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The Amazonization of Global E-Commerce
User Experience

Arne
Ki(ler,
Fork
Unstable
Media

UPA
Interna7onal.
München,
27th
Mai
2010

HELLO UPA.




              Arne
Ki3ler:
Director
Consul7ng




              Fork
Unstable
Media

              Interac7ve
Agency
in
Hamburg,
Germany
since
1996

              Digital
Branding,
Interac7ve
Design
and
E‐Commerce






   ©
2010
Fork
Unstable
Media

INTRODUCTION





        18.01.10
    ©
2010
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Media

AMAZONIZATION – WHAT‘S THAT?





        18.01.10
    ©
2010
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Media

EXTREME AMAZONIZATION.




         Wise use of patterns or dangerous loss of differentiation???



   ©
2010
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OR, MORE GENERALLY:
                                  THERE IS A BALANCING ACT 
                                  BETWEEN STANDARDS AND
                                  DIVERSITY IN E-COMMERCE





        18.01.10
    ©
2010
Fork
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Media

MORE BALANCING ACTS.

                              Standard
 
    
   vs

 Diversity

                              Amazonization 
 
      
   Differentiation

                              Globalization 

   
   
   Localization

                              Equalization 
 
   
   
   Individualization





   ©
2010
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Media

MY PRESENTATION TODAY.

           My Presentation:

           Introduction to the 3 balancing acts

           Pros & Cons to consider

           Simplified model to handle a combination of all 3
           aspects




   ©
2010
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AMAZONIZATION vs. DIFFERENTIATION





        18.01.10
    ©
2010
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Media

THE CONTEXT.

           Market leaders such as Amazon play an
           important role in shaping usage patterns that
           influence many e-commerce websites.

           This is special for e-commerce because for other
           genres there are no similarly influential players.

           We have labelled this effect „Amazonization“
           even though there are other influential shops, too. 



   ©
2010
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AMAZONIZATION: HOMEPAGE-GRID.





   ©
2010
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AMAZONISATION: MEGA-DROPDOWNS.





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2010
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E-COMMERCE PATTERNS = AMAZON?




         Amazon cited as reference for all major e-commerce patterns



   ©
2010
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COMMISSION-COMMERCE


           A new type of service companies offer brands a
           mostly commision-based setup and
           maintenance of their online-shop.

           Even though the underlying platforms such as
           Demandware offer full differentiation, this
           business-model can easily result in shops that
           place common practice before the brand they
           are representing.



   ©
2010
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Unstable
Media

AMAZONIZATION: ADVANTAGES.

           
          
           Familiarity to users

           
          
           Low responsibility of failure

           
          
           Temptation to skip testing

           
          
           Easy decision, „cheap“ development

           
          
           



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2010
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AMAZONIZATION: CHALLENGES.

           
          
           Loss of differentiation

           
          
           Considering the long-tail: Risk of becoming 
           
          
           economically unviable

           
          
           Context: Amazon is NOT an average shop!





   ©
2010
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AMAZONISATION vs. DIFFERENTIATION.

           
          
           Patterns are good!

           
          
           Visual Design needs to differentiate

           
          
           Content Design is important

           
          
           But: Beware of the context!

           
          
           



   ©
2010
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Globalization vs. Localization





        18.01.10
    ©
2010
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THE CONTEXT.

           E-Commerce is global and has risen in relevance
           for companies. E-Commerce has global
           management attention.

           A high level of Standardization has become the
           most common approach to Web Globalization.

           
          
           Centralized Development and Technology

           
          
           Mastersite with Global Templates


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EXAMPLES





   ©
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GLOBAL STANDARDS: ADVANTAGES.

           
          
           Cost Effectiveness

           
          
           Consistent brand appearance

           
          
           Quality Assurance

           
          
           Comparability

           
          



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GLOBAL STANDARDS: CHALLENGES.

           
          
           Users are local!!

           
          
           Local variations in assortment and structure

           
          
           Languages / Room for text

           
          
           Measurements, address conventions etc.

           
          
           Marketing



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2010
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GLOBALIZATION vs. LOCALIZATION.

           
          
           Global templates & platforms will last

           
          
           But: Competition for UX is local

           
          
           Modular concepts and design required

           
          
           Organisation and processes matter





   ©
2010
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GENERALIZATION vs. INDIVIDUALIZATION





        18.01.10
    ©
2010
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THE CONTEXT.

