eCommerce Trends 2013 - 2014

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Venture Capital in e-Commerce, Venture Capital – biggest investments , Retail Revolution, Morgan Stanley, Amazon, Blue Nile, eBay, Costco, Macy’s, Nordstrom, Walmart, Williams-Sonoma, Urban Outfitters, Under Armour, ASOS, MercadoLibre, Rakuten, Belle, Intime, Sun Art, E-Commerce startups, Level Money, Routehappy, Uber, Datasift, Clinkle, Flipboard, Oyster, The Lean Startup, Minimum Viable Product, Growth Hacking, Big Data, Personalization,
Dynamic pricing, Predictive analytics, staples.com, SEO, Technical SEO,
Link building, E-Mail Marketing, ROI, customer lifetime value, Content Marketing, HTML5, 3D Printers, Forrester Top Technology Trends, omni-channel, OsCommerce, Volusion, Magento, Shopify, Gartner Magic Quadrant, IBM, Oracle,
hybris, Responsive Web Design, Mobile first, New Business Models, Digital Content, Freemium, acquisition model, Free To Play, Streaming services, Same-day delivery, Amazon, Walmart, Nordstrom, Macy’s, Google, eBay, Buying local, Shutl, Postmates, payment, mPayments, Braintree, NFC, TaskRabbit, David Marcus, PayPal, mCommerce, Showrooming, Best Buy, Bluetooth Low Energy, Apple, Nokia, Internet of Things, Estimote, Bitcoin, Brazil, Russia, India,
China, BRIC, Smartphone penetration, Divante

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  • great insights . do you have any insights in the fmcg category like P&G estore and Uniliver and Coke are also creating stores. Do you see success by these players and why are they doing it. It would be kind and helpful if any insights can be shared. i can be reached at pritpal@vibescom.in and @pritpallakkha
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  • We just expand on New Business Model topic in this article - case study of FMCG eCommerce project, numbers inside! :) http://divanteltd.com/blog/ecommerce-fmcg-online-presence-strategy-balneum-baby-basic/
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  • Thank you Arie! We`re also bullish on dynamic pricing in 2014.
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  • @martammalecka thanks!
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  • One of the greatest summaries 2013, very useful
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eCommerce Trends 2013 - 2014

  1. 1. E-Commerce Trends from 2013 to 2014
  2. 2. eCommerce Buyers in 2013 (in Million) Source: http://www.rishabhsoft.com/blog/e-commercegrowth-statistics-and-forecast eCommerce Buyers by Region 2
  3. 3. Venture Capital in e-Commerce •  2012: –  554 venture capital deals, agregate value of $4.4bn •  2013: –  589 venture capital deals, agregate value of $5.2bn •  The countries that have received the most ecommerce investment during 2013 are: –  USA ($2bn), China ($800mn), India ($680mn). •  75% increase in average deal size, from $6mn in 2012 to $10.5mn in 2013. Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013 3
  4. 4. Venture Capital – biggest investments in their class 360Buy, a Chinese e-commerce firm which offers consumer electronic products, Kingdom Holding Company invested SAR $400mn Zozi, a discount e-Commerce busines, $7.1mn multi-investor deal Fab.com, a homeware ecommerce business, $150mn Series D investment Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013 4
  5. 5. 16 Companies that are leading a Retail Revolution – by Morgan Stanley 1.  2.  3.  4.  5.  6.  7.  8.  9.  Amazon Blue Nile eBay Costco Macy's Nordstrom Walmart WilliamsSonoma Urban Outfitters 10.  11.  12.  13.  14.  15.  16.  Under Armour ASOS MercadoLibre Rakuten Belle Intime Sun Art. MercadoLibre - Largest pure player marketplace in Latin Amerina. www.mercadolibre.com Source: http://www.businessinsider.com/morgan-stanley-best-ecommerce-companies-2013-1? op=1#ixzz2oEvl6Mzg 5
