Channel Advisor E Com Expo (28 Oct08)

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Channel Advisor E Com Expo (28 Oct08)

  1. 1. Opportunities for Retailers on Marketplaces & Comparison Shopping Sites London, 28th October 2008
  2. 2. “Retailers should expand their use of online marketing tactics on search engines and comparison-shopping sites since shoppers are likely to be researching the Web more thoroughly when deciding on this year's holiday gifts.quot; Patti Freeman Evans Forrester Research Vice President and Research Director 2 CONFIDENTIAL
  3. 3. Key Takeaways • A significant % of the internet’s online retail occurs on Marketplaces and Shopping Sites and many retailers are missing out on these transactions. • Over the last 12-18 months, the incumbents have lost market share to new and emerging online shopping destinations, presenting interesting alternative channels for online retailers to consider • Each Shopping Destination has its own nuances, challenges and best practices, for which it is essential for a retailer to understand to be successful. 3 CONFIDENTIAL
  4. 4. Who is ChannelAdvisor? • Software and services company, founded in 1999 • Empower retailers to succeed online by managing multiple sales channels from one platform • Work with 5,500 businesses of all sizes, from eBay Powersellers up to Corporate giants • Based in North Carolina, with offices in New York, Atlanta, Limerick, Richmond, Berlin and Melbourne. • Over 280 people employed worldwide • Highly scalable and robust technology, covering marketplaces, search & shopping comparison engines • Over $2.5 billion in transactions processed in 2007 (~1% of NA & EMEA eCommerce) 4 CONFIDENTIAL
  5. 5. ChannelAdvisor Complete 5 CONFIDENTIAL
  6. 6. Where do buyers start their online search? Online shoppers start their search for products in one of four places. • Marketplaces • eBay • Amazon • Comparison Shopping Engines • Kelkoo, myDeco, Ciao, Shopping.com, Shopzilla, Pricerunner, etc. • Search Engines (Paid & Natural Search) • Google, Yahoo, MSN, Ask • Direct URL navigation 6 CONFIDENTIAL
  7. 7. Online Channels Growing in Importance • More consumers shopping online via search, comparison shopping engines, marketplaces. • Today up to 75% of sales for an internet retailer is driven by online channels. • FBR Research based on publicly available Gross Merchandise Volume (GMV) Information. Also corroborated by ChannelAdvisor’s real-world data. 7 CONFIDENTIAL
  8. 8. E-Commerce – Large and Growing • Jupiter Research Data US Retail Forecast 11/07 and European Retail Forecast 8/07 8 CONFIDENTIAL
  9. 9. UK Online Spending continues to Grow 2005 online spending = £19.2 billion 2006 online spending = £30.2 billion 2007 online spending = £46.6 billion 2010 Forecast = £78.0 billion 9 CONFIDENTIAL
  10. 10. Online Channels Growing in Importance • More consumers shopping online via search, comparison shopping engines, marketplaces. • Today up to 75% of sales for an internet retailer is driven by online channels. • FBR Research based on publicly available Gross Merchandise Volume (GMV) Information. Also corroborated by ChannelAdvisor’s real-world data. 10 CONFIDENTIAL
  11. 11. eBay eBay GMV Growth vs. E-Commerce Growth Derek Brown, Cantor Fitzgerald 11 CONFIDENTIAL
  12. 12. Marketplaces - eBay • eBay has historically been strong for end-of-life or liquidation product • Solve a reverse logistics problem and acquire customers at the same time • Take good care of the newly acquired customers and then make them buy your new product on your other channels • New focus towards fixed price listings 12 CONFIDENTIAL
  13. 13. Marketplaces - Amazon Pixmania recently announced its own marketplace 13 CONFIDENTIAL
  14. 14. Marketplaces - Amazon • Great for in-season retail product • Increasingly popular marketplace with buyers and sellers • 3rd party sellers now account for over 30% of sales • Launched Merchants@ program in 2006 – massive uptake • Merchants@ is a major growth area for Amazon in 08 and beyond “Amazon strives to be Earth's most customer-centric company where people can find and discover virtually anything they want to buy online. By giving customers more of what they want - low prices, vast selection, and convenience - Amazon.com continues to grow and evolve as a world-class e-commerce platform.” 14 CONFIDENTIAL