           Amazon were one of the first and few companies
           to turn the late 90s Personalization hype into
           individualization features that actually offer
           benefit to the users and helped to drive sales.

           While Individualization remains a promising
           approach from a user perspective there are also
           valid reasons for retailers to offer an equalized
           shop. 



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2010
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INDIVIDUALIZATION EXAMPLE: CONTENT





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INDIVIDUALIZATION EXAMPLE: UI





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2010
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INDIVIDUALIZATION: ADVANTAGES.

           
          
           Potentially relevant shopping suggestions

           
          
           Catering for usage preferences 

           
          
           Potentially better sales 

           
          
           Increased customer loyalty

           
          
           



   ©
2010
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INDIVIDUALIZATION: CHALLENGES.

           
          
           Good Individualization takes effort

           
          
           Bad Individualization is worse than none

           
          
           Strong brands want/need to guide users
           
          
           and provide orientation





   ©
2010
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EQUALIZATION vs. INDIVIDUALIZATION.

           
          
           Good Individualization remains difficult

           
          
           Individualization will benefit from
           
          
           m-commerce and social commerce.

           
          
           Focused shops or shops with 
 
 
 
           
          
           standardised goods and broad user base
           
          
           can best benefit from Individualization
 
 
   

           
          
           Brand-Guidance vs. Individualization
           
          
           (only service Features!)

   ©
2010
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Media

3 IMPORTANT STRATEGIC QUESTIONS

           
          Standard
 
   
   
   vs

 
      Diversity

           
          Amazonization 
 
     
   
   
   Differentiation
           
          Globalization 

 
    
   
   
   Localization
           
          Equalization 
 
 
    
   
   
   Individualization


           How can we look at all 3 perspectives at once?




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THE CHALLENGE:
                                  HOW CAN WE BALANCE ALL 3
                                  ASPECTS AT ONCE?





        18.01.10
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2010
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POSITIONING MODEL
            FOR BUSINESS MODELS AND FEATURES





        18.01.10
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2010
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POSITIONING MODEL.


                                  Differen7a7on

                                  Amazoniza7on





                                                  Globaliza7on
   Localiza7on




   ©
2010
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SECTORS VISUALIZING TENDENCIES.





   ©
2010
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EXAMPLE: MAX. STANDARDIZATION




                                  Amazonisation + Globalization + Equalization





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2010
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EXAMPLE: MAXIMUM DIVERSITY.




                                  Differentiation + Localization + Individualization





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EXAMPLARY POSITIONING
                                     Fashion Brand Shop





        18.01.10
    ©
2010
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FASHION BRAND SHOP.




                                  Differentiation + Globalization + Equalization





   ©
2010
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FASHION BRAND SHOP.




                                  Differentiation:
                                  Differentiation needed to
                                  communicate the brand‘s
                                  image and personality.



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FASHION BRAND SHOP.




                                  Globalization:
                                  Apart from functional localization of details, the
                                  brand will pretty much appear the same in every
                                  market.



   ©
2010
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FASHION BRAND SHOP.




                                  Equalization:
                                  For a brand shop it is
                                  important that the brand
                                  is presented in a strong
                                  and guiding way.
                                  Individualization might
                                  let the brand appear
                                  deliberate.


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2010
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EXAMPLARY POSITIONING
                                     Order Summary Page





        18.01.10
    ©
2010
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ORDER SUMMARY PAGE.




                        Amazonization + Localization + Equalization





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2010
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ORDER SUMMARY PAGE.



       Amazonization:
       At this critical step of
       the checkout process it
       is wise to stick to
       established patterns
       and avoid irritation.





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2010
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ORDER SUMMARY PAGE.



                                  Localization:
                                  This page sums up all previous checkout-steps
                                  and thus needs to reflect the local variations for
                                  payment, postage etc.





   ©
2010
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ORDER SUMMARY PAGE.




           Equalization:
           Even though this page
           features mostly
           individual user data it is
           not considered an
           individualized page.





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2010
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SUMMARY





        18.01.10
    ©
2010
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SUMMARY.

