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John Batistich - 2021
Future of Ecommerce
7 shifts shaping the future of commerce
John Batistich
May 2021
Future of ecommerce will be defined by 7 shifts
John Batistich - 2021
1. Accelerated consumer behaviours
2. Retaining best customers
3. Collapsing funnels
4. Rise of meta Marketplaces
5. Lightening fulfilment
6. Invisible payments
7. Programmatic personalisation
John Batistich - 2021
1. Light-speed Consumer Behaviour
Structural shifts in consumer behaviour are reshaping retail
Nearly 150 Million people shopped online for the first time over the last year globally. We saw ecommerce
accelerate five years
John Batistich - 2021
John Batistich - 2021
John Batistich - 2021
Online sales boom
$169.9
$200.3
$231.9
$263.6
$303.0
$347.0
$397.3
$461.0
$523.6
$598.0
$861.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Digital Commerce 360, US Department of Commerce.
Total retail figures excludes restaurants, bars, cars and fuels
$8.2
$10.5
$12.8
$14.7
$16.4
$19.1
$21.7
$24.4
$28.6
$30.5
$44.2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
US Online Sales
USD Billions
Australia Online Sales
AUD Billions
Source: NAB Online Sales Index
Online sales shifted 5 years forward as a result of covid lockdowns.
John Batistich - 2021
Online sales value growth accelerated
29.0%
21.9%
14.8%
11.6%
16.4%
13.6%
12.4%
17.2%
6.6%
44.9%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: NAB Online Sales Index
16.8%
17.9%
15.8%
13.7%
14.9%14.5%14.5%
16.0%
13.6%
14.9%
44.0%
3.0%
4.9%
3.9% 3.0%
4.3% 3.9% 3.4% 3.8% 4.1% 3.8%
6.9%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Digital Commerce 360, US Department of Commerce.
Total retail figures excludes restaurants, bars, cars and fuels
US Online Sales Growth vs Total % Australia Online Sales Growth %
Online sales grew at their fastest level in a decade partly fuelled by lock down induced store closures.
John Batistich - 2021
Online share of total retail steps up
6.4%
7.2%
8.0%
8.8%
9.7%
10.7%
11.8%
13.2%
14.4%
15.8%
21.3%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Digital Commerce 360, US Department of Commerce.
Total retail figures excludes restaurants, bars, cars and fuels
US Online Share of Total Retail %
4.9%
5.8%
6.5% 6.8% 6.5%
7.1%
7.8%
8.9% 9.2%
12.6%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Australia Online Share of Total Retail %
Source: NAB Online Sales Index
Online grew to 12.6% share of Retail (excluding Restaurants/Cafes) but still under-indexes vs China, UK and US.
John Batistich - 2021
Online category sales and share vary greatly
69%
59%
42%
21%
28%
23%
40%
25%
T
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Source: NAB Online Sales Index
Category Ecommerce Growth – 2020 vs LY
Australia
10%
15%
6%
12%
40%
23%
20%
24%
T
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Ecommerce Share of Category Sales
Australia
Takeaway food grew strongest whilst Media has the highest share of digital sales.
John Batistich - 2021
All online categories grew
Source: Australia Post
Share of Online Sales - Parcels
Australia 2020 - $Billions
Variety,
33.0%
Fashion/Apparel,
33.6%
Home/Garden,
22.9%
Health/Beauty,
9.4%
Hobbies/R
ecreation,
13.9%
Specialty
Food/Liquor, 5.9%
2.5
4.0
4.0
5.4
5.9
6.8
Specialty Food/Liquor
Hobbies/Recreation
Health/Beauty
Home/Garden
Fashion/Apparel
Variety
Household Penetration - Parcels
Australia 2020 - Millions of Households Growth vs LY
51.1%
45.5%
69.6%
56.8%
53.6%
77%
Sales from Variety and Fashion/Apparel account for 2/3 of Sales with Food/Liquor and Home/Garden with the highest growth.
John Batistich - 2021
Online grocery sales have doubled
2.7%
2.9%
3.2%
3.5%
3.8%
5.5%
3.0%
3.4%
3.8%
4.2%
4.5%
7.7%
2015 2016 2017 2018 2019 2020
Online grocery as % of total sales
Source: Company Reports. Citi Research
30.0% 31.2%
24.0%
12.5%
48.3%
27.2%
40.1% 38.3%
40.9%
91.8%
1H 19 2H 19 1H 20 2H 20 1H 21
Online grocery sales growth
Households have doubled their usage of Grocery delivery over the year changing the supply chains for the major Supermarkets.
“For every 100 visits to a physical store, there are 65
visits to a Woolies digital channels”
Brad Banducci CEO Woolworths.
Woolworths Coles
John Batistich - 2021
Mobile leads but desktop saw a resurgence
Source: Australia Post
87%
69%
56%
48%
91%
76%
61% 60%
Mobile Laptop Tablet Smart TV
How we buy online
Australia
On average, there were 4.4 devices per adult used to access the internet in 2020 up from 4 in 2019
Online driven by delivery, value and convenience
Source: Statista John Batistich - 2021
29%
38%
43%
47%
50%
54%
57%
63%
Undisturbed shopping
More product information
More possible to compare
Greater product range
Available 24 hours
More convenient
Cheaper prices
Direct delivery to home
Drivers of Online Purchases
US 2020
Online purchases have been driven by delivery, cheaper prices and convenience but this is changing.
Consumers expect to shop online post covid
Source: Global Web Index John Batistich - 2021
21.9%
26.7%
26.7%
35.1%
40.6%
43.4%
48.8%
Use food delivery services
Work from home
Use video conferencing
Use video calling
Use mobile payment services
Exercise at home
Shop online
Expected Behaviour Changes Post-Covid
US 2020
Post covid, consumers expect to become more open to new brand experiences and are expecting to shop more online.
Key opportunities for retailers
John Batistich - 2021
Consumers have become more open to new brand experiences and are expecting to shop more online.
Fast
Easy
Optimise
Product
Details
Immediacy
Convenience
Total blended retail
Virtual tours
Hosted live events
How to content
Experiment with AR
Upgrade
Checkout
Convert
Physical into
Digital
Automate
Promotions
Shipping
Costs
Scalable images
Free shipping
thresholds
Reviews/ratings
Alternative/supplement
ary products
Buy now pay later
Connect Checkout with
POS
Delivery options
Save payment and
shipping information
Enable one-click
Buy directly from product
page
Automate discounts
and promotions
Pre-calculate shipping
costs
John Batistich - 2021
2. Retaining Best Customers
Acquisition costs rise so retailers are refocusing on retaining their most valuable
customers
Driving frequency, conversion and the average order value has never been more important
John Batistich - 2021
John Batistich - 2021
Higher online penetration and frequency
18
28
2019 2020
26.5%
27.4% 26.9%
19.2%
Weekly Fortnightly Monthly Quarterly
6%
16%
2019 2020
Average Number of
Online Purchases
Shopping Frequency
Distribution
% of Weekly Online
Shoppers
Source: Australia Post
75%
82%
2019 2020
Household Penetration
Online shopping growth driven by higher penetration (1.36M households) and frequency (+55%)
1.36M Households made a
purchase for the first time
More heavy users Higher average
weight of purchase
More regular shoppers who
expect to shop more frequently
Source: Company Reports John Batistich - 2021
Focusing on revenue per active customers
Retailers like Temple & Webster and Adore Beauty are increasingly focused on revenue per active customer focused on driving repeat
frequency.
178
192
204
206
213
FY17 FY18 FY19 FY20 CY20
Annual Revenue Per Active Customer $
368
375
385
400
2017 2018 2019 2020
Annual Revenue Per Active Customer $
Prioritising existing customers
Source: Shopify John Batistich - 2021
With so much new penetration, identifying best customers, determining LTV, develop rewards and evaluate recurring revenue models
become important opportunities
Earn
Loyalty
Most valuable customers
Map journey
Conversion paths
Up and cross sell
Recurring
Revenue
Models
Segment
Customer
LTV
Integrate rewards
Offer VIP exclusivity
Referral programs
Streamline billing
process
Create tiers
Personalisation
Buyer segments
Responsive moments
Predict to prevent
churn
Target
Best
Customers
Media has surged towards digital
Source: Benedict Evans via McCann, Zenith, BLS. John Batistich - 2021
US Advertising Spend
US$ Billions - 2019 Dollars
US Advertising as a % GDP
%
Google and Facebook disrupted media offering more targeted reach and more measurable ROI.
Search and social costs have risen
Source: Revealbot John Batistich - 2021
$0.85
$0.96
$0.99
$0.94 $0.96 $0.95
$0.86
$0.82
$0.78 $0.77
$0.83 $0.85
$0.71
$0.76
$0.72
$0.87
$1.01
$0.98 $1.00
$1.06
$1.14
$1.11
$1.21
$1.14
J F M A M J J A S O N D
Facebook CPC
2020 vs 2019 in USD
Cost to Acquire New Customers
Q4 2020 vs LY
17%
24%
Paid Search Social Advertising
Over the last year we have seen CPC and CAC have risen putting pressuring on ROI.
Google and Facebook dominating/strengthening
Source: IAB John Batistich - 2021
26% 25%
19% 18%
15%
-5%
-8%
-17%
-24%
-31%
-33%
-43.0%
Paid
Search
Social
Media
CTV Digital
Video
Digital
Display
Digital
Audio
Podcasts Direct Mail Linear TV Radio Print Outdoor
Advertising Spend Change 2020 vs LY
US - %
Ecommerce demand is accelerating digital ad growth. Industry data reveals increased spend in paid search, social and connected TV.
