Home Delivery Canada Presentation - Sep 17,2013
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This document provides an overview of SHOP.CA and its founder Christian Rodericks. It discusses the opportunities in the growing Canadian eCommerce market and SHOP.CA's vision to disrupt the market through transparency, selection, scale, and a marketplace-as-a-service model. The challenges of raising capital and attracting talent in Canada are acknowledged, as well as challenges overcome by SHOP.CA such as supplier integration, scaling, and implementing social commerce and loyalty programs.
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Home Delivery Canada Presentation - Sep 17,2013
- 1. CONFIDENTIAL | 1 Marketplace as a Service :: Growing eCommerce in Canada Christian Rodericks, founding partner & vp marketplace operations SHOP.CA christian@shop.ca @rawdrix September 22, 2014
- 2. CONFIDENTIAL | 2 Thanks! – Appreciate The Invite Born in Toronto, Ontario University of Waterloo Graduate Adult Life Spent in Toronto, New York, London Married to Colleen and Proud Dad of Ella 15+ Years Startup & Consulting Executive Janna Systems – Acquired by Siebel/Oracle Deloitte Consulting – Technology Strategy SHOP.CA! SHOP.CA Joined SHOP.CA in August 2011 w/longtime friends “Proudly Canadian!” * according to Comscore
- 3. CONFIDENTIAL | 3 So, what is Wrong w/Canada – Huh?
- 4. CONFIDENTIAL | 4 What is Wrong w/Canada – ?!?
- 5. CONFIDENTIAL | 5 What is Right w/Canada – Huh?
- 6. CONFIDENTIAL | 6 What is Right w/Canada – Ya Mon!
- 7. CONFIDENTIAL | 7 To Start - We Noticed A Whole Bunch of Right! ecommerce in Canada is a very big market and growing quickly $25 Billion consumer market in 2012, with a 10% CAGR going forward No extremes in market leadership like their was in the US 2nd globally per / capita spend online Canadian retailers are investing in Canadian focused ecommerce Which has/will create faster consumer adoption There is a ton of talented people in Canada – who want to stay here People are the core to any great success Canadians are great partners, and believe in WIN3 Part of building quickly and effectively is great partnerships Canadians are extremely loyal – i.e. love loyalty programs Angles of reoccurrence are important to successful ecommerce (10 per house-hold) Canadians REALLY appreciate transparency and great service Free shipping, no duty, free returns are core to transparency and service
- 8. CONFIDENTIAL | 8 Canada continues to be a leader in online engagement 2nd in the world in time on the internet & 1st in terms of monthly page views Online video grows in importance within our digital ecosystem 2nd worldwide in monthly hours and videos per viewer Digital ad market is healthy and growing 724 billion display ad impressions were served, +17% year over year “Social-media –ness” Continues to Increase Facebook is #1 -- but Twitter, LinkedIn, Tumblr, Pinterest and Instagram are growing! Canadian’s are digital creatures
- 9. CONFIDENTIAL | 9 eCommerce Market Opportunity Sources= StatsCan, eMarketer $16.75 $18.76 $21.45 $24.49 $27.82 $31.33 $34.78 2010 2011 2012 2013 2014 2015 2016 B2C eCommerce Sales in Canada, 2010-2016 US$ billions eMarketer Significant Market Size Canada projected to be $35 billion in 2016 10%+ CAGR over next five years Canadian Market Growth 2 “Rising Tides” eCommerce = 1-3% of total retail USA = 11% in 2012 UK = 25% by 2014 40-60% of dollars spent online go to US sites Canadian eCommerce projected to exceeded wireless market No Canadian market leader exists
- 10. CONFIDENTIAL | 10 Billion Dollar Disruptions > Break the Rules Disrupting Canadian eCommerce 1. Transparency :: Free Shipping & Free Returns up to 365 Days 2. Supply :: Largest Selection before the first transaction (13 million SKUs) 3. Platform :: Buying the Ferrari with spare change (IBM) 4. Scale :: infinite growth without betting the farm (Bell) 5. Speed & Ease :: Onboarding Suppliers in Less than 24 Hours 6. Demand :: Generating Awareness with Great Canadian Brands 7. People :: Having 100s of Resources working on SHOP.CA (Multiplier Effect) Some Billion Dollar Rule Breakers 1. helping customers too much 2. technologies need to look sexy 3. selling athletic equipment is about the sport 4. customers can’t be bought with cheaper prices 5. books are meant to be read in hard copy 6. video is meant for the TV screen 7. banking customers need ATMs and branches 8. consumers wanted to buy their electronics from a retail store
