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ChannelAdvisor Holiday E-Commerce Strategy Series: Dominating the 2018 Holiday Season

With deep industry partnerships and longstanding relationships with more than 2,900 online retailers, ChannelAdvisor’s CEO David Spitz and co-founder Scot Wingo have the insights you need to win the season. Watch the full webinar on-demand today for much more!

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A VIEW FROM THE TOP:
DOMINATING THE HOLIDAYS
IN 2018
August, 2018
• The Ghosts of Holidays Past: Get Ready for 2018 – Aug. 1
JONATHAN LAVERENTZ & GREGG SHUPE, ChannelAdvisor
Register or view on-demand
• Unwrapping Marketing Success Just in Time for the Holidays – Aug. 8
LINK WALLS, VP of Digital Marketing Strategy, ChannelAdvisor
Register or view on-demand
• Google Shopping Actions – Aug. 15
STEPHANIE EISELE, Shopping Partners Lead, Google
Register or view on-demand
• Holiday 2018: Planning a Smart Fulfillment Strategy – Aug. 22
DAN COLL, Senior Manager, FedEx Fulfillment, FedEx Supply Chain
Register or view on-demand
• A View From the Top: Dominating the Holidays in 2018 – Aug. 29
DAVID SPITZ, ChannelAdvisor CEO, SCOT WINGO, ChannelAdvisor Co-Founder
Register or view on-demand
2
Watch the Entire Holiday E-Commerce Strategy Series
Copyright 2018 ChannelAdvisor | Confidential
SCOT WINGO
INDUSTRY HOLIDAY GUIDE
Macro Setup Heading Into ‘18
3Copyright 2018 ChannelAdvisor
4
#MALLAGEDDON
Copyright 2018 ChannelAdvisor
5
#MALLAGEDDON
Source: CoreSight Research
Copyright 2018 ChannelAdvisor
• 2017 Recap
• 7,000 store closures
• 3,200 store openings
• 2,800 net fewer stores
• 2018 as of 8/10/18
• 4,379 closures
• 2,239 openings announced (900 – dollar general)
• 2,100 net fewer stores
6Copyright 2018 ChannelAdvisor
Ad

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ChannelAdvisor Holiday E-Commerce Strategy Series: Dominating the 2018 Holiday Season

