Recently new business models have emerged in e-commerce. In this presentation we shortly present those models and provide hypotheses about future trends.
...
Recently new business models have emerged in e-commerce. In this presentation we shortly present those models and provide hypotheses about future trends.
Pr1nceMG16-mu.jogando.net Título = Jogando.net/mu Venha se divertir de verdade !!! [b]Ola,sou o Pr1nceMG,Divulgador oficial do Servidor de Mu online Season 6 do Brasil ESTÁ ON HÁ MAIS DE 5 ANOS,Produzindo sua Diversão com qualidade. TODOS OS SERVERS ficam ON 24 horas por dia, Sempre Buscamos o Melhor para os Gamers. São varios Server esperando por você : * MuWar' 1000x/1500x * Super - 10.000x ** Pvp 15.000x * Very Easy - 5.000x * Hard 100 x * Extreme 10x * Novo servidor Phoenix: Free 3000x | Vip: 4000x Phoenix SÓ NO http://www.jogando.net/mu VOCÊ ENCONTRA Os Melhores itens e kits mais tops de um server De MU Online: * Novas asas level 4 * Novos Kits DEVASTADOR * Novos Kits DIAMOND v2 + Kit Mystical (a combinação da super força) * Novos Sets especiais de TIME. *CASTLE SIEGE AOS SÁBADOS e DOMINGOS. Site http://www.jogando.net/mu/ Esperamos pela sua visita.Sejam todos muito benvindos ao nosso Servidor. *Um mês de grandes eventos e Promoções do dia das Crianças e Sorteio de 1 iPad e 2.000.000 de Golds! E obrigado pela atençao de todos voces !!! Conheça também animes cloud http://animescloud.com/ São mais de 20.000 mil videos online. By:Pr1nceMG divulgador oficial do jogando.net/mu7 months ago
E commerce new business modelsPresentation Transcript
E-commerce in 2012Introduction To New Business ModelsSeptember, 2012
Brought to you by SubscreaSubscription Sales Platform Visit us at subscrea.com .You can contact authors at anna@subscrea.com
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 3
After the dot com crush VCswere hesitant to invest in e-commerce Source: Cbinsights via Elizabeth Knopf @ Quora
Besides supernovas like Zappos classic e- commerce sites were previously characterized by…• High customer acquisition cost (traditional media & online advertising)• Low customer retention (one-off transactions)• High upfront investment in inventory „[New e-commerce models]… reduced customer acquisition costs through word-of-mouth promotion and improved lifetime customer value by re-engaging customers on a regular basis. They’ve also produced more efficient operating models by holding little-to-no inventory and getting paid by customers before they have to pay vendors.” James Slavet, Partner at Greylock, Techcrunch
Period of 2007-2009 was a turning point for thee-commerce landscape with the appearanceof innovative companies… Time-limited sale of designer home Deal-of-the-day website that features decor, accessories, and gifts – discounted certificates for goods and discounts up to 70 % services Time-limited sale of designer apparel, Curated, monthly shoe subscription accessories, shoes for $39.95 6
New Business Modelsin E-commerceStart-ups adopted, pivoted and alternated strategy topursue further opportunities. New models were born…• Flash sales • Next generation markets• Subscriptions • Social bookmarking• Daily deals • Mobile e-commerce• Collaborative commerce
You will find in this presentation shortanalysis of models featured above, except fordaily deals and mobile e-commerce.Mobile e-commerce will be discussed inseparate presentation, follow us for updates.
