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How Multichannel eCommerce Can Transform Your 2013
This document summarizes a presentation about online marketplaces like eBay and Amazon. It discusses how marketplaces have moved online and grown tremendously in size and sales volume. Key points include: - eBay and Amazon each have over 100 million active users who are spending large amounts. Items sell on Amazon every few seconds. - Marketplaces allow small businesses to access thousands of buyers and enable instant transactions and payments. They offer transparency and convenience for customers. - While marketplaces provide huge opportunities, sellers need to start small and use software to manage operations at scale. Costs are low to get started but it requires work. - The presenter encourages attendees to start selling on marketplaces like eBay and Amazon
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How Multichannel eCommerce Can Transform Your 2013
- 1. How Multichannel Can TransformYour 2013 Matthew Ogborne
- 2. One Goal When youleave this room I want you to be thinking… “I must do marketplaces right now”
- 3. Do you wantaccess to X 3000 buyers + Ability to pay Today?
- 4. What we’ll becovering • Sharing my passion for online marketplaces • Showing what has happened to markets • Correcting a few misconceptions • Opening your eyes up to the potential • Comparing the differences • Apple pie • Your questions
- 5. Who am I& What do I do? “I solve other peoples eCommerce problems” • 3 years running my own marketplace business • 5 years with multi-channel software companies Best of all I get to work with the cool people YOU
- 6. What is aMarketplace? • An open space where a market is or was formerly held in a town. • An open place where people meet and trade • All that has happened is that marketplaces have moved “online”
- 7. Where did thesemarketplaces go to?
- 9. If you think… = =
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- 12. Are these brandsfor a carboot sale? • Armani • Karen Millen • FCUK • Lacoste • Bench • Louis Vuitton • Burberry • Miss Sixty • Chanel • Monsoon • D&G • Next • Diesel • Nike • Dior • Prada • DKNY • River Island • Gucci • Chanel
- 13. And do theselook like small players?
- 14. eBay fashion outlet •Only started in April 2010 • There are over 600,000 consumer sellers and 40,000 businesses within the fashion category • The number of shoppers has more than doubled in two years • Over 4.5 million shoppers visit the fashion category every month.
- 15. Auctions, what auctions? 68% of all eBay sales are INSTANT
- 16. Amazon? 100 % ofall sales are INSTANT
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- 18. A pair ofshoes sold every 3 seconds
- 19. Women’s accessories soldevery 4 seconds
- 20. A woman's dresssold every 5 seconds
- 21. A pair ofwomen’s jeans sold every 18 seconds
- 22. A pair ofmen’s sunglasses sold every 20 seconds
- 23. A video gamesystem sold every 20 seconds (Including the best games system created the Commodore 64)
- 24. A GPS Devicesold every minute
- 25. An Apple Laptopor Notebook sold every 2 mins
- 26. An iPad soldevery 2 minutes
- 27. A major appliancesold every 37 seconds
- 28. The Reach ofeBay & Amazon • eBay reported 108M active users in Q3 2012 • Amazon 200M active users in Q4 2012 • eBay is predicting $13B via a mobile in 2013 • Amazon increased net sales 22% to $21B • Expanding into Europe = 180M buyers way beyond a normal market place
- 29. X 3000 fullof buyers
- 30. 40% of departmentstore visits Department Store Sites Place in Hot Shops top 50 Amazon UK 1 Argos 3 Next 4 Amazon.com 5 Your M&S 6 Tesco 7 John Lewis 8 Debenhams 10 Tesco Direct 13 ASDA Direct 15 November 2012
- 31. Amazon Amazonsold over $1B paid items for the first time in a quarter in Q4 2012 • That's 126 items sold a second • OR 7,548 items sold a minute • OR 452,899 items sold an hour Think about that… 10.8M items sold a day during Q4 2012. Source: Scot Wingo, ChannelAdvisor
- 32. What do customerswant? • Confidence • Selection • Safety • Convenience • Ease of use • Buy anything, anywhere, anytime
- 33. They want theirorder delivered Tomorrow
- 35. Credit Card Warriors •These are not pseudo Twitter or Facebook users • Real people in buying mode • Most with linked payment accounts to facilitate a transaction • Make no mistake they will use them They are using them
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- 37. The Growth ofeBay 16% GMV 12% Users Source: seekingalpha.com
- 38. The Growth ofAmazon Amazon Metrics Q4 Comparisons Amazon Metrics Q4 - 2011 Q4 - 2012 Active customer accounts 164 million (up 26%) 200 million (up 22%) Worldwide active seller accounts 2+ million 2+ million Seller units as a percentage of total units 36% 39% Worldwide unit growth 46% 32% Third-party sellers' unit growth 65% over 40% Net Sales Increased 35% to $17.43 billion Increased 22% to $21.268 billion Source: eCommerceBytes.com
- 39. How Many? eBay saythere are 190,000 registered businesses in the UK When I checked last year there were +400,000 eBay UK shops
- 40. The difference betweeneBay & Amazon • eBay is purely a marketplace • Amazon has a marketplace that accompanies their core business • Payment fees (PayPal) are on top of eBay Fees • Amazon fees include a payment processing fee
- 41. The difference betweeneBay & Amazon “When some buys from eBay they buy from a seller on eBay” “When some buys on Amazon, they buy from Amazon”
- 42. Openness & clarity Peoplethink they're going to get ripped off online But the reality is… It’s the other way around
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- 46. What businesses aredoing right now • One UK Fashion Retailer did £4M in Dec 12 • In 2008 four eBay.com accounts reached 1M feedback • In late 2011 the first EU eBay account hit 1M feedback • In June 2012 the UK’s first account reached 1M feedback • 2 Weeks ago, the UK had their 2nd 1M account feedback
- 47. Cost per salemodel Unlike other forms of marketing such as PPC Marketplaces are CPA You pay the majority of the fees when you Make a sale
- 48. How much? Insertion Fees •eBay 20p to Free • Amazon £25 per month Final Value Fees • eBay 5% to 12% + PayPal fees • Amazon 7% to 35% - Most goods 15%
- 49. Fulfilment by Amazon • They’ll pick & pack your orders for you • Access to “Amazon Prime” buyers • They’ll do the customer services & returns • Fulfil into Europe • You can make more wonga
- 50. The role ofsoftware • Keep your sanity • Automate tasks • Control product & stock data • Manage orders at scale • Personalise the process with documents • Grow and not worry about the small stuff
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- 53. Notice that Ididn’t say it was EASY
- 54. And the bestthing is… YOU CAN have some of this pie too
- 55. Top tips togetting started 1. Start small 2. Look & learn from other businesses 3. Ask when you have questions 4. You don’t need a “designed” eBay shop 5. If you have large amounts of inventory see #1 6. Do not buy any eBooks they’re all ……….
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- 58. Marketplaces • Customers are already there in their squillions • They’re spending bucket loads of cash • The potential is massive • The potential is global • Best of all… The game has only just begun
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- 60. Question & Answers Overto You! @MatthewOgborne / LastDropofInk.co.uk