The document discusses key trends and predictions for ecommerce in 2015, highlighting the impact of mobile technology, the importance of free shipping, and the rise of subscription and curation services. It emphasizes that consumers are becoming smarter shoppers through better research tools and influences from social media, particularly Amazon's dominance in online marketplaces. Finally, it advises new ecommerce startups to focus on niche markets, leverage marketplaces, and continually adapt to evolving technologies and competitor strategies.

1. Where is eCommerce
going?
1
Trends, pitfalls, and where
eCommerce will go in 2015
PRESENTED BY
Grant Morrow
eCommerce
2015

2. 2 Meet me
Grant Morrow
eCommerce Program Manager
Orgill, Inc.
About me: Grant Morrow
Managed hundreds of web and eCommerce implementations, directed eCommerce business
units and logistics operations. MBA from the University of Memphis.
Skill
eCommerce
SEO
Logistics
Business Analytics
experience
10 years working in eCommerce, web development and logistics Currently: eCommerce Program Manager for Orgill, Inc.
Directed eCommerce business units from ground up to profitability Consults with retailers of all sizes at all stages of eCommerce growth cycle

3. 3 Agenda
01 TRENDS OVERVIEW 2015
General eCommerce Trends in 2015
02 MOBILE, MOBILE, MOBILE!
Mobile is affecting everything in eCommerce now
03 SHIPPING
Logistics and how it will change in 2015
DESIGN 04
Responsive design is here, embrace immediately!
PRODUCT MIX, MARKETPLACES
AND SEO 05
What works for overall? What works for startups?
SUMMARY 06
eCommerce in 2015 and beyond

4. 4 eCommerce Trends 2015
Subscription & Curation Services
Continual growth of “boutique in a box”
Amazon Subscribe and Save
Shopping behavior?
Where do users start?
Research
From using mobile to research prices to using Social
Media, Users will be smarter shoppers than ever
Growth
Year over Year
Logistics Choices
What do you users want?
Marketplaces
Amazon, eBay, Sears, Newegg, Walmart.com
Pinterest: New Entrant

5. 5 Total Internet Retail Sales in the U.S.
2012 2013
13%
Year over Year
10%
Of All Retail Purchases
Are now made online
$211B
Total Internet
Retail 2012 $184 Billion
2013 $211 Billion
1Q14 Mobile
11% of all eComm sales
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

6. Logistics Choices
6
93% Take Action for
Free Shipping
The leading action is adding more items to
the cart
83% of Shoppers will wait
2 more days to get free shipping
Delivery Speed is the
4th most important
• 50% of shoppers will choose a slower transit time for free shipping
• 7 Business Days is the average time shoppers are willing to wait
• 50% of shoppers abandoned carts that did not give an estimate on delivery
FREE
SHIPPING
factor
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

7. Marketplaces 7
18%
Retailer
28%
Amazon
10%
Pinterest
Retailers Sites
18% of online shoppers start off on a retailers web site to begin searching.
Importance of brand Loyalty
Amazon Dominance & Business Model Changes
28% of online products searches are on Amazon.com. Amazon has become by far the
largest marketplace, larger than eBay, Sears.com and Walmart.com combined.
Many online retailers have ditched having any website themselves.
Emerging: Pinterest
20% of online shoppers say that Facebook helps influence their decisions. 10% say the
same of Pinterest. Pinterest will be rolling out eCommerce functionality this holiday
season Pinterest being more product focused will move much faster into eCommerce
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

8. 8 Curation & Subscription Services
Curation
Personalization Tactic
Boutique-In-A-Box:
• Trunk Club (Sold to Nordstrom for $350M)
• Birchbox
• ShoeDazzle.com
• Nature Box
Subscription
Order again and save money
• Amazon Subscribe & Save
• Dollar Shave Club (Gillette already has responded)
22% of users
Have already signed up for this type of service
And 47% say they would consider enrolling
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

9. 9 Shopping Behavior
44% Prefer to buy on a desktop or laptop computer
41% Still would prefer to purchase in brick and mortar
store
55%
11%
Regular Online shoppers would prefer
to buy online
Would prefer to buy on a tablet or
Smartphone
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

10. 10 Smarter Shoppers Research More
36%
22%
27%
Price Comparison Shopping
Percentage of shoppers who check prices online while in the
store
Research on Products
Percentage of shoppers who will research a
product on their Smartphone while in store
Reviews
Percentage of shoppers who will read online peer reviews of a product while in
the store
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

11. 11 MOBILE, MOBILE, MOBILE
OMNICHANNEL
Mobile fuels the ability of a retailer to interface
with their customer on a variety formats and
Developed societies now sit within arms reach situations
of the world’s information and almost any
product with a few touches,
24 hours a day.
MARKETING
SMS, Mobile Coupons, Mobile Apps
HUGE GROWTH
Mobile Commerce represents $25 Billion

12. 12 Mobile Activities
22%
65%
Where are we seeing opportunity/growth? Everywhere.
40%
51%
Holiday Shopping
Marketing E-mails
Mobile Coupons
Tablet Purchases
1 in 4 Orders
Last Holiday Season were from mobile
shoppers
Seek Out
Percentage of Mobile users who look
for or redeem mobile coupons.
Have Used Mobile to Purchase
Opened on Mobile
Percentage of where Marketing e-mails 41% Have used their Smartphone
were opened
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

