SlideShare a Scribd company logo
1CONFIDENTIAL
e-commerce
trends 2018
KATE SEMIZHON
APRIL 18, 2016
2CONFIDENTIAL
AGENDA
MOBILE COMMERCE DELIVERY &
FULFILLMENT
SMART MACHINES REQUIRED SKILLS
3CONFIDENTIAL
FORECAST
“$480 billion in online sales by 2019”
“Rapid smartphone adoption continues to be a
major driver for eCommerce
as consumers spend more time online,
increasing the likelihood that they will engage
in an online
transaction.”
“an omnichannel strategy isn’t optional”
Forrester Research eCommerce Forecast,
2014 To 2019 (US)
4CONFIDENTIAL
MOBILE COMMERCE
“by 2017, U.S. customers’ mobile engagement
behavior will drive mobile commerce revenue
in the U.S. to 50% of U.S. digital commerce
revenue.”
Gartner
“US MOBILE AND TABLET COMMERCE TO TOP
$293B BY 2018”
Retail sales through tablet are expected to
triple in 2018
Forrester
http://heidicohen.com/2016-mobile-marketing-trends/
5CONFIDENTIAL
MOBILE COMMERCE
82% of people consult their phone regarding a
purchase they’re about to make in a store.
90% of people use multiple devices for
purchase related activities.
Google
http://heidicohen.com/2016-mobile-marketing-trends/
6CONFIDENTIAL
OMNICHANNEL - BECOMES THE NORM
7CONFIDENTIAL
TREND: INCREASING CHOICE OF FULFILMENT OPTIONS
extended pickup and delivery times1
overnight delivery2
same-day delivery3
in-store pick-up4
a self-service delivery location to pick up5
Convenience shopping becomes a must-have for large retailers
The retail customer is getting used to convenience.
8CONFIDENTIAL
AMAZON DELIVERY
2005 2007 2012
2014 2016 Amazon Prime Air
9CONFIDENTIAL
AMAZON PRIME AIR
https://www.youtube.com/watch?v=Le46ERPMlWU
10CONFIDENTIAL
INCREASING CHOICE OF FULFILMENT OPTIONS
Domino's Robotic Unit
Delivery Robot
11CONFIDENTIAL
THE DIGITAL WORKPLACE BECOMING HOME TO SMART
MACHINES
Amazon fulfillment center OSHbotOcado Automated Warehouse
12CONFIDENTIAL
• OSHbot works as a retail
assistant in downtown San
Jose, California
• 5-foot-tall autonomous robot
• just recently celebrated his
one-year anniversary at the
store, which is owned by
Lowe’s
• help customers find items they
need, and help store managers
with inventory tracking
https://youtu.be/W-RKAjP1DtA
KEY HIGHLIGHTS
OSHbot
13CONFIDENTIAL
• products that are delivered
to a consumer as and when
they are needed
• Contextual shopping will
replace personalization
• Using data from devices
like wearables,
smartphones, and smart
thermostats, the Internet
of Things can help to
streamline the shopping
process.
• Amazon Dash uses AWS IoT
buttons to seamlessly
intertwine ecommerce and
the real world applications
CONTEXTUAL SHOPPING
14CONFIDENTIAL
• Mobile
• Content
• Big Data
• IoT
• Security
OPPORTUNITY - SKILLS REQUIRED
15CONFIDENTIAL
THANK
YOU
16CONFIDENTIAL
RESOURCES
The Everything Store: Jeff Bezos and the Age of Amazon. Brad Stone
http://multichannelmerchant.com/ecommerce/5-ecommerce-trends-that-will-be-game-changers-in-2016-
17112015/
https://econsultancy.com/blog/67321-predicting-the-biggest-ecommerce-trends-in-2016/
http://www.slideshare.net/GlobalDots/globaldots-ecommerce-trends-20142018-slower-growth-but-still-a-
huge-opportunity
http://www.slideshare.net/stefalen/ecommerce-trends-2016?qid=befba11d-6187-4550-a107-
745818ac71de&v=&b=&from_search=2
https://www.forrester.com/US+Mobile+And+Tablet+Commerce+To+Top+293B+by+2018+Total+eCommerce+To+
Hit+414B/-/E-PRE7004

