Business PlanStrategyJohn Debrincat
AgendaBusiness modelsPlan to succeedMissionStrategyTechnologyEngagementStakeholders
Business Models
Web Influencing Off-line Sales80% of all web-influenced sales are done inoffline stores (only 20% actually purchaseonline)...
B2C – Business to ConsumerCompanies sell to consumersRetail pricing gross tax modelPayment and shipping standardBusiness b...
B2B – Business to BusinessCompanies sell to companiesPricing net tax modelPayment and shipping standardBusiness brandingSe...
Multi-Channel Online Retail
Private Shopping NetworksB2C style but social networkfocussedViral marketingNext generationHeavily style orientedSocial co...
M (Mobile) - Commerce42% Annual growth inAustraliaiPhone and other mobile appsSearch, buy and pay from yourphoneAll models...
Source: Perception systems @ visual.ly
F (Facebook) - Commerceor S (Social) - CommerceSocial plug-ins and like orfollow buttonsFacebook Open Graph APIFacebook st...
Channels & PortalsOnline and Off-line sales startwith a searchLooking for more consumercontrolRapid growth ratesGoing (gon...
Micro-sitesFocus on special promotions or periodsSell a specific product or serviceUnique domainTargeted EDM
Cyber Monday (USA)New Year’s SalesClick FrenzyMothers’ DayEOFYFathers’ DayNovember 19th – Click Frenzy DaySocial Media Pro...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
Why Businesses Fail1. Started for the wrong reason2. Poor management3. Insufficient capital4. Wrong geographics or demogra...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
MissionThe description of the businessThe marketing planThe financial management planThe management planexecutive summarys...
What you are sellingHow your product or service will benefit the customerWhich products/ services are in demand; if there ...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
StrategyBusiness & Personal AimsBusiness ObjectivesBusiness ModelTactical DeploymentMarketing Requirements and GoalsConten...
Strategy TasksMake sure you know your marketMulti/Omni-channel: Use a clicks-and-mortar strategy customerengagementIntegra...
Strategy ChecklistBusinessWhat is your business modelWhat kind of resources will you needWhat is the demographic focusWhat...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
Indicative SMB Costs$0.00$20,000.00$40,000.00$60,000.00$80,000.00$100,000.00$120,000.00$140,000.00$160,000.00$180,000.00Mi...
Indicative Enterprise Costs$0.00$500,000.00$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00Multi-Channel ...
NOTE: Indicative costs onlySKUs (less than) 100 500 2,000 10,000Daily Visitors 2,000 10,000 50,000 100,000Software and Mai...
Note: Indicative costs only and vary depending on the businesstype, location, size of facility, cost of salesIndicative to...
Hosted eCommerce comparison$0.00$50.00$100.00$150.00$200.00$250.00$300.00Vendor 1(USA)Vendor 2(Aust)Vendor 3(Aust)Vendor 4...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportStake...
Business / web analyticsAsk for feedbackShopping basket abandonmentFresh contentPlace test ordersMonitorSEO / SEMSearch en...
TRAPSUsing personal email, mobilephone, addresses as contacts onyour storeContact and access informationT’s&C’s and Privac...
Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportConte...
Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportSatis...
Stakeholders - Technology PartnerCompanyPeopleReferencesLocationCommercialsTechnologyReferencesIntegration (Web Services)C...
Stakeholders - Technology PartnerProvide a list of what you wantWeightedStagedReview each requirementAvailable in technolo...
Stakeholders - Technology PartnersMatches requirements to effortClarifies cost / componentComponentsProject ManagementScop...
Stakeholders - Technical PartnersAccess to support and developersStandard price list for servicesHourly / daily ?Methods o...
MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
EngagementMulti-channel
Omni-channel LoyaltyBig dataCustomer centricOperate across multipleoperational “touch” points in thebusinessOpportunities:...
Omni-channel - engageSource: Red Stock Multi-media Retail Sept 2012Philip Clarke, Tescos CEO,:"...we’ve called time on the...
