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Don´t listen to yourself: successfully redesigning the leading e-commerce platform in Latin America Daniel Rabinovich CTO www.mercadolibre.com @drabinovich Add to Schedule

Successfully Redesigning MercadoLibre.com

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Page 1: Successfully Redesigning MercadoLibre.com

Don´t listen to yourself: successfully redesigningthe leading e-commerce platform in Latin America

Daniel RabinovichCTOwww.mercadolibre.com@drabinovich

Add to Schedule

Page 2: Successfully Redesigning MercadoLibre.com

Agenda

Who we are (2’) Why we were sidetracked The Redesign

Page 3: Successfully Redesigning MercadoLibre.com

Who we are

MercadoLibre (NASDAQ: MELI) is the largest e-commerce platform in Latin America and the 11th Retail Site in the world.

Hard data (2010):

1.7bn pages viewed per month

~50mm search page views /weekday

3.4BN in GMVe

697MM Total Payment Value

84MM New Paid Listings

39MM Successful Items

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We lead in every market we operate in

Total unique

visitors (000s) Reach (%) Total Internet audience 32,385 100.0

1 MercadoLibre 10,646 32.9 2 Lojas Americanas 8,815 27.2 3 BuscaPé.com Inc. 8,542 26.4 4 UOL Shopping 2,774 8.6 5 Magazineluiza.com.br 2,133 6.6 6 Netshoes.com,br 2,070 6.4 7 Casasbahia.com.br 2,042 6.3 8 Amazon Sites 1,821 5.6 9 Pontofrio.com.br 1,808 5.6

10 Extra.com.br 1,703 5.3

ComScore MMX – Brazil Retail

Total unique

visitors (000s) Reach (%) Total Internet audience 12,075 100.0

1 MercadoLibre 4,311 35.7 2 Masoportunidades.com.ar 1,154 9.6 3 Amazon Sites 775 6.4 4 BuscaPé.com Inc. 612 5.1 5 Apple.com Inc. 523 4.3 6 Garbarino.com 517 4.3 7 Bing Ciao 435 3.6 8 Ticketek Pty Ltd 402 3.3 9 AmericanGreetings 386 3.2

10 Fravega.com 337 2.8

ComScore MMX – Argentina Retail

Total unique

visitors (000s) Reach (%) Total Internet audience 93,402 100.0

1 MercadoLibre 27,459 29.4 2 BuscaPé.com Inc. 12,245 13.1 3 Lojas Americanas 8,916 9.5 4 Amazon Sites 7,542 8.1 5 Apple.com Sites 5,781 6.2 6 Dell 2,903 3.1 7 AmericanGreetings 2,900 3.1 8 UOL Shopping 2,812 3.0 9 Hewlett Packard 2,694 2.9

10 Bing Ciao 2,299 2.5

ComScore MMX – Latin America Retail

Total unique

visitors (000s) Reach (%) Total Internet audience 14,275 100.0

1 MercadoLibre 4,663 32.7 2 Apple.com Inc. 1,396 9.8 3 Amazon Sites 1,125 7.9 4 Paguito.com 1,036 7.3 5 BuscaPé.com Inc. 999 7.0 6 AmericanGreetings 817 5.7 7 Ticketmaster 706 4.9 8 Hewlett Packard 620 4.3 8 Bing Ciao 602 4.2

10 Dell 471 3.3

ComScore MMX – Mexico Retail

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Agenda

Who we are (2’) Why we were sidetracked The Redesign

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First Rule of Usability: Don’t Listen to Users

The greatest usability barrier was the preponderance of cool design. Most projects were ruled by usability opponents who preferred complexity over simplicity.

Too frequently, I hear about companies basing their designs on user input obtained through misguided methods. A typical example? Create a few alternative designs, show them to a group of users, and ask which one they prefer. Wrong.

To discover which designs work best, watch users as they attempt to perform tasks with the user interface. This method is so simple that many people overlook it.

Jakob Nielsen

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How to get it right: watch instead of listen

Watch what people actually do.

Do not believe what people say they do.

Definitely don't believe what people predict they may do in the future.