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 9
The model: FLASH SALES Model overview (1/2)Time-limited sales of branded goods.Customer value proposition:Well-know brands at discounted prices.Retailer value proposition:Moving the unwanted inventory faster, better cash flow.Risks and limitations:Unwanted inventory is not unlimited, the more companies enter thespace the harder it will be to find it.Heavy investment in website recognizability and traffic. 10
FLASH SALES Model overview (2/2)The underlying magic of the model:• Stimulates impulse purchases• Customer does not know what items will come next – necessity to visit the website leads to habit formation Source of the photo: http://thehighlow.com/
FLASH SALES currently available verticalsApparel &accessoriesHome goods &decorTravelling &accommodationGourmet wineand foodMommy andbabyArt
FLASH SALES venture capital traction Total funding raised ($ millions)$250.0$200.0$150.0$100.0 $50.0 $- Source: Crunchbase, Techcrunch, AngelList, Gust
FLASH SALES current status• Aggregators of flash sale websites started to emerge: −http://www.buyometric.co.uk/ - UK based aggregator of daily deals and flash sale websites with focus on personalization −Splendora launched a mobile application aggregating flash sale websites (now part of Joyus.com) −MiNines, flash sales aggregator, which called itself „Kayak for flashsales” went bankrupt• Acquisitions −Fab bought German flash sales website Casacanda for $11M −Vente-privee partnered with American Express to boost its US presence −Nordstrom acquired HauteLook for $270M 14
FLASH SALES future trends• Further acquisitions, e.g. by geographical expansion, vertical expansion• New aggregators + aggregator acquisitions• Emergence of new niche verticals (e.g. there is a flash sales website for fishing goods)• Development of technology providers (turnkey flash sales platforms, Magento and Worpress widgets)• Foray of big players into flash sales (e.g. Amazon, Walmart, H&M, Zara etc.)
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 16
SUBSCRIPTION MODEL OVERVIEW(1/2)The model:Weekly/monthly/quarterly delivery of selected goodsCustomer value proposition:Discovery subscriptions: try out and discover new productsConvenience subscriptions: save time on shopping andhave products delivered to your doorRetailer value proposition:Exact order forecasts- lack of excessive inventoryStable inflow of cash 17
SUBSCRIPTION MODEL OVERVIEW(2/2)Risks and limitations:-Discovery subscriptions: customer start to churn after couple of months ofsubscription. Necessity to constantly sustain customer curiosity-Convenience subscriptions: Adding shipping cost to low-margin goodsThe underlying magic of the model:- Discovery subscriptions: with adequate packaging the experience of receiving a boxresembles obtaining a gift and stimulates pleasant feeling of curiosity and surprise.Natural virality of the model- Convenience subscriptions: customer gets used to the comfort of receivingnecessary goods monthly- unlikely to cancel. Customer acquisitions cost is retrievedover a longer period of time 18
SUBSCRIPTION currently available verticalsBeauty &cosmeticsGourmet wineand foodKids & toysApparel &accessoriesMommy andbabyVarious lifestylecategories male razors and male Various designer flowers rubbers dog food essentials blades essentials goods
$- $2.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $4.00 H. Bloom Birchbox Trunk Club Kiwi Crate Citrus Lane Fabkids Barkbox Joliebox Quarterly BabbaCo Foodzie Dollar Shave Club Artify It Total funding raised ($ millions) Love With Food Bespoke Post Manpacks Hoseanna SUBSCRIPTION Lilakutu venture capital tractionSource: Crunchbase, Techcrunch, AngelList, Gust KOPI
Venture Capital firms seem more fond of flash salesbusiness than subscriptions… Top flash sale funding vs. top subscription funding ($ millions)$250.0$200.0$150.0 Flash sales funding$100.0 Subscribtions funding $50.0 $- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Source: Crunchbase, Techcrunch, AngelList, Gust
SUBSCRIPTION current status• Technology providers emergence & growth: −Fierce competition between subscription billing applications such as: Recurly, Adyen, Braintree, Chargify, Sassy and many others −Emergence of Stripe – recurring billing API for developers, competitive pricing −Emergence of turnkey platforms such as Subscrea• Big players enter into subscription space, examples: − Walmart and subscription sampling programe1• Subscription spreads into digital goods (Apple iTunes store, Xbox, Facebook apps, Spotify) as well as to virtual goods/currencies/coupons (e.g. LivingSocial2)• Emergence of aggregators (Quarterly, Monthlys) as well as review websites e.g.: www.subscriptionboxes.comSource: 1) http://adage.com/article/news/walmart-launch-subscription-sampling-program/235104/ 2) http://techcrunch.com/2011/12/02/livingsocial-plus/
