In collaboration with

PRESENTED BY: JONATHAN PANG

Why eCommerce?

Trends, Facts & Figures

$1 TrillionPredicted Global

eCommerce Sales By 2016

$1,000,000,000,000

>2 Billion People Online

$14 Billion Payment Volume (2012)

Amazon recently said it had its best holiday season ever in 2012, selling 26.5 million products around the world at a record-breaking pace of 306 items per second.

An Amazon fulfillment center

eCommerce is continuing to take share

Why is this happening?

5 disruptive forces in eCommerce

More Smart Devices than PCs

iPad Released

We are here

•People with the highest disposable income fall into these age groups.

•People spend the most time on SMS, Browsing the Web, Email & Social networks.

Some Interesting Observations...

Singapore Ranked #1 For Smartphone Penetration In The World

December 2011

Spend in 2010 (Millions)

680

420

Domestic Websites (38%)Overseas Websites (62%)

Singaporeans Spent S$1.1 Billion On Online Shopping In 2010

Will eCommerce take over traditional retail?

Not quite. But...

People use smartphones to make buying decisions in stores

How are people shopping online?

Merging offline with online

Payment types used by online shoppers

Benefits of eCommerce for Consumers

Global reach (2+ billion online) • 24/7 availability (offline stores are only available when they are open)• Reach new customers

Automate processes & workflow • Customers sell to themselves on their own time

Customers find what they want faster • Saving time and money for customers results in higher margins for you

Lower cost with significantly less overheads  • Lower advertising costs• Targeted marketing with segmentation• Less manpower• No real estate

Real time data  • Where are your customers from? Who are they?• What are the best selling items/ services?• Potential from each country

Scalable • Add/Remove products easily• Open up distribution in countries at your own pace

Benefits of eCommerce for Businesses

What is eCommerce?Definition: eCommerce, is a business where buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.

Marketing

Offer

Conversion

Research

Discover

Payment options

Fulfillment Collection

Business Consumer

Sales Funnel Conversion Process

Relationship

Brick & Mortar vs

eCommerce

Brick & Mortar

eCommerce

Running Cost VS Profit

Approximate Costs •Domain name ($10/yr) •Hosting (From $2,000/yr)•Software setup (From 15k)•Staff x 2 (From 80k/yr)

eCommerce Business

Profit

Running Costs

Approximate Costs •Renovation/ Decor•Hardware & Software•Rental•Staff/ HR•Utilities

Brick & Mortar Business

Profit

Running Costs

THIS FASHION

What are your options?

Strategies for eCommerce•Smartphones and Tablets are changing consumers’ behavior. Cater your digital strategy

to reach customers on all devices.

• Integrate digital channels & leverage on digital marketing to complement your offline business. Bring your shop to your target audience.

•Automate processes, reduce friction and optimize your eCommerce platform at every opportunity to increase sales.

•Monitor data and gather rich insights that your eCommerce platform can provide you to make better decisions.

Platforms/ MarketplacePros

•Get started quickly

• Traffic

Cons

•Competition

•Profit margins are narrowed

[OPTION 1]

Your Own PlatformPros

•You own all the customers and data

• Features can be customized to your needs

•Branding

Cons

• Investment to add new assets & processes

[OPTION 2]

How eCommerce Platforms Work

Customer

eCommerce Shop Front

Shipping Products Payment

Control Panel Back EndCMS Reports

You

Web Mobile Tablet

CRM

Example: Shop FrontCustomer Perspective

Search

Landing Page

http://www.ikea.com/sg/en/catalog/categories/departments/workspaces/20502/

Example: Shop FrontBusiness Perspective

•Search Engine Optimization (SEO) •Search Engine Marketing (SEM) (Search ~80% Traffic)

•Branding & Communications •Design for multiple devices • Loading time

•Get users to what they are looking for in as few clicks as possible •Ease of use (Search, Site Map, Filters, Saved items)

•Clear & optimized images, Detailed descriptions, Reviews •Mechanisms for Marketing & Promotions (Bundling, Coupons, Related Products)

(Name)(Short Description)

(Price)

(SKU)(Long Description)

(Color Options)

(Related Products)

(Store Location)

(Product Images)

(Category)

(Downloads)

(Product Options)

(Social Integration)

(Alternate Product Images)

•All inventory content is uploaded to the eCommerce Platform via a spreadsheet •Product details, promotions and availability can be easily managed

•Shopping cart history provide rich insights to demand, pricing strategy •Reduce shopping cart abandonment rate with analytics & optimization

•Collected data about your customers provides rich data for marketing, upsell & cross sell opportunities

Collect only the required information that you need initially or you risk turning people away.

Encourage your users to fill in more information later.

