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Channel Advisor E Com Expo (28 Oct08)
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Channel Advisor E Com Expo (28 Oct08)

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Channel Advisor E Com Expo (28 Oct08) Channel Advisor E Com Expo (28 Oct08) Presentation Transcript

  • Opportunities for Retailers on Marketplaces & Comparison Shopping Sites London, 28th October 2008
  • “Retailers should expand their use of online marketing tactics on search engines and comparison-shopping sites since shoppers are likely to be researching the Web more thoroughly when deciding on this year's holiday gifts.quot; Patti Freeman Evans Forrester Research Vice President and Research Director 2 CONFIDENTIAL
  • Key Takeaways • A significant % of the internet’s online retail occurs on Marketplaces and Shopping Sites and many retailers are missing out on these transactions. • Over the last 12-18 months, the incumbents have lost market share to new and emerging online shopping destinations, presenting interesting alternative channels for online retailers to consider • Each Shopping Destination has its own nuances, challenges and best practices, for which it is essential for a retailer to understand to be successful. 3 CONFIDENTIAL
  • Who is ChannelAdvisor? • Software and services company, founded in 1999 • Empower retailers to succeed online by managing multiple sales channels from one platform • Work with 5,500 businesses of all sizes, from eBay Powersellers up to Corporate giants • Based in North Carolina, with offices in New York, Atlanta, Limerick, Richmond, Berlin and Melbourne. • Over 280 people employed worldwide • Highly scalable and robust technology, covering marketplaces, search & shopping comparison engines • Over $2.5 billion in transactions processed in 2007 (~1% of NA & EMEA eCommerce) 4 CONFIDENTIAL
  • ChannelAdvisor Complete 5 CONFIDENTIAL
  • Where do buyers start their online search? Online shoppers start their search for products in one of four places. • Marketplaces • eBay • Amazon • Comparison Shopping Engines • Kelkoo, myDeco, Ciao, Shopping.com, Shopzilla, Pricerunner, etc. • Search Engines (Paid & Natural Search) • Google, Yahoo, MSN, Ask • Direct URL navigation 6 CONFIDENTIAL
  • Online Channels Growing in Importance • More consumers shopping online via search, comparison shopping engines, marketplaces. • Today up to 75% of sales for an internet retailer is driven by online channels. • FBR Research based on publicly available Gross Merchandise Volume (GMV) Information. Also corroborated by ChannelAdvisor’s real-world data. 7 CONFIDENTIAL
  • E-Commerce – Large and Growing • Jupiter Research Data US Retail Forecast 11/07 and European Retail Forecast 8/07 8 CONFIDENTIAL
  • UK Online Spending continues to Grow 2005 online spending = £19.2 billion 2006 online spending = £30.2 billion 2007 online spending = £46.6 billion 2010 Forecast = £78.0 billion 9 CONFIDENTIAL
  • Online Channels Growing in Importance • More consumers shopping online via search, comparison shopping engines, marketplaces. • Today up to 75% of sales for an internet retailer is driven by online channels. • FBR Research based on publicly available Gross Merchandise Volume (GMV) Information. Also corroborated by ChannelAdvisor’s real-world data. 10 CONFIDENTIAL
  • eBay eBay GMV Growth vs. E-Commerce Growth Derek Brown, Cantor Fitzgerald 11 CONFIDENTIAL
  • Marketplaces - eBay • eBay has historically been strong for end-of-life or liquidation product • Solve a reverse logistics problem and acquire customers at the same time • Take good care of the newly acquired customers and then make them buy your new product on your other channels • New focus towards fixed price listings 12 CONFIDENTIAL
  • Marketplaces - Amazon Pixmania recently announced its own marketplace 13 CONFIDENTIAL
  • Marketplaces - Amazon • Great for in-season retail product • Increasingly popular marketplace with buyers and sellers • 3rd party sellers now account for over 30% of sales • Launched Merchants@ program in 2006 – massive uptake • Merchants@ is a major growth area for Amazon in 08 and beyond “Amazon strives to be Earth's most customer-centric company where people can find and discover virtually anything they want to buy online. By giving customers more of what they want - low prices, vast selection, and convenience - Amazon.com continues to grow and evolve as a world-class e-commerce platform.” 14 CONFIDENTIAL