SummaryBig data / channels / mobileUnderstand your business modelChannel integration and systems integrationDevelop a busi...
eCorner eCommerce Strategy 2013
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eCorner eCommerce Strategy 2013

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This presentation covers the various models available for an eCommerce business and also the strategy checklist, technology and anticipated costs.

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Transcript of "eCorner eCommerce Strategy 2013"

  1. 1. Business PlanStrategyJohn Debrincat
  2. 2. AgendaBusiness modelsPlan to succeedMissionStrategyTechnologyEngagementStakeholders
  3. 3. Business Models
  4. 4. Web Influencing Off-line Sales80% of all web-influenced sales are done inoffline stores (only 20% actually purchaseonline)Web-influenced store sales are growing evenfaster than online sales (19% vs. 12% CAGR)53% of all retail sales influenced by the web by2014
  5. 5. B2C – Business to ConsumerCompanies sell to consumersRetail pricing gross tax modelPayment and shipping standardBusiness brandingSearch and buyTraditional retailers – multi-channelMobile is importantSocial media is important
  6. 6. B2B – Business to BusinessCompanies sell to companiesPricing net tax modelPayment and shipping standardBusiness brandingSearch and buyTool for business developmentRegistered customers
  7. 7. Multi-Channel Online Retail
  8. 8. Private Shopping NetworksB2C style but social networkfocussedViral marketingNext generationHeavily style orientedSocial commerceReferral credits
  9. 9. M (Mobile) - Commerce42% Annual growth inAustraliaiPhone and other mobile appsSearch, buy and pay from yourphoneAll models B2B, B2C and C2CPay via phoneSpecial price finders and geosearch for smart phonesQR or Quick Response Code
  10. 10. Source: Perception systems @ visual.ly
  11. 11. F (Facebook) - Commerceor S (Social) - CommerceSocial plug-ins and like orfollow buttonsFacebook Open Graph APIFacebook storeiFrames V Facebook Apps
  12. 12. Channels & PortalsOnline and Off-line sales startwith a searchLooking for more consumercontrolRapid growth ratesGoing (gone) mobileNot always price comparisonbut USP (Unique SalesProposition)Geo-location targeting
  13. 13. Micro-sitesFocus on special promotions or periodsSell a specific product or serviceUnique domainTargeted EDM
  14. 14. Cyber Monday (USA)New Year’s SalesClick FrenzyMothers’ DayEOFYFathers’ DayNovember 19th – Click Frenzy DaySocial Media PromotionsSales & Marketing Event
  15. 15. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  16. 16. Why Businesses Fail1. Started for the wrong reason2. Poor management3. Insufficient capital4. Wrong geographics or demographics5. Poor or no plan or strategy6. Over commit or over expansion7. Poor use of channels8. Lack of controlled execution
  17. 17. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  18. 18. MissionThe description of the businessThe marketing planThe financial management planThe management planexecutive summarysupporting documentsfinancial projections.TIPS Banks will ask for a business plan foran online start-up or to support onlinemerchant account application Business plans identify issuesTRAPSFailure to plan
  19. 19. What you are sellingHow your product or service will benefit the customerWhich products/ services are in demand; if there will be a steady cashflowWhat is different about the product or service your business is offeringUnique sales propositionMissionTIPS SMB focus on the ‘long-tail’ Look for unique products in demand Use your Bricks & Mortar experienceTRAPSTrying to compete solely on priceNo Unique Selling PropositionProducts for sale not available
  20. 20. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  21. 21. StrategyBusiness & Personal AimsBusiness ObjectivesBusiness ModelTactical DeploymentMarketing Requirements and GoalsContent Gathering andManagementFulfilment and LogisticsFinancial Management andPaymentsSocial MediaPlatform & TechnologyMobileMaintenance & ManagementTIPS Socialise the strategy withfriends, colleagues, businessadvisorsTRAPSBuying an online store packageand hosting without a plan andstrategy.
