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Maximize eCommerce Lift & Logistics ROI

Maximize eCommerce Lift & Logistics ROI



Webinar Deck

Webinar Deck
Maximize eCommerce Lift & Logistics ROI
UPS and Bridgeline Digital
Internet Retailer - July 25, 2012



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    Maximize eCommerce Lift & Logistics ROI Maximize eCommerce Lift & Logistics ROI Presentation Transcript

    • MAXIMIZE ECOMMERCE LIFT & LOGISTICS ROIdigital engagement solutions
    • Introduction Speakers Don Davis Alan Amling Brett Zucker • Editor in Chief • VP of Marketing • Chief Technology Officer • Internet Retailer • UPS Global • Bridgeline Digital Logistics & Distributiondigital engagement solutions
    • The Web Outpaces Stores Consumers are shopping and researching more online 20% 15% 10% Total retail 5% E-commerce 0% 9 9 0 0 0 0 1 1 1 1 2 00 00 01 01 01 01 01 01 01 01 01 2 2 2 2 2 2 2 2 2 2 2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -5% -10% Source = U.S. Department of Commercedigital engagement solutions
    • More Growth Ahead U.S. E-Retail sales $400 $350 $300 $250 $200 $150 U.S. E-Retail Sales $100 CAGR=13.3% $50 $0 11 12 13 14 15 16 20 20 20 20 20 Source = eMarketer 20digital engagement solutions
    • And The Web Influences How They Shop in Stores The sale increasingly starts long before they arrive Source = NPD Groupdigital engagement solutions
    • Logistics Matter Barriers to ordering online Source = Alix Partners Home-Delivery Shopping Surveydigital engagement solutions
    • Logistics Matter What consumers want improved Source = comScore, UPSdigital engagement solutions
    • 52% of Online Orders Shipped Free in Q4 2011 Order percentage w/ free shipping – Holiday 2011 v. 2010 70% 60% 50% 40% 30% 2010 20% 2011 10% 0% Source = comScoredigital engagement solutions
    • Logistics Matter In-store pickup of online orders: retailers in IR Top 500 Source = Internet Retailer Top 500 Guidedigital engagement solutions
    • Poll Question How many have an integrated logistics solution? Warehouse Management System (WMS) – ERP Front-end Web – WMS Front-end Web – ERP – WMS I don’t knowdigital engagement solutions
    • Why Is Logistics Important to eCommerce? An Established Logistics Provider Can Offer Key Competitive Advantages FINANCIAL IMPACT SPEED TO MARKET RELIABILITY Convert fixed capital expenses Visibility to data and Improvement in customer into activity based cost product information service and responsiveness Reduction in direct operating Flexibility to expand into Increase in order and expenses new geographic markets inventory accuracy Optimization of transportation Launch new products Increase in on-time network faster shipments Improvement in labor and asset utilizationdigital engagement solutions
    • What Does a Logistics Model Look Like? It’s not a one size fits all answer INBOUND MANAGE OUTBOUND BASIC RETURNS System Integration Inventory Control Order Receipt Returns Receipt Receiving/Put away Inventory Visibility Picking/Replenishing Returns Triage Inbound Value-Added Unique Storage Outbound Value- Returns Disposition Services (VAS) Environments or Added Return to Stock Requirements Services (VAS) Storage – Return Refurbished Data and Physical Shipping Security – Hold for Customer Electronic Shipping or Vendor Billing Confirmation – Returns to Vendor Reporting and Measurement FTZ (Foreign Trade Zone) and Bonded Logistics Enables Your Strategydigital engagement solutions
    • Selecting a Logistics Partner What to Look For Financial Stability Commitment to continuous improvement Business Experience Growth potential Management depth and strength Security Reputation Chemistry and compatibility Strategic Direction Ethics Technology Cost Global Capabilitydigital engagement solutions
    • Use Logistics to Improve Customer Satisfaction Shopping Experience Enhanced by Availability of Free Shipping / Order Delivery Insight Factors Influencing Total Purchasing Experience Free shipping on most items 7 Knowing what day my purchase will be delivered 7 Easy to understand returns process 8 37 Availability of express shipping choices 10 Offers environmentally-responsible products Ability to select a 2-hour delivery window 14 18 Ability to re-route packages to an alternate location while in transit Source = comScore UPS Customer Experience Study, March 2012 Question: Thinking of factors that would influence your total purchasing experience with a retailer, how influential is each of the following factors?digital engagement solutions
    • Customers Want to Know Order Status In Addition to Free Shipping Availability, Timely Arrival of Shipments Would Most Often Encourage Shoppers to Recommend the Online Retailer Recommendation of Online Retailers - Top 4 Factors - “I have told family friends numerous times about free shipping offers.” Source = comScore UPS Customer Experience Study, March 2012 Question: Assuming you are happy with the product you purchased, what service features are most likely to make you recommend an online retailer? Question: Assuming you are happy with the product you purchased, what service features have actually led you to recommend an online retailer?digital engagement solutions
    • Customers Will Make a Bad Experience Known Shipping Costs and Products Arriving Damaged Are Among Top Complaints Leading Online Shoppers to Make a Negative Recommendation Reasons that Would Lead to a Negative Recommendation of the Retailer “If I had [a] really bad experience with a site, I will share with my close family and friends to warn them. It could be anything from a delayed shipment, or broken items, refunds not given or I have to pay for return shipping.” Source = comScore UPS Customer Experience Study, March 2012 Question: What experiences (not including price or the product itself) would most likely lead to a negative recommendation to friends/family?digital engagement solutions
