E-Commerce Site Deconstruction: Strategies for Affiliates

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As an e-commerce web developer and affiliate marketer for 11 years, Michael Vorel will deconstruct leading e-commerce web sites to uncover strategies and trends that can be utilized by affiliates.

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E-Commerce Site Deconstruction: Strategies for Affiliates

  1. 1. Affiliate Summit West 2010<br />E-Commerce Site Deconstruction: Strategies for Affiliates<br />Michael Vorel<br />CEO, Vastplanet Corporation<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
  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, Email) 
  79. 79. Building Loyalty
  80. 80. Search
  81. 81. Product Reviews
  82. 82. Video   </li></li></ul><li>Personalization (You, Your)<br /><ul><li> Welcome, Michael Vorel
  83. 83. We have Recommendations for You (behavioral learning)
  84. 84. Your Browsing History (cookies & account registration)
  85. 85. Rate These Items (social media, reason to return)
  86. 86. Remember You Saved these? (wishlist)
  87. 87. Your Communities (social media)
  88. 88. Want to See Today’s Deals? (Conversion)
  89. 89. Individual Treatment Creates Loyalty</li></li></ul><li>
  90. 90. Mobile Trends <br /><ul><li> Personalization
  91. 91. Sync with Account
  92. 92. Payment Integrated
  93. 93. Product Reviews
  94. 94. Select Products
  95. 95. Conversion  </li></li></ul><li>Best Buy Mobile – Now think Affiliate…<br />
  96. 96. Segmentation & Behavioral Profiles<br /><ul><li> Market Individually
  97. 97. Create Email Alerts
  98. 98. Convert Later
  99. 99. Compile Profile
  100. 100. Record Everything
  101. 101. Convert Now</li></li></ul><li>Follow-Up Emails<br /><ul><li> Should be Personalized
  102. 102. Reminds me of purchase
  103. 103. Related Products
  104. 104. Up-Sell
  105. 105. Conversion Alternatives</li></li></ul><li>Sharing is In<br /><ul><li> Email Sharing
  106. 106. Facebook, Twitter, Other
  107. 107. Creates Community
  108. 108. Creates Opportunity
  109. 109. 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
  110. 110. Video Guides
  111. 111. Live Video</li></li></ul><li>Amazon.com – Conversion Experts<br /><ul><li>2008 Sales of $19.1B (+29.5%)
  112. 112. 275M visitors/mo (56.5m unique)
  113. 113. Converts 3.45%
  114. 114. Avg. Sale $170
  115. 115. Traffic Comes from:
  116. 116. Search Engines (32%)
  117. 117. New Shoppers (30%)
  118. 118. Return Shoppers (70%)</li></li></ul><li>Amazon.com – Formula<br /><ul><li> Low prices + Great Selection
  119. 119. Free Shipping Offers
  120. 120. Amazon Prime (loyalty)
  121. 121. Personalization to the highest degree
  122. 122. Combination of account history and behavioral learning to convert
  123. 123. Combines multiple merchants</li></li></ul><li>Amazon.com – Related Conversions <br /><ul><li> More Items to Consider
  124. 124. Related to Items You Viewed
  125. 125. Inspired by Browsing History
  126. 126. Additional Items to Explore
  127. 127. Inspired by Your Shopping Trends
  128. 128. Customers with Similar Searches
  129. 129. Your Recent History
  130. 130. Your Recent Searches</li></li></ul><li>Walmart.com<br /><ul><li> Connect With Others Like You
  131. 131. Save Money, Rollbacks
  132. 132. Value of the Day
  133. 133. Ship to Store</li></li></ul><li>Apple.com<br /><ul><li> Visual Sell
  134. 134. Cross Sell, Up-Sell
  135. 135. Stay & Learn
  136. 136. Free Shipping</li></li></ul><li>Charlotte Russe<br /><ul><li> Social Shopping
  137. 137. Visual Shopping
  138. 138. Community
  139. 139. Contests</li></li></ul><li>Affiliate’s Who Understand<br /><ul><li> RetailMeNot.com
  140. 140. Offers.com
  141. 141. CouponCabin.com
  142. 142. eBates.com
  143. 143. CashBaq.com</li></ul>Image - http://blog.nbc.com/ross_blog<br />
  144. 144. RetailMeNot.com<br />
  145. 145. RetailMeNot.com<br /><ul><li> Popular Stores (shows Alternatives)
  146. 146. Today’s Top Coupons (related items)
  147. 147. Share the Love (Social Media)
  148. 148. Win the Gift Card (Email capture)
  149. 149. International Aspect</li></li></ul><li>RetailMeNot.com<br /><ul><li> Excellent Search
  150. 150. Quick Poll (Social Aspect)
  151. 151. Newsletter & Email Alerts
  152. 152. Power Tools to Share</li></li></ul><li>CouponCabin.com<br />
  153. 153. CouponCabin.com<br /><ul><li> Our Favorite Coupons (shows Alternatives)
  154. 154. Social Media Icons (sharing connection)
  155. 155. Most Popular Coupons (community popularity)
  156. 156. Coupons by Email
  157. 157. Live Help (Helping before ecommerce transaction)</li></li></ul><li>Offers.com<br />
  158. 158. Offers.com<br /><ul><li> Integrates Articles (adds value to sales process)
  159. 159. Integrates DataFeed to show Savings (prepares consumer in advance)
  160. 160. Countdown (creates Amazon like experience)
  161. 161. Weekly Newsletter</li></li></ul><li>Offers.com<br /><ul><li> Navigation (with options)
  162. 162. Social Media Icons (sharing connection)
  163. 163. My Offers (Personalization)</li></li></ul><li>eBates.com<br />
  164. 164. eBates.com - different approach<br />
  165. 165. eBates.com<br /><ul><li> Immediate Signup
  166. 166. Rewards Shopper $5
  167. 167. Deals of Week
  168. 168. Featured Stores
  169. 169. Featured Coupons</li></li></ul><li>eBates.com – Signup Email<br /><ul><li> Email Confirmation
  170. 170. Conversion Reminder</li></li></ul><li>CashBaq.com<br /><ul><li> Visual Concept
  171. 171. Shop & Share
  172. 172. Latest Conversations
  173. 173. Rate, Review, Join
  174. 174. Login
  175. 175. Facebook Connect</li></li></ul><li>CashBaq.com<br /><ul><li> Search by Stores, Coupons, Discussions, Deals</li></ul>Cash Back to Consumer<br />
  176. 176. Affiliate Strategies to Implement<br />Basic <br />Advanced<br /><ul><li>Segmentation
  177. 177. Organize Popular Sections
  178. 178. Shadow the Merchant
  179. 179. Integrate Social Media
  180. 180. Add Shopping Guides
  181. 181. Best Sellers
  182. 182. Surveys
  183. 183. 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 />
  184. 184. Thank You<br />Michael Vorel<br />Vastplanet Corporation<br />michael@vastplanet.com<br />phone: 813-679-2660<br />twitter @michaelvorel<br />

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