  15. 15. ...to other Marketplaces Pixmania recently announced its own marketplace 15 CONFIDENTIAL
  16. 16. ...to other Marketplaces Pixmania recently announced its own marketplace 16 CONFIDENTIAL
  17. 17. Comparison Shopping Engines • You pay for traffic on a per-click basis (called CPC in the industry) • Per-click determined by category and merchant auction • Traffic driven to your e-commerce site for potential conversion £/click 17 CONFIDENTIAL
  18. 18. Important CSE datapoints • Forrester – 75% of online shoppers influenced by CSE • ChannelAdvisor – some customers see CSE as large as 40% of GMV • Comscore: January 08 UK: • 33m unique internet users • 17m visited CSEs • 51% reach % CSEs 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 18 CONFIDENTIAL
  19. 19. Understanding CSE 1.0 and CSE 2.0 • CSE 1.0 • CSE 2.0 • Vintage <2000 • Vintage >2006 • Product catalog driven • Variety of models to enhance experience/business • Usually heavily electronics oriented • Reviews (Ciao) • CPC • Social (Crowdstorm/Facebook) • Stagnant, little to no changes • Traffic/fun (Jellyfish) since 2006 timeframe • BizModel (CPA – Jellyfish) • Primarily acquire traffic from paid- • Comprehensive search • Vertical orientation (Mobile-phones) • Local (Abcaz) • Integrated checkout (shop.com) 19 CONFIDENTIAL
  20. 20. CSE UK Internet Audience Share (Comscore) Rank Comparison Shopping Aug-2007 Sep-2007 Oct-2007 Nov-2007 Dec-2007 Jan-2008 Jan Share 1 36% Shopping.com Sites 7,133 7,146 8,112 7,442 6,867 6,235 2 22% Ciao Sites 3,073 3,111 3,371 3,770 3,435 3,685 3 21% Shopzilla.com Sites 3,412 3,382 3,619 3,770 3,711 3,576 4 20% ValueClick Sites 1,209 1,045 1,928 2,532 3,489 3,436 5 17% Kelkoo Sites 3,903 3,304 3,200 3,592 3,751 2,858 6 13% Shopping.net Ltd 2,130 1,927 2,115 2,046 1,942 2,197 7 12% Nextag.com Sites 1,811 1,731 1,912 2,262 2,408 2,075 8 8% MSN Shopping 1,251 1,185 1,491 1,867 1,659 1,349 9 8% Shop.com Sites 1,414 1,189 1,591 1,486 1,560 1,333 10 8% PriceGrabber 1,230 1,315 1,361 1,602 1,527 1,301 11 7% COMPARESTOREPRICES.CO.UK 1,347 1,206 1,190 1,521 1,298 1,259 12 7% Dooyoo Group 1,281 1,083 1,168 1,097 1,023 1,113 13 6% Google Product Search 757 778 637 710 1,170 1,110 14 6% GOCOMPARE.COM 530 586 593 622 465 979 15 4% Twenga N/A N/A N/A N/A N/A 760 16 4% DoorOne Sites 177 159 281 477 546 741 17 4% Kelkoo Shopping on Yahoo! 494 551 621 729 626 678 18 4% SHOP-FOCUS.COM 1,344 1,143 970 887 606 668 19 4% Yahoo! Shopping 645 596 636 823 786 633 20 3% MOBILE-PHONES.CO.UK N/A 240 439 525 456 512 20 CONFIDENTIAL
  21. 21. Google Product Search – free traffic! 21 CONFIDENTIAL
  22. 22. Increasing number of new Social Shopping sites 22 CONFIDENTIAL
  23. 23. 23 CONFIDENTIAL
  24. 24. .....and new niche Shopping sites 24 CONFIDENTIAL
  25. 25. Managing Multiple Channels is not easy! 25 CONFIDENTIAL
  26. 26. Retail Agility • The dynamic nature of the UK’s ecommerce landscape creates both opportunities and challenges for online retailers • Opportunities • Get your products / brand in front of new buyers that you wouldn’t otherwise reach • Find opportunities to lower customer acquisition cost • Gain competitive advantage by beating your rivals to these new shopping destinations • Challenges • Understanding the different sales venues and developing a strategy for each • Data challenge – each site is different and needs product data in its own format • Ongoing management and integration into existing systems 26 CONFIDENTIAL
  27. 27. Key Takeaways • A significant % of the internet’s online retail occurs on Marketplaces and Shopping Sites and many retailers are missing out on these transactions. • Over the last 12-18 months, the incumbents have lost market share to new and emerging online shopping destinations, presenting interesting alternative channels for online retailers to consider • Each Shopping Destination has its own nuances, challenges and best practices, for which it is essential for a retailer to understand to be successful. 27 CONFIDENTIAL

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