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Ecommerce in 2018

  • 2. 2CONFIDENTIAL AGENDA MOBILE COMMERCE DELIVERY & FULFILLMENT SMART MACHINES REQUIRED SKILLS
  • 3. 3CONFIDENTIAL FORECAST “$480 billion in online sales by 2019” “Rapid smartphone adoption continues to be a major driver for eCommerce as consumers spend more time online, increasing the likelihood that they will engage in an online transaction.” “an omnichannel strategy isn’t optional” Forrester Research eCommerce Forecast, 2014 To 2019 (US)
  • 4. 4CONFIDENTIAL MOBILE COMMERCE “by 2017, U.S. customers’ mobile engagement behavior will drive mobile commerce revenue in the U.S. to 50% of U.S. digital commerce revenue.” Gartner “US MOBILE AND TABLET COMMERCE TO TOP $293B BY 2018” Retail sales through tablet are expected to triple in 2018 Forrester http://heidicohen.com/2016-mobile-marketing-trends/
  • 5. 5CONFIDENTIAL MOBILE COMMERCE 82% of people consult their phone regarding a purchase they’re about to make in a store. 90% of people use multiple devices for purchase related activities. Google http://heidicohen.com/2016-mobile-marketing-trends/
  • 7. 7CONFIDENTIAL TREND: INCREASING CHOICE OF FULFILMENT OPTIONS extended pickup and delivery times1 overnight delivery2 same-day delivery3 in-store pick-up4 a self-service delivery location to pick up5 Convenience shopping becomes a must-have for large retailers The retail customer is getting used to convenience.
  • 8. 8CONFIDENTIAL AMAZON DELIVERY 2005 2007 2012 2014 2016 Amazon Prime Air
  • 10. 10CONFIDENTIAL INCREASING CHOICE OF FULFILMENT OPTIONS Domino's Robotic Unit Delivery Robot
  • 11. 11CONFIDENTIAL THE DIGITAL WORKPLACE BECOMING HOME TO SMART MACHINES Amazon fulfillment center OSHbotOcado Automated Warehouse
  • 12. 12CONFIDENTIAL • OSHbot works as a retail assistant in downtown San Jose, California • 5-foot-tall autonomous robot • just recently celebrated his one-year anniversary at the store, which is owned by Lowe’s • help customers find items they need, and help store managers with inventory tracking https://youtu.be/W-RKAjP1DtA KEY HIGHLIGHTS OSHbot
  • 13. 13CONFIDENTIAL • products that are delivered to a consumer as and when they are needed • Contextual shopping will replace personalization • Using data from devices like wearables, smartphones, and smart thermostats, the Internet of Things can help to streamline the shopping process. • Amazon Dash uses AWS IoT buttons to seamlessly intertwine ecommerce and the real world applications CONTEXTUAL SHOPPING
  • 14. 14CONFIDENTIAL • Mobile • Content • Big Data • IoT • Security OPPORTUNITY - SKILLS REQUIRED
  • 16. 16CONFIDENTIAL RESOURCES The Everything Store: Jeff Bezos and the Age of Amazon. Brad Stone http://multichannelmerchant.com/ecommerce/5-ecommerce-trends-that-will-be-game-changers-in-2016- 17112015/ https://econsultancy.com/blog/67321-predicting-the-biggest-ecommerce-trends-in-2016/ http://www.slideshare.net/GlobalDots/globaldots-ecommerce-trends-20142018-slower-growth-but-still-a- huge-opportunity http://www.slideshare.net/stefalen/ecommerce-trends-2016?qid=befba11d-6187-4550-a107- 745818ac71de&v=&b=&from_search=2 https://www.forrester.com/US+Mobile+And+Tablet+Commerce+To+Top+293B+by+2018+Total+eCommerce+To+ Hit+414B/-/E-PRE7004

Editor's Notes

  1. http://heidicohen.com/2016-mobile-marketing-trends/
  2. a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.  Mobile Device Purchasing Will Grab a Larger Market Share Consumers Will Expect Greater Fulfillment Flexibility Contextual shopping will replace personalization
  3. Created in 2005, Amazon Prime is a $99 Amazon membership that offers free two-day shipping within the continental U.S. on eligible purchases and discounted one-day shipping rates. Membership also includes Amazon Instant Video, an instant streaming of movies and TV shows, as well as access to the Kindle Owners’ Lending Library, Prime Music (unlimited streaming of songs) and Prime Photos (unlimited photo storage). The everything store: “In 2004, an Amazon engineer named Charlie Ward used an employee-suggestion program called the Idea Tool to make a proposal” Speedy shipping club for consumers who are sensitive and who are not price conscious “ “Bezos decide on $79 per year, saying it needed to be large enough to matter to consumers but small enough…” Service was expensive to run. The service turned customers onto Amazon addicts http://techcrunch.com/2016/04/06/amazon-brings-same-day-delivery-to-nearly-a-dozen-more-u-s-metros/ In total, that means Amazon’s same-day delivery is now available in 27 metro areas across the U.S., or more than 1,000 cities and towns. Amazon long resisted building warehouses to take advantage of tax loopholes, but now that the tax benefit is no longer quite so lucrative, they’re building space rapidly to keep pace with consumer demand and training buyer’s delivery-time preferences.
  4. https://www.youtube.com/watch?v=Le46ERPMlWU http://www.amazon.com/b?node=8037720011 Prime Air — a future delivery system from Amazon designed to safely get packages to customers in 30 minutes or less using small unmanned aerial vehicles, also called drones. Prime Air has great potential to enhance the services we already provide to millions of customers by providing rapid parcel delivery that will also increase the overall safety and efficiency of the transportation system. Putting Prime Air into service will take some time, but we will deploy when we have the regulatory support needed to realize our vision.
  5. http://www.arkansasonline.com/news/2016/apr/10/short-haul-robot-goes-on-test-roll-2016/?f=business UberRUSH - connects you with a courier to make a delivery. Your courier will arrive at the push of a button, ready to take your items and deliver them wherever they need to go. On-demand delivery is something consumers have come to expect. With that in mind, startup Dispatch is building a fleet of autonomous delivery vehicles designed for sidewalks and bike paths. https://youtu.be/_PKyKluMcNM
  6. http://www.seattletimes.com/business/amazon/at-amazon-warehouses-humans-and-robots-are-in-sync/ At the Amazon fulfillment center in DuPont, a robot, at right, zooms away as Byron Struble removes packages from the container on top of another robot and then places them onto a conveyor belt. Thousands of robots and about 500 workers coexist at the plant. (Ellen M. Banner/The Seattle Times) http://www.v3.co.uk/v3-uk/news/2399670/iot-and-smart-machines-are-incoming-tech-tsunami-says-ocado-it-chief `
  7. http://www.fastcompany.com/3056640/what-the-lowes-robot-will-do-for-you-and-the-future-of-retail http://api.twistage.com/videos/07f7c8b26cc71/formats/mp4_720/play.mp4 https://youtu.be/W-RKAjP1DtA http://www.lowesinnovationlabs.com/innovation-robots
  8. https://www.clickz.com/clickz/column/2398747/contextual-commerce-is-about-to-change-the-shopping-experience