e-commercebottlenecks and opportunities

I work at WijsA digital Agency in Ghent

>>> 3 shifts in e-commerce >>>

from Brands to Products1

BR

AN

D PRO

DU

CT

50% 40%

There is no longer ‘1-DOOR’

Growing share of visitors lands on a specific product page

Front-page entrances

Bron: Google Analytics Wijs » random retail clients - exclusive direct traffic

Multi-channel consumerpath

YouTube

Social media

Blogs &niche sites

Online shops

Baekdal, new media expert

People only care about one of your products at a time, so focus your attention on each one, and stop spending all your time creating brand influence for a mass market.

eCommerceelectronic => everywhere

2

Everybody is excited about the growth of online shopping.

2-3%the share of internet-sales on the total Belgium Retail turnover.

Bron: TNS, IAB and Google » Consumer Barometer » People who purchased the product/service and are part of the online population

International sales

26%

2010 2012

Online sales grows slightly+8

%

24%

59%

International research pre-sale

36%

2010 2012

Online researc

h +64%

Bron: TNS, IAB and Google » Consumer Barometer » People who purchased the product/service and are part of the online population

Focus on research

Inspire

Advice

If online influences offline, does this goes the other way as well?

Coolblue

Over 200 webshops

Opens offline shops as ‘service points’

and extension of the webshop

Online sales increases in the

neighborhood of offline shops

YouTube

Social media

Blogs &niche sites

Online shops

No longer a difference between online & offline

The trend of mobile3

But what is mobile?

It’s a verb

It’s an action

Mobile is not a device

mobile is freedom

TIME

PLACE

CHOICE

mobile is freedom

Freedom to not have to plan

When will I do it?

Where will I do it?

How will I do it?

The ability to act on impulse

NOW

HERE

THIS WAY

Growing trend of buying cross-border

Evolution of cross-border shopping

0%

5%

10%

15%

20%

2006 2007 2008 2009 2010 2011

12%9%9%9%9%

7%

EU consumers purchasing online cross-border within the EUBought cross-border in a Belgian shop

18%

‣ For 50% of the product searches, prices are 10% cheaper when buying cross-border than buying from a belgian web shop.

‣ 65% of the products we search are only available in foreign shops.

Why cross-border shopping?

So who is your real client?

CUSTOMERSHOP

DISTRIBUTIONPARTNER

Challenges?bottlenecks and opportunities

Delivery points

Delivery is among the top 3 reasons to buy online

Because I can fi nd products and services at lower prices

Because it saves time

Because it gets delivered to my door

Because I get access to special discounts, promotions...

Because I’m able to shop 24 hours a day

Because I have a wider selection of products/services online

Because I can compare and review different products/services

Because I avoid crowds

Because there is more product information online

Because I get access to products/services that aren’t available in my country

Because I can see whether items are in stock

Other reason

0% 25% 50%

4%

12%

14%

15%

16%

23%

24%

33%

34%

35%

42%

43%

Source: Comeos Belgium 2013

Home delivery is by far the preferred option

Source: Comeos Belgium 2013

Home delivery

Pick-up at pick-up point

Pick-up at the shop

Delivery at work

Pick-up in a locker (sealed container to be opened with a code

Does not matter

Other

0% 35% 70%

1%

2%

0%

4%

7%

15%

70%

But what is home delivery?

CU

STO

MER

SER

VIC

E M

AG

IC

I just ordered something, but I might not be home tomorrow. Can I change it to a delivery point? How do I do that?

1

2 The options, advice about the best solution. Where would you like to get your delivery?

3 We changed it for you. You’ll get confirmation mail.Don’t forget to bring your passport ;)

My home is where... where my car is

My home is where... I am at that moment

Are you ready for this?

On and offline

A pizza (low margin) can be delivered within 30 min., and it stays hot!

Shop local stores online and get items delivered the same day

Google is entering the market

for everyday items

Product > brand > shop

‣ Same prices and promotions as in-store (on- & offline)

‣ Shopping made simple - wherever you are (impulse)

‣ Getting it delivered on your schedule (freedom)

‣ Combining delivery (price) from different stores

Google shopping express

Are you ready to face your new competitors?

Shipping costs

One of the (main)reasons we buy online, is because of price

I find cheaper products online

I save time by buying online

I can order at any time of the day/week

It’s easier to compare prices online

I can only find certain products online

There’s more choice online

Products are delivered to a convenient place

I can find product reviews by other consumers

I can find more information online

I don’t like going to shops

I find better quality products online

I can return products easily

14%

16%

22%

31%

27%

16%

22%

39%

42%

37%

2%

6%

8%

9%

10%

11%

19%

22%

33%

33%

50%

66%

Europe (2011) Belgium (2012)

and in general, it’s true that its cheaper online

Mobile phones

Laptops

Digital cameras

In-car navigation

LCD TVs

Portable MP3 players

Premium women’s fragrances

Video games hardware

Traditional toys

Men’s outerwear

Women’s outerwear

Power tools and accessories

Instant standard coffee

Standard milk formula 8,70%4,00%

-6,40%-1,80%1,50%

-13,90%-7,60%

-16,50%-4,10%

-11,10%-8,10%

-1,60%-4,50%

-0,90%

Average price difference online vs offline (excluding delivery costs)

Mobile phones

Laptops

Digital cameras

In-car navigation

LCD TVs

Portable MP3 players

Premium women’s fragrances

Video games hardware

Traditional toys

Men’s outerwear

Women’s outerwear

Power tools and accessories

Instant standard coffee

Standard milk formula 40,80%46,90%0,50%5,30%7,80%

8,50%-6,30%

-9,30%1,70%

-8,90%-5,20%

2,60%-3,10%

0,70%

Average price difference online vs offline (including delivery costs)

but not so true, once shipping costs are added to the equation

$5

$8

$0

$2

$5

$5

‣ 7 places to check up on my delivery

‣ 7 mails to remind me

‣ 7 different payment methods

‣ 7 different prices

‣ 7 different delivery days

‣ 7 risks of losing something

‣ 7 times frustrations and risks

Clusterf*ck

DISTRIBUTIONPARTNER

$5

$8

$0

$2

$5

$5

Are you ready to make the shift?

Payment models

if your shopping-cart > 20 euros

price

Delivery

€ 13

€ 2

Price increase 15%

Source: bol.com

Limits the freedom to shop NOW

I will wait till there is something else I need

Spotify

Spotify

Source: CarDrops

Monthly fee payed by the consumer

If price is the bottleneck for shops AND customers today, do you think you could address this?

So who is your real client?

CUSTOMERSHOP

DISTRIBUTIONPARTNER

How will you leverage freedom without adding complexity?

How will you leverage freedom without breaking the connection with the shop?

QUESTIONS?

GRATIS

http://wijs.be/nl/downloads/de-shift-in-retail

@lisamille_be