Ecommerce Strategy & Affiliate Marketing | Michael Vorel | Affiliate Summit

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Michael Vorel, CEO of Vastplanet.com on leading Ecommerce Trends, Online Merchants, Conversion Strategies and features high volume affiliate marketing sites. Presentation includes takeaway affiliate marketing strategies and industry trends.

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Ecommerce Strategy & Affiliate Marketing | Michael Vorel | Affiliate Summit

  1. 1. Affiliate Summit West 2010<br />E-Commerce Site Deconstruction: Strategies for Affiliates<br />Michael Vorel<br />CEO, Vastplanet Corporation<br />Twitter @michaelvorel<br />
  2. 2. Who is Michael Vorel?<br /><ul><li> CEO / Founder - Vastplanet Corporation, 1998
  3. 3. Ecommerce Development
  4. 4. Internet Marketing (SEO, PPC, Social Media)
  5. 5. Affiliate Management
  6. 6. Consulting
  7. 7. Affiliate Marketer since 1999
  8. 8. 10 Years experience in computer industry
  9. 9. International product marketing, sales, marketing, purchasing & management</li></li></ul><li>Agenda for Today’s Presentation<br /><ul><li>E-Commerce Today
  10. 10. Why Learn?
  11. 11. Merchant vs. Affiliate Needs
  12. 12. Market Conditions & Trends
  13. 13. E-Commerce Leaders
  14. 14. Conversion Techniques
  15. 15. Affiliate Strategies
  16. 16. Affiliate Examples
  17. 17. Basic & Advanced </li></li></ul><li>Why Learn about E-Commerce?<br /><ul><li>E-Commerce Sites:
  18. 18. Create Consumer / Business Demand
  19. 19. Invest in Conversion & Acquisition Strategies
  20. 20. Understand Shoppers Needs
  21. 21. Promote Best Selling Items
  22. 22. Follow Trends & Economic Conditions
  23. 23. Reward You on Conversion!</li></ul>Understand Merchant = Affiliate Advantage<br />
  24. 24. What do Merchants Want?<br /><ul><li>Customer Acquisition
  25. 25. Conversions
  26. 26. Pay for Performance Model
  27. 27. Reduction of Costs
  28. 28. Margin Preservation
  29. 29. Behavioral Analysis
  30. 30. Ability to Market Directly</li></ul>Image credit – macys.com<br />
  31. 31. What do Affiliates Want?<br /><ul><li>Affiliate Income
  32. 32. High Conversions
  33. 33. Low Risk
  34. 34. Visitor Information
  35. 35. Ability to Remarket</li></ul>Image credit - getentrepreneurial.com<br />
  36. 36. The E-Commerce Flow<br />BUSINESS<br />CONSUMER<br />DIRECT<br />DIRECT<br />EcommerceMerchant<br />Affiliate<br />Affiliate<br />DIRECT<br />DIRECT<br />Search<br />Engines<br />Mobile<br />Other<br />Social Media<br />
  37. 37. Market Conditions 2009 <br /><ul><li> Top 500 Merchants Revenue $115.8B (+11.7%)
  38. 38. Top 100 Merchants Revenue $98.6B (55% of total)
  39. 39. Amazon.com Revenue $19.17B (+29.5%)
  40. 40. Economic Forces
  41. 41. Luxury is Out & Necessity is In (changing)
  42. 42. Winners are investing in Technology
  43. 43. Social Media & Mobile is changing landscape</li></ul>Source: Internet Retailer 2009 Edition<br />
  44. 44. Source: Internet Retailer 2009 Edition<br />
  45. 45. What’s Selling?<br /><ul><li>Categories Rising
  46. 46. Apparel / Accessories
  47. 47. Food / Drug
  48. 48. Health / Beauty
  49. 49. Mass Merchant
  50. 50. Categories In Decline
  51. 51. Teen Clothing & Accessories
  52. 52. Hardware / Home Improvement
  53. 53. Housewares / Home Furnishings
  54. 54. Flowers / Gifts
  55. 55. Toys / Hobbies (rising)</li></li></ul><li>What Categories Lead?<br />Source: Internet Retailer 2009 Edition<br />