           
          
           Standardisation and diversity are both
           
          
           valid and relevant aspects in E-Commerce

           
          
           E-Commerce teams are facing a
           
          
           balancing act for at least 3 of such aspects

           
          
           The ideal combination of all perspectives
           
          
           will vary for different business-models
           
          
           and features



   ©
2010
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Media

DANKE!


I appreciate your feedback!

arne@fork.de


   @arnekittler


   slideshare.com/rn3_hh




 PS: Enjoy the party!!

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The Amazonization of Global E-Commerce User Experience (UPA 2010)

  • 1. The Amazonization of Global E-Commerce User Experience
 Arne
Ki(ler,
Fork
Unstable
Media
 UPA
Interna7onal.
München,
27th
Mai
2010

  • 2. HELLO UPA. Arne
Ki3ler:
Director
Consul7ng
 Fork
Unstable
Media
 Interac7ve
Agency
in
Hamburg,
Germany
since
1996
 Digital
Branding,
Interac7ve
Design
and
E‐Commerce
 
 ©
2010
Fork
Unstable
Media

  • 3. INTRODUCTION 
 18.01.10 ©
2010
Fork
Unstable
Media

  • 4. AMAZONIZATION – WHAT‘S THAT? 
 18.01.10 ©
2010
Fork
Unstable
Media

  • 5. EXTREME AMAZONIZATION. Wise use of patterns or dangerous loss of differentiation??? 
 ©
2010
Fork
Unstable
Media

  • 6. OR, MORE GENERALLY: THERE IS A BALANCING ACT BETWEEN STANDARDS AND DIVERSITY IN E-COMMERCE 
 18.01.10 ©
2010
Fork
Unstable
Media

  • 7. MORE BALANCING ACTS. Standard vs Diversity Amazonization Differentiation Globalization Localization Equalization Individualization 
 ©
2010
Fork
Unstable
Media

  • 8. MY PRESENTATION TODAY. My Presentation: Introduction to the 3 balancing acts Pros & Cons to consider Simplified model to handle a combination of all 3 aspects 
 ©
2010
Fork
Unstable
Media

  • 9. AMAZONIZATION vs. DIFFERENTIATION 
 18.01.10 ©
2010
Fork
Unstable
Media

  • 10. THE CONTEXT. Market leaders such as Amazon play an important role in shaping usage patterns that influence many e-commerce websites. This is special for e-commerce because for other genres there are no similarly influential players. We have labelled this effect „Amazonization“ even though there are other influential shops, too. 
 ©
2010
Fork
Unstable
Media

  • 11. AMAZONIZATION: HOMEPAGE-GRID. 
 ©
2010
Fork
Unstable
Media

  • 12. AMAZONISATION: MEGA-DROPDOWNS. 
 ©
2010
Fork
Unstable
Media

  • 13. E-COMMERCE PATTERNS = AMAZON? Amazon cited as reference for all major e-commerce patterns 
 ©
2010
Fork
Unstable
Media

  • 14. COMMISSION-COMMERCE A new type of service companies offer brands a mostly commision-based setup and maintenance of their online-shop. Even though the underlying platforms such as Demandware offer full differentiation, this business-model can easily result in shops that place common practice before the brand they are representing. 
 ©
2010
Fork
Unstable
Media

  • 15. AMAZONIZATION: ADVANTAGES. Familiarity to users Low responsibility of failure Temptation to skip testing Easy decision, „cheap“ development 
 ©
2010
Fork
Unstable
Media

  • 16. AMAZONIZATION: CHALLENGES. Loss of differentiation Considering the long-tail: Risk of becoming economically unviable Context: Amazon is NOT an average shop! 
 ©
2010
Fork
Unstable
Media

  • 17. AMAZONISATION vs. DIFFERENTIATION. Patterns are good! Visual Design needs to differentiate Content Design is important But: Beware of the context! 
 ©
2010
Fork
Unstable
Media

  • 18. Globalization vs. Localization 
 18.01.10 ©
2010
Fork
Unstable
Media

  • 19. THE CONTEXT. E-Commerce is global and has risen in relevance for companies. E-Commerce has global management attention. A high level of Standardization has become the most common approach to Web Globalization. Centralized Development and Technology Mastersite with Global Templates 
 ©
2010
Fork
Unstable
Media