- 11. CONFIDENTIAL | 11 Challenges Are Only Opportunities in Disguise Raising Capital in Canada for Consumer Internet is Hard Attracting Talent to High Risk Ventures is Hard No way you can attract Supply before Demand, it’s too hard Canadian’s don’t like to SHOP Online, - myth or fact? Canadians prefer US Sites – Really? Canadians pay extra to SHOP and don’t Mind Doing it Free shipping is hard to adopt broadly Free Returns 365 days a year – what the hell? Lack of Transparency for Canadian consumers Canadians SHOP in the US -- Lack of home grown options
- 12. CONFIDENTIAL | 12 Time to get busy …
- 13. CONFIDENTIAL | 13 SHP HAPPY Buyers & Sellers Customer Experience Relentless Focus Free Shipping & Returns Service Earn Rewards Buy MORE = Earn MORE Share MORE = Earn MORE Loyalty Your Favourite Brands Millions of Products 27+ Categories Selection Consumers Happiness Suppliers Happiness Biggest Online Mall in Canada Marketplace-as-a-Service (MaaS) Cost Per Order – Know ROI Retailers, Manufacturers, Distributors 6+ Million Products Inventory Capacity Coast-to-Coast Reach Virtual Inventory No Inventory No Warehouse Pick-Pack-n-Ship Drop-Ship as MOR Operating Model
- 14. CONFIDENTIAL | 14 MaaS - Known ROI > Pay on Success Driving Purchases to the SHOP.CA MaaS Adds to your Efforts Search Engine Marketing (SEO) Cost-Per-Click (CPC) P Display Media Cost-Per-Thousand (CPM) P Email Marketing Cost-Per-Thousand (CPM) P Affiliate Marketing Cost-Per-Acquisition (CPA) P Social Media Cost-Per-Click (CPC) & CPM P Traditional Media Campaign Based P & SHOP.CA Marketplace-as-a-Service No Setup Fees No Monthly Fees No Minimum Commitments Just Orders on Cost Per Order basis (CPO) You Provide Inventory we buy and sell You Ship Product (Drop Ship) Customer Rewards Increased Social Networking SHOP.CA adds a whole new marketing team, without adding anything to your marketing budget.
- 15. CONFIDENTIAL | 15 SHOP.CA Marketplace-as-a-Service SHOP.CA Making Canadian Consumers HAPPY Creating New Social Customer Experiences Powered by Loyalty and Rewards thru SHOP.CA’s IP via Social Commerce MaaS Making Canadian Suppliers HAPPY Enabling New Supplier Channels Powered by Applications and Middleware thru SHOP.CA’s IP via Supplier MaaS SUPPLIER WORLD SOCIAL LOYALTY NETWORK TM
- 16. CONFIDENTIAL | 16 Lots of late nights!
- 17. CONFIDENTIAL | 17 Challenges We Overcame Supplier Integration Must be easy for suppliers, scalable and properly address SEO Scale Very large product catalog, breadth and depth of catalog taxonomy Performance/Workflow We add 10,000+ new products each week to the marketplace Shopping Experience Navigating multi-category eCommerce can be challenging Image Handling We render 60+MM product images into different sizes and compression Social Commerce We are pushing the envelope and have unique IP Loyalty and Rewards Engine tied to every purchase and social engagement Distributed Order Management Multi suppliers per product per order, via cart and checkout National Distribution Model Working with partners, delivering thousands of products across the country
- 18. CONFIDENTIAL | 18 Team Culture – Create Happiness
Editor's Notes
- First of all - thanks for the invite. Very excited to be here today. Trevor Newell, President of SHOP.CA was originally asked to deliver this presentation. He unfortunately couldn't’t make the time; however he just sent me an email saying he is available for drinks after if anyone is interested. I’m hear today to share some ramblings, life-lessons and my experience in creating Canada's largest online marketplace – SHOP.CA – Born and raised -… And in New York @ Janna Systems is where I first made contact with the future president of SHOP.CA Trevor Newell – In fact, it was quite the contact, we met on the basketball court – Battery ParK NYC. Janna Success - How Trevor recruited me – couldn't’t say know for fear of losing my two bottom teeth. After I said yes… By then I was hooked and was ready to start building. But to start, we needed to understand our market. Understand the challenges Canadians face..
- ----- Meeting Notes (06/02/13 14:57) ----- Well Surely our City’s are well oiled
- If not our city’s, Canada’s trade with the US and international partners is strong…
- huh/?