  6. 6. E-Commerce startups to watch •  Level Money https://levelmoney.com/ Personal finance. •  Routehappy https://www.routehappy.com/ Helping travelers compare flights in new ways. •  Uber https://www.uber.com/ They may expand into same-day delivery •  Datasift http://datasift.com/ Process and deliver social data to business •  Clinkle https://www.clinkle.com/ Uses a high-frequency sound to process m-payments. •  Flipboard https://flipboard.com/ They just added shoppable magazines Oyster https:// www.oysterbook s.com/ e-book subscriptions Source: http://mashable.com/2013/12/16/startups-to-watch-in-2014/ 6
  7. 7. The new project methodology: The Lean Startup •  The new project methodology is based on the constant optimization of key project indicators . •  Minimum Viable Product ( MVP). –  Instead of investing in research - just quickly create a simple version of the product and put in to the market. •  You should use techniques such as A / B testing to optimize your ebusiness. Source: http://theleanstartup.com/ 7
  8. 8. Growth Hacking •  Standing in opposition to traditional marketing, growth hacking is gaining popularity. •  Main points of this philosophy are: –  –  –  –  stable growth engine efficiency experimenting instead of planing focusing on sales rather than brand. Source: http://www.amazon.com/Growth-Hacker-Marketing-Advertising-Portfolio-ebook/dp/ B00BPDR3JM http://thedigitalexperiment.wordpress.com/2013/04/12/growth-hacking-2013-hack-to-thefuture-mindset-or-skillset/ 8
  9. 9. Big Data •  •  Reco engines Marketing automation Personalization. Data from multiple touch points can be processed in real-time to offer a personalized experience, including content and promotions. Dynamic pricing This requires gathering data from competitors, on-line and off-line. •  Predictive analytics Big Data is helping retailers predict events before they occur. reMarketing + reco eCommerce & CRM integration Source: http://www.practicalecommerce.com/articles/3960-6-Uses-of-Big-Data-for-Online-Retailers 9
  10. 10. Smarter prices •  Amazon is changing prices of some goods even few times a day. –  In the future, companies will work harder to put on the intelligent control of the price. You can try tools like WisePricer ( https://www.wisepricer.com/amazonrepricer ). •  Some retailers use really complex techniques to set prices. –  For example - their change prices based on your location http://venturebeat.com/2012/12/24/ staples-online-stores-price-changes/. Price differences at staples.com. The dot sizes mark the mean price surplus for the locations, from 0%(small dots) up to 3.9% (large dots). More http://conferences.sigcomm.org/hotnets/2012/papers/ hotnets12-final94.pdf 10
  11. 11. SEO – is it still alive? 1.  Paid is where Google wants to be. 2.  Technical SEO isn’t working anymore. 3.  Building links and social media shares is more expensive than ever. Source: http://wrightimc.com/blog/2013/11/21/ future-seo-complicated-seotrends-2014/ You should consider more traffic sources because Google strategy is “pay per click” and sooner or later – You will pay for all your clicks. The best case scenario is that one source of traffic should not exceed 20-30% of overall traffic of Your site. To do this, you should test marketing tools such as affiliations, RTB, mailings to external databases, building own mailing list, call-center . The ultimate way to stability is building a strong brand. 11
  12. 12. E-Mail Marketing •  Customer acquisition by email marketing has quadrupled over the last 4 years. •  The average customer lifetime value (CLV) of users acquired via email is higher than those coming from social media. •  Email marketing ROI is around 4300% (according to the Direct Marketing Association) http://www.shopify.com/blog/9196929-why-email-marketing-isthe-key-to-ecommerce-success#axzz2oEyzmw3r Source: http://blog.custora.com/2013/06/e-commerce-customer-acquisition-snapshot/ 12
  13. 13. Content Marketing •  In 2014 we will see brands stop talking about 'acting like a publisher' and start actually acting like one. -Justin Pearse, head of marketing at Bite and board member of the British Interactive Media Association Source: http://www.smartinsights.com/ content-management/contentmarketing-strategy/the-contentmarketing-matrix-new-infographic/ Source: http://www.theguardian.com/media-network/media-network-blog/2013/dec/10/expertsdigital-content-trends-2014
