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Where is eCommerce going?

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Where is eCommerce going? 1


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Meet me 2


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Agenda 3


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eCommerce Trends 2015 4


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Total Internet Retail Sales in the U.S. 5 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


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Logistics Choices 6 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


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Marketplaces 7 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


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Curation & Subscription Services 8 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


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Shopping Behavior 9 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


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Smarter Shoppers Research More 10 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


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MOBILE, MOBILE, MOBILE 11 Developed societies now sit within arms reach of the world’s information and almost any product with a few touches, 24 hours a day.


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Mobile Activities 12 Holiday Shopping Marketing E-mails Mobile Coupons Tablet Purchases Where are we seeing opportunity/growth? Everywhere. 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


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Mobile Opportunities 13 LOREM UPSUM DOLOR AMET After opening a retailer’s email on their mobile device 6 out of 10 kept Shopping While using a retailer’s mobile shopping app 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


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Where are retailers with mobile? 14 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


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SHIPPING 15


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UPS/FedEx Dimensional Rate Change 16 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-1413840309 Oct 20, 2014.


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Industry Overall – US Postal Service 17 3rd 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,


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Free Shipping Is King 18 Will wait extra days for free shipping Abandon the cart after seeing shipping charges Number of Days Consumer is willing to wait 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


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DESIGN 19


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Responsive Design 20 Mobile Site Design User Experience Elements


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Examples of what designers are trying to avoid a navigation bar. BIG GRID Image: http://www.lowes.com Accessed 10/31/14


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Examples of what designers are trying to avoid a navigation bar. HUGE IMAGE Image: http://www.tommybahama.com Accessed 10/31/14


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SEO, PRODUCT MIX, MARKETPLACES 23


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SEO and Product Mix 24 SEO 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 run Your product mix and offering, combined with how unique your products are will help drive the ease of your SEO


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Combine 25


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Marketplaces 26 02 Business Model Listing instead of any site 03 eBay, Sears.com, Walmart.com, Newegg.com More channels than ever Commissions Razor thin margins Pinterest 01 Amazon Larger than all other marketplaces combined Marketplaces have to be leveraged


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2015: What should eCommerce startups do? 27 Find niches underserved Explore what offerings are missing from certain demographics or traditional retailers Test Marketing Sell some of the products on a trial or small scale to see how the market responds. Use Marketplaces Ramp Marketing Capacity planning is important, but ramping the marketing is most important. Suppliers and Partners can provide a safety valve The Business Case Do you have the logistics or programming capability to deliver your goods/service? Launch selling Launch your product listings, site or service


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SUMMARY 28


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Contact Info 29 Grant Morrow eCommerce Program Manager Orgill, Inc. Consultant, Burning Root Phone: 618-534-9303 Email: grant@burningroot.com Twitter: Granto101


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THANK YOU Questions?


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