ecommerce trends for 2015

1

Where is eCommerce going?

Trends, pitfalls, and where eCommerce will go in 2015

PRESENTED BY

Grant Morrow

eCommerce

2015

2 Meet me

Grant Morrow

eCommerce Program Manager Orgill, Inc.

About me: Grant MorrowManaged hundreds of web and eCommerce implementations, directed eCommerce business units and logistics operations. MBA from the University of Memphis.

Skill

eCommerce

SEO

Logistics

Business Analytics

experience

Directed eCommerce business units from ground up to profitability Consults with retailers of all sizes at all stages of eCommerce growth cycle

10 years working in eCommerce, web development and logistics Currently: eCommerce Program Manager for Orgill, Inc.

3 Agenda

01 TRENDS OVERVIEW 2015

General eCommerce Trends in 2015

02 MOBILE, MOBILE, MOBILE!

Mobile is affecting everything in eCommerce now

03 SHIPPING

Logistics and how it will change in 2015

DESIGN 04Responsive design is here, embrace immediately!

PRODUCT MIX, MARKETPLACES AND SEO05

What works for overall? What works for startups?

SUMMARY06eCommerce in 2015 and beyond

4 eCommerce Trends 2015

Shopping behavior?Where do users start?

Subscription & Curation ServicesContinual growth of “boutique in a box”Amazon Subscribe and Save

ResearchFrom using mobile to research prices to using Social Media, Users will be smarter shoppers than ever

GrowthYear over Year

Logistics ChoicesWhat do you users want?

MarketplacesAmazon, eBay, Sears, Newegg, Walmart.com

Pinterest: New Entrant

5 Total Internet Retail Sales in the U.S.

2012 2013

13%

Year over Year

10%

Of All Retail PurchasesAre now made online

$211BTotal Internet

Retail 2012 $184 Billion

2013 $211 Billion

1Q14 Mobile 11% of all eComm sales

Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014 http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf


6

Logistics Choices93% Take Action for Free ShippingThe leading action is adding more items to the cart

83% of Shoppers will wait2 more days to get free shipping

• 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 delivery

FREESHIPPING

Delivery Speed is the 4th most important factor




7 Marketplaces

18%

10%

Retailer

Pinterest

28%Amazon

Retailers Sites18% of online shoppers start off on a retailers web site to begin searching. Importance of brand Loyalty

Amazon Dominance & Business Model Changes28% of online products searches are on Amazon.com. Amazon has become by far the largest 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 the same of Pinterest. Pinterest will be rolling out eCommerce functionality this holiday season Pinterest being more product focused will move much faster into eCommerce




8 Curation & Subscription Services

CurationPersonalization Tactic

Boutique-In-A-Box:• Trunk Club (Sold to Nordstrom for $350M)• Birchbox• ShoeDazzle.com• Nature Box

SubscriptionOrder again and save money

• Amazon Subscribe & Save• Dollar Shave Club (Gillette already has responded)

22% of usersHave already signed up for this type of service

And 47% say they would consider enrolling




9 Shopping Behavior

44% Prefer to buy on a desktop or laptop computer

41% Still would prefer to purchase in brick and mortar store

11%Would prefer to buy on a tablet or

Smartphone

55%Regular Online shoppers would prefer to

buy online




10 Smarter Shoppers Research More

36%

22%27%

Price Comparison ShoppingPercentage of shoppers who check prices online while in the store

Research on ProductsPercentage of shoppers who will research a product on their Smartphone while in store

ReviewsPercentage of shoppers who will read online peer reviews of a product while in the store




11 MOBILE, MOBILE, MOBILE

OMNICHANNELMobile fuels the ability of a retailer to interface with their customer on a variety formats and situationsDeveloped societies now sit within arms reach

of the world’s information and almost any product with a few touches,

24 hours a day.MARKETING

SMS, Mobile Coupons, Mobile Apps

HUGE GROWTHMobile Commerce represents $25 Billion

12 Mobile Activities

22%

65%

40%

51%

Holiday Shopping

Marketing E-mails

Mobile Coupons

Tablet Purchases

Where are we seeing opportunity/growth? Everywhere.

1 in 4 Orders

Last Holiday Season were from mobile shoppers

Seek Out

Percentage of Mobile users who look for or redeem mobile coupons.