  14. 14. Technology •  •  •  •  •  Variety of devices, user contexts, and interaction paradigms. HTML5 and the browser as a mainstream enterprise application development environment. Growth of 3D Printers - 75 percent in the 2014, and 200 percent in 2015. Many firms have cloud strategies and mobile strategies, but the Forrester Top Technology Trends report makes the point that the benefits of the cloud are still limited by old applications. Mobile is becoming only one part of a broader omni-channel approach. Source: http://store.makerbot.com/replicator2 Source: http://www.forbes.com/sites/peterhigh/2013/11/25/forrester-top-technology-trends-for-2014-and-beyond/ , http://www.forbes.com/sites/peterhigh/2013/10/14/gartner-top-10-strategic-technology-trends-for-2014/ 14
  15. 15. eCommerce Platforms Magento OsCommerce Shopify Volusion Source: http://www.google.com/trends •  Magento - stable, scalable, flexible platform - 1 of every 4 online businesses choose Magento. •  Enterprise platforms - Gartner Magic Quadrant for ECommerce - Leaders: IBM, Oracle, hybris 15
  16. 16. Responsive Web Design •  RWD is a standard now. •  Today users prefer to use mobile websites than apps. •  Build an app when you have something extra to offer. •  Mobile first approach is getting popular http://www.lukew.com/resources/ mobile_first.asp. http://global.tommy.com/en Source: http://www.business2community.com/online-marketing/10-awesomeexamples-of-ecommerce-sites-using-responsive-web-design-0465157#!qqdM6 16
  17. 17. New Business Models •  •  •  •  In 2013 we saw a lot of new business models in e-Commerce. One of our clients promotes recipes for homemade cosmetics by content marketing. To each recipe they add set of products (ingredients). Just one click and all these ingredients end up in the cart. Another customer - LOT Airlines, created the duty-free online store . Buy on-line from home and pick up the product on board when you fly. In the coming year FMCG companies will try some new ways of selling on-line. Source: http://airkiosk.lot.com/ 17
  18. 18. Digital Content •  Freemium is main acquisition model in software and content. –  Paywalls doesn't work. •  Free To Play Games are taking over the world. •  Streaming services - new distribution platforms. Source: http://www.siia.net/blog/ index.php/2013/09/10-digitalmedia-trends-you-cant-ignore/ Supercell (Finnish startup) is generating $1 million in gross revenue a day from just 2 games - Hay Day and Clash of Clans. http://www.insidemobileapps.com/2013/01/10/supercellgenerating-1m-a-day/ 18
  19. 19. Same-day delivery •  Amazon, Walmart, Nordstrom, Macy’s, Google, and eBay all launching it already. •  Amazon found that merely displaying an icon touting same-day availability increased conversions by 20 to 25 percent! Source: http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveries-matter/ http://storefrontbacktalk.com/e-commerce/the-amazon-same-day-delivery-mystery-great-conversions-fewactual-users , http://amazon.com, http://www.mypersonalfinancejourney.com/2010/02/review-of-amazon-prime-program.html 19
  20. 20. Same-day delivery To enable quick home deliveries we need to start forecasting what will be ordered by day, what the volumes will be on those days, and where those consumers live; based on the forecast, a routing optimization engine then prebuilds routes for the next day that include inventory locations (stores) and homes. - Victor Allis, the CEO of Quintiq Source: http://www.forbes.com/sites/stevebanker/2013/12/03/same-day-deliveries-by-amazon-drones-ridiculous-whatreally-makes-sense/ 20
  21. 21. Buying local •  Amazon uses huge warehouses that serve a whole metro area to offer same-day delivery. A local retailer might have several stores in a particular city, enabling shorter delivery paths. •  Local stores will bring the web right to where shoppers can psysically touch it. •  Local stores will merge digital with retail to offer a more personalized shopping experience Source: http://www.ibm.com/smarterplanet/us/en/ibm_predictions_for_future/ideas/index.html http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveriesmatter/ 21