Removal of third party cookies
John Batistich - 2021
Third party cookies which allow retailers to recognise and target potential customers across channels will be gone next year affecting
targeting, personalisation and ROI.
Cart abandonment rates remain high
Source: Baymard Institute. John Batistich - 2021
At 69%, cart abandonment rates remain very high with retailers focused on reducing the friction/steps from averages of 5-6 clicks
Number of Checkout Steps
Top 50/100 Grossing US Online Retailers 2016 vs 2012
4%
9%
22%
28%
18%
11%
4%
3%
2% 2%
16%
28%
36%
16%
2 3 4 5 6 7 8 9
69.6%
69.2%
2019 2020
Cart Abandonment Rates
Global Average 2020 vs LY
Solve the reasons for high cart abandonment
Source: Baymard Institute John Batistich - 2021
Reasons for Abandonment During Checkout
US - 2021
4%
7%
11%
12%
17%
17%
18%
19%
24%
49%
Credit card declined
Weren't enough payment menthods
Returns policy wasn't satisfactory
Site had errors or crashed
Couldn't see total order cost up front
Didn't trust site with credit card details
Too long/complicated checkout process
Delivery was too slow
Wanted me to create an account
Extra costs too high (shipping, tax, fees)
Consumers want to the know the total price and when they will get it with ease, guest options and speed
Reduce cart abandonment opportunities
Source: Baymard Institute John Batistich - 2021
Reduce cart shock (pricing and delivery), remove barriers, build trust/reduce complexity and deliver key payment options earlier to
decrease abandonment rates
Remove
Barriers
Clear total cost
Bring delivery options and
date on product details
Build targets for free delivery
Show returns info upfront
Show final price sooner
Build Trust
+ Reduce
Complexity
Response
Recovery
Key Payment
Options +
Earlier
Option to log-in early
Guest check-out option
Move account sign-up at end
Remove unnecessary fields
Use auto-fill
Display trust signals
Visualise roadmap
Review order before pay
Offer choice
Remove steps
Bring forward to product
details
Reduce
Cart
Shock
John Batistich - 2021
3. Collapsing Funnels
Moving from Discovery to Purchase with a single click
Ecommerce is challenging stores by becoming more social, entertaining and experiential
John Batistich - 2021
John Batistich - 2021
Search
Find
Buy
Pay
Acquire
Use
Share
Relationship
Discovery
Shopper journeys are transforming
.
Wider discovery, faster search, invisible payments, lightening fulfilment and personalised relationships
Ecommerce appeals to needs satisfied by stores
John Batistich - 2021
Convenience
Price comparison
Individual
Routine/functional tasks
High levels of research
Transactional
Infinite options
Global reach
The need states served by the mall are increasingly available online which becomes more social, experiential and entertaining
Entertainment
Experiential
Social
Connection
Personal Service
Sensory
Immediate selection
Local
New
Ecommerce
Social media is adding shopping to discovery
John Batistich - 2021
Facebook and Instagram are building shopping tags, live shopping events, marketplaces and digital catalogues
Shopping
Tags
Live
Shopping
Social
Marketplaces
Digital
Catalogues
John Batistich - 2021
The discovery stage, fuelled by big social media, is adding live events, promotions, quizzes and product videos making ecommerce
more social, experiential and entertaining across Facebook, Instagram and TikTok
Live promotions AR product
visualisation
Social inspired
content
Social discovery is supporting events and product
Product
videos
Ecommerce support communities are rising
John Batistich - 2021
Ecommerce shopping is leveraging the power of the crowd and experts to provide service and helpful recommendations
Kmart
Home Hacks
Bunnings
Mum Group
Letmetrybeforeyoubuy
Influencer
Dan Murphys Expert
Recommendations
Influencers for all categories and segments
John Batistich - 2021
Online influencers help, guide and inspire customers with live video on Facebook, Instagram and YouTube. Lead shoppers are
becoming broadcasters.
John Batistich - 2021
Learning from the most visited sites
1938.2
648.8
370.7 341.1
228.6
176.3
124.7 77.3 60.5 60 38.1 37.5
amazon ebay walmart craigslist etsy target wayfair costco slickdeals kohls aliexpress samsclub
Source: Similar Web
Global ecommerce sales estimated at $4T. 16% of global traffic goes to Amazon, eBay and Rakuten. 1/6 online shoppers turn to
Amazon first when shopping online
Average Monthly Website Visits
2020
John Batistich - 2021
On-site engagement improved
6.47
7.08
2019 2020
8.1
8.0
2019 2020
37.3%
35.8%
2019 2020
Average Visit
Duration
Average Pages Per
Visit
Average Bounce
Rate
Source: Similar Web
45.8%
49.1%
54.1%
50.8%
2019 2020
Device Split
Desktop has rebounded as a split of devices. We have seen bounce rates and visit duration rise.
Lap/Desk Mobile
Source: Similar Web John Batistich - 2021
Understanding your sources of traffic
54.8%
26.4%
5.3% 5.3%
3.8%
2.6%
1.4%
54.8%
27.0%
5.5% 5.2%
3.8%
2.4%
0.9%
Direct Organic Search Referrals Paid Search Social Media Email Display
Direct and Organic Search account for over 80% of traffic whilst email and display are small and softening
Global Sources of Traffic 2020 vs LY
John Batistich - 2021
Traffic Acquisition Sources
12.1% 11.7%
87.8% 88.2%
2019 2020
Free vs Paid traffic
Top Sites
Source: Similar Web
A returning visitor is 70% more likely to add a product to their cart than a new visitor. A site with a low visit to unique visitor ratio has
a less engaged visitor
30.0%
29.4%
2019 2020
Unique Visitors/Total Visits
Paid, 33%
Free, 67%
Paid, 34%
SEO, 8%
CRM, 13%
Direct, 45%
Source: Company Reports John Batistich - 2021
Maximising your free vs paid traffic
Owned and earned traffic vs Paid is a key measure for ecommerce. GFG (The Iconic) and Kogan feature their high-level sources
of traffic in their Investor Presentations.
Seizing your SEO opportunities
John Batistich - 2021
Consumers have become more open to new brand experiences and are expecting to shop more online.
Site
Structure
Unique
Compelling
Content
Internal link architecture
Bot accessibility
Sitemaps
URL structure
Server response codes
Monitor keyword
rankings
Use high
informational and
intent words
Measure campaigns
Site speed
Domain
Authority
Measure
Test
Improve
Local
Create relevant
helpful content
Remove duplicative
or unnecessary
content
Data driven title tags
Acquire quality
backlinks
Connect with reporters,
influencers, partners,
vendors for relevant
backlinks
Disavow spammy
backlinks
Complete and up-to-
date Google My
Business
Local business listings
Local directory
submission
Faster site speed lowers bounce rates
John Batistich - 2021
The slower your site the higher the bounce rate and the poorer the user experience. Site speed also helps SEO rankings so
make it snap!
Site Speed (Seconds) and Bounce Rate
30%
40%
57%
62%
67%
1 3 5 6 10
Seconds per Actions
Site speed opportunities
Source: Altexsoft John Batistich - 2021
Content
Use fast ‘out of the box’
platform
Use fast reliable hosting
Unlock the browser from
parser-blocking scripts
Minify your code
Minimise the number of
JavaScript and CSS files
Features
Structure
Use content delivery network
Decrease thumbnail image size
Compress/reduce images in
size and number
Ease up on homepage hero
slides
Use lite embeds to add video
Use pop-ups sparingly
Reduce the use of web fonts
Test/optimise on mobile
Reduce the number of plug-ins
Weigh the benefits of installing
another app on your site
Use website caching
Reduce redirects
Organise Google Tag Manager
Conduct Google speed tests
Reduce redirects/remove
broken links
Database optimisation in CMS
Detect 404 errors
Platform
Customers expect webpages to load in less than two seconds. We need to improve site performance through platform, structure, content
and features.
Source: Similar Web John Batistich - 2021
Conversion rates remain low
6.34%
5.42%
4.75%
4.35% 4.26% 4.11%
3.25%
2.91% 2.88% 2.83%
2.14% 1.99%
Germany UK Poland France US Italy Australia Brazil Canada Sweden Mexico India
Average ecommerce conversion rates for top 10 countries Jan – Sep 2020
To improve the conversion rate understand whether the customer is in discovery, navigational or buyer mode and test
improvements to key product page and payment moments.
Product details page is the buy moment
Source: Adapted from Baymard Institute John Batistich - 2021
1. All Products Need At Least One ‘In Scale’ Image
2. Allow Users to Purchase Temporarily ‘Out of Stock’
Products
3. Avoid Sneaky Displays of ‘Free Shipping’ Promotions
4. 5 Requirements for the ‘Ratings Distribution Summary’
5. Provide Both Site-Authored FAQs and Community-Driven
Q&As
6. Provide a Cross-Sell Section that Only Contains
‘Alternative Products’
7. Provide a Cross-Sell Section that Only Contains
‘Supplementary Products’
8. Provide major BNPL options
82% of sites struggle to reach even an “acceptable” level for the Product Page user experience.