  22. 22. Strategy TasksMake sure you know your marketMulti/Omni-channel: Use a clicks-and-mortar strategy customerengagementIntegrate the shopping experienceHow you will deal withContentPricing & inventoryLogisticsService & supportPayment & refund/returnsSecurityDevelop an easy-to-use purchaseprocessConsider localisation requirementsConsider customer relationshipmanagement and personalisationMake sure that you select ascalable platform or solutionMake sure you have a team in placeMarketing Campaigns andrequirementsIntegrate to externalsystems, suppliers or 3PL
  23. 23. Strategy ChecklistBusinessWhat is your business modelWhat kind of resources will you needWhat is the demographic focusWhat expertise is availableSelf managedNeed assistanceMarket and demographic shifts occurringan ABN/ACN/ABRN ...Tax modelDomain name/sTechnologyBusiness email addressesSSL Certificate (recommended)Merchant account and/or PayPalWhich pricing modelShipping and logisticsDesign and user experienceRequirements for custom developmentMobile and tabletsSearch Engine Optimisation (SEO)Content MarketingSearch Engine Marketing (SEM)Web analyticsWeb-services for integration
  24. 24. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  25. 25. Indicative SMB Costs$0.00$20,000.00$40,000.00$60,000.00$80,000.00$100,000.00$120,000.00$140,000.00$160,000.00$180,000.00Micro (100 SKU) Small retail (500 SKU) Online Retail (2,000 SKU) Multi-Channel (10,000SKU)Operational CostsHuman ResourcesTechnology/Platform
  26. 26. Indicative Enterprise Costs$0.00$500,000.00$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00Multi-Channel Retail(10,000+ SKU)Retail integrated (10,000+SKU)Large Retail integrated(50,000+ SKU)Enterprise (100,000+ SKU)Operational CostsHuman ResourcesTechnology/Platform
  27. 27. NOTE: Indicative costs onlySKUs (less than) 100 500 2,000 10,000Daily Visitors 2,000 10,000 50,000 100,000Software and MaintenanceeCommerce Software $10,000.00 $50,000.00 $100,000.00Reporting / Analytics $1,000.00 $5,000.00 $20,000.00ERP / Warehousing (connectors) $5,000.00 $25,000.00 $50,000.00Total Annual Recurring $0.00 $0.00 $0.00 $0.00 $0.00 $16,000.00 $80,000.00 $170,000.00Annual Recurring CostsDomain name/s $50.00 $50.00 $50.00 $50.00 $100.00 $200.00 $300.00 $400.00Business email addresses $100.00 $100.00 $200.00 $200.00 $200.00 $300.00 $500.00 $1,000.00SSL Certificate / Trust $150.00 $150.00 $150.00 $150.00 $300.00 $500.00 $1,000.00PCI Compliance Costs $600.00 $3,000.00 $10,000.00Total Annual Recurring $150.00 $300.00 $400.00 $400.00 $450.00 $1,400.00 $4,300.00 $12,400.00Monthly Recurring CostsNumber of servers 1.00 2.00 6.00Website package / hosting $80.00 $100.00 $120.00 $250.00 $500.00 $500.00 $1,000.00 $2,000.00SEO Assistance $100.00 $100.00 $200.00 $400.00 $800.00 $2,000.00Social Media Assistance $100.00 $100.00 $200.00 $400.00 $800.00 $2,000.00SEM $100.00 $500.00 $1,000.00 $2,000.00 $3,000.00 $5,000.00 $15,000.00Analytics / Reporting $20.00 $50.00 $50.00 $100.00 $250.00 $500.00Payment / fraud management $250.00 $500.00 $1,000.00Shipping / 3PL $500.00 $1,000.00 $2,000.00Total Monthly Recurring $80.00 $200.00 $840.00 $1,500.00 $2,950.00 $5,150.00 $9,350.00 $24,500.00Total Monthly (12 months) $960.00 $2,400.00 $10,080.00 $18,000.00 $35,400.00 $61,800.00 $112,200.00 $294,000.00Content / Order managementContent 1.00 1.00 2.00 4.00 7.00 7.00 10.00 35.00Order Processing 1.00 1.00 1.00 2.00 4.00 4.00 20.00 40.00Pick, Pack, Ship 1.00 1.00 1.00 2.00 7.00 7.00 20.00 40.00Total Estimated Resources (people) 0.38 0.38 0.50 1.00 2.25 2.25 6.25 14.38One time Costs (Optional)Design $300.00 $600.00 $2,000.00 $4,000.00 $6,000.00 $6,000.00 $10,000.00 $20,000.00Customisation $500.00 $1,000.00 $2,500.00 $5,000.00 $5,000.00 $10,000.00 $30,000.00Integration $500.00 $1,000.00 $2,000.00 $2,000.00 $10,000.00 $30,000.00Total One Time Costs $300.00 $1,100.00 $3,500.00 $7,500.00 $13,000.00 $13,000.00 $30,000.00 $80,000.00Total First Years Cost Estimate $1,410.00 $3,800.00 $13,980.00 $25,900.00 $48,850.00 $92,200.00 $226,500.00 $556,400.00Time to Implementation (weeks) 1.00 1.00 4.00 8.00 8.00 16.00 30.00 40.00Shared Hosted Dedicated HostedHours per DayEnterprise Costs - DedicatedSoftware as a Service / Shared HostedIncluded with SaaS or FreeIncluded with SaaS3rd Party Payment Provider - cost per transaction3rd Party Aggregator - cost per shippment
  28. 28. Note: Indicative costs only and vary depending on the businesstype, location, size of facility, cost of salesIndicative total costSKUs (less than) 100 500 2,000 10,000Daily Visitors 2,000 10,000 50,000 100,000Software and Maintenance $0.00 $0.00 $0.00 $0.00 $0.00 $16,000.00 $80,000.00 $170,000.00Annual Recurring Costs $150.00 $300.00 $400.00 $400.00 $450.00 $1,400.00 $4,300.00 $12,400.00Monthly Recurring Costs (annualised) $960.00 $2,400.00 $10,080.00 $18,000.00 $35,400.00 $61,800.00 $112,200.00 $294,000.00Total Estimated Resources (people) 0.38 0.38 0.50 1.00 2.25 2.25 6.25 14.38Total One Time Costs $300.00 $1,100.00 $3,500.00 $7,500.00 $13,000.00 $13,000.00 $30,000.00 $80,000.00Total First Years Cost Estimate $1,410.00 $3,800.00 $13,980.00 $25,900.00 $48,850.00 $92,200.00 $226,500.00 $556,400.00Time to Implementation (weeks) 1.00 1.00 4.00 8.00 8.00 16.00 30.00 40.00Estimate cost / person $75,000.00 Note: Estimtated cost per person includes oncost and averagedTotal people + oncost $28,125.00 $28,125.00 $37,500.00 $75,000.00 $168,750.00 $168,750.00 $468,750.00 $1,078,125.00Total Platform + people $29,535.00 $31,925.00 $51,480.00 $100,900.00 $217,600.00 $260,950.00 $695,250.00 $1,634,525.00Rent, utilities, operational costs $12,000.00 $24,000.00 $60,000.00 $180,000.00 $240,000.00 $400,000.00 $1,000,000.00Total costs (indicative) $29,535.00 $43,925.00 $75,480.00 $160,900.00 $397,600.00 $500,950.00 $1,095,250.00 $2,634,525.00Software as a Service / Shared Hosted / VPS Enterprise Costs - Dedicated
  29. 29. Hosted eCommerce comparison$0.00$50.00$100.00$150.00$200.00$250.00$300.00Vendor 1(USA)Vendor 2(Aust)Vendor 3(Aust)Vendor 4(Aust)Vendor 5(USA)Vendor 6(USA)Vendor 7(Aust)Vendor 8(USA)Transaction costsPackage costSample Online Business Metrics (AUD$)Orders per month 200Value per order $100Monthly revenue $20,000Number of products 2,000Key Package DifferentiatorsPackage cost per monthTransaction fees on revenueSetup feesNumber of Products allowedNumber of Categories / Pages allowedData Storage allowanceData transfer allowanceData transfer excess feesPCI DSS ComplianceHosting location
  30. 30. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  31. 31. Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportStakeholders - Four Pillars
  32. 32. Business / web analyticsAsk for feedbackShopping basket abandonmentFresh contentPlace test ordersMonitorSEO / SEMSearch engine web master toolGoogle / BingStakeholders - CustomersTIPS Offer promotions to shopperswho give you feedbackTRAPSSet and forget = wasted moneyAvoid ads on online shops e.g.AdsenseUserexperience,interaction& designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportFeedback & Satisfaction
