Follow the Customers: Selling on Amazon & eBay & webstores
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Transcript of Follow the Customers: Selling on Amazon & eBay & webstores
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Follow the Customers: Selling on Amazon, eBay and Webstore
Michael Levit - Vendio EVP MarketingAugust 9, 2010
@Vendio@Levitmc #eCommerce
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Agenda-ish
Why am I Talking to You
eCommerce Industry Overview
The Goliath’s – eBay and Amazon
Other Marketplaces
Emerging Channels
Storefronts
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Vendio Introduction
Leading On-demand eCommerce platform for small and medium sized merchants (SMM)– 70,000 merchants selling over $1.5 Billion of goods annuallyIncorporated in 1999, headquartered in Silicon Valley– Offices in Romania and India– ~70 employees worldwideMulti-channel eCommerce Platform offering – Customizable fully-hosted online store– Inventory, channel & business management solutions– Reporting & analyticsDealio.com – Vendio’s comparison/social shopping siteAcquired by Alibaba.com last month – Now enabling B2B2C
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Sales Volume of Select Customers
$865,000
$447,000
$430,000
$1,000,000
$770,000
$2,000,000
$1,900,000$1,000,000$4,665,000
The Digital Oasis
$1,225,000
$1,140,000
$1,150,000
$3,283,000$673,000
$2,175,000
$1,611,000
$1,952,000
$935,000$1,023,000
$1,075,000
$802,000
$953,000
$945,000
$1,432,000
In aggregate, Vendio merchants generate >$1.7 Billion in annual sales
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Growth Continues in eCommmerce…
U.S. eCommerce - $128 billion projected to grow at a 8% CAGR from 2010 to 2013
– Online retail growth will continue to outpace brick & mortar sales
– Total U.S. retail is a ~$4 trillion market, of which eCommerce only represents ~3-4%
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$132 $128 $135$150
$166$183
$0
$50
$100
$150
$200
2008A 2009E 2010E 2011E 2012E 2013E
(in Billions)
U.S. Retail eCommerce Sales
9% CAGR
Majority of SMMs have yet to deploy eCommerce or payment processing
– 70% have an online presence– Fewer than 25% have deployed eCommerce
functionality
Small (ish) merchant growth outpacing overall market
$1.0
$1.2
$0.9
$1.0
$1.1
$1.2
$1.3
2007 2008
(in Billions)
13.2% Growth
Source: Internet Retailer.
Revenue of IR 500’s 100 Smallest Merchants
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Online Shoppers Use Multiple Sources for Purchases
89%
86%
78%
77%
66%
65%
61%
61%
59%
49%
Marketplaces/ Store/ retailer Websites
Search Engines
Manufacturer Websites
User ratings and reviews of products
Recommendations (People who bought)
Recommendations (recently viewed)
Recommendation emails
Recommendations (People who viewed)
Recommendations (Best sellers)
Question and answer sites
0% 20% 40% 60% 80% 100%
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“The reality is that any merchant selling online will list their items for sale in multiple locations—on Amazon, eBay, their own Websites, etc.”
- November, 2008
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SMMs Relied on eBay 5 Years Ago
Online Store
Merchant
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Creating Challenges
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Channel Management
and Opportunities
OnlineStore
CSE’s/ Search
Merchant
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Ensure you have Channel Management
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LowerPrices
Winner Take All?
Buyers
Orders
Merchants
Items
LowerCosts(Scale)
Assortment Attracts Buyers• Selection/ Brand• Natural Search (UGC)• Affiliate
Buyers Generate TransactionsTransactions Attract
More Merchants
Merchants Globally List Items Across Stores &
Marketplaces
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eBay vs. Amazon GMV
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3rd Party GMV - eBay vs. Amazon
2005 2006 2007 2008 2009 2010 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
AmazoneBay
GM
V in
Tho
usan
ds
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eBay and Amazon are Huge
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Amazon is Executing Very Well
Expanding into new markets– Amazon Payments– Mechanical Turk– eBooks and Kindle – growing– Cloud computing– Fulfillment by Amazon (FBA)
Growing FBA but still competing with their sellers
Aggressively growing 3rd party merchant base – 30% items sold by 3rd party merchants– 2MM merchants
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The Only Constant is Change
Lowering insertion fees as they are traded for final value fees
Many promotions can bring down costs for merchants (i.e, free listings)
Complex pricing… changes favor ‘store’ subscriptions with no store benefits
Facing extreme item dilution with millions of new items flowing into the ‘core’
Focused on streamlining the buyer experience and increasing cataloging
Merchants can still sell successfully but need a strategy…
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Other Marketplaces to Consider
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Analyzing the Other Marketplaces
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Analyzing the Other Marketplaces
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eBay and Amazon are Huge
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Should You Care About Mobile?
eBay is projecting $1.5 billion in mobile GMV in 2010
Amazon completed $1 billion in sales in the past year
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Other Commerce Opportunities?