Conversion opportunities
Source: SEMRush. SimilarWeb. Baymard Institute
Easy
Checkout
AB test headlines
Understand users modes
and needs
Personalise emails based
on search/purchase
Own ‘buy intent’ keywords
Maximise returning visits
Be where your best
customers are during
discovery
Trust
Service
Signals
Brilliant
Product
Details
Clear calls to action
No more than 3 clicks
Autofill details
Checkout as guest
option
Add stages path
Add countdown timer
Integrate with store POS
Add live chat
Security cues
Money back guarantee
Competitive refunds
Competitive and easy
returns
Abandonment email
Carbon offsets and charity
contribution
Beautiful in scale Images
In Stock
Free Shipping
Social proof: Reviews and
Ratings distribution
Site and Community FAQs
Cross sell supplementary
and alternative
Key BNPL (e.g. Zip) options
Intentional
Visits
Retailers can drive better conversion through intentional (buying intent) visits, beautiful design, brilliant product details, easy checkout
and trust/service signals
Clear proposition
Clean mobile
navigation/design
Make initial steps really
easy
Simple registration
Remove unnecessary
form fields
Remove distractions
Site speed that snaps
Beautiful
Design
John Batistich - 2021
4. Rise of Meta Marketplaces
Global marketplaces are becoming search and fulfilment powerhouses
Brands are trading off data and a direct customer relationship for reach and revenue
John Batistich - 2021
Department stores in structural decline
Source: US Census Bureau John Batistich - 2021
The original marketplaces, Department Stores, are in structural decline and being replaced by global ecommerce marketplaces.
US Department Store Sales
USD Millions – 1993 to 2020
Source: Bloomberg. Forbes. New York Times AFR. John Batistich - 2021
Leading to bankruptcy and consolidation
We are seeing store closures, consolidation and bankruptcy for retailers who have been slow to adapt. Pure plays are even buying store brands.
Source: McKinsey. John Batistich - 2021
Marketplaces are accelerating growth
Marketplaces are leading ecommerce value and growing faster than proprietary sites
Global Ecommerce Market Platform Sales Breakdown
$ Trillion
John Batistich - 2021
Online marketplaces are strengthening
$2.67 Trillion was spent globally on the top 100 marketplaces in 2020 growing at 29% vs LY.
Marketplace Top 100
62% 95%
Marketplace Share of
Global Ecommerce
Share of the Top 100 Top 5 Global Marketplaces
($B GMV)
100
405
475
593
609
Source: Digital Commerce 360
Source: Company Reports. MacroTrends. John Batistich - 2021
Amazon leads the way (outside of China)
In 2020, Revenue grew by 37% to $386B, employed 1.3M and achieved a market cap of $1.6 Trillion
Amazon Revenue
(US$ Billions)
6.9 8.510.7
14.8
19.2
24.5
34.2
48.1
61.1
74.5
89
107
136
177.9
232.9
280.5
386.1
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
Amazon Employees
(000s)
34 56
88
117
154
231
341
566
648
798
1298
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Amazon Market Capitalisation
(US$ Billions)
23
60 82
118
182
143
309
355
594
774
934
1628
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Company Reports. Statista. John Batistich - 2021
Amazon marketplace outperforms first party sales
Amazon third party sales account for +60% of GMV and growing faster than first party sales
Amazon First Party vs Third Party Revenue
(USD Billions)
117 135
190
160
200
300
2018 2019 2020
3%
34%
60%
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
Amazon Third Party Share of Revenue
3rd Party Sales
1st Party Sales
Amazon is building a huge media business
Source: Benedict Evans. Company Reports. Cowen & Co. John Batistich - 2021
Amazon is challenging Facebook and Google, building a marketplace led media business estimated to be worth $26B.
Amazon Advertising Revenue
(US$ Billions)
1 1.5
2.5
4
10
14
26
2014 2015 2016 2017 2018 2019 2020
Retailers building marketplaces with media
John Batistich - 2021
Major retailers are developing marketplaces where media is a key source of value.
John Batistich - 2021
Shopify is accelerating SMB ecommerce
Source: Shopify. MacroTrends.
Shopify GMV
(US$ Billions)
3.8
10
15.4
26.3
41.1
61.1
119.6
2014 2015 2016 2017 2018 2019 2020
Shopify Revenue
(US$ Millions)
112
189
310
465
642
909
93
201
363
608
936
2021
2015 2016 2017 2018 2019 2020
Counterweighting marketplaces, Shopify has driven explosive growth enabling SMBs to step-change their ecommerce business.
Shopify Market Capitalisation
(US$ Billions)
1.6 3.6
11.3
15.3
47.2
135.2
2015 2016 2017 2018 2019 2020
Brand concerns over marketplaces
Source: Statista John Batistich - 2021
The promise of higher revenues compels brands to have a marketplace presence. But people aren’t searching for the brands rather
searching for solutions.
24%
26%
31%
34%
36%
50%
Biased private label competition
Customers distracted from our products
Lack insight on buying behaviours
Customer owned by marketplace
Inconsistent behaviour cross marketplaces
Take cut of revenue
Concerns about selling through marketplaces
US 2018
Brands under pressure from Marketplaces
John Batistich - 2021
o But brands often perceive marketplaces as a necessary evil: driving sales, but pressuring margins
o Consumers are are increasingly starting their search on marketplaces
o Marketplaces are growing faster than brand sites
o Consumers have wider decision hierarchies on marketplaces
o Marketplaces are creating private label products on the best selling products
o Brands have long been concerned about ceding customer relationships and data to marketplaces.
o Brands should turn their marketplace product pages into rich, immersive experiences, while offering
unique customised products through their own channels.
Marketplaces help reach a wider range of customers but your core site should cater for your best customers.
Marketplace opportunities
John Batistich - 2021
Choice Automate
Optimise
Product
Page
Differentiate
Brand Site
Choose to play or not
Step-change your own
site for best customers
Decide on data
sharing
Agree fulfilment,
marketing and pricing
terms
Set up Product APIs
Dashboard syncing
inventory, product and
marketing
Automate workflow, events,
inventory management,
warehousing and marketing
Gather insights/feedback
and iterate
Delivery best images and
support reviews
Drive parity pricing and
align promotions
Test paid search media
Full brand story with
rich content
Full range
Exclusives
Customisation
Services
Deep personalisation
Brands need to choose whether to play or not with marketplaces considering the customer reach and revenue against costs
Source: Adapted from Shopify
John Batistich - 2021
5. Invisible Payments
How we buy and pay is undergoing transformative change
Seamless, touchless, cashless, cardless and digital wallets
John Batistich - 2021
Source: RBA. McKinsey John Batistich - 2021
Cash is collapsing
56% 55%
51%
99%
79%
100%
9%
23%
28%
41%
54%
89%
Sweden UK US China Japan India
Cash usage by country
% of Cash used in total transactions by volume
2010 2020E
72%
68%
56%
43%
32%
22%
44%
39%
33%
30%
18%
9%
2007 2010 2013 2016 2019 2020E
Australia Cash Usage
% of Cash used in total transactions Volume and Value
Volume Value
Cash is in structural decline globally.
Changes in the value of retail payments
Source: RBA John Batistich - 2021
9.0
26.6
31.0
35.0
39.5
66.5
ATM Withdrawals
Credit Card
Cheque
Debit Cards
Balances Outstanding of Credit Cards
New payments platform transactions
Value of Retail Payments
Australia 2020 - $ Billions
Growth vs LY
+85.7%
-25.6%
+17.8%
-32.9%
-6.2%
-13.6%
RBA data sees less cash, cheques and credit card usage and a lot more debit and new forms pf payment (including BNPL)
Source: Google Trends John Batistich - 2021
BNPL is rising amongst new generations
Afterpay and Zip are providing new mobile ways of paying to avoid interest.
Google Trends Search
Last 5 years until May 2021
Paying will become easier and more invisible
Source: Amazon John Batistich - 2021
One click payments online and Amazon go remove the payment stage of the customer journey
Future of payments opportunity
John Batistich - 2021
Mobile
Wallet
Less use
Less acceptance
Fewer ATMs and Bank
Branches
Touchless
Integrate POS and
Payment Gateway
Mobile POS
New store design
One/Zero click
Real time clearing
and settlement
Merges
with
Loyalty
Technology
and CX
Debit
Strengthens
Vs Credit
Wave/Pass
Contactless
Cardless
Fast and secure
Cross border
Integrated loyalty
schemes
Self-checkout
Personalised offers
POS credit financing
More Debit
Declining Credit Cards
Cheques vanish
Digital currencies
Payments are not just being disrupted, but utterly transformed by new technology. This desire for speed, convenience, ubiquity, safety
and affordability is rising.
Cashless
Cyber security threats are rising on PII
John Batistich - 2021
The threats of a PII data loss or DOS attack are rising rapidly.
Cyber security resilience opportunities
John Batistich - 2021
Human
Firewall
Security
by Design
Senior Ownership
Resourced
Phishing Training
Password control
Access Management
Policy
Playbook
Simulations
Regulators
Defence Response
Recovery
Detection
Controls
Configuration
End to end Encryption
3rd Party APIs
Authentication
Understand Risk Sources
Patch Management
Automated Updates
Back Up Files
Monitor Anomalies
Measure system
Retailers need to create a human firewall, protect, defend, detect and respond.
John Batistich - 2021
6. Lightening Fulfillment
Fast, free, sustainable and branded fulfilment options
Retailers are facing higher complexity and rising costs to meet rising customer expectations
John Batistich - 2021
Source: Amazon.com. Seattle Times
“The idea of making deliveries
faster is in the DNA of the
company. When I started writing
the concept document for Prime
Now, I wrote that I wanted it to
feel like magic for a customer to
get something right to their door
in superfast speeds and we built
from there—I assembled a great
team and we worked hard to
launch fast... The future is now.