    • Use Logistics as a Way to Close the Sale It’s not just about free shipping 40% of shoppers are willing to pay for shipping to get their products faster 48% of shoppers are NOT willing to wait longer than 5 days for purchase delivery 42% of shoppers will abandon their shopping carts because of delivery time estimates Source = comScore UPS Customer Experience Study, March 2012digital engagement solutions
    • In Fact… Ease of Making Returns/Exchanges More Important to Customer than Free Shipping Higher Importance/Lower Satisfaction Higher Importance/Higher Satisfaction Lower Importance/Lower Satisfaction Lower Importance/Higher Satisfaction Source = comScore UPS Customer Experience Study, March 2012digital engagement solutions
    • Use the Return Process to Your Advantage Logistics are essential for after sale support and returns satisfaction Retail returns have increased 15% between 2011 and 2012 In line with the growth in the direct-to-consumer marketplace Consumers feel strongly about the returns process Rated among the lowest areas of satisfaction in their online shopping experience Rated as a top area where they want to see improvement Turn this into an advantage Less Inventory Better Inventory Management Increased Salesdigital engagement solutions
    • Ways to Support Returns Make it Easy and Watch Customer Satisfaction Increase Make it easy to get a return label Let your customer print return labels directly from the web or include return label in the package Drop off a return at a carrier collection point Driver, authorized shipping outlet, drop boxes and mailbox Instant exchange Fulfill the return while simultaneously delivering a replacement itemdigital engagement solutions
    • Logistics Can Take Your eCommerce Operation Global Growing Your International Customer Base Internationalization opens your store to new marketplaces and populations Consider critical options Support sales in international currencies Handle VAT, regulations, tariffs and fees Accommodate multi-language environment Support foreign shipping address formats Unique storage requirements and regulationsdigital engagement solutions
    • Poll Question What is the current state of your eCommerce platform? Current platform meets our needs Current platform needs enhancement No platform in place Not suredigital engagement solutions
    • eCommerce Requires Two Pieces COMPELLING LOGISTICS ONLINE STORES Digital Strategy Supply Chain Management User Center Design Inventory Management Web Store development Pick, Pack, & Ship Search Engine Optimization Value Added Services World Class eCommerce Platform e.g., Returns and repairs eCommerce Marketing Support Store ready packagingdigital engagement solutions
    • The Lifecycle of an Order Fulfillment: Getting warehoused goods in an Item Master: Total list of ERP: Enterprise Resource Planning is a products in catalogue back-office system to runa box and sent to RMA: Return Merchandise order put in company a customer. available to sell. Stored in operations including customer, order, Authorization is required to iAPPS, Product Information Message sent AKA, Logistics, Third Party Pick Ticket: to a invoicing and potentially product/inventory tell the vendor you’d like to Management systemwarehouse to say what was (PIM) information. Large scales systems such as or return something. order and where to ship it. Logistics, 3PL ERP. Oracle, SAP, etc. Customer Warehouse Warehouse Order Order iAPPS iAPPS Tracking Customer Customer Ships Warehouse Picks, Notifies Placed Stored in Pushes to Pushes to Info Sent to Receives Creates an Goods Receives Packs & iAPPS of Online iAPPS Warehouse ERP iAPPS Order RMA Back to Goods Ships Return Warehousedigital engagement solutions
    • iAPPS and GWS Together ERP GWSdigital engagement solutions
    • iAPPS / WMS Out of the Box Integrationdigital engagement solutions
    • Who is This Solution For? The Total eCommerce Solution from Bridgeline and UPS Was Developed for Retailers: With $5 - $25mm in online revenue ($50mm+ total revenue – 10% online) That are looking for an engaging store, new sales channel or global distribution That values brand and user experience as a differentiator That may require Value Added Services (e.g., labeling, repair) That now have or may have global distribution needs Multi-currency and distributed footprint One seamless, end-to-end solution gives you the best in: • eCommerce technology • Digital strategy know-how • Logistics and fulfillment expertisedigital engagement solutions
    • Case Study Premier Global Manufacturing Brand Challenge Solution The Brand wanted to expand their market share The soon to be launched Total eCommerce in the North American market by revisiting their solution powered by iAPPS with fulfillment by distinctive style and design. Leveraging the UPS is the Brand’s first entry into an online B2C current in-place dealer network, the team was marketplace. tasked to approach this new channel as if it were a brand new storefront. The solution goals are summed up as The end solution will: follows: Improve how the company targets, Build brand awareness communicates, sells, and fulfills product to its Develop an online catalog customer base Support Dealer “Brick-and-Mortar” storefronts Enhance brand awareness Develop infrastructure to Increase online sales of lighting fixtures and support growth and streamline operations decorating accessoriesdigital engagement solutions
    • Q&A Thank you for attending Don Davis Alan Amling Brett Zucker • Editor in Chief • VP of Marketing • Chief Technology Officer • Internet Retailer • UPS Global • Bridgeline Digital Logistics & Distribution iAPPScommerce.com 800.603.9936digital engagement solutions