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WooSesh 2022: Connected Commerce

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Connected Commerce
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WooSesh 2022: Connected Commerce

  1. 1. Connected Commerce: Evolve to multichannel selling Beka Rice
  2. 2. Heya! I'm a product leader at GoDaddy. I work on SkyVerge (Woo extensions) and the GoDaddy Commerce platform + online stores powered by WooCommerce. | | @Beka_Rice
  3. 3. Let’s do this. Single, multi, and omnichannel sales The channels you should know Choosing the right channels How to get started with a new channel
  4. 4. Single vs Multi vs Omnichannel What do these buzzwords even mean?
  5. 5. Channel strategy for retailers Single channel Sales through a single surface, such as a retail location, online store, or marketplace (e.g., Etsy). Multichannel Sales can occur via multiple surfaces, e.g., in person or online, with limited connectivity between channels. Omnichannel Surfaces are interconnected for a seamless customer experience and shared / global data. Single channel Multichannel Omnichannel Connectedness
  6. 6. Single channel retail All sales occur via a single sales surface. Benefits ● Data & sales in a single place — you own it ● Single conversion funnel to track + optimize, w/ clear attribution ● Simplified marketing efforts Trade-offs ● Missed acquisition & sales opportunities ● Optimize for customer preferences
  7. 7. Multichannel retail Sales occur via multiple surfaces (e.g., online and social). Benefits ● Increased revenue via greater discoverability ● Increased conversion by supporting consumer choice ● Buyer trust via increased presence Trade-offs ● Effort to nurture the right channels ● Maintaining data (e.g., inventory) in multiple places ● Channel-specific workflows ● Share data w/ potential competitors (private label)
  8. 8. Omnichannel retail Sales are initiated via multiple surfaces and synced centrally. Benefits ● Same revenue, discovery, trust, and conversion benefits as multichannel ● Data & sales in a single place ● Unified customer experience across surfaces Trade-offs ● Same effort to find & nurture the right channels ● Same risks of private label competition ● Clarity of sales attribution & marketing ROI
  9. 9. “[In 2020] multichannel retailers outperformed their online only counterparts with sales up +53.1% versus +10.1%.” IMRG Capgemini Online Retail Index
  10. 10. The channels to know What’s out there for me?
  11. 11. Leverage a cart and purchasing experience on your website to sell directly to consumers. Over 3 million sites1 use WooCommerce, with 26% share of the top 1 million ecommerce sites. Best for: Most sellers! Build trust via presence, even if you sell primarily in- person. Online store 1 Source: BuiltWith
  12. 12. Retail, brick-and- mortar Sell directly to consumers in-person via a retail location. Leverage a point-of- sale (POS) system to accept payments via card, cash, and tap-to-pay (e.g. Apple Pay). Best for: Apparel, home goods, food services (like bakeries), in-person services, and more.
  13. 13. Leverage in-context checkout on social networks like Facebook, Google, or Instagram. Social networks often allow for product listing or discovery, as well as direct purchasing so customers never leave the context of the social platform to buy from you. Best for: Brands with strong social following or influencer connections, apparel, home goods, etc. Often has restrictions against digital goods, subscriptions, etc. — check terms. Social
  14. 14. Online marketplaces Benefit from captive audience to increase discoverability of your brand. Sell via Amazon, Etsy, Walmart, eBay, and others to offer your products where customers are already shopping. Best for: Depends on the marketplace — e.g., Etsy is best for customizable goods, while Amazon is helpful for physical goods retailers (apparel, home, food, etc).
  15. 15. Other channels Leverage existing “big box” stores (e.g., Target) to sell your products to consumers. Typically requires contract to become a supplier for each brand, and can dramatically impact scale. May come with risks for private label competition. Best for: Brands who can produce inventory at scale (leverage discounted inventory + lower marketing expenses) Distributors Mobile app Create companion applications for mobile that can embed sales for your products (e.g., an app for your website, or a learning app / game that offers your products). Products like AppPresser can assist in creating a mobile app from your website. Best for: Retailers offering non-customizable products, digital goods sellers, e-learning / online services.
  16. 16. Deciding on the right channels Does multichannel make sense? Which channels?
  17. 17. What segment do my best customers fall in? (Based on location, income, age, marketing interactions, etc.) Bonus: Talk to them! Ask where they shop. Deciding on the right channels Customers are key Even products in the same industry from similarly sized sellers may perform differently. (Think: art could be totally custom and do well on Etsy / Ebay, or mass-printed and do well on Amazon.) Let customers be your guide.
  18. 18. How do I get most traffic now? (e.g., search volume, word of mouth, etc.) Can I leverage existing social following or influencer relationships to drive sales on those channels? Deciding on the right channels Reduce your work If you already heavily use specific channels for marketing or customer acquisition, strongly consider enabling retail on those surfaces. You already know the channel, use that knowledge. Use Google without a clear first step.
  19. 19. Is there a standard channel for my industry, where customers expect me to be? Can I optimize inventory costs with scale? Deciding on the right channels Think outside the box Adding channels is only part of your overall retail strategy. Even with lower margins, discoverability, trust, or operational efficiency can be good reasons to consider new channels. Take a holistic business view.
  20. 20. Strongest overall: In person retail In person retail is the top sales driver. Average in-person sales exceed $400k annually (vs ~$100k among online stores) Despite promising projections for online channels, don’t discard in-person retail!