Customers are ready for it. ”
Stephanie Landry VP Amazon Prime Now
Customer expectations for lightening fulfillment
John Batistich - 2021
Fast Free Branded Sustainable
Same and next day
options
Automated returns
Recycle
Reuse
Minimalist
Carbon neutral
Ethical supply
Free-shipping
thresholds
Pick Up instore
or curbside
Home delivery
Options
Special
anticipation
Personalised
Consumers want options. They want fast, free, branded and sustainable fulfilment.
Source: Adapted from Shopify
Improving fulfilment and distribution
Source: Shopify John Batistich - 2021
Customers expect fast delivery, free delivery or free shipping thresholds.
Customers Expectations on Fulfilment – US 2020
23%
34%
37%
40%
59%
64%
65%
67%
Frustrated when have to pay extra for shipping
Faster delivery would make online shopping better
Frustrated when shipping takes too long
Free returns would make online shopping better
Free delivery improves the experience
Expect delivery to be free
Check free shipping threshholds before adding to cart
Expect delivery within two days
Increased fulfilment complexity and costs
Source: Kardex Remstar via Shopify John Batistich - 2021
The ecommerce boom has pushed order fulfilment capability to the limit with higher complexity and increased costs.
How retailers’ order profile has changed due to ecommerce
23%
23%
25%
28%
31%
33%
43%
50%
86%
Processing orders from multiple facilities
Processing more returns
Fewer multi-line orders
Shipping orders to stores for pick-up
Peak shift due to time of order received
Processing more orders at peak
Dealing with more single line orders
Must process and pick orders faster to meet cutoff
Changes made to order profile
Container rates have stayed elevated
Source: World Container Index/Drewry (40 foot equivalent unit container) John Batistich - 2021
Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to
pass the extra costs on to consumers
Spot Container Rates from Asia
Returns are an increasing pressure point
Source: Statista via Shopify John Batistich - 2021
Returns are rising as more online shoppers "bracket" their purchases, buying multiple versions of a product with the intention of returning
some items.
Value of Ecommerce Returned
US – 2014-2023E
80 88
104
121
143
171
205
242
290
348
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sustainability is rising in importance
Source: World Business Council for Sustainable Development John Batistich - 2021
Consumers globally report a greater propensity to buy from companies with a reputation for environmental responsibility.
Consumers report a willingness to pay more for “environmentally friendly” products or services
67%
52%
46%
42%
40%
34% 33% 32% 32%
28% 27%
23%
18%
China Australia Sweden US Japan Canada Italy Brazil Russia Germany UK France Spain
More Likely to purchase from company with good reputation for environmental responsibility
Different delivery logistic models emerging
Source: IRI via Benedict Evans John Batistich - 2021
Ecommerce is almost all shipped by parcel (e.g. Australia Post), but half of food is collected or delivered.
Parcels 93%
Delivery
2%
Collection
5%
Parcels 77%
Delivery
9%
Collection
14%
Parcels
46%
Delivery
16%
Collection
38%
Food
Consumer
Packaged
Goods
General
Ecommerce
Ecommerce by logistics by Category
US – June 2020
Improving fulfilment and distribution
Source: Kardex Remstar via Shopify John Batistich - 2021
Retailers are focused on improving inventory management, packing, returns management and replenishment.
Fulfilment and Distribution improvement focus over the next 2 years
US - 2020
20%
21%
23%
23%
28%
32%
35%
42%
43%
Better store and fulfilment centres
Coordinating processes across multiple fulfilment centres
Retrieval of electronic data
Order wavering or sequencing
Order customisation and value added services
Replenishment
Returns management
Packing
Inventory management
Fulfillment opportunities
John Batistich - 2021
Streamline
Return
Process
Fast
Local
Fulfilment
3PL partnership
Global reach
Late cut-offs for
same day
Fulfil from store
Dark Stores
Click and collect
Accurately forecast
demand
Optimise
replenishment
Rule based routing
Reduce shipping costs
Inventory
management
Returns
management
system
Local delivery
Store credit/exchange
Pre-fill return labels
Self-serve
Fulfilment can become a competitive advantage by building capability, outsourcing operations, automating inventory, streamlining
returns and create local delivery.
Automate
Inventory
Management
Outsource
Operations
Build
Capability
John Batistich - 2021
7. Programmatic Personalisation
Creating a direct personalised relationship with customers at scale
Retailers are focused on unified data, design, decisioning and content distribution to deliver ‘you get me’
moments. The long-awaited return to one to one shopping is now possible at scale.
John Batistich - 2021
One to one service is now possible at scale
John Batistich - 2021
Brands are going direct via digital
Source: Company Reports via Benedict Evans. John Batistich - 2021
Ecommerce as % of Sales
2020
25%
13%
10% 10%
7.6%
2%
Loreal Nestle P&G Reckitt Unilever Hershey
Brand owners are accelerating their drive towards ecommerce channels to build direct relationships with their customers.
Personalised recommendations drive sales
John Batistich - 2021
More than 30% of Amazon’s retail is generated by personalised recommendations based upon prior search and purchase behaviour.
Recommended for you, John
John Batistich - 2021
Prime personalisation drives LTV
Source: Statista 2021
600
1400
Non Member Member
Number of Amazon Prime Members
(Millions)
Annual Spend: Prime vs Non-Prime
(USD)
25
40
54
75
91
101
112
152
2013 2014 2015 2016 2017 2018 2019 2020
Amazon Prime drives higher life time value with low levels of churn.
Source: Statista John Batistich - 2021
Personalised relationship
18%
21%
26%
26%
32%
35%
42%
Siloed organisation with different approaches
Co-ordinating different delivery platforms
Lack of technology resources
Managing data quality or inconsistent levelof quality amongs data
sources
Creating a single view of the customer with other marketing
channels
Attributing marketing performance to individual programs,
campaigns or channels
Inability to track targeted customers through entire journey
Primary challenges to implement personalisation strategy and tactics
Key challenges for retailers include tracking customers through the entire journey, attribution and creating a robust single view of
customer
Developing a personalisation framework
Source: McKinsey & Company John Batistich - 2021
Decisioning
Create customer-data
platform to provide a
360 degree customer
view
Distribution
Design
Advanced analytics
and machine learning
to create customer
scoring and real-time
triggers
Deliver marketing tool
experiences across
channels and feed
response data to
customer-data platform
Content factory model,
digital-asset
management, and agile
marketing to drive
experimentation
Data
Foundation
The solutions architecture and operating model should be guided by a simple and effective framework
Developing the stack to enable personalisation
Source: McKinsey & Company John Batistich - 2021
Retailers need to develop a data and martech stack to enable personalisation at scale
John Batistich - 2021
Key Takeaways
So What?
John Batistich - 2021
7 trends shaping the future of ecommerce
John Batistich - 2021
1. Accelerated consumer behaviours
2. Retaining best customers
3. Collapsing funnels
4. Rise of meta Marketplaces
5. Lightening fulfilment
6. Invisible payments
7. Programmatic personalisation
Core customer needs and digital features
John Batistich - 2021
Make it
Easy
Protect Me
Fix issues
Rewards
Coupon usage
Recommendations
based upon past
purchases
Promo codes targeted to
my interests
Marketing opt-in for
personalised offers
Options for
returns
Refund returned
purchases
Protect my data
Fix my issues fast
and once
Live help
In-stock
Real time inventory
Easy navigation
Product details
Payment options
Price matching
Digital wallets
Create my profile
My shipping
information
My order history
My payment
method
You get me
Product reviews
Free shipping
Product
recommendations
Buy online pick up
instore
Mobile order ahead
Mobile product finding
Fulfilment can become a competitive advantage by building capability, outsourcing operations, automating inventory, streamlining
returns and create local delivery.
Help Me Get
What I Want
Value
Me
Know
Me
Source: Adapted from Akamai
John Batistich - 2021
Search
Find
Buy
Pay
Acquire
Use
Share
Relationship
Discovery
Lightening Fulfilment
o Options/Choices
o Fast
o Free
o Branded
o Sustainable
Invisible Payments
o Cashless/touchless
o Debit over Credit
o BNPL/Digital Wallets
o Digital currencies
o One to zero click/make it easy
Programmatic Personalisation
o Personalised content
o Know me and value me
o Relevance and exclusivity
Seamless Support
o Easy returns/refunds
o Service/live chat
o Referral
o Review/recommendations
o Protect me
Faster Search
o More predictive/faster/less time
o Help me get what I want
o Rise of Marketplaces
o Solutions over brands
Wider Discovery
o More options/time
o Social, live and entertaining
o Collapsing funnels
Shopper experience is transforming
Search terms: How,
what, where, why, best
ideas and tips
Search terms: Buy now,
best place, start free trial,
promo and get free gift
.
