The document discusses how e-commerce is evolving due to changes in technology and consumer behavior. Smartphones and tablets have dramatically increased internet access, leading users to do more browsing and buying online. This is forcing traditional retailers to adapt to the new landscape or risk going out of business. Direct sellers are well-positioned to capitalize on e-commerce innovations by offering a personalized shopping experience combined with new features like mobile optimization, loyalty programs, and content management. Direct sellers that embrace these emerging technologies can provide the best possible experience for customers and representatives.

1. The Changing e-Commerce Landscape
by Greg Fink
The stage was set in the early e-commerce days with eBay and Amazon
paving the way in the digital shopping experience. More recently, we
were introduced to flash sales and daily deals from companies like
Living Social, Gilt Groupe, Woot and of course Groupon. Electronic
commerce has now come of age. Nothing has surpassed the power of
eBay or Amazon and few innovative e-commerce startups have proved
to be as successful.
What we are witnessing todayis a metamorphosis ofe-commerce into a variation of online commerce thatrequires
adaptability and flexibility.
What is driving the evolution of e-commerce todayis how people are accessing the Internet.While the PC was wildly
successful and reached hundreds ofmillions ofpeople over several decades,the smartphone has developed an
enormous following in onlya few years. The Apple iPhone was introduced in mid-2007 and in less than five years
there are more than a billion smartphone users around the globe,with projections to double by 2015.Smartphone
users are inseparable from their devices,and even during the Great Recession users refused to cut back on
smartphone costs.Butit didn’tstop there—the tablethas since been introduced and users are spending more time
online than ever before.Users browse,compare and research before theybuy, and boy do they buy.
What we are witnessing today is a metamorphosis of e-commerce into a variation
of online commerce that requires adaptability and flexibility.

2. Marc Andreessen,Founder ofNetscape and a brilliant Internetentrepreneur,made a bold prediction in January:
“Retail guys are going to go out of business and e-commerce will become the place everyone buys. You are not
going to have a choice,” he said.“Retail chains are a fundamentallyimplausible economic structure.There is
fundamentallya better model.”
Not everyone will agree with Andreessen’s prediction as to the absolute death of retail,but it should be obvious that
software has made online commerce a realityand has disrupted traditional retail models.E-commerce is competing
with brick-and-mortar retail,and in many cases,winning.In the lastfew years we’ve seen Netflix triumph over
Blockbuster and Amazon trump Borders.
But it’s not justretail. LinkedIn is now the fastest-growing recruiting company,and Craigslisthas all butkilled
classified ads.The changeover continues across all segments ofthe market, including finance,automobile sales,
telecommunications and television,notto mention thatmanufacturing too has been given a glimpse ofa changing
future since the introduction of 3D printing.The common denominator to all this disruption is software. So the
question should be asked:Whatis your companydoing aboutthis changing landscape?
Direct selling has a leg up on traditional retailing in thatit has,by its nature, capitalized on the one-to-one
relationship,something thathas remained elusive to traditional retail.But some ground has been gained byretailers
in recentyears with one-to-one interaction using social tools like Twitter and Facebook.
Our industry, as a whole,is being impacted by new behaviors.While direct selling mayhave the advantage of one -to-
one relationship selling while notbeing shackled like brick-and-mortar businesses,our industryis being challenged by
these newly developing shopping habits.Who can refute referral and affiliate marketing? Whataboutthe impactof
preferred customers and the occasional buyer who wants a greatproduct but appreciates a little incentive for
referring others?
Here are some things to look for in a well-designed e-commerce platform:
Personalization and the User Experience
Today, a user’s online experience is dramaticallydifferentthan even justa couple of years ago. Social and sharing
sites are compiling “big data” thatcaptures information oftentimes hidden from the consumer.This data is beginning
to offer personalization like never before,and everything from age,purchasing and browsing habits to geographyand
social profiles will playa part in offering a more relevant,
more pleasing and beneficial shopping experience.
It’s no longer aboutjustcompleting an order;savvy
shoppers wantself-service options thatoffer immediate
productinformation and results.Can a shopper view a short
productvideo? Can all the ingredients and formulations be
viewed online? Does itoffer a user review and a rating
system? These are core e-commerce features todayand
they appeal to consumers,offering a better online
experience.
Connected Devices
PCs rule the workday. Tablets are used in the evening and smartphones are constantcompanions.How people visit
your site is beyond your control, which means your e-commerce software needs to work on multiple connected
devices.Consumers are adapting their lives to tablets,smartphones and PCs,and they are expecting that the various
devices used will offer experiences,personalization,geo-specific contentand relevantoffers. Responsive design is
critical going forward for optimizing the online experience regardless ofthe device.
Affiliate and Referral Marketing
It’s no longer about just completing
an order; savvy shoppers want self-
service options that offer immediate
product information and results.

