ECommerce Ahain Group Report Presentation 2013


Published on

This is my presentation on Ecommerce from May 2013. A few interesting stats and case studies for you to look at.

Published in: Marketing, Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

ECommerce Ahain Group Report Presentation 2013

  1. 1. The DMI & Ahain Group E-Commerce Report A BIG Hello and Good Morning from Greg Fry
  2. 2. “E-commerce allows retailers to complete transactions via online platforms”
  3. 3. According to Theo Paphitis “There’s only one thing that’s shaping retail at the moment and that’s technology.” “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.”
  4. 4. FANCY A TWEET?
  5. 5. 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.
  6. 6. 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.
  7. 7. GLOBALLY WHAT IS HAPPENING The UK • 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.
  8. 8. 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.
  9. 9. WHY ARE PEOPLE BUYING ONLINE Irish Shoppers believe that shopping online saves them money. On average believing they can save 18% by purchasing online. Other reasons: • • • • Shopping anytime. Saving time. Being able to compare products side by side and see other shopper reviews. More choice and variety online.
  12. 12. ADVANTAGES OF SELLING ONLINE • Web platforms are available 24/7 and not restricted by normal shop hours. • 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?
  13. 13. 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.
  14. 14. 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.
  16. 16. CONSIDERATIONS WHEN SELLING ONLINE • Do I have the right skilled staff in order to be effective online? • Efficient communication internally and externally. • A platform that is easy to manage, fluid and flexible (including CMS) • Operations - Storage facility and transport network. • Marketing, Sales and Customer Service process. • Selection of products and competitive pricing. • Knowledge of the online market and key trends. • A monitoring-evaluation-implementation feedback loop.
  17. 17. E-COMMERCE PLATFORMS • Wordpress – WP eCommerce • Shopify • Drupal • OpenCart • Joomla (Used by E-bay and Ikea)
  20. 20. LITTLEWOODS • 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.
  21. 21. “The new way to measure customer reaction is engagement" - Burberry CEO Angela Ahrendts
  22. 22. BURBERRY 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.
  23. 23. BURBERRY • 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. .
  24. 24. BURBERRY .
  25. 25. BURBERRY . Click to call response time – 20 seconds
  26. 26. “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 Burberry)
  27. 27. JOHN LEWIS How John Lewis reached more than £800m in annual sales through in 2012. 1. Spent money on PPC Ads 2. Well Designed and well worded product Pages.
  28. 28. JOHN LEWIS 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.
  29. 29. JOHN LEWIS 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.
  30. 30. JOHN LEWIS 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.
  31. 31. 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 returning customers).
  32. 32. 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.
  33. 33. 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.
  34. 34. WALLMART – LOCATION BASED MARKETING Scan and Go - allows you to scan goods as you shop. All will be ready and packed when you electronically check out.
  36. 36. 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 - Types of Mobile websites Responsive Design Mobile Websites Template Site
  37. 37. ANALYSING YOUR SUCCESS Use Transaction Flows and Goals on Google Analytics to measure your success and identify weaknesses in your e-commerce process.
  38. 38. WHAT ABOUT FRAUD? Annual fraud losses across the UK are now estimated to now top £70 billion (Experian Fraud Report 2012)
  40. 40. E-COMMERCE SUPPORT FOR RETAILERS • eTail Excellence Ireland (EEI ) - Digital Division of Retail Excellence Ireland • Irish Export Cooperative – avail of reduced DHL prices . - • – an interesting collaboration helping Irish Retailers get online.
  41. 41. DOWNLOAD THE FULL REPORT NOW Just visit - Thank You For Listening 087 2039855