E-Commerce Are you there?

Shay Rosen

Head of Strategy & Consulting

shayr@realcommerce.co.il

Shayr@realcommerce.co.il

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?

Shayr@realcommerce.co.il

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?