13. 13 Mobile Opportunities
Mobile Coupons
Mobile Coupons are 10X more
likely to be redeemed than
regular coupons
1 in 5 made a purchase
After opening a retailer’s email on their mobile device
6 out of 10 kept Shopping
While using a retailer’s mobile shopping app
Mobile Shopping App
Lowers propensity of users to
leave to “shop around”. 59% of
users say they will generally
stay within the app
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

14. 14 Where are retailers with mobile?
If Not Optimized
38% Say they will not return to
a retailer’s website if it is not
mobile optimized
38% 73%
Image Pictures
43% of shoppers prefer to shop
on a desktop or laptop because
the pictures are still too small
43% 51%
Mobile Optimized
Retailers surveyed who say
they already had or were going
to implement in 2014
Retailers with a mobile app
51% of retailers surveyed
already had a mobile or were
working on implementing one
in 2014
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

15. 15 SHIPPING
UPS/FEDEX RATE CHANGES
UPS and FedEx have moved to recoup money from
shipping large packages
US POSTAL SERVICE
The Postal Service finally moves to packages
FREE SHIPPING
Buyers are less willing to pay shipping

16. 16 UPS/FedEx Dimensional Rate Change
17%
Average
increase
2014 2015
LxWxH
166
DIMENSIONAL WEIGHTING
UPS and FedEx as of 2015 will now rate packages based on
dimensional weight calculations
Source: U”PS plans 4.9% Increase for US, Canada” Wall Street Journal. http://online.wsj.com/articles/ups-plans-4-9-average-price-increase-1413840309
Oct 20, 2014.

17. 17 Industry Overall – US Postal Service
3rd
52%
15%
30%
3%
UPS
FedEx
Postal Svc
Regionals
Market Share of all parcel shipping
Postal Service has
dropped it’s prices on
Priority Mail for
business customers
by up to 58%
Source: “US Mail Cutting Rates to Win eCommerce Business” http://online.wsj.com/articles/u-s-mail-cutting-rates-
to-win-e-commerce-business-1409850185 Wall Street Journal, Sept 4, 2014,

18. 18 Free Shipping Is King
58%
Will wait extra
days for free
shipping
Abandon the cart
after seeing
shipping charges 50%
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2 Days 3 Days 4 Days 5 Days 6 Days 7 Days 8+ Days
Number of Days Consumer is willing to wait
Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
http://thenewlogistics.ups.com/retail/comscorestudy/documents/UPS_comScore_Whitepaper_2014.pdf

19. 19 DESIGN
RESPONSIVE DESIGN
Must be embraced
AVOIDING NAVIGATION BARS
Navigation is getting stale
IMAGES
Bigger is better

20. 20 Responsive Design
01
All elements must
resize
04
All experiences are equal
Assume the User Experience
could happen anywhere
02 “Mobile site”
should not be used
03
Static ideas dead, urge
to control must be eased
Mobile Site
Design
User
Experience
Elements

21. BIG GRID
Examples of what designers are trying to avoid a navigation bar.
Image: http://www.lowes.com Accessed 10/31/14

22. HUGE IMAGE
Examples of what designers are trying to avoid a navigation bar.
Image: http://www.tommybahama.com Accessed 10/31/14

23. 23 SEO, PRODUCT MIX, MARKETPLACES
SEARCH ENGINE OPTIMIZATION
Can control the fate of the entire enterprise
PRODUCT MIX
Shotgun approach doesn’t work at first
MARKETPLACES
Why beat them if you can join them?

24. 24 SEO and Product Mix
VS
SEO Standard Internet Marketing
Best ROI Extremely necessary early on when launching a new
venture, new service, new product offering
SEO is by far the most effective over the long run
Your product mix and offering, combined with how unique your products are will
help drive the ease of your SEO

25. 25 Combine
01 SEARCH ENGINE
OPTIMIZATION
Google shopping feeds, Google stars,
reviews services
02 GOOD PRODUCT
MIX
Analytics and Market Research
03 SUCCESS
Continue to leverage your
good relevancy
Sales Success

26. 26 Marketplaces
02
Business Model
Listing instead of any site
03
Commissions
Razor thin margins
eBay, Sears.com, Walmart.com,
Newegg.com
More channels than ever
Marketplaces have to be leveraged
Pinterest
01
Amazon
Larger than all other marketplaces
combined

27. 27 2015: What should eCommerce startups do?
Ramp
5
4
Launch
Test
3
2
Business
Explore
1 Case
Find niches underserved
Explore what offerings are missing from
certain demographics or traditional
retailers
Test Marketing
Sell some of the products on a trial or
small scale to see how the market
responds. Use Marketplaces
Ramp Marketing
Capacity planning is important, but
ramping the marketing is most
important. Suppliers and Partners can
provide a safety valve
The Business Case
Do you have the logistics or
programming capability to
deliver your goods/service?
Launch selling
Launch your product listings, site
or service

28. 28 SUMMARY
Free shipping is king
Add Shipping into price of products
Constant change
Keep abreast of what competitors do and what changes happen in the market
Mobile is necessary
Mobile technologies will continue to evolve and be used by consumers more and
more, retailers must adapt

29. 29 Contact Info
eCommerce
Social
Media
SEO
Grant Morrow
eCommerce Program Manager
Orgill, Inc.
Consultant, Burning Root
Phone: 618-534-9303
Email: grant@burningroot.com
Twitter: Granto101

30. THANK YOU
Questions?