This document summarizes a presentation about online marketplaces like eBay and Amazon. It discusses how marketplaces have moved online and grown tremendously in size and sales volume. Key points include:
- eBay and Amazon each have over 100 million active users who are spending large amounts. Items sell on Amazon every few seconds.
- Marketplaces allow small businesses to access thousands of buyers and enable instant transactions and payments. They offer transparency and convenience for customers.
- While marketplaces provide huge opportunities, sellers need to start small and use software to manage operations at scale. Costs are low to get started but it requires work.
- The presenter encourages attendees to start selling on marketplaces like eBay and Amazon
2. One Goal
When you leave this room I want you to be thinking…
“I must do marketplaces
right now”
3. Do you want access to
X 3000 buyers
+ Ability to pay
Today?
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. 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. 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”
14. 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.
28. 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
30. 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
31. Amazon
Amazon sold over $1B paid items for the first time
in a quarter in Q4 2012
• That's 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
32. What do customers want?
• Confidence
• Selection
• Safety
• Convenience
• Ease of use
• Buy anything, anywhere, anytime
35. 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
37. The Growth of eBay
16% GMV
12% Users
Source: seekingalpha.com
38. The Growth of Amazon
Amazon Metrics Q4 Comparisons
Amazon Metrics Q4 - 2011 Q4 - 2012
Active customer accounts 164 million (up 26%) 200 million (up 22%)
Worldwide active seller accounts 2+ million 2+ million
Seller units as a percentage of
total 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 billion
Source: eCommerceBytes.com
39. How Many?
eBay say there are 190,000 registered businesses in
the UK
When I checked last year there were
+400,000
eBay UK shops
40. 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
41. 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”
42. Openness & clarity
People think they're going to get ripped off online
But the reality is…
It’s the other way around
46. 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
47. Cost per sale model
Unlike other forms of marketing such as PPC
Marketplaces are CPA
You pay the majority of the fees when you
Make a sale
48. How much?
Insertion Fees
• eBay 20p to Free
• Amazon £25 per month
Final Value Fees
• eBay 5% to 12% + PayPal fees
• Amazon 7% to 35% - Most goods 15%
49. 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
50. 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
54. And the best thing is…
YOU CAN
have some of this pie too
55. Top tips to getting started
1. Start small
2. Look & learn from other businesses
3. Ask when you have questions
4. You don’t need a “designed” eBay shop
5. If you have large amounts of inventory see #1
6. Do not buy any eBooks they’re all ……….
58. 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