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Understanding the
eCommerce
Opportunity
Hayden Sutherland
October 2013

© Ideal Interface Ltd
Introduction
Who am I ?

Hayden Sutherland
Founder and lead consultant at Ideal Interface
A strategic digital and eCommerce consultancy
Based in Glasgow
Twitter: @haydens30
Blog: http://press20.blogspot.co.uk

© Ideal Interface Ltd
Introduction
Some of our clients

© Ideal Interface Ltd
The Digital Economy
Think Big. Think Global

• Two billion people are now connected to the
Internet.
• Almost $8 trillion changes hands each year
through eCommerce.
• In some developed markets, about twothirds of all businesses have a Web presence
of some kind and one-third of small &
medium-sized businesses extensively use
Web technologies.

© Ideal Interface Ltd
eCommerce
Definition time

• Definitions of what eCommerce actually is differ.
• “The buying and selling of products or services
conducted over electronic systems such as the
Internet (and other computer networks)”
Wikipedia
• It’s not just…
• B2C: Business to Consumer
• B2B: Business to Business
• And.. System to System

© Ideal Interface Ltd
Population & Internet Penetration
Population
2012
Penetration
2012

© Ideal Interface Ltd
Population & Internet Penetration
Population
2012
Penetration
2012

North America
80% penetration
281M online users

© Ideal Interface Ltd
Population & Internet Penetration
Population
2012
Penetration
2012

© Ideal Interface Ltd

South America & Caribbean
40% penetration
244M online users
Population & Internet Penetration
Population
2012
Penetration
2012

Middle East & Africa
20% penetration
263M online users
© Ideal Interface Ltd
Population & Internet Penetration
Population
2012

c

Penetration
2012

Europe
62% penetration
503M online users
© Ideal Interface Ltd
Population & Internet Penetration
Population
2012
Penetration
2012

Asia & Oceania
29% penetration
1,133M online users
© Ideal Interface Ltd
Online Spend
UK
$49 Billion
USA
$226 Billion

Mexico
$1.7 Billion

Japan
$64 Billion

Brazil
$12 Billion

China
$169 Billion

Argentina
$1.9 Billion
© Ideal Interface Ltd

Germany
$32 Billion

India
$1.6 Billion
eCommerce
Adoption
Path

Phase 1

Email
Social Networks
© Ideal Interface Ltd

Phase 2

Online Banking
Travel

Phase 3

Online retail
Tech & Books

Phase 4

Online retail
Fashion & Food
eCommerce
Adoption
Path

Phase 1

Phase 2

Phase 3

Phase 4

UK

Markets are maturing

India

USA
Brazil

Indonesia

Email
Social Networks
© Ideal Interface Ltd

Online Banking
Travel

China

Online retail
Tech & Books

Online retail
Fashion & Food
But forget about
International eCommerce…
… if you can’t get the basics right at home
first

© Ideal Interface Ltd
The basics
•
•
•
•
•
•
•

© Ideal Interface Ltd

Merchandising & catalogue management
Payment & security
Fulfilment & returns
Customer Service
Marketing
User Experience & conversion optimisation
Analytics
Analytics
• Stand up please
• Stay standing if you currently have an
eCommerce site
• Stay standing if you are using web analytics
• Stay standing if you use it to get regular
KPI’s (visits)
• Stay standing if you have ‘goals’ set up on
your site
• Stay standing if you are measuring
eCommerce values
• All of this is free!
© Ideal Interface Ltd
New
models
New
markets

© Ideal Interface Ltd

• It’s not just about replicating your shop or
catalogue
• You have less physical and product restrictions
online
• Combine different approaches to find what
works
• It’s far easier to test & learn online
eCommerce
Isn’t just for
the big boys
Biccies.com