John Batistich - 2021
Sources
John Batistich - 2021
Sources
John Batistich - 2021
ABS
Akamai
Alexsoft
Amazon
Australian Financial Review
Australia Post
Baymard Institute
Benedict Evans
Bloomberg
CNBC
Cnet
Citi Supermarket Reports
Digital Commerce 360
Drewry World Container Index
Facebook
Forbes
Global Fashion Group
Global Web Index
Google Images
Google Trends
IAB
Kardex Remstar
Macrotrends
McKinsey and Company
NAB Quantium Online Sales Index 2011 – 2020
New York Times
RBA
Revealbot
SEMRush
Shopify - Future of Ecommerce
Similar Web global ecommerce benchmarks
Statistica
Worldpay – The global payments report
UBS Retailer Analysis
US Census Bureau
The Wall Street Journal
Zip Data Science
Connect
John Batistich - 2021
@johnbatistich
John Batistich
https://www.slideshare.net/jbatistich/

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Future of Ecommerce - 7 Trends Shaping the Future of Retail

  • 1. John Batistich - 2021 Future of Ecommerce 7 shifts shaping the future of commerce John Batistich May 2021
  • 2. Future of ecommerce will be defined by 7 shifts John Batistich - 2021 1. Accelerated consumer behaviours 2. Retaining best customers 3. Collapsing funnels 4. Rise of meta Marketplaces 5. Lightening fulfilment 6. Invisible payments 7. Programmatic personalisation
  • 3. John Batistich - 2021 1. Light-speed Consumer Behaviour Structural shifts in consumer behaviour are reshaping retail Nearly 150 Million people shopped online for the first time over the last year globally. We saw ecommerce accelerate five years John Batistich - 2021
  • 5. John Batistich - 2021 Online sales boom $169.9 $200.3 $231.9 $263.6 $303.0 $347.0 $397.3 $461.0 $523.6 $598.0 $861.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Digital Commerce 360, US Department of Commerce. Total retail figures excludes restaurants, bars, cars and fuels $8.2 $10.5 $12.8 $14.7 $16.4 $19.1 $21.7 $24.4 $28.6 $30.5 $44.2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 US Online Sales USD Billions Australia Online Sales AUD Billions Source: NAB Online Sales Index Online sales shifted 5 years forward as a result of covid lockdowns.
  • 6. John Batistich - 2021 Online sales value growth accelerated 29.0% 21.9% 14.8% 11.6% 16.4% 13.6% 12.4% 17.2% 6.6% 44.9% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: NAB Online Sales Index 16.8% 17.9% 15.8% 13.7% 14.9%14.5%14.5% 16.0% 13.6% 14.9% 44.0% 3.0% 4.9% 3.9% 3.0% 4.3% 3.9% 3.4% 3.8% 4.1% 3.8% 6.9% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Digital Commerce 360, US Department of Commerce. Total retail figures excludes restaurants, bars, cars and fuels US Online Sales Growth vs Total % Australia Online Sales Growth % Online sales grew at their fastest level in a decade partly fuelled by lock down induced store closures.
  • 7. John Batistich - 2021 Online share of total retail steps up 6.4% 7.2% 8.0% 8.8% 9.7% 10.7% 11.8% 13.2% 14.4% 15.8% 21.3% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Digital Commerce 360, US Department of Commerce. Total retail figures excludes restaurants, bars, cars and fuels US Online Share of Total Retail % 4.9% 5.8% 6.5% 6.8% 6.5% 7.1% 7.8% 8.9% 9.2% 12.6% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Australia Online Share of Total Retail % Source: NAB Online Sales Index Online grew to 12.6% share of Retail (excluding Restaurants/Cafes) but still under-indexes vs China, UK and US.
  • 8. John Batistich - 2021 Online category sales and share vary greatly 69% 59% 42% 21% 28% 23% 40% 25% T a k e a w a y F o o d G a m e s T o y s G r o c e r y L i q u o r P e r s o n a l R e c r e a t i o n a l M e d i a H o m e w a r e s A p p l i a n c e s D e p a r t m e n t S t o r e s F a s h i o n Source: NAB Online Sales Index Category Ecommerce Growth – 2020 vs LY Australia 10% 15% 6% 12% 40% 23% 20% 24% T a k e a w a y F o o d G a m e s T o y s G r o c e r y L i q u o r P e r s o n a l R e c r e a t i o n a l M e d i a H o m e w a r e s A p p l i a n c e s D e p a r t m e n t S t o r e s F a s h i o n Ecommerce Share of Category Sales Australia Takeaway food grew strongest whilst Media has the highest share of digital sales.
  • 9. John Batistich - 2021 All online categories grew Source: Australia Post Share of Online Sales - Parcels Australia 2020 - $Billions Variety, 33.0% Fashion/Apparel, 33.6% Home/Garden, 22.9% Health/Beauty, 9.4% Hobbies/R ecreation, 13.9% Specialty Food/Liquor, 5.9% 2.5 4.0 4.0 5.4 5.9 6.8 Specialty Food/Liquor Hobbies/Recreation Health/Beauty Home/Garden Fashion/Apparel Variety Household Penetration - Parcels Australia 2020 - Millions of Households Growth vs LY 51.1% 45.5% 69.6% 56.8% 53.6% 77% Sales from Variety and Fashion/Apparel account for 2/3 of Sales with Food/Liquor and Home/Garden with the highest growth.
  • 10. John Batistich - 2021 Online grocery sales have doubled 2.7% 2.9% 3.2% 3.5% 3.8% 5.5% 3.0% 3.4% 3.8% 4.2% 4.5% 7.7% 2015 2016 2017 2018 2019 2020 Online grocery as % of total sales Source: Company Reports. Citi Research 30.0% 31.2% 24.0% 12.5% 48.3% 27.2% 40.1% 38.3% 40.9% 91.8% 1H 19 2H 19 1H 20 2H 20 1H 21 Online grocery sales growth Households have doubled their usage of Grocery delivery over the year changing the supply chains for the major Supermarkets. “For every 100 visits to a physical store, there are 65 visits to a Woolies digital channels” Brad Banducci CEO Woolworths. Woolworths Coles
  • 11. John Batistich - 2021 Mobile leads but desktop saw a resurgence Source: Australia Post 87% 69% 56% 48% 91% 76% 61% 60% Mobile Laptop Tablet Smart TV How we buy online Australia On average, there were 4.4 devices per adult used to access the internet in 2020 up from 4 in 2019
  • 12. Online driven by delivery, value and convenience Source: Statista John Batistich - 2021 29% 38% 43% 47% 50% 54% 57% 63% Undisturbed shopping More product information More possible to compare Greater product range Available 24 hours More convenient Cheaper prices Direct delivery to home Drivers of Online Purchases US 2020 Online purchases have been driven by delivery, cheaper prices and convenience but this is changing.
  • 13. Consumers expect to shop online post covid Source: Global Web Index John Batistich - 2021 21.9% 26.7% 26.7% 35.1% 40.6% 43.4% 48.8% Use food delivery services Work from home Use video conferencing Use video calling Use mobile payment services Exercise at home Shop online Expected Behaviour Changes Post-Covid US 2020 Post covid, consumers expect to become more open to new brand experiences and are expecting to shop more online.
  • 14. Key opportunities for retailers John Batistich - 2021 Consumers have become more open to new brand experiences and are expecting to shop more online. Fast Easy Optimise Product Details Immediacy Convenience Total blended retail Virtual tours Hosted live events How to content Experiment with AR Upgrade Checkout Convert Physical into Digital Automate Promotions Shipping Costs Scalable images Free shipping thresholds Reviews/ratings Alternative/supplement ary products Buy now pay later Connect Checkout with POS Delivery options Save payment and shipping information Enable one-click Buy directly from product page Automate discounts and promotions Pre-calculate shipping costs
  • 15. John Batistich - 2021 2. Retaining Best Customers Acquisition costs rise so retailers are refocusing on retaining their most valuable customers Driving frequency, conversion and the average order value has never been more important John Batistich - 2021
  • 16. John Batistich - 2021 Higher online penetration and frequency 18 28 2019 2020 26.5% 27.4% 26.9% 19.2% Weekly Fortnightly Monthly Quarterly 6% 16% 2019 2020 Average Number of Online Purchases Shopping Frequency Distribution % of Weekly Online Shoppers Source: Australia Post 75% 82% 2019 2020 Household Penetration Online shopping growth driven by higher penetration (1.36M households) and frequency (+55%) 1.36M Households made a purchase for the first time More heavy users Higher average weight of purchase More regular shoppers who expect to shop more frequently
  • 17. Source: Company Reports John Batistich - 2021 Focusing on revenue per active customers Retailers like Temple & Webster and Adore Beauty are increasingly focused on revenue per active customer focused on driving repeat frequency. 178 192 204 206 213 FY17 FY18 FY19 FY20 CY20 Annual Revenue Per Active Customer $ 368 375 385 400 2017 2018 2019 2020 Annual Revenue Per Active Customer $
  • 18. Prioritising existing customers Source: Shopify John Batistich - 2021 With so much new penetration, identifying best customers, determining LTV, develop rewards and evaluate recurring revenue models become important opportunities Earn Loyalty Most valuable customers Map journey Conversion paths Up and cross sell Recurring Revenue Models Segment Customer LTV Integrate rewards Offer VIP exclusivity Referral programs Streamline billing process Create tiers Personalisation Buyer segments Responsive moments Predict to prevent churn Target Best Customers
  • 19. Media has surged towards digital Source: Benedict Evans via McCann, Zenith, BLS. John Batistich - 2021 US Advertising Spend US$ Billions - 2019 Dollars US Advertising as a % GDP % Google and Facebook disrupted media offering more targeted reach and more measurable ROI.
