Affiliate Summit West 2010

E-Commerce Site Deconstruction: Strategies for Affiliates

Michael VorelCEO, Vastplanet Corporation

Who is Michael Vorel?

CEO / Founder - Vastplanet Corporation, 1998o Ecommerce Developmento Internet Marketing (SEO, PPC, Social Media)o Affiliate Managemento Consulting

Affiliate Marketer since 1999 10 Years experience in computer industryo International product marketing, sales, marketing,

purchasing & management

Agenda for Today’s Presentation

E-Commerce Todayo Why Learn? o Merchant vs. Affiliate Needso Market Conditions & Trendso E-Commerce Leaderso Conversion Techniques

Affiliate Strategieso Affiliate Exampleso Basic & Advanced

Why Learn about E-Commerce?

E-Commerce Sites: Create Consumer / Business Demand Invest in Conversion & Acquisition Strategies Understand Shoppers Needs Promote Best Selling Items Follow Trends & Economic Conditions Reward You on Conversion!

Understand Merchant = Affiliate Advantage

What do Merchants Want?

Customer Acquisition Conversions Pay for Performance Model Reduction of Costs Margin Preservation Behavioral Analysis Ability to Market Directly

Image credit – macys.com

What do Affiliates Want?

Affiliate Income High Conversions Low Risk Visitor Information Ability to Remarket

Image credit - getentrepreneurial.com

The E-Commerce Flow

BUSINESS

EcommerceMerchant

Affiliate Affiliate

SearchEngines

Social Media

MobileOther

DIRECT DIRECT

DIRECT DIRECT

CONSUMER

Market Conditions 2009

Top 500 Merchants Revenue $115.8B (+11.7%) Top 100 Merchants Revenue $98.6B (55% of total) Amazon.com Revenue $19.17B (+29.5%) Economic Forces Luxury is Out & Necessity is In Winners are investing in Technology Social Media & Mobile is changing landscape

Source: Internet Retailer 2009 Edition

Source: Internet Retailer 2009 Edition

What’s Selling?

Categories Rising Apparel / Accessories Food / Drug Health / Beauty Mass Merchant

Categories In Decline Teen Clothing & Accessories Hardware / Home Improvement Housewares / Home Furnishings Flowers / Gifts Toys / Hobbies (rising)

What Categories Lead?

Source: Internet Retailer 2009 Edition

Retailer Mix in Top 500

Source: Internet Retailer 2009 Edition

Source: Internet Retailer 2009 Edition

Holiday Shopping 2009

Heavy Pre-Holiday Offers, Free Shipping Traffic to Coupon Sites (+76% Nov)

Coupons.com, EverSave.com, RetailMeNot.com 4 out of 5 online in U.S. visited a retail site (Nov) $913 million on Tues - Dec 15 (Record) 9 days this year, consumers spent $800+ Million in day 48 Days of Online Shopping = $24.8 Billion (+4%) Largest sales days - midweek (Mon, Tues, Wed, Thu)

Data Source – ComScore

Holiday Shopping 2009

Toys, Consumer Electronics, Department Stores, each growing more than 30% vs. October 09

Toys Category (+33%) ToysRUs, LEGO, Disney, American Girl

Consumer Electronics (+32%) BestBuy, Walmart, RadioShack, eBay, Buy.com

Online Department Stores (+33%) Walmart, Target, Sears, JCPenny, Macy’s

Data Source – ComScore

Top E-Commerce Trends

Personalization Mobile E-Commerce Segmentation Behavioral Profiles Sharing - Social Media (Facebook,

Twitter, Email) Building Loyalty Search Product Reviews Video

Personalization (You, Your)

Welcome, Michael Vorel We have Recommendations for You (behavioral learning) Your Browsing History (cookies & account registration) Rate These Items (social media, reason to return) Remember You Saved these? (wishlist) Your Communities (social media) Want to See Today’s Deals? (Conversion) Individual Treatment Creates Loyalty

Mobile Trends

Personalization Sync with Account Payment Integrated Product Reviews Select Products Conversion

Best Buy Mobile – Now think Affiliate…

Segmentation & Behavioral Profiles

Market Individually Create Email Alerts Convert Later Compile Profile Record Everything Convert Now

Follow-Up Emails

Should be Personalized Reminds me of purchase Related Products Up-Sell Conversion Alternatives

Sharing is In

Email Sharing Facebook, Twitter, Other Creates Community Creates Opportunity Creates Conversions

Social Media (Facebook 5.5% share)

Affiliate Income

Video

Video Demos Video Guides Live Video

Amazon.com – Conversion Experts

2008 Sales of $19.1B (+29.5%) 275M visitors/mo (56.5m unique) Converts 3.45% Avg. Sale $170

Traffic Comes from: Search Engines (32%) New Shoppers (30%) Return Shoppers (70%)

Amazon.com – Formula

Low prices + Great Selection Free Shipping Offers Amazon Prime (loyalty) Personalization to the highest degree Combination of account history and

behavioral learning to convert Combines multiple merchants

Amazon.com – Related Conversions

More Items to Consider Related to Items You Viewed Inspired by Browsing History Additional Items to Explore Inspired by Your Shopping Trends Customers with Similar Searches Your Recent History Your Recent Searches

Walmart.com

Connect With Others Like You Save Money, Rollbacks Value of the Day Ship to Store

Apple.com

Visual Sell Cross Sell, Up-Sell Stay & Learn Free Shipping

Charlotte Russe

Social Shopping Visual Shopping Community Contests

Affiliate’s Who Understand

• RetailMeNot.com• Offers.com• CouponCabin.com• eBates.com• CashBaq.com

Image - http://blog.nbc.com/ross_blog

RetailMeNot.com

RetailMeNot.com Popular Stores (shows Alternatives) Today’s Top Coupons (related items) Share the Love (Social Media) Win the Gift Card (Email capture) International Aspect

RetailMeNot.com Excellent Search Quick Poll (Social Aspect) Newsletter & Email Alerts Power Tools to Share

CouponCabin.com

CouponCabin.com

Our Favorite Coupons (shows Alternatives)

Social Media Icons (sharing connection)

Most Popular Coupons (community popularity)

Coupons by Email Live Help (Helping before

ecommerce transaction)

Offers.com

Offers.com

Integrates Articles (adds value to sales process)

Integrates DataFeed to show Savings (prepares consumer in advance)

Countdown (creates Amazon like experience)

Weekly Newsletter

Offers.com

Navigation (with options) Social Media Icons (sharing

connection) My Offers (Personalization)

eBates.com

eBates.com - different approach

eBates.com

Immediate Signup Rewards Shopper $5 Deals of Week Featured Stores Featured Coupons

eBates.com – Signup Email

Email Confirmation Conversion Reminder

CashBaq.com

Visual Concept Shop & Share Latest Conversations Rate, Review, Join Login Facebook Connect

CashBaq.com

Search by Stores, Coupons, Discussions, Deals

Cash Back to Consumer

Affiliate Strategies to Implement

Basic Segmentation Organize Popular Sections Shadow the Merchant Integrate Social Media Add Shopping Guides Best Sellers Surveys Live Help

Advanced

• Personalization• Account Registration • Enhanced Search• Mobile Applications• Cross Sell & Related• Email Alerts• Loyalty• International

Thank You

Michael VorelVastplanet Corporationmichael@vastplanet.comphone: 813-679-2660twitter @michaelvorel