  33. 33. TRAPSUsing personal email, mobilephone, addresses as contacts onyour storeContact and access informationT’s&C’s and Privacy PolicyPayment providerSSL and Site SealsUnencrypted contentHTTP content on HTTPSSocial networks and gadgetsImagesEstablish a fraud checking processUserexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportReturn Buyers and FraudTIPS Check shopping cart pages afterany content change 1300, business email, PO Box Add a copyright statementStakeholders - Customers
  34. 34. Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportContent is KingKeep promotions freshNewsletters with coupons and offersSubscribe / unsubscribeSpam lawsShipping as a competitive advantageFree shippingOver $x – free shipping etcSocial networks and communicateFacebook / Twitter / Forum / Blogs / YouTubeTIPS Setup connected social networks sothat one update goes to allTRAPSBuying email lists and sending outnewsletters = spamCopying images and other contentfrom competitorsStakeholders - Content & Brands
  35. 35. Userexperience, interaction &designTrust &securityMarketing, sales & uniquesellingpropositionCustomerservice &supportSatisfied Customers ReturnMy Account (registered)Deliver the purchase quicklyParcel trackingCommunicate / Follow-up / FeedbackAccess to service & supportBusiness eMailPhone (1300 / 1800)Support forumLive chatIn storeTIPS Use answering service Don’t display live chat ifunattendedTRAPSUsing personal contact pointsfor customer supportStakeholders - Customer Service
  36. 36. Stakeholders - Technology PartnerCompanyPeopleReferencesLocationCommercialsTechnologyReferencesIntegration (Web Services)Cross browser/platformInfrastructureLocationTIPS Talk to references Check insurance –professional and productliabilityTRAPSNot knowing where the workis being done
  37. 37. Stakeholders - Technology PartnerProvide a list of what you wantWeightedStagedReview each requirementAvailable in technologyCustom developmentNot possible / not recommendedThird party product inclusionsTIPS Ask suppliers whatrequirements are missingTRAPSSupplier defines therequirementsRequirements definition
  38. 38. Stakeholders - Technology PartnersMatches requirements to effortClarifies cost / componentComponentsProject ManagementScopingAnalysis & designWebsite design / integrationCustom developmentImplementationTestingTrainingDocumentationHandoverWarrantyTIPS Ask for effort based on eachrequirement where custom /implementation requiredTRAPSNo breakdown of effortprovidedStatement of work
  39. 39. Stakeholders - Technical PartnersAccess to support and developersStandard price list for servicesHourly / daily ?Methods of accesseMail / phoneSupport forumKnowledge baseTIPS Get to know your supportand ask for a direct contactTRAPSNo personal support accessTechnical Support
  40. 40. MissionStrategyTechnologyStakeholdersEngagementBusinessPlan &Strategy
  41. 41. EngagementMulti-channel
  42. 42. Omni-channel LoyaltyBig dataCustomer centricOperate across multipleoperational “touch” points in thebusinessOpportunities:e.g. Click and collectEngagement - Customers
  43. 43. Omni-channel - engageSource: Red Stock Multi-media Retail Sept 2012Philip Clarke, Tescos CEO,:"...we’ve called time on theold retail space race.We’ve recently opened our1,000th click and collectcollection point..."Engagement - Customers
  44. 44. SummaryBig data / channels / mobileUnderstand your business modelChannel integration and systems integrationDevelop a business planDevelop an eCommerce StrategyChoose the right technologyTIPS Ask questions Buy from a few competitors Use clicks & mortar Set and manage the budget Review oftenTRAPSLack of well sourced productsSpending too much up frontNot setting a budgetCopying an existing business

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