  21. 21. Marketplaces drive eyeballs Amazon, eBay, and Walmart drive almost 4 billion visits per month alone. As marketplaces grow, consumers expect to find their favorite products in those channels. Note: Although Walmart has far lower traffic than Amazon, fewer sellers means each seller has 13x the views in comparison.
  22. 22. U.S. Retail sales by channel • U.S. retail alone exceeds $7 trillion annually. • Ecommerce sales are projected to top $1 trillion in 2022 • Online marketplace and social channel sales are growing steadily • Retail sales are clearly starting to diversify Source: U.S. Census retail reports
  23. 23. Benefits of adding channels I analyzed data from 45k sellers who created websites with us over the past year, and were eligible for our Marketplaces product: ● This data shows multichannel sellers earn 72% more on average compared to web-only. ● Multichannel sellers drive 60% of overall revenue from non-website channels. Monthly revenue
  24. 24. Social presence & sales impact Comparing merchants who use ecommerce- only vs Facebook or Instagram shopping: ● Median monthly revenue is 102% higher than website-only. ● Most sellers (95%) use free offerings or listings (e.g., Facebook Shops). ● Merchants (5%) who use Facebook / Instagram Checkout average 2x revenue per month but more than 5x the median revenue. Facebook and Instagram are key for discoverability, and FB / IG Checkout (U.S. only) can help all eligible sellers. Meta (Facebook, Instagram)
  25. 25. Social presence & sales impact When merchants enable Google shopping, revenue is positively impacted, with 180% increase in median revenue, and 10.3% in average revenue. Substantial change in median revenue shows Google shopping has strong benefit to newer sellers, and overall benefit to almost all sellers. Google
  26. 26. Performance by industry Social & marketplace sales have a positive revenue effect on most industries. • General retailers perform well in most any channel... • as do apparel, hobby, home decor, and software. • B2B goods (business, construction, industrial) perform surprisingly well vs website-only. Industry Social: change in median sales Marketplace: change in median sales Best channels Fashion & apparel 1.8x 1.9x Amazon, Walmart Health & beauty 5x 1.8x Amazon, Walmart Hobby 7x 7x (any - consider Etsy as start) Home decor 2.5x 2.5x Etsy, Amazon, Facebook Health / medical 1.7x 2.5x Amazon (maybe FB but may be prohibited) Art / design 1.5x 1.8x Ebay (consider starting on Etsy) Automotive 4.5x 12x Facebook, Ebay, Amazon Fitness / wellness Loses 10% 1.5x Amazon
  27. 27. Starting sales through a new channel How to evaluate tools and prepare
  28. 28. Evaluate channel fees Protect your profits! Evaluate the costs and fees associated with your top channel choices, and ensure you have margin in your pricing to accommodate them while remaining profitable — the expanded audience from other channels doesn’t come for free!
  29. 29. Create an audience journey Map how your customers will use your targeted channel to learn about your products or purchase them. This will inform your marketing strategy, and you should use it to determine if the available integration plugins / apps will do the job you expect them to. Customer searches for relevant products and compares them on Google Customer sees ad on Instagram for your product / brand Checks out your Facebook page for details Visits website to purchase product Picks up and pays in retail location
  30. 30. Get connected Choose a connector that connects the data from your online store to the new channel. Consider: ● Is the data sync bidirectional? (e.g., pushes updates from WordPress as well as pulling from the channel) ● What types of data are synced — products, orders, inventory? ● Can you fulfill new orders from one place? ● Is there marketing integration, or only sales?
  31. 31. Channel setup ● Determine if you’ll sync all or some inventory ● Set pricing or create adjustments per channel to cover fees - some channels prohibit listing at a lower price elsewhere, be aware of terms!
  32. 32. Finish the journey ● Make sure you meet the mapped audience journey — update existing channels as needed! ● Don’t forget fulfillment: be sure you’re clear on how the package will get to the customer. ● Test purchases as a customer.
  33. 33. Measure your success Make sure you have the analytics to help you evaluate how successful new channels are! Sales by channel, first touch attribution, conversion rates, and other standard online metrics are a great way to see how your expansion is going.
  34. 34. Key takeaways Evaluating & executing on new channels
  35. 35. The multichannel journey Adding new channels is not without risk. ● Can you manage data across channels or lean into full omnichannel? ● Do you have a clear customer journey + marketing plan? ● What is risk of private label competition? Decide if it’s the right time to add channels. Evaluate tradeoffs Identify your top channels Plan your integration Evaluate your success Know your existing and target customers. ● Do they have clear browsing and shopping preferences you can use? ● How adaptable are my tools to the channel? ● Are there other benefits to some channels like inventory cost efficiency? Use industry data, but ultimately find the right channel for your customers and products. Find the right channel connector or app. ● Learn what data is synced, when, and how. ● Make sure you can protect margins after paying channel fees. ● Map the customer journey, including fulfillment. ● Update your marketing plan for the new channel. Take the time to do your research and get the right data sharing and workflows. Measure your sales across channels. ● Attribution and marketing ROI are now harder. Determine how you’ll evaluate “success”. ● Get a unified view of revenue across channels. ● Keep talking to your customers! Learn from the first channel as a model for others.
  36. 36. Thank You. Beka Rice