- Now we’re talking Canada
- Ask 10 people waling down the street – where they shop online, Amazon.com hast the lion’s share. > Up here not so much?
- In Summary Canadians People are: Connected Engaged and very social Willing to Spend online But what about the market opportunity?
- 21MM in 2012 Ok – so the market is ripe too…how do we make a splash?
- LESSON # 1 Doing the right thing doesn’t always mean doing things right – sometimes you need to break the rules and have long term value of the customer Zappos broke the rule that helping customers too much is wildly unprofitable. They built a $1 billion company in less than 10 years by delivering an outrageous client experience. Craigslist broke the rule that web technologies need to look sexy. Without any advertising or an attractive user interface and with only a handful of people they booked hundreds of millions of dollars by providing simple functions that users really want. Nike broke the rule that selling athletic equipment was about the sport. They built a brand backed by celebrities and world-famous champions that inspires fierce loyalty by athletes of all skill-level. Walmart broke the rule that consumers can’t be bought with cheaper prices. They introduced radically discounted goods and quickly generated trillions of dollars of revenue through 9,000 stores all over the world. Amazon.com broke the rule that books were meant to be read in hard copy — that groceries and electronics couldn’t be sold from the same website. They generate more online book business than all other online retailers combined and generate tens of billions of dollars in revenue for other sales. YouTube broke the rule that video was meant for the television screen. They taught friends how to easily share memorable experiences and sold their platform for almost $2 billion in less than a year. Their website still continues to be one of the most popular online destinations of all time. ING Direct broke the rule that banking customers need easy assess to ATM machine and branch offices to invest their money. They made online banking an attractive option and radically altered how consumers save money — all the while building a billion dollar franchise. Dell Computers broke the rule the consumers wanted to buy their electronics from a retail store. They removed the middle man and became the largest manufacturer of personal computers, creating one of the largest consumer e-commerce sites on the web.
- Lesson #2 - Challenges Are Only Opportunities in Disguise
- Split the company in two directions A) Secure investment of capital to accelerate our growth Path to Profitability Head start on Competition Window B) Operationalizing the business
- 1. Much like a bricks and mortar mall – except one cart, one card – currently have over 350 retailers, manufacturers and de 2. Selection > digital products, physical goods, services like Travel
- Recall – multiplier effect (partnerships who share in the success of the model) Supplier World Multi-Merchant Marketplace Supplier Platform Supplier Self-Service UX + Enterprise Class Integration and Scalable Middleware for Process/Data Management (EDI, XML, Feeds, WebServices) Supplier Product Management of Content, Process & Dynamic Data: Product Catalog and Navigation/Search Attributes Product Image Rendering, Storage & CDN Product Prices & Discounts Product Inventory Multi-Supplier Shopping Cart Distributed Order Management System NetSuite Financials Integration & Extensions EFT Payment systems eCommerce Platform IBM Smarter Commerce Platform (WebSphere Commerce + Coremetrics + LIVEmail) Deployed on Bell Cloud and Extend with Akamai CDN SHOP.CA RewardsTM Bank (Earning and Burning) Payment Gateways into CC, Interac, PayPal & Visa Debit Social Commerce Extended DMD | PLUCK Engagement Platform and Integrated with eCommerce Platform & Rewards Membership Engagement with ExactTarget and Zendesk Unique Social Loyalty NetworkTM IP Includes: Social Profile Sign-UP/Log-IN, Social SHARING & Tracking for Badges & Rewards Earning Social Commerce features for including Reviews, Badges, Gamification, Forums, Blogs and more Customer Loyalty Team workflows for Membership Management, Returns and Rewards Management
- Lesson #3 – Satisfaction comes from keeping your promises Culture of accountability – and total ownership – front to back – all interdependencies Shelves / Abstract / Culture >>> the key to personal satisfaction
- Assembled Un-Matched Internal Team of Partners, and External Vendor Partners Built, Deployed and Tuned World’s 1st MaaS, Powered by Unique IP (SLN & SW) Curated Millions of Products Representing 5,000+ Brands Across 27 Categories Created Canada’s Largest Store with Billions in Virtual Inventory during the year Support over 350 Suppliers and 1500 Stores Established Canadian Brand Awareness with Assistance from Torstar Relationship Visited By Canadians = 2nd Most Visited Canadian Owned eCommerce Site – Comscore Doubled membership in first 3 months of 2013, on target for 1,000,000 members in 12 months Delivered Customer Experiences that Drives Repeat Orders on Average Every Other Month Selection Service Loyalty