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Amazon Fashion eCommerce 2013
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Amazon Fashion eCommerce 2013

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  • 1. Moving at the Speed of eCommerce Agility and Innovation in Fashion eCommerce
  • 2. 2(c) 2013 Amazon.com, Inc or its Affiliates 60% Source: http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=1128065 Digital shoppers are expecting more value from their shopping experience… 7% …but only 7% of companies feel their technology is cost-effective in helping them provide that
  • 3. 3(c) 2013 Amazon.com, Inc or its Affiliates Moving at the Speed of eCommerce • Focus on your differentiators. It’s probably not your technology. • Move eCommerce into marketing. Less reliance on IT means greater agility. • Make eCommerce your sandbox. Solve business problems with technology.
  • 4. 4(c) 2013 Amazon.com, Inc or its Affiliates Focus on Your Differentiators Houston-based boutique makers of women’s fitness clothing, yoga wear, and accessories
  • 5. 5(c) 2013 Amazon.com, Inc or its Affiliates Fit Couture: The Issues • Company was growing quickly • eCommerce site was cost- and time-intensive, and unable to scale • Fulfillment processes were becoming inefficient with scale • Could not focus investments on products and marketing to grow the business further
  • 6. 6(c) 2013 Amazon.com, Inc or its Affiliates Fit Couture: Provider Consolidation • Consolidated eCommerce technology and fulfillment with a single eCommerce provider • Selected a platform that gave them integrated payment processing, scalable hosting, and other economies of scale • Were able to cut costs dramatically, and invest in marketing to increase sales
  • 7. 7(c) 2013 Amazon.com, Inc or its Affiliates Michael Cerny Owner, Fit Couture It really got to the point where we had to make some decisions. Where do want to be spending money? Do we want to be spending money on product development? Or do we want to be spending money on machines? And, you know, the machines lost. Focus on Your Differentiators
  • 8. 8(c) 2013 Amazon.com, Inc or its Affiliates Move eCommerce into Marketing Lifestyle apparel brand offering vintage-soft fabrics, one-of-a-kind washes, and hand-detailed designs
  • 9. 9(c) 2013 Amazon.com, Inc or its Affiliates Alternative Apparel: The Issues • Site maintenance required significant time and effort • Launching promotions or site modifications required working through IT • Site updates could take weeks to implement, causing promotions to get out of sync with inventory • Their eCommerce site could not keep up with the pace of marketing needed to succeed
  • 10. 10(c) 2013 Amazon.com, Inc or its Affiliates Alternative Apparel: Giving Control to Marketing • Relaunched eCommerce site on a SaaS-based platform that required less IT involvement • Marketing can launch promotions in minutes or hours, instead of days or weeks • Operating costs are down, and direct-to-consumer sales are up double digits
  • 11. 11(c) 2013 Amazon.com, Inc or its Affiliates Kevin Miles Marketing Operations Manager, Alternative Apparel Marketing can come up with an idea, have the creative team design the images, and get it on the site within hours. We can launch site promotions that can turn on a dime—updating the site so fast wasn’t even an option before. It would have taken weeks. Move eCommerce into Marketing
  • 12. 12(c) 2013 Amazon.com, Inc or its Affiliates Make eCommerce Your Sandbox • More and more, brands are launching multi-site strategies to liquidate inventory and reach new customers • Microsites and specialty sites are allowing them to: • Sell off-price product without diluting the brand or main eCommerce site product offering • Test new products and lines on stand- alone microsites • Target customer segments with a laser focus • Liquidate quickly with flash sales—while maintaining margins and brand control
  • 13. 13(c) 2013 Amazon.com, Inc or its Affiliates Brian Walker, Forrester Today’s multichannel businesses are increasingly multi-site and multi-brand businesses. This trend enables more specific and targeted marketing opportunities for customers…
  • 14. 14(c) 2013 Amazon.com, Inc or its Affiliates Multi-site eCommerce
  • 15. 15(c) 2013 Amazon.com, Inc or its Affiliates • Short-term sales, often 24 hours or several days, designed to move inventory quickly • Liquidate inventory without diluting your main eCommerce site with a clearance or off-price offering • Often on a temporary site for the duration of the sale, to handle the traffic spike and not interrupt operations Case Study: Flash Sales and Seasonal Liquidation