  56. 56. Retailer Mix in Top 500<br />Source: Internet Retailer 2009 Edition<br />
  57. 57. Source: Internet Retailer 2009 Edition<br />
  58. 58. Holiday Shopping 2009<br /><ul><li> Heavy Pre-Holiday Offers, Free Shipping
  59. 59. Traffic to Coupon Sites (+76% Nov)
  60. 60. Coupons.com, EverSave.com, RetailMeNot.com
  61. 61. 4 out of 5 online in U.S. visited a retail site (Nov)
  62. 62. $913 million on Tues - Dec 15 (Record)
  63. 63. 9 days this year, consumers spent $800+ Million in day
  64. 64. 48 Days of Online Shopping = $24.8 Billion (+4%)
  65. 65. Largest sales days - midweek (Mon, Tues, Wed, Thu)</li></ul>Data Source – ComScore<br />
  66. 66. Holiday Shopping 2009<br /><ul><li> Toys, Consumer Electronics, Department Stores, each growing more than 30% vs. October 09
  67. 67. Toys Category (+33%)
  68. 68. ToysRUs, LEGO, Disney, American Girl
  69. 69. Consumer Electronics (+32%)
  70. 70. BestBuy, Walmart, RadioShack, eBay, Buy.com
  71. 71. Online Department Stores (+33%)
  72. 72. Walmart, Target, Sears, JCPenny, Macy’s</li></ul>Data Source – ComScore<br />
  73. 73.
  74. 74. Top E-Commerce Trends <br /><ul><li> Personalization
  75. 75. Mobile E-Commerce
  76. 76. Segmentation
  77. 77. Behavioral Profiles
  78. 78. Sharing - Social Media (Facebook, Twitter) 
  79. 79. Building Loyalty
  80. 80. Search
  81. 81. Product Reviews
  82. 82. Product Guides
  83. 83. Video   </li></li></ul><li>Personalization (You, Your)<br /><ul><li> Welcome, Michael Vorel
  84. 84. We have Recommendations for You (behavioral learning)
  85. 85. Your Browsing History (cookies & account registration)
  86. 86. Rate These Items (social media, reason to return)
  87. 87. Remember You Saved these? (wishlist)
  88. 88. Your Communities (social media)
  89. 89. Want to See Today’s Deals? (Conversion)
  90. 90. Individual Treatment Creates Loyalty</li></li></ul><li>
  91. 91. Mobile Trends <br /><ul><li> Personalization
  92. 92. Sync with Account
  93. 93. Payment Integrated
  94. 94. Product Reviews
  95. 95. Select Products
  96. 96. Conversion  </li></li></ul><li>Best Buy Mobile – Now think Affiliate…<br />
  97. 97. Segmentation & Behavioral Profiles<br /><ul><li> Market Individually
  98. 98. Create Email Alerts
  99. 99. Convert Later
  100. 100. Compile Profile
  101. 101. Record Everything
  102. 102. Convert Now</li></li></ul><li>Follow-Up Emails<br /><ul><li> Should be Personalized
  103. 103. Reminds me of purchase
  104. 104. Related Products
  105. 105. Up-Sell
  106. 106. Conversion Alternatives</li></li></ul><li>Sharing is In<br /><ul><li> Email Sharing
  107. 107. Facebook, Twitter, Other
  108. 108. Creates Community
  109. 109. Creates Opportunity
  110. 110. Creates Conversions</li></li></ul><li>Social Media (Facebook 5.5% share)<br /><ul><li> Affiliate Income</li></li></ul><li>Video<br /><ul><li> Video Demos
  111. 111. Video Guides
  112. 112. Live Video</li></li></ul><li>Amazon.com – Conversion Experts<br /><ul><li>2008 Sales of $19.1B (+29.5%)
  113. 113. 275M visitors/mo (56.5m unique)
  114. 114. Converts 3.45%
  115. 115. Avg. Sale $170
  116. 116. Traffic Comes from:
  117. 117. Search Engines (32%)
  118. 118. New Shoppers (30%)
  119. 119. Return Shoppers (70%)</li></li></ul><li>Amazon.com – Formula<br /><ul><li> Low prices + Great Selection
  120. 120. Free Shipping Offers
  121. 121. Amazon Prime (loyalty)
  122. 122. Personalization to the highest degree
  123. 123. Combination of account history and behavioral learning to convert.