SUBSCRIPTION future trends• Beginning of acquisition era• Further development of technology providers• Further foray of big players into subscription space (e.g. Sephora, Douglas)• New verticals appearing plus churning and decay of unsuccessful ideas• The development of enterprise subscriptions beyond software (e.g. fleet, flights, wining & dining, hotels, office supplies, postal services)
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 24
SOCIAL BOOKMARKING MODEL OVERVIEW(1/2)The model:Websites that organize and manage content found on theInternet, increasingly integrated with social networksCustomer value proposition:• Collect favorite items in one place and organize them according to tags so that you can easily go back to them later• Discover new items• Explore the items you may like in one placeRetailer value proposition:Learn more about consumer behavior and interestsUse affinity modeling to find counterintuitive yet profitable conections1Source:1) http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?_r=4&pagewanted=all2) A video about Delicious: http://www.commoncraft.com/video/social-bookmarking
SOCIAL BOOKMARKING MODEL OVERVIEW(2/2)Risks and limitations:• Features chicken-and-egg problem: content is needed for users to come. Users will not join without the content• Inconsistent and poor use of tagsThe underlying magic of the model:• It can be highly addictive due to desire engine and construction of our brains. For example:A friend shares an item from Fashionlista onFacebook- external trigger. User takes action andlands on the website to check it out. User is thenrewarded with other interesting items that hefinds. This leads to commitment and turnsexternal trigger into an internal. Occurrence ofinternal trigger forms a habit which may furtherlead to addiction.Read more: http://techcrunch.com/2012/04/22/the-billion-dollar-mind-trick/http://www.nirandfar.com/2012/03/how-to-manufacture-desire.html
SOCIAL BOOKMARKING INFLUENCE ON E- COMMERCESituation: customer is looking for black pumps, size 6.5There are multiple shops/brands selling this type of shoe butevery single shop such as Zara, features only couple of variations of black pumpProblem: It would take days to visit each and every websiteand look for the black pumpSolution: Shops tag the shoe as „black pump” and user browses social bookmarkingwebsite e.g. Fashionlista according to this or similar tags
SOCIAL BOOKMARKING INFLUENCE ON E- COMMERCE • Consumer sees all „black pumps in one place” and can explore multiple fashions by an „infinite scroll” • Social bookmarking website is generating revenue by the affiliate program with retailers 28
SOCIAL BOOKMARKING FUTURE TRENDS• Better tagging due to technology development (e.g. image recognition and auto-tagging)• Growth of companies providing affinity data modeling• Advancements in targeted advertising based on affinity data not demographics• Keywords become less important due to „tags”• Higher percentage of impulse purchases, thanks to tablets popularization• Lagging behind of those retailers that do not cooperate with social bookmarking websites 29
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 30
COLLABORATIVE COMMERCE MODEL OVERVIEW (1/2)The model:Membership-based item sharing websites that bill the users per use or monthlyCustomer value proposition:You can use the items that you need or like without the costs and hassles of owningthemYou can discover various items instead of having the same one all the timeRetailer value proposition:Distribute the cost and risk of owning an item over a large group of members 31
COLLABORATIVE COMMERCE MODEL OVERVIEW (2/2)Risks and limitations:• Sharing models flourish in strapped economies. Ultimately, when the times are good most people prefer to have their own itemsThe underlying magic of the model:• Rising costs of selected goods ownership such as cars (fuel prices)• Smaller households or even single person households unable to cover the full ownership of a good• Good for the environmentRead more: http://techcrunch.com/2012/04/22/the-billion-dollar-mind-trick/http://www.nirandfar.com/2012/03/how-to-manufacture-desire.html 32
COLLABORATIVE COMMERCE CASE-STUDY: VEHICLE SHARING SERVICES Company-owned vehicles Peer-owned vehicles • Peer-to-peer car • Car sharing service with the rental service focus on US, Canada and UK, $60.7M funding, listed on NASDAQ (ZIP) • Peer-to-peer car rental service • Local car share service • Campus car sharingOther services: • „Zipcar for scooters” • Private plane sharing companies are also a common example • „Zipcar for bikes”