© Ideal Interface Ltd
eCommerce
Isn’t just for
the big boys
Biccies.com

© Ideal Interface Ltd

• Started by a local cake shop owner
• Identified an opportunity for biscuits as
presents and corporate gifts
• Uses postal service for fulfilment
• Opportunity to franchise & scale the business
eCommerc
e:
The ability
to create a
business
askherfriends.com

© Ideal Interface Ltd
eCommerc
e:
The ability
to create a
business
askherfriends.com

© Ideal Interface Ltd
eCommerc
e:
The ability
to create a
business
askherfriends.com

© Ideal Interface Ltd

• Combines eCommerce with Social Media &
email
• Builds up recommendations from friends &
family
• Doesn’t actually transact online, acts as an
affiliate
eCommerc
e:
The ability
to transform
an industry
uber.com

© Ideal Interface Ltd
eCommerc
e:
The ability
to transform
an industry
uber.com

© Ideal Interface Ltd
eCommerc
e:
The ability
to transform
an industry
uber.com

© Ideal Interface Ltd

• Disrupting the taxi market in 20+ cities
worldwide
• Combines location-based app & eCommerce
• Uses familiar (Amazon.com) features:
• Cashless payments (billed to credit card)
• Ability to ‘rate your driver’
• Founded in 2009
• Now currently valued at $3bn+
In Short
•
•
•
•
•
•

© Ideal Interface Ltd

There is still a huge opportunity
The UK is one of the most mature markets
Consider the local vs. international opportunity
Measure everything
Online practices don’t have to replicate offline
Make £Billions!
My Contact Details
• Hayden Sutherland
• hayden@idealinterface.co.uk
• www.idealinterface.co.uk
• @haydens30
• 0780 1341955

© Ideal Interface Ltd

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Understanding the eCommerce Opportunity

