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Ps099 Acsel Jan2010


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A short presentation to the ACSEL conference on eCommerce in Europe, looking behind the obvious growth headlines at three, small considerations: the customer's view of the online/offline balance, the trend to lower AOV and delivery matters.

This presentation formed a 10 minute segment or contribution to Jean-Christophe Defline's overview of trends in the European market.

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Ps099 Acsel Jan2010

  1. 1. <ul><li>Trends in eCommerce: “small and micro” </li></ul><ul><li>Behind the growth </li></ul><ul><li>ACSEL </li></ul><ul><li>Paris, Janvier 2010 </li></ul><ul><li> </li></ul>
  2. 3. Small transactions…
  3. 4. Small Average transaction size (27,000 businesses): £83.10 – Christmas 2008 £78.96 – Christmas 2009 £70? - Christmas 2010? 892 SME accounts opened each month in 2009 – 15% growth over 2008…
  4. 5. Small <ul><li>“ As more SMEs come online and as customers use the web for convenience more and more, there will be : </li></ul><ul><ul><li>an increase in order frequency and </li></ul></ul><ul><ul><li>a decrease in average order value </li></ul></ul><ul><li>putting stress onto our logistics and infrastructure operations” </li></ul>
  5. 6. Delivery: granularity, service and visibility <ul><li>166 retailers for Christmas 2009…. </li></ul><ul><ul><ul><ul><li>84% online tracking (59%) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>26% Saturday delivery option </li></ul></ul></ul></ul><ul><ul><ul><ul><li>94% have email confirmation of order completion (only 3% used SMS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>15% offer collect in store (12%) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Standard delivery: prices increasing slowly over 5 years; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Premium delivery prices reducing more significantly with scale. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Amazon Prime and ASOS Premier </li></ul></ul></ul></ul>
  6. 7. In-Store: it’s in customers’ heads
  7. 8. In-Store: it’s in customers’ hands
  8. 9. Success puts stress on infrastructure and customer engagement <ul><li>Growth now includes the vast number of SMEs </li></ul><ul><li>Trading volumes increase – average order values fall </li></ul><ul><li>Customers get better, quicker service </li></ul><ul><li>Instore, online – combining: devices AND customer perception </li></ul><ul><li>Challenges for infrastructure and logistics as well as customer communications. </li></ul><ul><li>2010 is a great opportunity, but it’s not “free money”. </li></ul>
  9. 10. Thank you Trends in eCommerce: “small and micro” Behind the growth ACSEL Paris, Janvier 2010