.com
Integrates Articles (adds value to sales process)
Integrates DataFeed to show Savings (prepares consumer in advance)
Countdown (creates Amazon like experience)
Weekly Newsletter
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Offers.com
Navigation (with options) Social Media Icons (sharing
connection) My Offers (Personalization)
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eBates.com
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eBates.com - different approach
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eBates.com
Immediate Signup Rewards Shopper $5 Deals of Week Featured Stores Featured Coupons
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eBates.com – Signup Email
Email Confirmation Conversion Reminder
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CashBaq.com
Visual Concept Shop & Share Latest Conversations Rate, Review, Join Login Facebook Connect
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CashBaq.com
Search by Stores, Coupons, Discussions, Deals
Cash Back to Consumer
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Affiliate Strategies to Implement
Basic Segmentation Organize Popular Sections Shadow the Merchant Integrate Social Media Add Shopping Guides Best Sellers Surveys Live Help
Advanced
• Personalization• Account Registration • Enhanced Search• Mobile Applications• Cross Sell & Related• Email Alerts• Loyalty• International