Private Online SalesOnline/ Offline Commerce
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Riding the Facebook Rocketship
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The Third Leg of the Stool – Your Own Storefront
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Ewwwww, ahhhhhh, How Pretty…
Beauty Is more than skin deep
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Vendio Platform—Channel Mgmt
Simultaneous item publishing– Single inventory item created and marketed across all channels– Channel specific requirements simplified with “profiles”– Inventory quantities kept in sync across channels as items sell
• User defines “stock out” risk to determine reserved quantities• Includes refund management and inventory audit tracing
Unified order and customer management– Each channel has a unique and complex management system– Merchants see a comprehensive view of all customer activity– Customization lets each user tailor the experience to their needs– Extensible through web services integration
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Other Store Considerations
Storage and BandwidthSKU’sSearch Engine Optimization (SEO)Security/ PCI ComplianceItem & Order ManagementThird Party IntegrationCSE FeedsCustomer SupportDesigns/ TemplatesPrice
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Different Types of Store Providers
DomaineersMulti-Channel
ProvidersStore Centric
Providers
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Setup fee Monthly Fee
Transaction Fee Checkout Storage Bandwidth SKUs
$ - $ - 0% PP, GOOG, A.net Unlimited Unlimited Unlimited
$ - $ 9.95 0.5% - 5% PP, GOOG, A.net Not published Not published 50,000
$ - $ 59.95 7% AMZN Unlimited Unlimited Unlimited
$ - $ 29.95 0.5% PP, Check, Money Order 5 GB 50 GB 5,000
? ? ? ? ? ? ?
$ 50.00 $ 39.95 1.5% PP Unlimited Unlimited 50,000
$ 49.95 $ 49.95 0% PP, A.net 1 GB 10 GB 300
$ 49.00 $ 59.95 0% PP, GOOG, AMZN Not published 10 GB Unlimited
$ - $ 99.00 1% PP, GOOG, A.net 1 GB Unlimited 10,000
$ 49.00 $ 99.99 0% PP, GOOG, Checks Not published 15 GB 5,000
A Further Slice of Providers
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Signup and Setup Should be Easy
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Domains Should Integrate Easily
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Simple Setup for Categories
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Manage one set of inventory from one dashboard, across your Vendio store and if you choose – other
channels such as eBay, Amazon, Google (CSE).
Manage one set of inventory from one dashboard, across your Vendio store and if you choose – other
channels such as eBay, Amazon, Google (CSE).
Add Items to the Store
Vendio Stores feature full Inventory Management. Easily add and remove items for sale including
post-sale functionality such as automating coupons to your past bidders.
Vendio Stores feature full Inventory Management. Easily add and remove items for sale including
post-sale functionality such as automating coupons to your past bidders.
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Comparison Shopping Engine 101
CSE’s/ Deal Sites/ Coupon Sites
Shopping.com, Pricegrabber, Shopzilla/ Bizrate, Smarter, Become
Dealio, Thisnext, Kaboodle, Couponcabin, Retailmenot, Fatwallet, ebates, Shopstyle, Shopwiki, Dealnews, Ciao
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CSE’s are in Tough Spot
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SEO 101 – How do you SEO?
Pick target keywordsOptimize page– Title– Content– URL– Description/ Images/ Meta Tags– H1’s
Secure BacklinksFree Tools – Seobook.com / Seomoz.org – Keyworddiscovery.com – Google Insight
Avoid “Black Hat” tactics (i.e, keyword stuffing, buying links and copying content)
SEO is a ‘black box’ that is purposefully hard to understand.
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SEM Work 101
SEM is complex too however it is more transparent
– Q-score (Landing page, CTR, ad copy, bounce rate)– Bid amount– Keywords and keyword groups– Content networks vs. search network placement
SEM can be as little as $0.05 CPC & go up above $200 CPCTrack, track, and track some moreSet low spending caps so you don’t lose your shirtGet Free bonuses for getting started