  • 20. Search and social costs have risen Source: Revealbot John Batistich - 2021 $0.85 $0.96 $0.99 $0.94 $0.96 $0.95 $0.86 $0.82 $0.78 $0.77 $0.83 $0.85 $0.71 $0.76 $0.72 $0.87 $1.01 $0.98 $1.00 $1.06 $1.14 $1.11 $1.21 $1.14 J F M A M J J A S O N D Facebook CPC 2020 vs 2019 in USD Cost to Acquire New Customers Q4 2020 vs LY 17% 24% Paid Search Social Advertising Over the last year we have seen CPC and CAC have risen putting pressuring on ROI.
  • 21. Google and Facebook dominating/strengthening Source: IAB John Batistich - 2021 26% 25% 19% 18% 15% -5% -8% -17% -24% -31% -33% -43.0% Paid Search Social Media CTV Digital Video Digital Display Digital Audio Podcasts Direct Mail Linear TV Radio Print Outdoor Advertising Spend Change 2020 vs LY US - % Ecommerce demand is accelerating digital ad growth. Industry data reveals increased spend in paid search, social and connected TV.
  • 22. Removal of third party cookies John Batistich - 2021 Third party cookies which allow retailers to recognise and target potential customers across channels will be gone next year affecting targeting, personalisation and ROI.
  • 23. Cart abandonment rates remain high Source: Baymard Institute. John Batistich - 2021 At 69%, cart abandonment rates remain very high with retailers focused on reducing the friction/steps from averages of 5-6 clicks Number of Checkout Steps Top 50/100 Grossing US Online Retailers 2016 vs 2012 4% 9% 22% 28% 18% 11% 4% 3% 2% 2% 16% 28% 36% 16% 2 3 4 5 6 7 8 9 69.6% 69.2% 2019 2020 Cart Abandonment Rates Global Average 2020 vs LY
  • 24. Solve the reasons for high cart abandonment Source: Baymard Institute John Batistich - 2021 Reasons for Abandonment During Checkout US - 2021 4% 7% 11% 12% 17% 17% 18% 19% 24% 49% Credit card declined Weren't enough payment menthods Returns policy wasn't satisfactory Site had errors or crashed Couldn't see total order cost up front Didn't trust site with credit card details Too long/complicated checkout process Delivery was too slow Wanted me to create an account Extra costs too high (shipping, tax, fees) Consumers want to the know the total price and when they will get it with ease, guest options and speed
  • 25. Reduce cart abandonment opportunities Source: Baymard Institute John Batistich - 2021 Reduce cart shock (pricing and delivery), remove barriers, build trust/reduce complexity and deliver key payment options earlier to decrease abandonment rates Remove Barriers Clear total cost Bring delivery options and date on product details Build targets for free delivery Show returns info upfront Show final price sooner Build Trust + Reduce Complexity Response Recovery Key Payment Options + Earlier Option to log-in early Guest check-out option Move account sign-up at end Remove unnecessary fields Use auto-fill Display trust signals Visualise roadmap Review order before pay Offer choice Remove steps Bring forward to product details Reduce Cart Shock
  • 26. John Batistich - 2021 3. Collapsing Funnels Moving from Discovery to Purchase with a single click Ecommerce is challenging stores by becoming more social, entertaining and experiential John Batistich - 2021
  • 27. John Batistich - 2021 Search Find Buy Pay Acquire Use Share Relationship Discovery Shopper journeys are transforming . Wider discovery, faster search, invisible payments, lightening fulfilment and personalised relationships
  • 28. Ecommerce appeals to needs satisfied by stores John Batistich - 2021 Convenience Price comparison Individual Routine/functional tasks High levels of research Transactional Infinite options Global reach The need states served by the mall are increasingly available online which becomes more social, experiential and entertaining Entertainment Experiential Social Connection Personal Service Sensory Immediate selection Local New Ecommerce
  • 29. Social media is adding shopping to discovery John Batistich - 2021 Facebook and Instagram are building shopping tags, live shopping events, marketplaces and digital catalogues Shopping Tags Live Shopping Social Marketplaces Digital Catalogues
  • 30. John Batistich - 2021 The discovery stage, fuelled by big social media, is adding live events, promotions, quizzes and product videos making ecommerce more social, experiential and entertaining across Facebook, Instagram and TikTok Live promotions AR product visualisation Social inspired content Social discovery is supporting events and product Product videos
  • 31. Ecommerce support communities are rising John Batistich - 2021 Ecommerce shopping is leveraging the power of the crowd and experts to provide service and helpful recommendations Kmart Home Hacks Bunnings Mum Group Letmetrybeforeyoubuy Influencer Dan Murphys Expert Recommendations
  • 32. Influencers for all categories and segments John Batistich - 2021 Online influencers help, guide and inspire customers with live video on Facebook, Instagram and YouTube. Lead shoppers are becoming broadcasters.
  • 33. John Batistich - 2021 Learning from the most visited sites 1938.2 648.8 370.7 341.1 228.6 176.3 124.7 77.3 60.5 60 38.1 37.5 amazon ebay walmart craigslist etsy target wayfair costco slickdeals kohls aliexpress samsclub Source: Similar Web Global ecommerce sales estimated at $4T. 16% of global traffic goes to Amazon, eBay and Rakuten. 1/6 online shoppers turn to Amazon first when shopping online Average Monthly Website Visits 2020
  • 34. John Batistich - 2021 On-site engagement improved 6.47 7.08 2019 2020 8.1 8.0 2019 2020 37.3% 35.8% 2019 2020 Average Visit Duration Average Pages Per Visit Average Bounce Rate Source: Similar Web 45.8% 49.1% 54.1% 50.8% 2019 2020 Device Split Desktop has rebounded as a split of devices. We have seen bounce rates and visit duration rise. Lap/Desk Mobile
  • 35. Source: Similar Web John Batistich - 2021 Understanding your sources of traffic 54.8% 26.4% 5.3% 5.3% 3.8% 2.6% 1.4% 54.8% 27.0% 5.5% 5.2% 3.8% 2.4% 0.9% Direct Organic Search Referrals Paid Search Social Media Email Display Direct and Organic Search account for over 80% of traffic whilst email and display are small and softening Global Sources of Traffic 2020 vs LY
  • 36. John Batistich - 2021 Traffic Acquisition Sources 12.1% 11.7% 87.8% 88.2% 2019 2020 Free vs Paid traffic Top Sites Source: Similar Web A returning visitor is 70% more likely to add a product to their cart than a new visitor. A site with a low visit to unique visitor ratio has a less engaged visitor 30.0% 29.4% 2019 2020 Unique Visitors/Total Visits
  • 37. Paid, 33% Free, 67% Paid, 34% SEO, 8% CRM, 13% Direct, 45% Source: Company Reports John Batistich - 2021 Maximising your free vs paid traffic Owned and earned traffic vs Paid is a key measure for ecommerce. GFG (The Iconic) and Kogan feature their high-level sources of traffic in their Investor Presentations.
  • 38. Seizing your SEO opportunities John Batistich - 2021 Consumers have become more open to new brand experiences and are expecting to shop more online. Site Structure Unique Compelling Content Internal link architecture Bot accessibility Sitemaps URL structure Server response codes Monitor keyword rankings Use high informational and intent words Measure campaigns Site speed Domain Authority Measure Test Improve Local Create relevant helpful content Remove duplicative or unnecessary content Data driven title tags Acquire quality backlinks Connect with reporters, influencers, partners, vendors for relevant backlinks Disavow spammy backlinks Complete and up-to- date Google My Business Local business listings Local directory submission
  • 39. Faster site speed lowers bounce rates John Batistich - 2021 The slower your site the higher the bounce rate and the poorer the user experience. Site speed also helps SEO rankings so make it snap! Site Speed (Seconds) and Bounce Rate 30% 40% 57% 62% 67% 1 3 5 6 10 Seconds per Actions
  • 40. Site speed opportunities Source: Altexsoft John Batistich - 2021 Content Use fast ‘out of the box’ platform Use fast reliable hosting Unlock the browser from parser-blocking scripts Minify your code Minimise the number of JavaScript and CSS files Features Structure Use content delivery network Decrease thumbnail image size Compress/reduce images in size and number Ease up on homepage hero slides Use lite embeds to add video Use pop-ups sparingly Reduce the use of web fonts Test/optimise on mobile Reduce the number of plug-ins Weigh the benefits of installing another app on your site Use website caching Reduce redirects Organise Google Tag Manager Conduct Google speed tests Reduce redirects/remove broken links Database optimisation in CMS Detect 404 errors Platform Customers expect webpages to load in less than two seconds. We need to improve site performance through platform, structure, content and features.
  • 41. Source: Similar Web John Batistich - 2021 Conversion rates remain low 6.34% 5.42% 4.75% 4.35% 4.26% 4.11% 3.25% 2.91% 2.88% 2.83% 2.14% 1.99% Germany UK Poland France US Italy Australia Brazil Canada Sweden Mexico India Average ecommerce conversion rates for top 10 countries Jan – Sep 2020 To improve the conversion rate understand whether the customer is in discovery, navigational or buyer mode and test improvements to key product page and payment moments.
  • 42. Product details page is the buy moment Source: Adapted from Baymard Institute John Batistich - 2021 1. All Products Need At Least One ‘In Scale’ Image 2. Allow Users to Purchase Temporarily ‘Out of Stock’ Products 3. Avoid Sneaky Displays of ‘Free Shipping’ Promotions 4. 5 Requirements for the ‘Ratings Distribution Summary’ 5. Provide Both Site-Authored FAQs and Community-Driven Q&As 6. Provide a Cross-Sell Section that Only Contains ‘Alternative Products’ 7. Provide a Cross-Sell Section that Only Contains ‘Supplementary Products’ 8. Provide major BNPL options 82% of sites struggle to reach even an “acceptable” level for the Product Page user experience.
