Omni-Channel Commerce

2,654
-1

Published on

Sucharita Mulpuru, Vice President and Principal Analyst at Forrester Research, is a leading expert on eCommerce, multichannel retail, consumer behavior, and trends in the online shopping space. She led a panel discussion focused on Omni-Channel Commerce at the Internet Retail Expo in February.

Published in: Technology

Omni-Channel Commerce

  1. 1. Omni-Channel Commerce Sucharita Mulpuru, VP & Principal Analyst February 6, 2014 @smulpuru
  2. 2. Consumers shop online for 3 reasons Selection
  3. 3. New eCommerce markets often follow a similar path Source: June 2013 “The Evolution Of Global eCommerce Markets”
  4. 4. Countries are at different phases June 2013 “The Evolution Of Global eCommerce Markets”
  5. 5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5 Omnichannel means different things in different markets Tactics dominating omnichannel investments in the US Endless aisle Ship from store In-store pickup (including ship to store) Inventory visibility across channels Effective Unproven
  6. 6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6 In other markets, omnichannel = everywhere commerce › Mobile › Social › Marketplaces › Cross-border › Payments flexibility
  7. 7. Adoption of mobile phones has exploded globally
  8. 8. Installed base of tablets will grow ~ 10x over the next 5 years
  9. 9. Services must evolve in sophistication Levelofmobilesophistication High Low Evolution of services over time Nothing Multichannel • Migrate services that are frequently used online and are mobile. Consistency Cross- channel • Mobile doesn’t have to be a holistic replacement for other channels or touchpoints. Enhancement Mobile- unique • New products, processes, and services Breakthrough Advanced contextual Simplicity
  10. 10. © 2014 Forrester Research, Inc. Reproduction Prohibited 10 eBay Now is doing this in the US with fast delivery
  11. 11. © 2014 Forrester Research, Inc. Reproduction Prohibited 11 A creative presence on Facebook can help lesser known brands
  12. 12. YouTube is also a powerful social channel
  13. 13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13 Image-based discovery is promising 39% 70% 73% 81% 84% Getting offers from retailers and brands Inspiration on what to buy Entertaining myself Enjoying what others share Discover new products, styles, ideas 26% 17% 61% 72% 24% Base: 4,700 recent online buyers with Facebook accounts Base: 1,200 recent online buyers who have visited Pinterest › Source: Forrester-Bizrate Insights Flash Survey, Q3 2012
  14. 14. © 2014 Forrester Research, Inc. Reproduction Prohibited 14 And these guys may be even better than Pinterest Zoomingo Houzz Glimpse Fancy
  15. 15. This was the innovation that put the wind in Amazon’s sails
  16. 16. Amazon’s marketplace revenue dwarfs its profitability Source: Forrester estimates; GMV=gross merchandise value, the total value paid by shoppers in a transaction $359 $631$467 2005 2011 Global net income Estimated marketplace revenue $4 172 US$MM
  17. 17. Everyone needs a marketplace strategy
  18. 18. That means having a marketplace
  19. 19. © 2014 Forrester Research, Inc. Reproduction Prohibited 19 That also means selling on marketplaces
  20. 20. © 2014 Forrester Research, Inc. Reproduction Prohibited 20 Estimated cross-border route sizes Dyad Estimated size US-UK $15B China-US $10B UK-US $10B US-China $8B US-Canada $5B Germany-US $5B Source: PayPal; Forrester (confidential, unpublished data)
  21. 21. © 2014 Forrester Research, Inc. Reproduction Prohibited 21 Estimated cross-border route sizes (contd.) Dyad Estimated size Germany-UK $5B China-Japan $5B UK-China $3B Australia-US $3B Brazil-US $1B Source: PayPal; Forrester (confidential, unpublished data)
  22. 22. New payment experiments are emerging
  23. 23. © 2014 Forrester Research, Inc. Reproduction Prohibited 23 The fundamentals are important
  24. 24. © 2014 Forrester Research, Inc. Reproduction Prohibited 24 1. Strong product detail pages
  25. 25. 2. Strong web marketing Industry average $100MM+ retailers % retention 22% NA % acquisition 49% NA % to other channel 17% NA % brand awareness 12% NA Email (not prospecting) 17% 18% Paid search 37% 41% SEO 9% 3% Affiliates 13% NA Display advertising 5% 6% Other (CSEs, portals, etc.) 19% 32%
  26. 26. © 2014 Forrester Research, Inc. Reproduction Prohibited 26 3. Transparency in post-purchase
  27. 27. © 2014 Forrester Research, Inc. Reproduction Prohibited 27 Take cues from Amazon › Superior order tracking › Underpromising and overdelivering on deliveries › Prompt and immediate refunds › Easy payments, as few keystrokes as possible › Not necessarily a liberal return policy but money- back guarantee
  28. 28. © 2014 Forrester Research, Inc. Reproduction Prohibited 28 4. Fast site speed
  29. 29. © 2014 Forrester Research, Inc. Reproduction Prohibited 29 Next Steps › Follow Sucharita Mulpuru’s blog › View our Mobile Trends 2014 webinar replay
  30. 30. Thank you Sucharita Mulpuru smulpuru@forrester.com Blog: http://blogs.forrester.com/sucharita_mulpuru @smulpuru
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×