Download - e-Commerce are you there?
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539
Shay Rosen Head of Strategy & Consulting, realcommerce
• Strategy Business analysis, Concept creation, UX, UI
• Technology Robust, Smart, efficient content management & e commerce platforms for
mega sites
• Leadership Powering Israel’s largest and most successful enterprises
The World 2011
The World 2011
Black Friday
$11.4B Total Sales
6.6% Retail Sales Growth
29.3% Online sales Growth
Facts about e-commerce
$1.25B Total Online Sales
Up 33% from last year
292% Mobile Sales Growth (!)
9
Relationship Collaboration SOCIAL CRM
US E-commerce Forecast
10
Relationship Collaboration
Europe E-commerce Forecast
Forrester
11
Relationship Collaboration SOCIAL CRM
• 79% of online European consumers plan to purchase products or services via the Internet in the next six months Online consumers in Norway (89%) and GB (86%) show the greatest propensity planning a web purchase in the near future (Nielsen Global Consumer Report June 2010)
79%
89% 86% 84% 83% 81% 78% 77% 74% 72% 68%
0%
20%
40%
60%
80%
100%
EU
Average Norway UK Poland
Austria
Ireland
Switzerland
Germany &
Czech Republic
Denmark Italy Spain Netherlands France Belgium
E-commerce Maturity
Israel E-commerce
2011מרץ , כלכליסט
Israel E-commerce Myths
• Israelis are afraid to pay online
•
• Israel is a Small Country, Stores are near by, There’s no need for e-commerce
•Everybody believes prices are
better in the store
Israel E-commerce Myths (1)
•Israelis are afraid to pay online • Changed dramatically since the arrival of the coupon trend.
•54% of credit card holders already bought something online
•Large growth of Paypal accounts in Israel
Israel E-commerce Myths (2) • People need to feel and touch the merchandize, Nobody will buy
clothes online
Israel E-commerce Myths (3) • Israel Is a Small Country, Stores are near by, There’s no need for
e-commerce • Really? what about traffic, parking, standing in lines?
Israel E-commerce Myths (4) • Everybody believes prices are better in the store –
unfortunately that’s right
Israel E-commerce Truth • E-commerce in Israel is poor • Most Retailers don’t sell online
• Many of Those who do sell online offer better prices in stores
• Majority of online stores in Israel have bad UX and bad customer service
Israel 2011 - change is here
2009
Israel 2011 - change is here • Digital revolution is here • 40% Smartphone penetration (Higher than US and Eu) • 90% Facebook penetration (2nd in the world) • Highly engaged and active
Israel 2011 - change is here
(בשקלים)ב "מחירי ישראל לעומת ארה -לקנות דרך האינטרנט
ב"מחיר בארה מחיר בארץ פריט -פער מחירים ישראל
ב"ארה
Hoover H1.Inf 1,309 366 358%שואב אבק עומד
Switch Peg Perego 5,635-2,039 1,339-933עגלת 421%
City Mini BabyJogger 2,849-1,339 1,489-649טיולון 191%
Nike SHOX Nz Si 484 298 162%נעלי
SPORTSMAN 400 884 757 117%טרקטורון צעצוע
RIDE Kent Insulated 690 596 116%מעיל סקי
Columbia Core 149 74.6 200%כפפות נוער לסקי 80 פרפיוםליידי מיליון או דה רבאן פאקו
ל"מ359-306 258
139% קרם יום לפנים צוואר ומחשוף פלטינום
ל"מ50לנקום 579 466
124%
Prodigy Powercell 699 449 155%סרום הלנה רובינשטיין
Osprey Kestrel 38 719 414 174%תרמיל טיולים
Ynet , 2011דצמבר
Israel 2011 - change is here
2012
E-commerce in Israel?
OMG! Cannibalization • Staples – 45% of sales are online
• Office Depot – 40% • Victoria’s Secret - 16% • Gap – 10%
It’s not Cannibalization – it’s adjustment
Setbacks • Integration • High costs • Synergy with retail operation • Lack of know how • Does not fit organization structure
Postponed e-commerce projects
Evolve
Fact: Consumption is a digital activity • 75% research online prior to buying(!) • Price comparison sites • Search for information • Product reviews • Social (Talking about) shopping
Consumers already visit your website for information – why send them away?
Price
• In Bold – Lowest prices online! • In the front – Selected items must go lower than in store • Inside – Can be equal • Never higher than in store prices!
A mater of perception Prices on the website just can’t be higher
Shoesite.com 2000 - $1.6M
“In terms of the three
major areas - service,
selection and price -
you can really offer two
of them in the same
time.
Our brand was in
service and selection”
Tony Hsieh, CEO
• Toll-free number shown everywhere and not hidden
• Free shipping and returns
• 365-day return policy
• 24/7 availability (same working hours as the Internet…)
• 24/7 Warehouse
• Promise delivery within 4-5 business days*
* Usually upgrade to overnight shipping by surprise
75% Returning customers
$110 $140 First timer average vs. returning customer
User Experience – It’s about breaking barriers • Create confidence
• You are not alone • Nothing is irreversible
• Special deals online
• Ease of use
• Fun & smooth experience
User Experience – It’s about breaking barriers • Think about the bounce rate • 8-12 Seconds to bounce! • Return policy & customer service • Lower Prices & Free shipping • Invitation to enter
• Attractive Deals & related products • Orientation:
• Search • Flat Navigation • Intuitive Product browsing
• 24/7 customer service • Trustworthy product reviews & Ratings • Shopping Cart always present • Keep in touch
Measure & Optimize Constantly
Creating confidence Breaking Barriers(1)
Added Values
Creating confidence Breaking Barriers(2)
24/7 Customer Service
Orientation • Search • 4 ways to browse products
Invite • Attractive promotion • Deals
Functional area: My Account
Shopping cart
The importance of Mobile
Social Media – Handle with care • Facebook / Twitter:
• Customer care • Support • Drive Traffic • Keep in touch
• Blog: Info & Review
• Youtube: Product info videos
Complete e-commerce operation
• This is life • Create a new P&L – that’s the only way • Assign a team • Plan • Set Goals, Objectives & Budget • Launch • Be patient, Measure, Optimize and Evolve • It’s worth it!
Do it – it’s 2012!
Looks Complicated ? Expensive?
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539
Shay Rosen Head of Strategy & Consulting, realcommerce
E-Commerce Are you there?