  • 43. Conversion opportunities Source: SEMRush. SimilarWeb. Baymard Institute Easy Checkout AB test headlines Understand users modes and needs Personalise emails based on search/purchase Own ‘buy intent’ keywords Maximise returning visits Be where your best customers are during discovery Trust Service Signals Brilliant Product Details Clear calls to action No more than 3 clicks Autofill details Checkout as guest option Add stages path Add countdown timer Integrate with store POS Add live chat Security cues Money back guarantee Competitive refunds Competitive and easy returns Abandonment email Carbon offsets and charity contribution Beautiful in scale Images In Stock Free Shipping Social proof: Reviews and Ratings distribution Site and Community FAQs Cross sell supplementary and alternative Key BNPL (e.g. Zip) options Intentional Visits Retailers can drive better conversion through intentional (buying intent) visits, beautiful design, brilliant product details, easy checkout and trust/service signals Clear proposition Clean mobile navigation/design Make initial steps really easy Simple registration Remove unnecessary form fields Remove distractions Site speed that snaps Beautiful Design
  • 44. John Batistich - 2021 4. Rise of Meta Marketplaces Global marketplaces are becoming search and fulfilment powerhouses Brands are trading off data and a direct customer relationship for reach and revenue John Batistich - 2021
  • 45. Department stores in structural decline Source: US Census Bureau John Batistich - 2021 The original marketplaces, Department Stores, are in structural decline and being replaced by global ecommerce marketplaces. US Department Store Sales USD Millions – 1993 to 2020
  • 46. Source: Bloomberg. Forbes. New York Times AFR. John Batistich - 2021 Leading to bankruptcy and consolidation We are seeing store closures, consolidation and bankruptcy for retailers who have been slow to adapt. Pure plays are even buying store brands.
  • 47. Source: McKinsey. John Batistich - 2021 Marketplaces are accelerating growth Marketplaces are leading ecommerce value and growing faster than proprietary sites Global Ecommerce Market Platform Sales Breakdown $ Trillion
  • 48. John Batistich - 2021 Online marketplaces are strengthening $2.67 Trillion was spent globally on the top 100 marketplaces in 2020 growing at 29% vs LY. Marketplace Top 100 62% 95% Marketplace Share of Global Ecommerce Share of the Top 100 Top 5 Global Marketplaces ($B GMV) 100 405 475 593 609 Source: Digital Commerce 360
  • 49. Source: Company Reports. MacroTrends. John Batistich - 2021 Amazon leads the way (outside of China) In 2020, Revenue grew by 37% to $386B, employed 1.3M and achieved a market cap of $1.6 Trillion Amazon Revenue (US$ Billions) 6.9 8.510.7 14.8 19.2 24.5 34.2 48.1 61.1 74.5 89 107 136 177.9 232.9 280.5 386.1 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 Amazon Employees (000s) 34 56 88 117 154 231 341 566 648 798 1298 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Amazon Market Capitalisation (US$ Billions) 23 60 82 118 182 143 309 355 594 774 934 1628 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
  • 50. Source: Company Reports. Statista. John Batistich - 2021 Amazon marketplace outperforms first party sales Amazon third party sales account for +60% of GMV and growing faster than first party sales Amazon First Party vs Third Party Revenue (USD Billions) 117 135 190 160 200 300 2018 2019 2020 3% 34% 60% 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 Amazon Third Party Share of Revenue 3rd Party Sales 1st Party Sales
  • 51. Amazon is building a huge media business Source: Benedict Evans. Company Reports. Cowen & Co. John Batistich - 2021 Amazon is challenging Facebook and Google, building a marketplace led media business estimated to be worth $26B. Amazon Advertising Revenue (US$ Billions) 1 1.5 2.5 4 10 14 26 2014 2015 2016 2017 2018 2019 2020
  • 52. Retailers building marketplaces with media John Batistich - 2021 Major retailers are developing marketplaces where media is a key source of value.
  • 53. John Batistich - 2021 Shopify is accelerating SMB ecommerce Source: Shopify. MacroTrends. Shopify GMV (US$ Billions) 3.8 10 15.4 26.3 41.1 61.1 119.6 2014 2015 2016 2017 2018 2019 2020 Shopify Revenue (US$ Millions) 112 189 310 465 642 909 93 201 363 608 936 2021 2015 2016 2017 2018 2019 2020 Counterweighting marketplaces, Shopify has driven explosive growth enabling SMBs to step-change their ecommerce business. Shopify Market Capitalisation (US$ Billions) 1.6 3.6 11.3 15.3 47.2 135.2 2015 2016 2017 2018 2019 2020
  • 54. Brand concerns over marketplaces Source: Statista John Batistich - 2021 The promise of higher revenues compels brands to have a marketplace presence. But people aren’t searching for the brands rather searching for solutions. 24% 26% 31% 34% 36% 50% Biased private label competition Customers distracted from our products Lack insight on buying behaviours Customer owned by marketplace Inconsistent behaviour cross marketplaces Take cut of revenue Concerns about selling through marketplaces US 2018
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  • 56. Brands under pressure from Marketplaces John Batistich - 2021 o But brands often perceive marketplaces as a necessary evil: driving sales, but pressuring margins o Consumers are are increasingly starting their search on marketplaces o Marketplaces are growing faster than brand sites o Consumers have wider decision hierarchies on marketplaces o Marketplaces are creating private label products on the best selling products o Brands have long been concerned about ceding customer relationships and data to marketplaces. o Brands should turn their marketplace product pages into rich, immersive experiences, while offering unique customised products through their own channels. Marketplaces help reach a wider range of customers but your core site should cater for your best customers.
  • 57. Marketplace opportunities John Batistich - 2021 Choice Automate Optimise Product Page Differentiate Brand Site Choose to play or not Step-change your own site for best customers Decide on data sharing Agree fulfilment, marketing and pricing terms Set up Product APIs Dashboard syncing inventory, product and marketing Automate workflow, events, inventory management, warehousing and marketing Gather insights/feedback and iterate Delivery best images and support reviews Drive parity pricing and align promotions Test paid search media Full brand story with rich content Full range Exclusives Customisation Services Deep personalisation Brands need to choose whether to play or not with marketplaces considering the customer reach and revenue against costs Source: Adapted from Shopify
  • 58. John Batistich - 2021 5. Invisible Payments How we buy and pay is undergoing transformative change Seamless, touchless, cashless, cardless and digital wallets John Batistich - 2021
  • 59. Source: RBA. McKinsey John Batistich - 2021 Cash is collapsing 56% 55% 51% 99% 79% 100% 9% 23% 28% 41% 54% 89% Sweden UK US China Japan India Cash usage by country % of Cash used in total transactions by volume 2010 2020E 72% 68% 56% 43% 32% 22% 44% 39% 33% 30% 18% 9% 2007 2010 2013 2016 2019 2020E Australia Cash Usage % of Cash used in total transactions Volume and Value Volume Value Cash is in structural decline globally.
  • 60. Changes in the value of retail payments Source: RBA John Batistich - 2021 9.0 26.6 31.0 35.0 39.5 66.5 ATM Withdrawals Credit Card Cheque Debit Cards Balances Outstanding of Credit Cards New payments platform transactions Value of Retail Payments Australia 2020 - $ Billions Growth vs LY +85.7% -25.6% +17.8% -32.9% -6.2% -13.6% RBA data sees less cash, cheques and credit card usage and a lot more debit and new forms pf payment (including BNPL)
  • 61. Source: Google Trends John Batistich - 2021 BNPL is rising amongst new generations Afterpay and Zip are providing new mobile ways of paying to avoid interest. Google Trends Search Last 5 years until May 2021
  • 62. Paying will become easier and more invisible Source: Amazon John Batistich - 2021 One click payments online and Amazon go remove the payment stage of the customer journey
  • 63. Future of payments opportunity John Batistich - 2021 Mobile Wallet Less use Less acceptance Fewer ATMs and Bank Branches Touchless Integrate POS and Payment Gateway Mobile POS New store design One/Zero click Real time clearing and settlement Merges with Loyalty Technology and CX Debit Strengthens Vs Credit Wave/Pass Contactless Cardless Fast and secure Cross border Integrated loyalty schemes Self-checkout Personalised offers POS credit financing More Debit Declining Credit Cards Cheques vanish Digital currencies Payments are not just being disrupted, but utterly transformed by new technology. This desire for speed, convenience, ubiquity, safety and affordability is rising. Cashless
  • 64. Cyber security threats are rising on PII John Batistich - 2021 The threats of a PII data loss or DOS attack are rising rapidly.
  • 65. Cyber security resilience opportunities John Batistich - 2021 Human Firewall Security by Design Senior Ownership Resourced Phishing Training Password control Access Management Policy Playbook Simulations Regulators Defence Response Recovery Detection Controls Configuration End to end Encryption 3rd Party APIs Authentication Understand Risk Sources Patch Management Automated Updates Back Up Files Monitor Anomalies Measure system Retailers need to create a human firewall, protect, defend, detect and respond.