COLLABORATIVE COMMERCE FUTURE TRENDS• Expansion to new verticals (e.g. Snapgoods is Zipcar for gadgets):− Electronic goods− Expansion of office space sharing (co-working)− Personnel sharing− Holiday housing sharing− Apparel sharing (especially accessories)− Sport gear sharing− Jewelry sharing• Appearance of platforms for finding partners to share various services− Examples: nanny, language lessons , sport lessons, elderly nursing sharing 34
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 35
NEXT GENERATION MARKETPLACES MODEL OVERVIEWThe model:Specialized on-line platforms matching peopleoffering a good or service with their target customersCustomer value proposition:Easily find great services and goods that you needRetailer value proposition:• Reach your target audience and leverage your marketing by becoming the part of a platform• Cut costs by using Internet as a distribution channelFurther reading: http://techcrunch.com/2012/08/19/how-to-structure-a-marketplace/ 36
NEXT GENERATION MARKETPLACES MODEL OVERVIEWRisks and limitations:• The chicken-and-egg problem• Marketplaces are vulnerable until they reach liquidity understood as reasonable expectation of selling something you list or finding what you’re looking forThe underlying magic of the model:• Once the platform reaches liquidity it becomes relatively stable• Strong network effects, meaning the bigger you are the stronger you are• Marketplaces can be very durable and profitable once they reach scale „The first marketplace to reach liquidity wins.” 37
NEXT GENERATION MARKETPLACESTwo important questions to address are:• who are my market participants? Businesses or individuals? SMEs or MNEs?• Who does what and who holds control over what? Marketplaces Centralized Hybrid DecentralizedExample: Uber Example: Airbnb Example: Ebay• Centralized driver recruitment • Centralized • Centralized only customer and selection, pricing, vehicle photography, payments, user support and payments location, transaction verification, ratings, reviews, com • Decentralized terms, customer support munication, customer support ratings, reviews, photos, fulfillme • Decentralized nt, transaction terms etc. pricing, description, profile, key exchangeCentralized platforms provide clean and consistent user experience but hamper speedof expansion. The decision what to centralize and decentralize is one of the mostimportant in marketplaces and has to be considered on individual basis.
NEXT GENERATION MARKETPLACES exemplary verticalsHousingFashionArts&CraftsServicesDigital goodsExperiences 39
NEXT GENERATION MARKETPLACES Future trends• Due to proliferation of goods available on the internet niche vertical marketplaces will become more popular e.g. Our top three: − Digital goods marketplaces (music, graphic design, mobile apps, enterprise apps etc.) − Consumption & leisure (fashion, furniture, gadgets, experiences, travelling, sports) − Jobs (child care, personal care, simple physical tasks, concierge, homework, simple on- line jobs like bug spotting, data entering, survey solving, research jobs)• After the acquisition wave leaders will emerge in each category 40
Agenda:• E-commerce market background• New business models overview − Flash sales − Subscriptions − Social bookmarking websites − Collaborative commerce − Next generation marketplaces• Summary 41
SUMMARY1. Better technology, widgets and plug ins are needed with regard to new e-commerce business models2. Many verticals in each business model have been explored already, however, there are still niche markets to be found especially with regard to subscriptions, social bookmarking and marketplaces3. With the proliferation of tablets we move increasingly from planned purchases to impulse purchases and retailers should start developing features that nurture this trend4. Older, established companies may loose part of their revenue in the future if they do not start adopting the new trends 42
FAQ: Can I download this presentation?Yes, you can download it!It costs only $10 USD.Why?• It was hard work to prepare it• We want to help to promote our friends’ application Sellbox via which you can buy presentation• We are bootstrapping our start-upTo buy presentation follow this link: http://sbx.sk/ABWj 43
Thank you for reading! Get access to Subscrea beta version!This work may be used for non-commercial purposes only. You can contact authors at anna@subscrea.com 44
Tomás Penido
1–10 of 11 previous next Post a comment
1–10 of 11 previous next