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Welcome to
Commerce Acceleration 1017th February 2013
From one store to multichannel,
Presented by Chris Tanner
the easy way
Own store, marketplaces, or both?
Ecommerce store / online shop
- Transaction is handled by your ecommerce platform
- Easy to launch using a hosted platform
- Strong brand presence
- 100% ownership of customer experience
- Requires effort to generate sales
Own store, marketplaces, or both?
Online marketplaces; eBay, Amazon
- Transaction is handled by the marketplace
- Easy to launch
- Immediate access to large, global audience
- Low marketing cost but higher sales fees
Multichannel challenges
- More sales, more customers! You're going to be busy ...
- Managing more orders and shipments
- Managing more customer service issues
- Selling the same item twice on different channels
- Making new inventory available on all channels
- Channel “branding” / trading names
First, build the foundations for growth; be
Operationally stable
Centralised inventory management
- Maintain one product master list
- Organise your product database properly
- Decrease inventory on all sales channels automatically
- Increase inventory levels as soon as new stock comes in
- Understand the difference between kits and assemblies
- Maintain a common SKU across all sales channels
All orders, shipments and customers in one system enables:
- Holistic, cross-business sales reporting
- All customer history in one place
- One interface for all staff
- One workflow for all orders
Centralised order processing
“Which products are selling well?”“Which channels are the most profitable?”“What's on back order?”“What stock do I need to buy?”
Centralised order processing
Take control of your purchasing
- Buy smarter using inventory and sales reports
- Put a formal purchase order process in place
- Share information with your team
- Minimise your inventory levels
- Spend on the right products at the right time
- Understand how much you are spending, and when
Automation, efficiency & insightA successful multichannel business will …
- Download orders from ecommerce stores & marketplaces
- Integrate carriers for faster shipping and fewer mistakes
- Integrate POS for real-time inventory updates
- Integrate financials for up to date, insightful reports
- Be on the cloud for sharing and collaboration
Next, expand. More channels, more products.
Sustainable expansion
Expand your online sales
Launch an ecommerce storeTry hosted a system like Shopify, Magento, Big Commerce
Launch further ecommerce storesMake use of a niche and become the market leader
Start selling on eBayUK, Europe, USA … immediate global market!
Start selling on AmazonReach millions of new buyers overnight
Automate.Become operationally stable.Expand. You're now in control.Buy smarter. Spend less.Report better.
Grow faster.
Find everything you need to know at:
www.brightpearl.com/CA101
Presented by Lee Adams
How I built an incredible online business
Today will help you grow your business.
Lee Adams
My story
• Great place to test the market for your products
• List it once, reap the awards over and over again
• Low Margins - Not always – Build Value
• Automate
• ALWAYS Give your customer a reason to come back
Selling on
Building my first website
Turning over 2-3k per month initially
• Price is key for branded products
• Great way of selling quickly
• Replicate/feed the content straight onto Amazon
• Make sure your returns system is efficient
Selling on
Why would someone selling electronics want to sell garden furniture?
Building a website, the
do’s and donuts
Building a website, the
do’s • Trust
• Understanding
• Need
• Hurry
• Affordability
Building a website, the
donuts • Lack of product information – size material weight
• Hiding contact information
• Require an account to order
• Checkout that asks too many questions –
pre-populate where you can (by improving our
checkout process, we increased conversion by 30%)
Building a website, the
donuts • Small images or only one
• Only one payment option
• No product up sells
• Not displaying shipping
• Not having a security policy
December 2009 The Crash
• We were selling £20-30K per month
• I had cash flow issues, and was selling stock I didn’t
have to keep up with orders for Christmas
• We were too busy to manage our customers
and our standards slipped
• Grew too fast & didn’t have a scalable system in place
Outsource your life• Tim Ferris – 4 hour work week
What’s the right structure for a web business?• Marketing
• Accounts
• Warehouse
• Sales
• Customer services /technical support
What I've learnt building an ecommerce company
If I was to start again, I wouldn’t do it….
• Specialise, Specialise, Specialise – The market is big enough
• Use easy scalable platforms to get you selling online
e.g. Magento and Brightpearl
• Feed into every marketplace from the beginning; eBay,
Amazon and Google Products. If you do it properly then you
will start selling from day one.
If I was to start again, I wouldn’t do it….
• Choose carefully the products your going to sell - easy
to send out, lower chance of returns
• Spend time listing products and get someone to help
you, I could have grown twice as quickly if I had done
this with both of my sites
How Multichannel can transform your 2013
Presented by Mattew Ogborne
One GoalWhen you leave this room I want you to be thinking…
“I must do marketplaces right now”
Do you want access to
X 3000 buyers
+ Ability to pay
Today?
What we’ll be covering
• Sharing my passion for online marketplaces• Showing what has happened to markets• CorrecFng a few misconcepFons• Opening your eyes up to the potenFal• Comparing the differences• Apple pie• Your quesFons
Who am I & What do I do?
• 3 years running my own marketplace business• 5 years with mulF-‐channel soNware companies
Best of all I get to work with the cool people
YOU
“I solve other peoples eCommerce problems”
What is a Marketplace?
• An open space where a market is or was formerly held in a town.
• An open place where people meet and trade• All that has happened is that marketplaces have moved “online”
Where did these marketplaces go to?
