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e-Commerce are you there?
The document discusses the current state and potential of e-commerce in Israel, highlighting significant growth in online shopping and changing consumer behaviors. It debunks common myths about online purchasing, emphasizing the need for better user experience and competitive pricing. The report also outlines challenges faced by retailers, such as integration and high costs, while encouraging a shift towards a more robust e-commerce strategy.
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e-Commerce are you there?
- 1. E-Commerce Are you there? Shay Rosen Head of Strategy & Consulting shayr@realcommerce.co.il
- 2. Shay Rosen Head of Strategy & Consulting, realcommerce Shayr@realcommerce.co.il http://www.linkedin.com/in/shayrosen http://www.facebook.com/shayrs http://www.slideshare.net/shayrs M: 052-5118539
- 3. • Strategy Business analysis, Concept creation, UX, UI • Technology Robust, Smart, efficient content management & e commerce platforms for mega sites • Leadership Powering Israel’s largest and most successful enterprises
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- 7. $11.4B Total Sales Black Friday 6.6% Retail Sales Growth 29.3% Online sales Growth
- 8. $1.25B OnlineTotal Sales Facts about e-commerce Up 33% from last year 292% Mobile Sales Growth (!)
- 9. US E-commerce Forecast SOCIAL Relationship Collaboration CRM 9
- 10. Europe E-commerce Forecast Relationship Collaboration Forrester 10
- 11. E-commerce Maturity SOCIAL • 79% of online European consumers plan to purchase products or Relationship Collaboration services via the Internet in the next six months CRM Online consumers in Norway (89%) and GB (86%) show the greatest propensity planning a web purchase in the near future (Nielsen Global Consumer Report June 2010) 100% 89% 86% 84% 83% 79% 81% 78% 77% 80% 74% 72% 68% 60% 40% 20% 0% EU Poland Ireland France Netherlands Spain Belgium Norway UK Denmark Italy Average Austria Switzerland Germany & Czech Republic 11
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- 13. Israel E-commerce Myths •Israelis are afraid to pay online • • Israel is a Small Country, Stores are near by, There’s no need for e-commerce •Everybody believes prices are better in the store
- 14. Israel E-commerce Myths(1) •Israelis are afraid to pay online • Changed dramatically since the arrival of the coupon trend. •54% of credit card holders already bought something online •Large growth of Paypal accounts in Israel
- 15. Israel E-commerce Myths(2) • People need to feel and touch the merchandize, Nobody will buy clothes online
- 16. Israel E-commerce Myths(3) • Israel Is a Small Country, Stores are near by, There’s no need for e-commerce • Really? what about traffic, parking, standing in lines?
- 17. Israel E-commerce Myths(4) • Everybody believes prices are better in the store – unfortunately that’s right
- 18. Israel E-commerce Truth •E-commerce in Israel is poor • Most Retailers don’t sell online • Many of Those who do sell online offer better prices in stores • Majority of online stores in Israel have bad UX and bad customer service
- 19. Israel 2011 -change is here
- 20. Israel 2011 -change is here • Digital revolution is here • 40% Smartphone penetration (Higher than US and Eu) • 90% Facebook penetration (2nd in the world) • Highly engaged and active 2009
- 21. Israel 2011 -change is here
- 22. Israel 2011 -change is here לקנות דרך האינטרנט - מחירי ישראל לעומת ארה"ב (בשקלים) פער מחירים ישראל - מחיר בארה"ב מחיר בארץ פריט ארה"ב %853 663 903,1 שואב אבק עומד Hoover H1.Inf 930,2-536,5 339-933,1 עגלת Switch Peg Perego %124 933,1-948,2 946-984,1 טיולון City Mini BabyJogger %191 %261 892 484 נעלי Nike SHOX Nz Si %711 757 488 טרקטורון צעצוע004 SPORTSMAN %611 695 096 מעיל סקי RIDE Kent Insulated %002 6.47 941 כפפות נוער לסקי Columbia Core פאקו רבאן ליידי מיליון או דה פרפיום 08 852 603-953 %931 מ"ל פלטינום קרם יום לפנים צוואר ומחשוף 664 975 %421 לנקום 05מ"ל %551 944 996 סרום הלנה רובינשטיין Prodigy Powercell %471 414 917 תרמיל טיולים 83 Osprey Kestrel ,Ynetדצמבר 1102
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- 25. OMG! Cannibalization • Staples– 45% of sales are online • Office Depot – 40% • Victoria’s Secret - 16% • Gap – 10% It’s not Cannibalization – it’s adjustment
- 26. Setbacks • Integration • Highcosts • Synergy with retail operation • Lack of know how • Does not fit organization structure Postponed e-commerce projects
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- 29. Fact: Consumption is adigital activity • 75% research online prior to buying(!) • Price comparison sites • Search for information • Product reviews • Social (Talking about) shopping Consumers already visit your website for information – why send them away?
- 32. Price • In Bold– Lowest prices online! • In the front – Selected items must go lower than in store • Inside – Can be equal • Never higher than in store prices! A mater of perception Prices on the website just can’t be higher
- 36. Shoesite.com 2000 - $1.6M
- 38. “In terms ofthe three major areas - service, selection and price - you can really offer two of them in the same time. Our brand was in service and selection” Tony Hsieh, CEO
- 39. • Toll-free numbershown everywhere and not hidden • Free shipping and returns • 365-day return policy • 24/7 availability (same working hours as the Internet…) • 24/7 Warehouse • Promise delivery within 4-5 business days* * Usually upgrade to overnight shipping by surprise
- 40. 75% Returning customers $110 $140 First timer average vs. returning customer
- 42. User Experience – It’sabout breaking barriers • Create confidence • You are not alone • Nothing is irreversible • Special deals online • Ease of use • Fun & smooth experience
- 43. User Experience – It’sabout breaking barriers • Think about the bounce rate • 8-12 Seconds to bounce! • Return policy & customer service • Lower Prices & Free shipping • Invitation to enter • Attractive Deals & related products • Orientation: • Search • Flat Navigation • Intuitive Product browsing • 24/7 customer service • Trustworthy product reviews & Ratings • Shopping Cart always present • Keep in touch Measure & Optimize Constantly
- 44. Creating confidence Breaking Barriers(1) Added Values
- 45. Creating confidence BreakingBarriers(2) 24/7 Customer Service
- 46. Orientation • Search • 4ways to browse products
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- 48. Functional area: My Account Shopping cart
- 49. The importance ofMobile
- 50. Social Media –Handle with care • Facebook / Twitter: • Customer care • Support • Drive Traffic • Keep in touch • Blog: Info & Review • Youtube: Product info videos
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- 52. Looks Complicated ?Expensive? • This is life • Create a new P&L – that’s the only way • Assign a team • Plan • Set Goals, Objectives & Budget • Launch • Be patient, Measure, Optimize and Evolve • It’s worth it! Do it – it’s 2012!
- 53. Shay Rosen Head of Strategy & Consulting, realcommerce Shayr@realcommerce.co.il http://www.linkedin.com/in/shayrosen http://www.facebook.com/shayrs http://www.slideshare.net/shayrs M: 052-5118539
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