How Multichannel eCommerce Can Transform Your 2013

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So How Can Multi-Channel Transform Your 2013?

This is the slide deck from the Brightpearl commerce acceleration 101 session held at the SS Great Britain on 7th February 2013.

Presented by Matthew Ogborne from http://lastdropofink.co.uk/

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How Multichannel eCommerce Can Transform Your 2013

  1. 1. How MultichannelCan Transform Your 2013 Matthew Ogborne
  2. 2. One GoalWhen you leave this room I want you to be thinking…“I must do marketplaces right now”
  3. 3. Do you want access to X 3000 buyers + Ability to pay Today?
  4. 4. What we’ll be covering• Sharing my passion for online marketplaces• Showing what has happened to markets• Correcting a few misconceptions• Opening your eyes up to the potential• Comparing the differences• Apple pie• Your questions
  5. 5. Who am I & What do I do?“I solve other peoples eCommerce problems” • 3 years running my own marketplace business • 5 years with multi-channel software companies Best of all I get to work with the cool people YOU
  6. 6. What is a Marketplace?• An open space where a market is or was formerly held in a town.• An open place where people meet and trade• All that has happened is that marketplaces have moved “online”
  7. 7. Where did these marketplaces go to?
  8. 8. If you think… = =
  9. 9. You’re Wrong….
  10. 10. So Wrong…
  11. 11. Are these brands for a carboot sale?• Armani • Karen Millen• FCUK • Lacoste• Bench • Louis Vuitton• Burberry • Miss Sixty• Chanel • Monsoon• D&G • Next• Diesel • Nike• Dior • Prada• DKNY • River Island• Gucci • Chanel
  12. 12. And do these look like small players?
  13. 13. eBay fashion outlet• Only started in April 2010• There are over 600,000 consumer sellers and 40,000 businesses within the fashion category• The number of shoppers has more than doubled in two years• Over 4.5 million shoppers visit the fashion category every month.
  14. 14. Auctions, what auctions?68 % of all eBay sales are INSTANT
  15. 15. Amazon?100 % of all sales are INSTANT
  16. 16. How Fast?
  17. 17. A pair of shoes sold every 3 seconds
  18. 18. Women’s accessories sold every 4 seconds
  19. 19. A womans dress sold every 5 seconds
  20. 20. A pair of women’s jeans sold every 18 seconds
  21. 21. A pair of men’s sunglasses sold every 20 seconds
  22. 22. A video game system sold every 20 seconds (Including the best games system created the Commodore 64)
  23. 23. A GPS Device sold every minute
  24. 24. An Apple Laptop or Notebook sold every 2 mins
  25. 25. An iPad sold every 2 minutes
  26. 26. A major appliance sold every 37 seconds
  27. 27. The Reach of eBay & Amazon• eBay reported 108M active users in Q3 2012• Amazon 200M active users in Q4 2012• eBay is predicting $13B via a mobile in 2013• Amazon increased net sales 22% to $21B• Expanding into Europe = 180M buyers way beyond a normal market place
  28. 28. X 3000 full of buyers
  29. 29. 40% of department store visits Department Store Sites Place in Hot Shops top 50 Amazon UK 1 Argos 3 Next 4 Amazon.com 5 Your M&S 6 Tesco 7 John Lewis 8 Debenhams 10 Tesco Direct 13 ASDA Direct 15 November 2012
  30. 30. Amazon Amazon sold over $1B paid items for the first time in a quarter in Q4 2012 • Thats 126 items sold a second • OR 7,548 items sold a minute • OR 452,899 items sold an hour Think about that… 10.8M items sold a day during Q4 2012.Source: Scot Wingo, ChannelAdvisor
  31. 31. What do customers want?• Confidence• Selection• Safety• Convenience• Ease of use• Buy anything, anywhere, anytime
  32. 32. They want their order delivered Tomorrow
  33. 33. Credit Card Warriors• These are not pseudo Twitter or Facebook users• Real people in buying mode• Most with linked payment accounts to facilitate a transaction• Make no mistake they will use them They are using them
  34. 34. That’s acredit card
  35. 35. The Growth of eBay 16% GMV 12% UsersSource: seekingalpha.com
  36. 36. The Growth of Amazon Amazon Metrics Q4 ComparisonsAmazon Metrics Q4 - 2011 Q4 - 2012Active customer accounts 164 million (up 26%) 200 million (up 22%)Worldwide active seller accounts 2+ million 2+ millionSeller units as a percentage oftotal units 36% 39%Worldwide unit growth 46% 32%Third-party sellers unit growth 65% over 40%Net Sales Increased 35% to $17.43 billion Increased 22% to $21.268 billionSource: eCommerceBytes.com
  37. 37. How Many?eBay say there are 190,000 registered businesses in the UKWhen I checked last year there were +400,000 eBay UK shops
  38. 38. The difference between eBay & Amazon• eBay is purely a marketplace• Amazon has a marketplace that accompanies their core business• Payment fees (PayPal) are on top of eBay Fees• Amazon fees include a payment processing fee
  39. 39. The difference between eBay & Amazon“When some buys from eBay they buy from a seller on eBay”“When some buys on Amazon, they buy from Amazon”
  40. 40. Openness & clarityPeople think theyre going to get ripped off onlineBut the reality is… It’s the other way around
  41. 41. Transparent feedback systems
  42. 42. Everything is open
  43. 43. Even on Amazon
  44. 44. What businesses are doing right now• One UK Fashion Retailer did £4M in Dec 12• In 2008 four eBay.com accounts reached 1M feedback• In late 2011 the first EU eBay account hit 1M feedback• In June 2012 the UK’s first account reached 1M feedback• 2 Weeks ago, the UK had their 2nd 1M account feedback
  45. 45. Cost per sale modelUnlike other forms of marketing such as PPC Marketplaces are CPA You pay the majority of the fees when you Make a sale
  46. 46. How much?Insertion Fees• eBay 20p to Free• Amazon £25 per monthFinal Value Fees• eBay 5% to 12% + PayPal fees• Amazon 7% to 35% - Most goods 15%
  47. 47. Fulfilment by Amazon• They’ll pick & pack your orders for you• Access to “Amazon Prime” buyers• They’ll do the customer services & returns• Fulfil into Europe• You can make more wonga
  48. 48. The role of software• Keep your sanity• Automate tasks• Control product & stock data• Manage orders at scale• Personalise the process with documents• Grow and not worry about the small stuff
  49. 49. Barrier to entryIs LOW
  50. 50. The potential isGlobal
  51. 51. Notice that I didn’t say it was EASY
  52. 52. And the best thing is… YOU CAN have some of this pie too
  53. 53. Top tips to getting started1. Start small2. Look & learn from other businesses3. Ask when you have questions4. You don’t need a “designed” eBay shop5. If you have large amounts of inventory see #16. Do not buy any eBooks they’re all ……….
  54. 54. Where to start?eBay.co.uk/sell
  55. 55. Where to start?services.amazon.co.uk
  56. 56. Marketplaces• Customers are already there in their squillions• They’re spending bucket loads of cash• The potential is massive• The potential is global• Best of all…The game has only just begun
  57. 57. WHERE ARE YOU?
  58. 58. Question & AnswersOver to You!@MatthewOgborne / LastDropofInk.co.uk

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