The DMI & Ahain Group E-Commerce Report
A BIG Hello and Good Morning from Greg Fry
“E-commerce allows retailers to complete
transactions via online platforms”
According to Theo Paphitis “There’s only one
thing that’s shaping retail at the moment and
“If I could give just of two pieces of advice
for people who want to succeed in retailing
and go into retail management it would be 1.
passion & 2. make sure you like people.”
HOW BIG IS E-COMMERCE?
The chart above was created prior to 2013 and predicted that Asia would
supersede all other regions by more than 50 Billion in profit in 2013.
4 KEY IRISH STATISTICS
43% of Irish shoppers made a purchase online in 2012.
4.10 Billion spent online in Ireland in 2011.
Online sales by Irish customers estimated to be 15-20 Billion by 2017.
75% of all purchases being made by Irish online shoppers going to
customers outside Ireland.
GLOBALLY WHAT IS HAPPENING
• 67% of UK adults bought goods or services online in 2012.
• 32% of the 65 + age group in the UK bought online in 2012.
• 95% of UK Shoppers have made an online purchase.
US And Asia
In 2012 online sales in the US rose by 13.9% to $365 billion.
Apple biggest online retailer in the US.
In 2012 online sales in Asia rose by 33% to $332 billion.
Globally Sales reached $1.1 Trillion in 2012. Up 21.9%.
Over 1 billion people will purchase online in 2013.
WHAT PEOPLE ARE BUYING ONLINE
Eurostat 2011, respondents asked if they have bought or ordered goods
or services for their own use over the past 12 months.
33% of Irish Shoppers use the internet to book holiday and/or business travel.
WHY ARE PEOPLE BUYING ONLINE
Irish Shoppers believe that shopping online saves them money. On average
believing they can save 18% by purchasing online.
Being able to compare products side by side and see other shopper reviews.
More choice and variety online.
TESCO TAKE ON SOUTH KOREA
ADVANTAGES OF SELLING ONLINE
• Web platforms are available 24/7 and not restricted by normal shop
• The customers can transact from any global location (although shipping
restrictions can be applied by the store owner/manager).
• Transactions happen in real-time and often in less time.
• No restriction on the number of customers ‘in store’.
• Ability to sell infinite items (as opposed to only those you can keep
physically within the store).
• Flexibility - You can edit and publish simultaneously.
• Online transactions and activity can be both monitored and measured.
• Less overheads?
DANGERS WHEN SELLING ONLINE
• Costs (fees, taxes, transportation, postage)
• Legalities and compliance (especially in the medical, pharmaceutical
and beauty trades)
• Operational (distribution)
• Language and cultural barriers (translations - packaging and cultural
understanding, product adoption - straight or modified products)
• Risk of online Fraud.
• Competition is huge.
RETURN TO SENDER
• If an outlet offers free returns, the
average rate of returns will be 31-33%
• If the customer has to incur the postage
cost return rates, this drops to 21-24%
• Clothing has the highest return rate . The
average rate of return is 45-50%. However
they can go as high as 70%.
• Electronics one of the lowest with a rate
of 7-9% on average.
SHOW ME THE COOKIES
CONSIDERATIONS WHEN SELLING ONLINE
• Do I have the right skilled staff in order to
be effective online?
• Efficient communication internally and
• A platform that is easy to manage, fluid
and flexible (including CMS)
• Operations - Storage facility and transport
• Marketing, Sales and Customer Service
• Selection of products and competitive
• Knowledge of the online market and key
• A monitoring-evaluation-implementation
• In 2007 Littlewoods Ireland was primarily catalogue based business
with only 15% of their business online.
• Now 83% of their sales come from the web.
• There has been a 30% rise on mobile visits and 172% rise on tablet
visits to their website in the past 12 months.
“The new way to measure customer reaction is
engagement" - Burberry CEO Angela Ahrendts
In 2011/12, Burberry was named the fourth-fastest growing brand globally by both
Interbrand and WPP/BrandZ, behind Apple, Google and Amazon.
A staggering 60% of their total marketing budget goes on Digital.
• Live-streaming of catwalk shows from London and live-tweeting
“Tweetwalk” of each ‘look’ on the runway with garment details . All pieces
are then made available for sale online, directly after the show.
Click to call response time – 20 seconds
“Technology is an intrinsic part of most people's
lives. All we've done is make sure to weave
technology into the fabric of the company.”
- Christopher Bailey (Chief Creative Officer of
How John Lewis reached more than £800m in annual sales through Johnlewis.com in 2012.
1. Spent money on PPC Ads
2. Well Designed and well worded product Pages.
3. Consistent site navigation
4. Enclosed Checkout - John Lewis removed features such as navigation bars and
search boxes that may distract the user from making a purchase.
5. Free Delivery on purchases over £50.
6. Easy and Simple Checkout processes. Offering various payment options.
7. Only getting users to register at the end of the checkout process.
8. Click and Collect - allow shoppers to buy online but pick up the product in-store
9. Embracing Mobile and offering Free WiFi in all their stores.
10 .They have an evolving Multichannel Strategy – Including their App, targeting
Click and Collect customers with coupons and personalised deals.
3 REASONS BEHIND AMAZON’S SUCCESS
• They understood the limitless inventory afforded by digital.
• Focused on selling high margin, low cost products.
• Providing great customer care (two-thirds of Amazon sales are from
THE AMAZON SUCCESS STORY
• Started as an online book store in the mid 90s.
• They acquired multiple companies in areas where they were weak
and built strategic partnerships with key companies.
• Became the first company to offer 1 Click ordering.
• Leaders in Personalisation.
THE AMAZON SUCCESS STORY
• The Amazon Price Check App. Encouraging Showrooming everywhere.
• The launch of the Kindle not only gives people a superb reading
experience, it also offers the perfect channel linking the reader to the
internet, and therefore Amazon’s vast range of consumer properties.
WALLMART – LOCATION BASED MARKETING
Scan and Go - allows you to scan
goods as you shop. All will be ready
and packed when you electronically
IS IT EASY TO BUY ON YOUR MOBILE SITE?
MOBILE AND E-COMMERCE
82% have researched a product via their mobile and 67% that view a mobile-friendly site
will most likely buy/use the service . - Eric Daly @ DMI Mobile Conference 2013
38% of Consumers now shop online via Smartphone or Tablet .
Great Google resource - http://www.howtogomo.com
Types of Mobile websites Responsive Design
ANALYSING YOUR SUCCESS
Use Transaction Flows and Goals
on Google Analytics to measure
your success and identify
weaknesses in your e-commerce
WHAT ABOUT FRAUD?
Annual fraud losses across the UK are now estimated to now top £70 billion
(Experian Fraud Report 2012)