  22. 22. Buying local •  Shutl couriers make pointto-point deliveries from a store directly to the customer. •  Approximately 75% of commerce happens within 15 miles of the consumer’s home •  Aquired by eBay in october 2013 Source: http://shutl.com/uk/ 22
  23. 23. Buying local Postmates is a revolutionary same-day urban delivery platform. It enables anyone to ship any product within a city in under one hour. Source: http://postmates.com/ 23
  24. 24. Mobile payments are growing fast. Uber is pushing payment transactions further into the background. The flat fare is deducted automatically. 24 Source: https://www.uber.com/
  25. 25. mPayments •  Now there are many new payment methods. •  Braintree processes about $4 billion in mobile payments annually for Uber, Airbnb, TaskRabbit and others. NFC didn’t solve any real-world problems - says David Marcus, PayPal’s president. Source: http://www.informationweek.in/informationweek/perspective/ 285724/practices-commerce-emerging-markets 25
  26. 26. mCommerce •  Mobile is the only media time that is growing – based on U.S. Consumer Media Consumption Share •  52% of tablet users now say that they prefer to shop using tablet than PC. Top commercial venues where people use their mobile devices: 1.  Retail (31%), 2.  Restaurants&Cafes (19%), 3.  Service (19%), 4.  Financial (15%) Source: BI Intelligence, eMarketer 2013 http://www.supermonitoring.com/blog/2013/09/23/state-of-mobile-2013infographic/#tt 26
  27. 27. Showrooming •  80% of consumers use mobile in-store to enhance the shopping experience. •  Best Buy CEO: „Let's embrace showrooming” –  Plans for that include converting more online and offline shoppers from browsers to buyers through redesigned stores, better trained employees and other incentives like online price matching. –  http://www.cbsnews.com/news/ best-buy-ceo-lets-embraceshowrooming / Source: http://www.supermonitoring.com/blog/2013/09/23/state27 of-mobile-2013-infographic/#tt
  28. 28. On-line – Off-line connection •  Sensor-based analytics and engagement platforms. •  Bluetooth and WiFi give us opportunity to understand how people behave in stores. •  Bluetooth Low Energy is supported by Apple, Google, and Nokia. •  Internet of Things. http://www.mckinsey.com/insights/ high_tech_telecoms_internet/ the_internet_of_things Source: http://estimote.com/ 28
  29. 29. Bitcoin – new possibilities in on-line payments •  Bitcoin allows any bank, business or individual to securely send and receive payments anywhere at any time, with or without a bank account. •  Payments are possible without slow and costly middlemen. •  Can process payments to the scale of a dollar and soon even much smaller amounts. •  Can be used in a new generation of automated services. Source: http://bitcoin.org/en/ , https://bitpay.com/ Over 12,000 businesses and charities accept bitcoin with BitPay. 29
  30. 30. New markets •  BRIC (Brazil, Russia, India and China) is the future of e-Commerce growth. •  The penetration of smartphones and tablets is rapidly increasing in BRIC countries. •  Smartphone penetration: China (59%), India (37%), Brazil (35%), Russia (28%). •  This channel of communication with the potential customer will force retailers to use m-commerce. Source: http://www.informationweek.in/informationweek/perspective/285724/ practices-commerce-emerging-markets?utm_source=referrence_article 30
  31. 31. About Divante •  Full-service e-Commerce Agency. •  Our blog: http://divanteltd.com/blog/ •  Twitter: https://twitter.com/DivanteLtd •  Slideshare: http://www.slideshare.net/ DivanteLtd E-Commerce Case Studies http://www.slideshare.net/divanteltd/ ecommerce-case-studies-numbers-inside 31
  32. 32. Divante Full-service e-Commerce Agency Magento / UX / eMarketing http://divanteltd.com

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