  124. 124. Combines multiple merchants</li></li></ul><li>Amazon.com – Related Conversions <br /><ul><li> More Items to Consider
  125. 125. Related to Items You Viewed
  126. 126. Inspired by Browsing History
  127. 127. Additional Items to Explore
  128. 128. Inspired by Your Shopping Trends
  129. 129. Customers with Similar Searches
  130. 130. Your Recent History
  131. 131. Your Recent Searches</li></li></ul><li>Walmart.com<br /><ul><li> Connect With Others Like You
  132. 132. Save Money, Rollbacks
  133. 133. Value of the Day
  134. 134. Ship to Store</li></li></ul><li>Apple.com<br /><ul><li> Visual Sell
  135. 135. Cross Sell, Up-Sell
  136. 136. Stay & Learn
  137. 137. Free Shipping</li></li></ul><li>Charlotte Russe<br /><ul><li> Social Shopping
  138. 138. Visual Shopping
  139. 139. Community
  140. 140. Contests</li></li></ul><li>Affiliate’s Who Understand<br /><ul><li> RetailMeNot.com
  141. 141. Offers.com
  142. 142. CouponCabin.com
  143. 143. eBates.com
  144. 144. CashBaq.com</li></ul>Image - http://blog.nbc.com/ross_blog<br />
  145. 145. RetailMeNot.com<br />
  146. 146. RetailMeNot.com<br /><ul><li> Popular Stores (shows Alternatives)
  147. 147. Today’s Top Coupons (related items)
  148. 148. Share the Love (Social Media)
  149. 149. Win the Gift Card (Email capture)
  150. 150. International Aspect</li></li></ul><li>RetailMeNot.com<br /><ul><li> Excellent Search
  151. 151. Quick Poll (Social Aspect)
  152. 152. Newsletter & Email Alerts
  153. 153. Power Tools to Share</li></li></ul><li>CouponCabin.com<br />
  154. 154. CouponCabin.com<br /><ul><li> Our Favorite Coupons (shows Alternatives)
  155. 155. Social Media Icons (sharing connection)
  156. 156. Most Popular Coupons (community popularity)
  157. 157. Coupons by Email
  158. 158. Live Help (Helping before ecommerce transaction)</li></li></ul><li>Offers.com<br />
  159. 159. Offers.com<br /><ul><li> Integrates Articles (adds value to sales process)
  160. 160. Integrates DataFeed to show Savings (prepares consumer in advance)
  161. 161. Countdown (creates Amazon like experience)
  162. 162. Weekly Newsletter</li></li></ul><li>Offers.com<br /><ul><li> Navigation (with options)
  163. 163. Social Media Icons (sharing connection)
  164. 164. My Offers (Personalization)</li></li></ul><li>eBates.com<br />
  165. 165. eBates.com - different approach<br />
  166. 166. eBates.com<br /><ul><li> Immediate Signup
  167. 167. Rewards Shopper $5
  168. 168. Deals of Week
  169. 169. Featured Stores
  170. 170. Featured Coupons</li></li></ul><li>eBates.com – Signup Email<br /><ul><li> Email Confirmation
  171. 171. Conversion Reminder</li></li></ul><li>CashBaq.com<br /><ul><li> Visual Concept
  172. 172. Shop & Share
  173. 173. Latest Conversations
  174. 174. Rate, Review, Join
  175. 175. Login
  176. 176. Facebook Connect</li></li></ul><li>CashBaq.com<br /><ul><li> Search by Stores, Coupons, Discussions, Deals</li></ul>Cash Back to Consumer<br />
  177. 177. Affiliate Strategies to Implement<br />Basic <br />Advanced<br /><ul><li>Segmentation
  178. 178. Organize Popular Sections
  179. 179. Shadow the Merchant
  180. 180. Integrate Social Media
  181. 181. Add Shopping Guides
  182. 182. Best Sellers
  183. 183. Surveys
  184. 184. Live Help</li></ul>Personalization<br />Account Registration <br />Enhanced Search<br />Mobile Applications<br />Cross Sell & Related<br />Email Alerts<br />Loyalty<br />International<br />
  185. 185. Thank You<br />Michael Vorel<br />Vastplanet Corporation<br />michael@vastplanet.com<br />phone: 813-679-2660<br />twitter @michaelvorel @vastplanet<br />

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