Jakob Nielsen

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How we got it wrong: listened to our own needs

We claimed to focus on users…

…but developed the ability to explain away many design mistakes in the name of revenues or features

We were really designing around two wrong principles:

Revenue generation trumped usability

Engineering challenges/feature richness trumped usability

Page 9: Successfully Redesigning MercadoLibre.com

By focusing on wrong principles we developed a series of “design anti-patterns”

Anti pattern #1: Charge for a good experience.

Anti pattern #2: If it brings eyeballs to site, it is good.

Anti pattern #3: If it brings revenue, then it is worth doing.

Anti pattern #4: All BU’s need exposure on the HomePage

Anti pattern #5: Complexity is a sign of feature richness

Page 10: Successfully Redesigning MercadoLibre.com

Agenda

Who we are (2’) Why we were sidetracked

- In-depth look at each anti-pattern The Redesign

Page 11: Successfully Redesigning MercadoLibre.com

AP #1: Charge for a good experience

Revenue opportunity: charge for “picture in listing pages”

It was the most profitable “Optional Feature Fee”

Outcome: No pictures in search results for millions of queries…

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AP #1: Charge for a good experience (II)

Revenue Opportunity: charge for “highlight your item”

It was the second most profitable “Optional Feature Fee”

Outcome: “Happy” sellers, overwhelmed buyers…

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AP #2: If it brings eyeballs to site, it is good

Traffic opportunity: Add “harmless” content for Search Engines

Traffic opportunity: Users don’t even see footers. Let´s use them for something “productive”…

Outcome: loads of useless content that confuses buyers

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AP #3: If it brings revenue, then it is worth doing

Advertisers want to be above the fold

Should lower featured items

Outcome: “hidden” loss of revenues from poorer conversion rates as a consequence of the ads

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AP #4: All BU’s need exposure on the HomePage

Site is treated as real estate that has to be distributed among BU’s. Outcome: site overload

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AP #5: Complexity is a sign of feature richness

Users demand hundreds of features

Should try to please everyone

Outcome: overwhelmed users

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Solving these anti-patterns

required much more than “Web Design”…

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Agenda

Who we are (2’) Why we were sidetracked

- In-depth look at each anti-pattern The Redesign

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Get out of the Monkey Trap

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Re-think the pricing modelIt was neccessary to fix revenue induced anti patterns

Business Units

Pricing Model

Revenue streams

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From “Featured Fees” to “Exposure Fees” There is no maneuvering room when there are “visual highlight” fees

Old Optional Feature Fees New “Listing Types” allow cleaner results

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Never charge for delivering a good experience Eliminated “Picture in Listing Pages” Optional Feature Fee

Old version: paid pictures in listing pages

Same Search Query with New Version(all pictures for free)

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The real cost of advertising and communicating Minimizing the “vicious cycle” of visual competition

Old Home Page New Home Page

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Simplify, simplifyThoreau

Slide inspired from a Chris Nodder Presentation

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Keep what the users acually use, not what managers *think* is usefulSimplicity first

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Useless content on footers is typically added aiming to Search Engines trafficNothing is “harmless”

Previous Scroll Bottom (1024x768)

Current Scroll Bottom (1024x768)

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Focus on HTTP requests and implementing CDNs.Velocity First

Oct 2009

Apr 2010

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Favor the majority and make choices for themUse the crowd to help new users

Automatic “zoom in”:Demand data was concentrated in “Players” and not “Accessories”

Top Nav Bar for “Players”:Specific facets

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Lowered bounce rates, decreased time on page and accelerated Successful ItemsDirect Operational Metrics

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Agenda

Who we are (2’) Why we were sidetracked

- In-depth look at each anti-pattern The Redesign Wrapping up

Page 31: Successfully Redesigning MercadoLibre.com

Wrapping up…

User Experience goes far beyond “Web Design”.

Requires “true commitment”, usually from the CEO.

“Unstable Organizational Equilibrium”. Must apply force to achieve collaboration.

A/B testing is useless when evaluating dramatic changes.

Usability Testing is key.

Beware of HIPPOs (Highest Paid People´s Opinion).

Going after UX, everything could be changed. Even your business model.

Page 32: Successfully Redesigning MercadoLibre.com

Don´t listen to yourself: successfully redesigningthe leading e-commerce platform in Latin America

Daniel RabinovichCTOwww.mercadolibre.com@drabinovich