Download - The Commerce Graph

@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs

Commerce Graph: Charting a future for physical exchange

Steven Jacobs, Deputy Editor at Street Fight

1910 2014@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs


“Retail guys are going to go out of business and ecommerce will become the place everyone buys.

You are not going to have a choice.”

- Marc Andreessen


Consumers should have a choice.


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E-CommerceCOMMERCE GRAPH


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E-CommerceCommerce Graph is a new way to think

about the way we buy goods and services bringing together

remote and in-person commerce !into one cohesive system.


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First, three assumptions about the future


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The growth in connected devices will make the distinction between “online” and “offline”

behavior less distinct.

This will force “e-commerce” and “local

commerce” companies into each other’s markets.

One.50#billion#connected#devices#

2020


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The process of “buying” will become invisible.

!

The moment we decide to make a purchase, the transaction will

go through.

Two.


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E-CommerceThe Internet will not replace the physical world.Three.


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In the commerce graph, there are two axes: decisioning and fulfillment.


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The process of making a decision to buy a product.

The process of bringing the product/service to a customer

after point-of-purchase.


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These axes are weighted by “in-person” and “remote” activities.


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An interaction with a product/service provider in the real world

An interaction with a product/service provider which is not physically present.


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‘Brick-and-mortar’


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Decide In-person(Brick-and-mortar retail)

Ecommerce


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Decide In-person, Fulfill Remotely (Brick-and-mortar retail)

‘Omnichannel’


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Consumers already shop across the commerce graph.


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Nearly everyone buys goods or services

offline.


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offline.

196.6 million Americans shopped

online last year. That’s 90% of all

Internet users


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offline.



Internet users

78% of consumers said they bought in-store after browsing

digitally.


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offline.



Internet users

78% of consumers said they bought in-store after browsing

digitally.

72% of consumers said they bought

online after browsing in store.


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But sellers have lagged demand. The bulk of digital

innovation has remained in the remote — or e—

commerce quadrant.



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Ecommerce sales are projected to hit $491.5

billion by 2018.

$125.00

$250.00

$375.00

$500.00

2012 2013 2014 2015 2016 2017 2018

(billi

ons)

!25


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$10 trillion

!

The biggest opportunity today is in where

remote and in-person commerce intersect.

But that’s still only 9% of the $10 trillion

consumers spent on retail goods last year.


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Over the next decade, the companies driving value

creation will bring together remote and in-person

commerce.


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A portion of that market will be owned by the existing players.


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E-CommerceHowever, new (and existing) firms will grow by solving problems within each

“omnichanel” quadrant.


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We’ve already seen explosive growth in the decide online, buy in-

person quadrant. !

These companies are often labeled as “local

commerce” firms


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Yelp has nearly doubled unique

visitors since 2009. !

Today, the reviews company draws 128

million UVs every month.


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In 2013, the company announced Yelp Platform, a new

initiative to close the gap between discovery and

transaction.


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The decide in-person, fulfill remotely quadrant

has seen less innovation. !

But there’s a big opportunity for new brands to flourish.


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This is the Tesla showroom in LA. (There’s no lot.)

Customers can test drive and buy a car, but its delivered

weeks later. !

A “showroom” model allows Tesla to sell its product in

malls and other high-traffic areas.


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The future of commerce lies at the intersection of digital and physical marketplaces.


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E-CommerceSTEVEN JACOBSDEPUTY EDITOR, STREET FIGHT

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