  • 20. EXAMPLES 
 ©
2010
Fork
Unstable
Media

  • 21. GLOBAL STANDARDS: ADVANTAGES. Cost Effectiveness Consistent brand appearance Quality Assurance Comparability 
 ©
2010
Fork
Unstable
Media

  • 22. GLOBAL STANDARDS: CHALLENGES. Users are local!! Local variations in assortment and structure Languages / Room for text Measurements, address conventions etc. Marketing 
 ©
2010
Fork
Unstable
Media

  • 23. GLOBALIZATION vs. LOCALIZATION. Global templates & platforms will last But: Competition for UX is local Modular concepts and design required Organisation and processes matter 
 ©
2010
Fork
Unstable
Media

  • 24. GENERALIZATION vs. INDIVIDUALIZATION 
 18.01.10 ©
2010
Fork
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  • 25. THE CONTEXT. Amazon were one of the first and few companies to turn the late 90s Personalization hype into individualization features that actually offer benefit to the users and helped to drive sales. While Individualization remains a promising approach from a user perspective there are also valid reasons for retailers to offer an equalized shop. 
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  • 26. INDIVIDUALIZATION EXAMPLE: CONTENT 
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  • 27. INDIVIDUALIZATION EXAMPLE: UI 
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  • 28. INDIVIDUALIZATION: ADVANTAGES. Potentially relevant shopping suggestions Catering for usage preferences Potentially better sales Increased customer loyalty 
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  • 29. INDIVIDUALIZATION: CHALLENGES. Good Individualization takes effort Bad Individualization is worse than none Strong brands want/need to guide users and provide orientation 
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  • 30. EQUALIZATION vs. INDIVIDUALIZATION. Good Individualization remains difficult Individualization will benefit from m-commerce and social commerce. Focused shops or shops with standardised goods and broad user base can best benefit from Individualization Brand-Guidance vs. Individualization (only service Features!) 
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  • 31. 3 IMPORTANT STRATEGIC QUESTIONS Standard vs Diversity Amazonization Differentiation Globalization Localization Equalization Individualization How can we look at all 3 perspectives at once? 
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  • 32. THE CHALLENGE: HOW CAN WE BALANCE ALL 3 ASPECTS AT ONCE? 
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  • 33. POSITIONING MODEL FOR BUSINESS MODELS AND FEATURES 
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  • 34. POSITIONING MODEL. Differen7a7on
 Amazoniza7on
 Globaliza7on
 Localiza7on
 
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  • 35. SECTORS VISUALIZING TENDENCIES. 
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  • 36. EXAMPLE: MAX. STANDARDIZATION Amazonisation + Globalization + Equalization 
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  • 37. EXAMPLE: MAXIMUM DIVERSITY. Differentiation + Localization + Individualization 
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  • 38. EXAMPLARY POSITIONING Fashion Brand Shop 
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  • 39. FASHION BRAND SHOP. Differentiation + Globalization + Equalization 
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  • 40. FASHION BRAND SHOP. Differentiation: Differentiation needed to communicate the brand‘s image and personality. 
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  • 41. FASHION BRAND SHOP. Globalization: Apart from functional localization of details, the brand will pretty much appear the same in every market. 
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  • 42. FASHION BRAND SHOP. Equalization: For a brand shop it is important that the brand is presented in a strong and guiding way. Individualization might let the brand appear deliberate. 
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  • 43. EXAMPLARY POSITIONING Order Summary Page 
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  • 44. ORDER SUMMARY PAGE. Amazonization + Localization + Equalization 
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  • 45. ORDER SUMMARY PAGE. Amazonization: At this critical step of the checkout process it is wise to stick to established patterns and avoid irritation. 
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  • 46. ORDER SUMMARY PAGE. Localization: This page sums up all previous checkout-steps and thus needs to reflect the local variations for payment, postage etc. 
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  • 47. ORDER SUMMARY PAGE. Equalization: Even though this page features mostly individual user data it is not considered an individualized page. 
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  • 48. SUMMARY 
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  • 49. SUMMARY. Standardisation and diversity are both valid and relevant aspects in E-Commerce E-Commerce teams are facing a balancing act for at least 3 of such aspects The ideal combination of all perspectives will vary for different business-models and features 
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  • 50. DANKE!
 I appreciate your feedback! arne@fork.de @arnekittler slideshare.com/rn3_hh PS: Enjoy the party!!