3. Affiliate marketing relies purelyon financial motivations to drive sales,while referral marketing relies on trustand
personal relationships to drive sales.In direct selling we are proud of our one-to-one marketing method butaffiliate
marketing is a powerful channel.An e-commerce platform oughtto be able to manage affiliates and referrals .Would
your company’s sales culture benefitfrom casual buyers who getrewarded for referrals? Imagine your preferred or
retail customers referring a friend and receiving an incentive that encourages future purchases.Look for a platform
that builds bridges,notbarriers.
Loyalty, Promotions and Incentives
Loyalty programs are notjustfor frequent travelers anymore. They have been wildly successful because theywork.
Also look for promotion and incentive capabilities.As you know, compensation plans reward behaviors but
sometimes you need quick or specificallytargeted results.Maybe you want to launch a new product or stimulate
sales on products thatare slow movers,or perhaps you have short-term objectives such as an upcoming national
conference or you want to increase your Preferred Customer base.The possibilities are endless.You’ll wantan e-
commerce platform thatis agile and allows you to easilycreate your own promotions and incentives withoutmaking a
projectout of it. You’ll get the near-term results you’re looking for withoutadded costs,and you won’thave to modify
your company’s compensation plan.
Virtual (or Alternate) Currency
Has your companyconsidered the manypossibilities ofusing virtual currencies? Maybe a representative recruits a
new customer and maybe a customer refers a friend—should theyboth receive the same reward? Or what abouta
virtual currency that can be used for future purchases or mayaccrue toward marketing materials or national
conference registration fees? Virtual currency can be a point-based system (e.g.,airline mile programs) or cash-on-
accountor credit-on-account.The bottom line is that sometimes moneyis notthe only motivator for the behaviors you
seek.
Content
In a digital world the ink is never dry. Content should be dynamic,fresh and informative for the viewer and frequently
updated so that it is relevant. A content managementsystem allows the creation,managementand publishing of
content that is relevant to the audience,presenting specials,incentives and promotions thatare time sensitive.
Whether offering simple promotional messages or uploading a video announcing a new loyalty program,content
managementsystems offer robustcapabilities thatfacilitate complete managementofdigital assets.
Enrollment and
Membership
Enrollment should be more than just

4. Justas critical to the e-commerce shopping,browsing and
buying experiences is the process supporting new
customer or sales representative enrollment.Enrollment
should be more than justcollecting information—itis the
first impression moment.It should be simple and easy,
guiding the user through each step, such as launching a
personal marketing website,uploading contacts and
initiating an online branded marketing campaign within minutes.Results have shown thatby accelerating this user
experience chances ofretention will significantlyincrease for both customers and sales representatives.
In Summary
Direct sellers are well-positioned to startprofiting from the latestin innovations that are transforming e-commerce and
ultimatelythe way consumers and sales representatives behave both off and online.Direct sellers are in a unique
place,offering “white glove service” and hands-on supportto consumers and sales representatives,and when
combined with the latestin e-commerce innovations the “user experience” becomes the bestitcan be. Direct sellers
and their customers expectmore,and the new era of e-commerce is upon us with technologies thatcan supportthe
traditional directsales business model while embracing the future.
Greg Fink
Greg Fink is Vice PresidentofSales & Marketing at Next Wave
collecting information—it is the first
impression moment.