  • 2. Introduction Who am I ? Hayden Sutherland Founder and lead consultant at Ideal Interface A strategic digital and eCommerce consultancy Based in Glasgow Twitter: @haydens30 Blog: http://press20.blogspot.co.uk © Ideal Interface Ltd
  • 3. Introduction Some of our clients © Ideal Interface Ltd
  • 4. The Digital Economy Think Big. Think Global • Two billion people are now connected to the Internet. • Almost $8 trillion changes hands each year through eCommerce. • In some developed markets, about twothirds of all businesses have a Web presence of some kind and one-third of small & medium-sized businesses extensively use Web technologies. © Ideal Interface Ltd
  • 5. eCommerce Definition time • Definitions of what eCommerce actually is differ. • “The buying and selling of products or services conducted over electronic systems such as the Internet (and other computer networks)” Wikipedia • It’s not just… • B2C: Business to Consumer • B2B: Business to Business • And.. System to System © Ideal Interface Ltd
  • 6. Population & Internet Penetration Population 2012 Penetration 2012 © Ideal Interface Ltd
  • 7. Population & Internet Penetration Population 2012 Penetration 2012 North America 80% penetration 281M online users © Ideal Interface Ltd
  • 8. Population & Internet Penetration Population 2012 Penetration 2012 © Ideal Interface Ltd South America & Caribbean 40% penetration 244M online users
  • 9. Population & Internet Penetration Population 2012 Penetration 2012 Middle East & Africa 20% penetration 263M online users © Ideal Interface Ltd
  • 10. Population & Internet Penetration Population 2012 c Penetration 2012 Europe 62% penetration 503M online users © Ideal Interface Ltd
  • 11. Population & Internet Penetration Population 2012 Penetration 2012 Asia & Oceania 29% penetration 1,133M online users © Ideal Interface Ltd
  • 12. Online Spend UK $49 Billion USA $226 Billion Mexico $1.7 Billion Japan $64 Billion Brazil $12 Billion China $169 Billion Argentina $1.9 Billion © Ideal Interface Ltd Germany $32 Billion India $1.6 Billion
  • 13. eCommerce Adoption Path Phase 1 Email Social Networks © Ideal Interface Ltd Phase 2 Online Banking Travel Phase 3 Online retail Tech & Books Phase 4 Online retail Fashion & Food
  • 14. eCommerce Adoption Path Phase 1 Phase 2 Phase 3 Phase 4 UK Markets are maturing India USA Brazil Indonesia Email Social Networks © Ideal Interface Ltd Online Banking Travel China Online retail Tech & Books Online retail Fashion & Food
  • 15. But forget about International eCommerce… … if you can’t get the basics right at home first © Ideal Interface Ltd
  • 16. The basics • • • • • • • © Ideal Interface Ltd Merchandising & catalogue management Payment & security Fulfilment & returns Customer Service Marketing User Experience & conversion optimisation Analytics
  • 17. Analytics • Stand up please • Stay standing if you currently have an eCommerce site • Stay standing if you are using web analytics • Stay standing if you use it to get regular KPI’s (visits) • Stay standing if you have ‘goals’ set up on your site • Stay standing if you are measuring eCommerce values • All of this is free! © Ideal Interface Ltd
  • 18. New models New markets © Ideal Interface Ltd • It’s not just about replicating your shop or catalogue • You have less physical and product restrictions online • Combine different approaches to find what works • It’s far easier to test & learn online
  • 19. eCommerce Isn’t just for the big boys Biccies.com © Ideal Interface Ltd
  • 20. eCommerce Isn’t just for the big boys Biccies.com © Ideal Interface Ltd • Started by a local cake shop owner • Identified an opportunity for biscuits as presents and corporate gifts • Uses postal service for fulfilment • Opportunity to franchise & scale the business
  • 21. eCommerc e: The ability to create a business askherfriends.com © Ideal Interface Ltd
  • 22. eCommerc e: The ability to create a business askherfriends.com © Ideal Interface Ltd
  • 23. eCommerc e: The ability to create a business askherfriends.com © Ideal Interface Ltd • Combines eCommerce with Social Media & email • Builds up recommendations from friends & family • Doesn’t actually transact online, acts as an affiliate
  • 24. eCommerc e: The ability to transform an industry uber.com © Ideal Interface Ltd
  • 25. eCommerc e: The ability to transform an industry uber.com © Ideal Interface Ltd
  • 26. eCommerc e: The ability to transform an industry uber.com © Ideal Interface Ltd • Disrupting the taxi market in 20+ cities worldwide • Combines location-based app & eCommerce • Uses familiar (Amazon.com) features: • Cashless payments (billed to credit card) • Ability to ‘rate your driver’ • Founded in 2009 • Now currently valued at $3bn+
  • 27. In Short • • • • • • © Ideal Interface Ltd There is still a huge opportunity The UK is one of the most mature markets Consider the local vs. international opportunity Measure everything Online practices don’t have to replicate offline Make £Billions!
  • 28. My Contact Details • Hayden Sutherland • hayden@idealinterface.co.uk • www.idealinterface.co.uk • @haydens30 • 0780 1341955 © Ideal Interface Ltd

Editor's Notes

  1. Source: McKinsey & Company (2012)
  2. Source: McKinsey & Company (2012)
  3. Source: Forrester World Online Population Forecasts
  4. Source: Forrester World Online Population Forecasts
  5. Source: Forrester World Online Population Forecasts
  6. Source: Forrester World Online Population Forecasts
  7. Source: Forrester World Online Population Forecasts
  8. Source: Forrester World Online Population Forecasts
  9. *Includes consumer to consumer salesSource: Forrester Online Retail Forecasts
  10. Source: Forrester ResearchPhase 1: Connecting & entertainingPhase 2: eBusiness basicsPhase 3: Comparable goodsPhass 4: Subjective purchases
  11. Source: Forrester ResearchPhase 1: Connecting & entertainingPhase 2: eBusiness basicsPhase 3: Comparable goodsPhass 4: Subjective purchases
  12. Stay standing if you have linked PPC to analytics
  13. All vehicles licensed & insured