  • ...to other Marketplaces Pixmania recently announced its own marketplace 15 CONFIDENTIAL
  • ...to other Marketplaces Pixmania recently announced its own marketplace 16 CONFIDENTIAL
  • Comparison Shopping Engines • You pay for traffic on a per-click basis (called CPC in the industry) • Per-click determined by category and merchant auction • Traffic driven to your e-commerce site for potential conversion £/click 17 CONFIDENTIAL
  • Important CSE datapoints • Forrester – 75% of online shoppers influenced by CSE • ChannelAdvisor – some customers see CSE as large as 40% of GMV • Comscore: January 08 UK: • 33m unique internet users • 17m visited CSEs • 51% reach % CSEs 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 18 CONFIDENTIAL
  • Understanding CSE 1.0 and CSE 2.0 • CSE 1.0 • CSE 2.0 • Vintage <2000 • Vintage >2006 • Product catalog driven • Variety of models to enhance experience/business • Usually heavily electronics oriented • Reviews (Ciao) • CPC • Social (Crowdstorm/Facebook) • Stagnant, little to no changes • Traffic/fun (Jellyfish) since 2006 timeframe • BizModel (CPA – Jellyfish) • Primarily acquire traffic from paid- • Comprehensive search • Vertical orientation (Mobile-phones) • Local (Abcaz) • Integrated checkout (shop.com) 19 CONFIDENTIAL
  • CSE UK Internet Audience Share (Comscore) Rank Comparison Shopping Aug-2007 Sep-2007 Oct-2007 Nov-2007 Dec-2007 Jan-2008 Jan Share 1 36% Shopping.com Sites 7,133 7,146 8,112 7,442 6,867 6,235 2 22% Ciao Sites 3,073 3,111 3,371 3,770 3,435 3,685 3 21% Shopzilla.com Sites 3,412 3,382 3,619 3,770 3,711 3,576 4 20% ValueClick Sites 1,209 1,045 1,928 2,532 3,489 3,436 5 17% Kelkoo Sites 3,903 3,304 3,200 3,592 3,751 2,858 6 13% Shopping.net Ltd 2,130 1,927 2,115 2,046 1,942 2,197 7 12% Nextag.com Sites 1,811 1,731 1,912 2,262 2,408 2,075 8 8% MSN Shopping 1,251 1,185 1,491 1,867 1,659 1,349 9 8% Shop.com Sites 1,414 1,189 1,591 1,486 1,560 1,333 10 8% PriceGrabber 1,230 1,315 1,361 1,602 1,527 1,301 11 7% COMPARESTOREPRICES.CO.UK 1,347 1,206 1,190 1,521 1,298 1,259 12 7% Dooyoo Group 1,281 1,083 1,168 1,097 1,023 1,113 13 6% Google Product Search 757 778 637 710 1,170 1,110 14 6% GOCOMPARE.COM 530 586 593 622 465 979 15 4% Twenga N/A N/A N/A N/A N/A 760 16 4% DoorOne Sites 177 159 281 477 546 741 17 4% Kelkoo Shopping on Yahoo! 494 551 621 729 626 678 18 4% SHOP-FOCUS.COM 1,344 1,143 970 887 606 668 19 4% Yahoo! Shopping 645 596 636 823 786 633 20 3% MOBILE-PHONES.CO.UK N/A 240 439 525 456 512 20 CONFIDENTIAL
  • Google Product Search – free traffic! 21 CONFIDENTIAL
  • Increasing number of new Social Shopping sites 22 CONFIDENTIAL
  • 23 CONFIDENTIAL
  • .....and new niche Shopping sites 24 CONFIDENTIAL
  • Managing Multiple Channels is not easy! 25 CONFIDENTIAL
  • Retail Agility • The dynamic nature of the UK’s ecommerce landscape creates both opportunities and challenges for online retailers • Opportunities • Get your products / brand in front of new buyers that you wouldn’t otherwise reach • Find opportunities to lower customer acquisition cost • Gain competitive advantage by beating your rivals to these new shopping destinations • Challenges • Understanding the different sales venues and developing a strategy for each • Data challenge – each site is different and needs product data in its own format • Ongoing management and integration into existing systems 26 CONFIDENTIAL
  • Key Takeaways • A significant % of the internet’s online retail occurs on Marketplaces and Shopping Sites and many retailers are missing out on these transactions. • Over the last 12-18 months, the incumbents have lost market share to new and emerging online shopping destinations, presenting interesting alternative channels for online retailers to consider • Each Shopping Destination has its own nuances, challenges and best practices, for which it is essential for a retailer to understand to be successful. 27 CONFIDENTIAL