Have Used Mobile to Purchase

41% Have used their SmartphonePercentage of where Marketing e-mails were opened

Opened on Mobile




13 Mobile Opportunities

1 in 5 made a purchase

Mobile CouponsMobile Coupons are 10X more likely to be redeemed than regular coupons

After opening a retailer’s email on their mobile device

6 out of 10 kept ShoppingWhile using a retailer’s mobile shopping app

Mobile Shopping AppLowers propensity of users to leave to “shop around”. 59% of users say they will generally stay within the app




14 Where are retailers with mobile?

73%38%

If Not Optimized38% Say they will not return to a retailer’s website if it is not mobile optimized

43% 51%

Image Pictures43% of shoppers prefer to shop on a desktop or laptop because the pictures are still too small

Mobile OptimizedRetailers surveyed who say they already had or were going to implement in 2014

Retailers with a mobile app51% of retailers surveyed already had a mobile or were working on implementing one in 2014




15 SHIPPING

UPS/FEDEX RATE CHANGESUPS and FedEx have moved to recoup money from shipping large packages

US POSTAL SERVICEThe Postal Service finally moves to packages

FREE SHIPPINGBuyers are less willing to pay shipping

16 UPS/FedEx Dimensional Rate Change

2014 2015

17%Average increase

DIMENSIONAL WEIGHTINGUPS and FedEx as of 2015 will now rate packages based on dimensional weight calculations

LxWxH166

Source: 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.

http://online.wsj.com/articles/ups-plans-4-9-average-price-increase-1413840309

http://online.wsj.com/articles/ups-plans-4-9-average-price-increase-1413840309

17 Industry Overall – US Postal Service

3rd52%

30%

15%3%

UPSFedExPostal SvcRegionals

Market Share of all parcel shipping

Postal Service has dropped it’s prices on Priority Mail for business customers by 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,

http://online.wsj.com/articles/u-s-mail-cutting-rates-to-win-e-commerce-business-1409850185

18 Free Shipping Is King

58%Will wait extra days for free shipping

Abandon the cart after seeing shipping charges 50%

2 Days 3 Days 4 Days 5 Days 6 Days 7 Days 8+ Days0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

Number of Days Consumer is willing to waitSource: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014 http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf



19 DESIGN

RESPONSIVE DESIGNMust be embraced

AVOIDING NAVIGATION BARSNavigation is getting stale

IMAGESBigger is better

20 Responsive Design

01

All elements must resize

04

All experiences are equal Assume the User Experience

could happen anywhere

02 “Mobile site” should not be used

03

Static ideas dead, urge to control must be eased

Mobile Site

Design

UserExperience

Elements

Examples of what designers are trying to avoid a navigation bar.

BIG GRID

Image: http://www.lowes.com Accessed 10/31/14

Examples of what designers are trying to avoid a navigation bar.

HUGE IMAGE

Image: http://www.tommybahama.com Accessed 10/31/14

http://www.tommybahama.com/

23 SEO, PRODUCT MIX, MARKETPLACES

SEARCH ENGINE OPTIMIZATIONCan control the fate of the entire enterprise

PRODUCT MIXShotgun approach doesn’t work at first

MARKETPLACESWhy beat them if you can join them?

24 SEO and Product Mix

SEO Standard Internet Marketing

VS

Best ROI Extremely necessary early on when launching a new venture, new service, new product offering

SEO is by far the most effective over the long runYour product mix and offering, combined with how unique your products are will help drive the ease of your SEO

25 Combine

01 SEARCH ENGINE OPTIMIZATION

Google shopping feeds, Google stars, reviews services

02 GOOD PRODUCT MIX

Analytics and Market Research

03 SUCCESS

Continue to leverage your good relevancy

Sales Success

26 Marketplaces

02 Business ModelListing instead of any site

03eBay, Sears.com, Walmart.com, Newegg.com More channels than ever

CommissionsRazor thin margins

Pinterest

01

AmazonLarger than all other marketplaces

combined

Marketplaces have to be leveraged

27

5Ramp

4Launch

3Test

2015: What should eCommerce startups do?

2Business

Case1Explore

Find niches underservedExplore what offerings are missing from certain demographics or traditional retailers

Test MarketingSell some of the products on a trial or small scale to see how the market responds. Use Marketplaces

Ramp MarketingCapacity planning is important, but ramping the marketing is most important. Suppliers and Partners can provide a safety valve

The Business CaseDo you have the logistics or programming capability to deliver your goods/service?

Launch sellingLaunch your product listings, site or service

28 SUMMARY

Free shipping is kingAdd Shipping into price of products

Constant changeKeep abreast of what competitors do and what changes happen in the market

Mobile is necessaryMobile technologies will continue to evolve and be used by consumers more and more, retailers must adapt

29 Contact Info

eCommerceSocial Media

SEO

Grant MorrowGrant Morrow

eCommerce Program ManagerOrgill, Inc.

Consultant, Burning RootPhone: 618-534-9303Email: [email protected]: Granto101

mailto:[email protected]

THANK YOUQuestions?