  • 16. 16(c) 2013 Amazon.com, Inc or its Affiliates • Seasonal flash sales • Popular retailer of women’s purses, handbags, and accessories • Very seasonal product offering • Offers quarterly sales through temporary flash sites to liquidate previous season’s inventory • Sales are often 3-5 days, grossing $8mm-$12mm Example: Seasonal Liquidation
  • 17. 17(c) 2013 Amazon.com, Inc or its Affiliates • The online equivalent of brick & mortar outlet stores • Open 24/7 • Off-price inventory to attract the value-conscious consumer Case Study: Online Outlet Stores
  • 18. 18(c) 2013 Amazon.com, Inc or its Affiliates • Offer 30% - 50% off regular store prices • Geared toward clearance & holiday shopping • Wide selection of products with online discounts Example: Marks & Spencer Outlet
  • 19. 19(c) 2013 Amazon.com, Inc or its Affiliates • Broaden offers • Increases relevance and differentiation • SaaS-based platforms allow multi- site management through a single interface • Outsourcing commoditized technology means preserving margins Case Study: Multi-Brand Businesses
  • 20. 20(c) 2013 Amazon.com, Inc or its Affiliates • Owns multiple brands • Fruit of the Loom • Spalding • Russell Athletics • Created multiple brand sites to complement its retail operations • SaaS-based eCommerce technology allows multi- site management from one interface Example: Fruit of the Loom
  • 21. 21(c) 2013 Amazon.com, Inc or its Affiliates • Customer segment specific • Target buyers with specific interests • Specific age groups or demographic • Product specific • Highly focused microsites for product launches and product-specific liquidation • Provides testing ground for forecasting product demand Case Study: Curated Sites
  • 22. 22(c) 2013 Amazon.com, Inc or its Affiliates • Official Sports • A subset of products targeted specifically to sports referees • The Oontz • Product-specific microsite, allowing focused marketing for high-margin or high- priority products Examples: Customer- and Product-Specific
  • 23. 23(c) 2013 Amazon.com, Inc or its Affiliates What’s Right For Your Business? Business Situation eCommerce Strategies Volatile inventory positions Flash sales, online outlet sites Need to target multiple customer segments Curated sale sites, brand-specific sites, line or product micro-sites Highly seasonal products Curated sale sites, flash sales Opportunity for promotions strategy Online outlet sites, less reliance on IT for site maintenance Challenges in demand forecasting Marketing control over promotions, online outlet sites, flash sales
  • 24. 24(c) 2013 Amazon.com, Inc or its Affiliates 6-Step Work Plan Take a page out of Amazon’s book: Start with the customer and work backward. 1. Define a customer segment, either by gut or by data, that is unique and interesting to your business 2. Identify this single customer’s needs, independent of your business competencies 3. Merchandise an eCommerce experience catered to that customer 4. Partition your fulfillment, or have Amazon do it 5. Line up your marketing drivers 6. Press go! Does your existing infrastructure allow you to do this? Can you test a customer experience without over-the-top costs or people hours?
  • 25. 25(c) 2013 Amazon.com, Inc or its Affiliates Keys to Agility • A technology provider strategy that lets you focus on your differentiators • An eCommerce platform that lets marketing control its destiny • An internal organization that can move quickly, enabled by its technology
  • 26. Background Amazon Webstore
  • 27. 27(c) 2013 Amazon.com, Inc or its Affiliates What is Amazon Webstore? Benefits  Your brand, our expertise  Complete, end-to-end eCommerce solution  Fast time to market  No long-term contracts or upfront fees  Scalable infrastructure  Payment processing with world- class Amazon fraud protection and security Amazon Webstore is a complete eCommerce platform allowing businesses to build and operate their own eCommerce site backed by Amazon technology and expertise.
  • 28. 28(c) 2013 Amazon.com, Inc or its Affiliates What Brands Use Amazon Webstore? …and thousands more.
  • 29. 29(c) 2013 Amazon.com, Inc or its Affiliates Amazon Business Community  Businesses are thriving on Amazon technology  More than 2 million businesses worldwide selling products on Amazon.com or having Amazon power their eCommerce website  Now represent 40% of the units sold on Amazon (Q1 2013)  In 2012, third-party selling on Amazon.com grew 40 percent year-over-year during the holiday season  Over 200 million active Amazon customer accounts worldwide
  • 30. 30(c) 2013 Amazon.com, Inc or its Affiliates Amazon Services

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