  • 66. John Batistich - 2021 6. Lightening Fulfillment Fast, free, sustainable and branded fulfilment options Retailers are facing higher complexity and rising costs to meet rising customer expectations John Batistich - 2021
  • 67. Source: Amazon.com. Seattle Times “The idea of making deliveries faster is in the DNA of the company. When I started writing the concept document for Prime Now, I wrote that I wanted it to feel like magic for a customer to get something right to their door in superfast speeds and we built from there—I assembled a great team and we worked hard to launch fast... The future is now. Customers are ready for it. ” Stephanie Landry VP Amazon Prime Now
  • 68. Customer expectations for lightening fulfillment John Batistich - 2021 Fast Free Branded Sustainable Same and next day options Automated returns Recycle Reuse Minimalist Carbon neutral Ethical supply Free-shipping thresholds Pick Up instore or curbside Home delivery Options Special anticipation Personalised Consumers want options. They want fast, free, branded and sustainable fulfilment. Source: Adapted from Shopify
  • 69. Improving fulfilment and distribution Source: Shopify John Batistich - 2021 Customers expect fast delivery, free delivery or free shipping thresholds. Customers Expectations on Fulfilment – US 2020 23% 34% 37% 40% 59% 64% 65% 67% Frustrated when have to pay extra for shipping Faster delivery would make online shopping better Frustrated when shipping takes too long Free returns would make online shopping better Free delivery improves the experience Expect delivery to be free Check free shipping threshholds before adding to cart Expect delivery within two days
  • 70. Increased fulfilment complexity and costs Source: Kardex Remstar via Shopify John Batistich - 2021 The ecommerce boom has pushed order fulfilment capability to the limit with higher complexity and increased costs. How retailers’ order profile has changed due to ecommerce 23% 23% 25% 28% 31% 33% 43% 50% 86% Processing orders from multiple facilities Processing more returns Fewer multi-line orders Shipping orders to stores for pick-up Peak shift due to time of order received Processing more orders at peak Dealing with more single line orders Must process and pick orders faster to meet cutoff Changes made to order profile
  • 71. Container rates have stayed elevated Source: World Container Index/Drewry (40 foot equivalent unit container) John Batistich - 2021 Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers Spot Container Rates from Asia
  • 72. Returns are an increasing pressure point Source: Statista via Shopify John Batistich - 2021 Returns are rising as more online shoppers "bracket" their purchases, buying multiple versions of a product with the intention of returning some items. Value of Ecommerce Returned US – 2014-2023E 80 88 104 121 143 171 205 242 290 348 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
  • 73. Sustainability is rising in importance Source: World Business Council for Sustainable Development John Batistich - 2021 Consumers globally report a greater propensity to buy from companies with a reputation for environmental responsibility. Consumers report a willingness to pay more for “environmentally friendly” products or services 67% 52% 46% 42% 40% 34% 33% 32% 32% 28% 27% 23% 18% China Australia Sweden US Japan Canada Italy Brazil Russia Germany UK France Spain More Likely to purchase from company with good reputation for environmental responsibility
  • 74. Different delivery logistic models emerging Source: IRI via Benedict Evans John Batistich - 2021 Ecommerce is almost all shipped by parcel (e.g. Australia Post), but half of food is collected or delivered. Parcels 93% Delivery 2% Collection 5% Parcels 77% Delivery 9% Collection 14% Parcels 46% Delivery 16% Collection 38% Food Consumer Packaged Goods General Ecommerce Ecommerce by logistics by Category US – June 2020
  • 75. Improving fulfilment and distribution Source: Kardex Remstar via Shopify John Batistich - 2021 Retailers are focused on improving inventory management, packing, returns management and replenishment. Fulfilment and Distribution improvement focus over the next 2 years US - 2020 20% 21% 23% 23% 28% 32% 35% 42% 43% Better store and fulfilment centres Coordinating processes across multiple fulfilment centres Retrieval of electronic data Order wavering or sequencing Order customisation and value added services Replenishment Returns management Packing Inventory management
  • 76. Fulfillment opportunities John Batistich - 2021 Streamline Return Process Fast Local Fulfilment 3PL partnership Global reach Late cut-offs for same day Fulfil from store Dark Stores Click and collect Accurately forecast demand Optimise replenishment Rule based routing Reduce shipping costs Inventory management Returns management system Local delivery Store credit/exchange Pre-fill return labels Self-serve Fulfilment can become a competitive advantage by building capability, outsourcing operations, automating inventory, streamlining returns and create local delivery. Automate Inventory Management Outsource Operations Build Capability
  • 77. John Batistich - 2021 7. Programmatic Personalisation Creating a direct personalised relationship with customers at scale Retailers are focused on unified data, design, decisioning and content distribution to deliver ‘you get me’ moments. The long-awaited return to one to one shopping is now possible at scale. John Batistich - 2021
  • 78. One to one service is now possible at scale John Batistich - 2021
  • 79. Brands are going direct via digital Source: Company Reports via Benedict Evans. John Batistich - 2021 Ecommerce as % of Sales 2020 25% 13% 10% 10% 7.6% 2% Loreal Nestle P&G Reckitt Unilever Hershey Brand owners are accelerating their drive towards ecommerce channels to build direct relationships with their customers.
  • 80. Personalised recommendations drive sales John Batistich - 2021 More than 30% of Amazon’s retail is generated by personalised recommendations based upon prior search and purchase behaviour. Recommended for you, John
  • 81. John Batistich - 2021 Prime personalisation drives LTV Source: Statista 2021 600 1400 Non Member Member Number of Amazon Prime Members (Millions) Annual Spend: Prime vs Non-Prime (USD) 25 40 54 75 91 101 112 152 2013 2014 2015 2016 2017 2018 2019 2020 Amazon Prime drives higher life time value with low levels of churn.
  • 82. Source: Statista John Batistich - 2021 Personalised relationship 18% 21% 26% 26% 32% 35% 42% Siloed organisation with different approaches Co-ordinating different delivery platforms Lack of technology resources Managing data quality or inconsistent levelof quality amongs data sources Creating a single view of the customer with other marketing channels Attributing marketing performance to individual programs, campaigns or channels Inability to track targeted customers through entire journey Primary challenges to implement personalisation strategy and tactics Key challenges for retailers include tracking customers through the entire journey, attribution and creating a robust single view of customer
  • 83. Developing a personalisation framework Source: McKinsey & Company John Batistich - 2021 Decisioning Create customer-data platform to provide a 360 degree customer view Distribution Design Advanced analytics and machine learning to create customer scoring and real-time triggers Deliver marketing tool experiences across channels and feed response data to customer-data platform Content factory model, digital-asset management, and agile marketing to drive experimentation Data Foundation The solutions architecture and operating model should be guided by a simple and effective framework
  • 84. Developing the stack to enable personalisation Source: McKinsey & Company John Batistich - 2021 Retailers need to develop a data and martech stack to enable personalisation at scale
  • 85. John Batistich - 2021 Key Takeaways So What? John Batistich - 2021
  • 86. 7 trends shaping the future of ecommerce John Batistich - 2021 1. Accelerated consumer behaviours 2. Retaining best customers 3. Collapsing funnels 4. Rise of meta Marketplaces 5. Lightening fulfilment 6. Invisible payments 7. Programmatic personalisation
  • 87. Core customer needs and digital features John Batistich - 2021 Make it Easy Protect Me Fix issues Rewards Coupon usage Recommendations based upon past purchases Promo codes targeted to my interests Marketing opt-in for personalised offers Options for returns Refund returned purchases Protect my data Fix my issues fast and once Live help In-stock Real time inventory Easy navigation Product details Payment options Price matching Digital wallets Create my profile My shipping information My order history My payment method You get me Product reviews Free shipping Product recommendations Buy online pick up instore Mobile order ahead Mobile product finding Fulfilment can become a competitive advantage by building capability, outsourcing operations, automating inventory, streamlining returns and create local delivery. Help Me Get What I Want Value Me Know Me Source: Adapted from Akamai
  • 88. John Batistich - 2021 Search Find Buy Pay Acquire Use Share Relationship Discovery Lightening Fulfilment o Options/Choices o Fast o Free o Branded o Sustainable Invisible Payments o Cashless/touchless o Debit over Credit o BNPL/Digital Wallets o Digital currencies o One to zero click/make it easy Programmatic Personalisation o Personalised content o Know me and value me o Relevance and exclusivity Seamless Support o Easy returns/refunds o Service/live chat o Referral o Review/recommendations o Protect me Faster Search o More predictive/faster/less time o Help me get what I want o Rise of Marketplaces o Solutions over brands Wider Discovery o More options/time o Social, live and entertaining o Collapsing funnels Shopper experience is transforming Search terms: How, what, where, why, best ideas and tips Search terms: Buy now, best place, start free trial, promo and get free gift .
  • 89. John Batistich - 2021 Sources John Batistich - 2021
  • 90. Sources John Batistich - 2021 ABS Akamai Alexsoft Amazon Australian Financial Review Australia Post Baymard Institute Benedict Evans Bloomberg CNBC Cnet Citi Supermarket Reports Digital Commerce 360 Drewry World Container Index Facebook Forbes Global Fashion Group Global Web Index Google Images Google Trends IAB Kardex Remstar Macrotrends McKinsey and Company NAB Quantium Online Sales Index 2011 – 2020 New York Times RBA Revealbot SEMRush Shopify - Future of Ecommerce Similar Web global ecommerce benchmarks Statistica Worldpay – The global payments report UBS Retailer Analysis US Census Bureau The Wall Street Journal Zip Data Science
  • 91. Connect John Batistich - 2021 @johnbatistich John Batistich https://www.slideshare.net/jbatistich/