If you think…
=
=
You’re Wrong…
So Wrong…
Are these brands for a carboot sale?• Armani• FCUK• Bench• Burberry• Chanel• D&G• Diesel• Dior• DKNY• Gucci
• Karen Millen• Lacoste• Louis VuiZon• Miss Sixty• Monsoon• Next• Nike• Prada• River Island• Chanel
And do these look like small players?
eBay fashion outlet
• Only started in April 2010• There are over 600,000 consumer sellers and 40,000 businesses within the fashion category
• The number of shoppers has more than doubled in two years
• Over 4.5 million shoppers visit the fashion category every month.
AucFons, what aucFons?
68 % of all eBay sales are
INSTANT
Amazon?
100 % of all sales are
INSTANT
How Fast?
A pair of shoes sold every 3 seconds
Women’s accessories sold every 4 seconds
A woman's dress sold every 5 seconds
A pair of women’s jeans sold every 18 seconds
A pair of men’s sunglasses sold every 20 seconds
A video game system sold every 20 seconds
(Including the best games system created the Commodore 64)
A GPS Device sold every minute
An Apple Laptop or Notebook sold every 2 mins
An iPad sold every 2 minutes
A major appliance sold every 37 seconds
The Reach of eBay & Amazon• eBay reported 108M acFve users in Q3 2012• Amazon 200M acFve users in Q4 2012• eBay is predicFng $13B via a mobile in 2013• Amazon increased net sales 22% to $21B• Expanding into Europe = 180M buyers
way beyond a normal market place
X 3000 full of buyers
40% of department store visitsDepartment Store Sites Place in Hot Shops top 50Amazon UK 1Argos 3Next 4Amazon.com 5Your M&S 6Tesco 7John Lewis 8Debenhams 10Tesco Direct 13ASDA Direct 15
November 2012
AmazonAmazon sold over $1B paid items for the first Fme in a quarter in Q4 2012
• That's 126 items sold a second• OR 7,548 items sold a minute• OR 452,899 items sold an hour
Think about that…10.8M items sold a day during Q4 2012.Source: Scot Wingo, ChannelAdvisor
What do customers want?
• Confidence• SelecFon• Safety• Convenience• Ease of use• Buy anything, anywhere, anyFme
They want their order delivered
Tomorrow
Credit Card Warriors
• These are not pseudo TwiZer or Facebook users• Real people in buying mode • Most with linked payment accounts to facilitate a transacFon
• Make no mistake they will use them
They are using them
That’s a credit card
The Growth of eBay
Source: seekingalpha.com
16% GMV12% Users
The Growth of AmazonAmazon Metrics Q4 ComparisonsAmazon Metrics Q4 ComparisonsAmazon Metrics Q4 Comparisons
Amazon Metrics Q4 -‐ 2011 Q4 -‐ 2012
AcFve customer accounts 164 million (up 26%) 200 million (up 22%)
Worldwide acFve seller accounts 2+ million 2+ million
Seller units as a percentage of total units 36% 39%Worldwide unit growth 46% 32%
Third-‐party sellers' unit growth 65% over 40%
Net Sales Increased 35% to $17.43 billion Increased 22% to $21.268 billion
Source: eCommerceBytes.com
How Many?
eBay say there are 190,000 registered businesses in the UK
When I checked last year there were
+400,000 eBay UK shops
The difference between eBay & Amazon
• eBay is purely a marketplace• Amazon has a marketplace that accompanies their core business
• Payment fees (PayPal) are on top of eBay Fees• Amazon fees include a payment processing fee
The difference between eBay & Amazon
“When some buys from eBay they buy from a seller on eBay”
“When some buys on Amazon, they buy from Amazon”
Openness & clarity
People think they're going to get ripped off online
But the reality is…
It’s the other way around
Transparent feedback systems
Everything is open
Even on Amazon
What businesses are doing right now
• One UK Fashion Retailer did £4M in Dec 12• In 2008 four eBay.com accounts reached 1M feedback• In late 2011 the first EU eBay account hit 1M feedback• In June 2012 the UK’s first account reached 1M feedback• 2 Weeks ago, the UK had their 2nd 1M account feedback
Cost per sale model
Unlike other forms of markeFng such as PPC Marketplaces are CPA
You pay the majority of the fees when you
Make a sale
How much?
Inser[on Fees• eBay 20p to Free• Amazon £25 per month
Final Value Fees• eBay 5% to 12% + PayPal fees• Amazon 7% to 35% -‐ Most goods 15%
Fulfilment by Amazon
• They’ll pick & pack your orders for you• Access to “Amazon Prime” buyers• They’ll do the customer services & returns• Fulfil into Europe• You can make more wonga
The role of soNware
• Keep your sanity• Automate tasks• Control product & stock data• Manage orders at scale• Personalise the process with documents• Grow and not worry about the small stuff
Barrier to entry
Is LOW
The potenFal is
Global
NoFce that I didn’t say it was
EASY
And the best thing is…
YOU CAN have some of this pie too
Top Fps to gevng started
1. Start small2. Look & learn from other businesses3. Ask when you have quesFons4. You don’t need a “designed” eBay shop5. If you have large amounts of inventory see #16. Do not buy any eBooks they’re all…
Where to start?
eBay.co.uk/sell
Where to start?
services.amazon.co.uk
Marketplaces
• Customers are already there in their squillions• They’re spending bucket loads of cash• The potenFal is massive• The potenFal is global• Best of all…
The game has only just begun
WHERE ARE YOU?
QuesFon & Answers
Over to You!@MaehewOgborne / LastDropofInk.co.uk
Thank you