  • 1. A VIEW FROM THE TOP: DOMINATING THE HOLIDAYS IN 2018 August, 2018
  • 2. • The Ghosts of Holidays Past: Get Ready for 2018 – Aug. 1 JONATHAN LAVERENTZ & GREGG SHUPE, ChannelAdvisor Register or view on-demand • Unwrapping Marketing Success Just in Time for the Holidays – Aug. 8 LINK WALLS, VP of Digital Marketing Strategy, ChannelAdvisor Register or view on-demand • Google Shopping Actions – Aug. 15 STEPHANIE EISELE, Shopping Partners Lead, Google Register or view on-demand • Holiday 2018: Planning a Smart Fulfillment Strategy – Aug. 22 DAN COLL, Senior Manager, FedEx Fulfillment, FedEx Supply Chain Register or view on-demand • A View From the Top: Dominating the Holidays in 2018 – Aug. 29 DAVID SPITZ, ChannelAdvisor CEO, SCOT WINGO, ChannelAdvisor Co-Founder Register or view on-demand 2 Watch the Entire Holiday E-Commerce Strategy Series Copyright 2018 ChannelAdvisor | Confidential
  • 3. SCOT WINGO INDUSTRY HOLIDAY GUIDE Macro Setup Heading Into ‘18 3Copyright 2018 ChannelAdvisor
  • 5. 5 #MALLAGEDDON Source: CoreSight Research Copyright 2018 ChannelAdvisor • 2017 Recap • 7,000 store closures • 3,200 store openings • 2,800 net fewer stores • 2018 as of 8/10/18 • 4,379 closures • 2,239 openings announced (900 – dollar general) • 2,100 net fewer stores
  • 12. 12 Examples: (this week) • Walmart: SSS 4.5% (10yrs) • E-commerce 40% • Target: SSS 6.5% (13yrs) • E-commerce 41% • TJX SSS 6% Copyright 2018 ChannelAdvisor But…Signs we are Bottoming out?
  • 16. 16Copyright 2018 ChannelAdvisor Tight Labor Supply Means… Economy today: • Unemployment down • Salaries rising • Consumer confidence high • Conclusion: • Great setup for Holiday ‘18!
  • 17. 17Copyright 2018 ChannelAdvisor Q2 E-Commerce Grew 15% - vs 16.5% Q4 17
  • 18. 18 Scot’s Magic Snow Globe Copyright 2018 ChannelAdvisor • We have a great “setup” coming into Holiday ‘18 • High CCI, increasing wages • We may be bottoming in #mallageddon • Wingo’s Holiday E-Commerce Growth Prediction: 20-25% • Food for thought: Is US e-commerce only growing 15%, is that possible?
  • 19. 19 Grinch ALERT! • The setup almost feels “too” good (after ~20yrs of scar tissue from the retail world) • What could de-rail us? • Political backdrop (the I word) • Tariffs/trade war • And the biggie for e-commerce, delivery capacity… Copyright 2018 ChannelAdvisor
  • 20. Packages Shipped Growth Rate, 2010-2017 (CAGR) 9.6% 5.4% 3.6% 16.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% USPS FedEx UPS eCom Growth Source: Cowen and Company; Company Reports; FedEx based on fiscal yr; FedEx acquisition of TNT closed in ‘16.
  • 21. DAVID SPITZ CHANNELADVISOR HOLIDAY GUIDE 21Copyright 2018 ChannelAdvisor
  • 22. 22 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first
  • 23. 23 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first Amazon keeps gaining share
  • 24. 24 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first Amazon keeps gaining share 3P also gaining share Source: Amazon.com
  • 25. 25 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first Amazon keeps gaining share 3P also gaining share Promotions happening earlier Retailers Flip on the Switch with Early Holiday Promotions
  • 26. 26 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first Amazon keeps gaining share 3P also gaining share Promotions happening earlier Google Shopping Actions Ad/Marketplace Convergence
  • 27. 27 2018 vs. 2017 – What’s Changed, What’s the Same Copyright 2018 ChannelAdvisor Consumer is mobile first Amazon keeps gaining share 3P also gaining share Promotions happening earlier Google Shopping Actions Amazon Marketing Services Other Revenue at Amazon grew 132% in Q1 2018, primarily advertising revenue
  • 28. 28 David’s Magic Snow Globe Copyright 2018 ChannelAdvisor Expect robust consumer behavior this Q4 based on recent retail performance and consumer sentiment Amazon will continue to gain share, now with over 100m Prime members and the strongest Prime Day performance we’ve seen We think Google Shopping Actions is a major new channel that almost every retailer should adopt ASAP Expect to see other significant marketplaces come online as new entrants seek to replicate Amazon’s success U.S. logistics capacity remains constrained, so plan for higher costs and have contingency plans in place
  • 29. 29 David’s “Nice” List Copyright 2018 ChannelAdvisor Q4 table stakes: operational excellence is key Don’t run out of stock Don’t have shipping snafus! Consider partnering if logistics isn’t your strong suit Get going with AMS and Google Shopping Actions in advance of Q4 Advertising and transactional channels are converging… be good at both! Use data to your advantage, e.g. algorithmic repricer and demand forecaster – we see customers who do grow 2-4x faster
  • 32. • The Ghosts of Holidays Past: Get Ready for 2018 – Aug. 1 JONATHAN LAVERENTZ & GREGG SHUPE, ChannelAdvisor Register or view on-demand • Unwrapping Marketing Success Just in Time for the Holidays – Aug. 8 LINK WALLS, VP of Digital Marketing Strategy, ChannelAdvisor Register or view on-demand • Google Shopping Actions – Aug. 15 STEPHANIE EISELE, Shopping Partners Lead, Google Register or view on-demand • Holiday 2018: Planning a Smart Fulfillment Strategy – Aug. 22 DAN COLL, Senior Manager, FedEx Fulfillment, FedEx Supply Chain Register or view on-demand • A View From the Top: Dominating the Holidays in 2018 – Aug. 29 DAVID SPITZ, ChannelAdvisor CEO, SCOT WINGO, ChannelAdvisor Co-Founder Register or view on-demand 32 Watch the Entire Holiday E-Commerce Strategy Series Copyright 2018 ChannelAdvisor | Confidential

Editor's Notes

  1. 10-15 Min