•More insights with analytics data

How eCommerce Platforms Work

Customer

eCommerce Shop Front

Shipping Products Payment

Control Panel Back EndCMS Reports

You

Web Mobile Tablet

CRM

Example: Back End Walkthrough

Product Management

•Allows you to manage your inventory in real time.•Customizable product attributes for different categories of products• Tag products with related items to increase spend

(Name)(Short Description)

(Price)

(SKU)(Long Description)

(Color Options)

(Related Products)

(Store Location)

(Product Images)

(Category)

(Downloads)

(Product Options)

(Social Integration)

(Alternate Product Images)

•All inventory content is uploaded to the eCommerce Platform via a spreadsheet •Product details, promotions and availability can be easily managed

Dashboard

•Revenue overview•Most viewed products, Bestsellers•New and existing customers

Sales Order Management

•Search, view and manage orders at a glance

Invoices - Accounting

Invoices - Accounting (con’t)

Shipping

•Assign shipping carrier•Print labels•Send tracking information

Customer Management

•Allows you to segment your customer profiles by location, by spend •Understanding the profile of your customers provides you insights into the types of

products and services that you can provide them to increase your bottom line with upsells and cross sells.

Rewards & Loyalty - Marketing

•Attract new customers•Rewards for your loyal customers

Catalog/ Cart Price Rules - Marketing

•Provides marketing with the flexibility to drive up sales with bundled deals or promotions on festive occasions

Reporting - Meaningful Insights

Example Reports •Search terms•Most Viewed/ Purchased/ Low Stock Products•Products in carts/ Abandoned carts•Sales orders by period•New customers/ Customer segments

Customer Support•Provide FAQ on the shop front

encourage customers to “self-help” to get immediate answers•One contact email for all customers•Route to different department or staff•Accountability•Awesome support increases

retention

•Niche or interesting products

•Detailed information: Good images, tagging, clear copy, reviews

• Inventory/ Warehouse control

• Loading time: Hosting & page weight. Tests at Amazon revealed that every 100 ms increase in load time of Amazon.com decreased sales by 1%

•Easy Navigation & User Friendly: Search/ Filters/ Site Map

•Mechanisms for Marketing & Promotions: Bundling, coupons, discounts, related products

• Flexible & secure payment methods

•Guarantees: Reduce risk for customers with policies on returns, insurance etc

•Quick and reliable logistics services

•Responsive customer service: support tickets, live chat

•Measure with reports and optimize results

•Reduce friction in the entire process for customer to make a purchase

Success factors for eCommerce

Marketing

Offer

Conversion

Research

Discover

Payment options

Fulfillment Collection

Business Consumer

Sales Funnel Conversion Process

Relationship

Customer service sets you apart

“Zaz Lamarr meant to return some shoes to Zappos, but her mom passed away and, naturally, she just didn’t have time.

Zappos arranged to have UPS come pick up the shoes - and then sent her flowers.”

eCommerce ComponentsSEM, SEO, Email, SMS, Social, (Using Coupons, Discounts, Bundling)

Shop Front design for multiple devices, Multi-language support, Catalog Management, Site Content Management

Registration & Payment

Order Management, Shipping, Accounting

MARKETING

OFFER

CONVERSION

FULFILLMENT

RELATIONSHIP Customer Service, CRM, Loyalty Program, Reports, Analytics

How eCommerce Platforms Work

Customer

eCommerce Shop Front

Shipping Products Payment

Control Panel Back EndCMS Reports

You

Web Mobile Tablet

CRM

GOAL 1 - Boost sales 10% in the next quarter.

GOAL 2 - Increase conversion rate 2% in the next year.

GOAL 3 - Grow site traffic 20 percent in the next year.

GOAL 4 - Reduce customer service calls by half in the next 6 months.

Examples of eCommerce Goals

Sales: • Hourly, daily, weekly, monthly, quarterly, and annual sales• Average order size (sometimes called average market basket)• Average margin• Conversion rate• Shopping cart abandonment rate• New customer orders versus returning customer sales• Cost of goods sold• Total available market relative to a retailer's share of market• Product affinity (which products are purchased together)• Product relationship (which products are viewed consecutively)• Inventory levels• Competitive pricing

Marketing:• Site traffic• Unique visitors versus returning visitors• Time on site• Page views per visit• Traffic source• Newsletter subscribers• Chat sessions initiated• Facebook, Twitter, or Pinterest followers or fans• Pay-per-click traffic volume• Blog traffic• Number and quality of product reviews• Brand or display advertising click-through rates

Customer Service: • Customer service email count• Customer service phone call count• Customer service chat count• Average resolution time• Concern classification

Key Performance Indicators

How to get started?

Your Journey

•Discovery process & defining your strategy

•Requirements gathering

•Branding, Communications & Messaging

•Multi-Device Design & User interface

•Development (CMS, eCommerce)

• Integration of workflow & business processes

• Testing

•Digital strategy & plan

• Execution of campaigns to drive targeted traffic

•Monitor reports & data

•Analytics & Optimization

Thank You!Thank You!