Running an online shop

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A presentation from Volunteering in a Digital Age, Swansea, September 2012. Oxfam pass on their knowledge of online trading.

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  • Key message: Online is already important and likely to become more so.
  • In general it’s a pretty robust picture for Online retail. More and more people are shopping online and the UK has the most active online population in Europe. Broadband penetration reached 63% in 2009 and there is a strong correlation between broadband penetration and online spending.
  • Part 1. Introduction 1.1 Internet sales figures E-commerce is, of course, a growing sector. According to the latest figures from ONS (2010), internet sales now represent 8% of all retail sales compared to just 3% in 2006. The ability to purchase goods and services online with ease has been welcomed by millions of UK consumers and we expect growth in the sector to continue as access and internet experience expand. The drive to eliminate digital exclusion (i.e. any residual sense of isolation from the benefits of the internet felt by any particular social segment) is part of the political and commercial agenda and internet service providers continue to develop faster and more sophisticated internet connections. The uncertainty of the UK’s economic recovery too will continue to benefit the sector as price sensitivity drives savvy shoppers towards the online market and its competitive deals. This chart also shows internet sales are significantly boosted during the Christmas period. It is important to note that at the end of the decade before the UK moved out of recession internet sales reached their highest peak to date, affirming e-commerce’s swelling appeal amongst UK consumers despite the weaker economic climate.
  • Online selling brings a balance – weather influence
  • Summary of what Monsoon is for those who are unaware. Explanation of listing fees and commission / sales fees on other channels e.g. eBay charges insertion fees in most cases and also a ‘variable’ final value fee (unless registered with eBay for Charity when fee credits apply) Other fees e.g. Paypal will apply too. Amazon charges a listing fee and then takes a % of the final value of the sale and a fixed fee on delivery charges too.
  • Clothing or non-clothing
  • Most of the terms we use in Online selling
  • Terms with explanations
  • WHO? This exercise is all about thinking about what roles you need to fill to efficiently run OOS in your shop. Ask learners in small groups (2-4) to take 5 mins and list all the roles that they think will help them run OOS. Share Learning With group (flipchart list- assistant) There are no wrong answers!
  • Choosing a good label and an accessible role description here is the key- Online retail data entry specialist? NO! Online product lister? YES! Although it may be useful to recruit people with some experience of using computers you don’t need specialists. With the support of the OOS team you will be able to provide initial training to your volunteers to get the job done!
  • It might seem like volunteers are hiding from you, but you just have to look in the right places! Think about your usual shop recruitment- could those channels help? High street recruitment for the online shop? Online recruitment for the high street shop?
  • If Time- Dragons den exercise (15mins) Split group into smaller groups (3-4) and put together a 1 min sales pitch for there shop to attract potential new volunteer (facilitator) Facilitator to give feedback on what they liked about each pitch and why they would be particularly interested in This exercise makes participants think about what there particular shop has to offer in a competitive market.
  • Running an online shop

    1. 1. Running an Online Shopwith Volunteers Gerry Weetman Shop Operations Lead, Oxfam GB
    2. 2. Welcome and Introductions
    3. 3. ObjectivesWe will look at• Why sell online?• How to sell online?• What to sell online?• Questions Page 3
    4. 4. A little bit of history…
    5. 5. Setting the Scene:Where have we come from?Background• Oxfam shops have been selling online for around 10 years• Abe Books and eBay• Oxfam’s Online Shop (OOS)• Amazon Marketplace• Play, Alibris Page 5
    6. 6. Which channels?• 165 shops live and selling on OOS• 38 shops sell on Abe Books (18 unique to Abe)• 78 shops sell on eBay (46 unique to eBay)• 3 shops sell on Play• 4 shops sell on Alibris• 50 shops sell on Amazon (28 unique to Amazon) Page 6
    7. 7. Why sell online?
    8. 8. What is the e-retail market doing?• Verdict forecasts that by 2013, online shopping population will reach 34.8M (66.2% of the total adult population).• And online share of spend will remain buoyant, rising to 10% of all retail spend by 2013• Clothing and footwear has overtaken music and video to be the most frequently shopped for category online Page 8
    9. 9. E-commerce forecastProportion who have bought various goods or services online in the past 12 months(2010-based nVision projection) Clothes & sports goods 2016 Household goods 2010 Travel and holiday accommodation 2006 Books/magazines/e-learning material Films/music Computer software Tickets for events Electronic equipment Food/groceries Computer hardware 0% 20% 40% 60% 80% 100% Source: Eurostat Survey on ICT Usage/nVision Base: UK Page 9 24679:
    10. 10. E-commerce forecastProportion who have bought various goods or services online in the past 12 months(2010-based nVision projection) Clothes & sports goods 2016 Household goods 2010 Travel and holiday accommodation 2006 Books/magazines/e-learning material Films/music Computer software Tickets for events Electronic equipment Food/groceries Computer hardware 0% 20% 40% 60% 80% 100% Source: Eurostat Survey on ICT Usage/nVision Base: UK Page 10 24679:
    11. 11. Home internet access forecast – UK & Ireland% of households having access to the internet at homenVision forecast, 2010-based projection 100% UK actual UK Ireland actual Ireland EU25 average 80% 60% 40% 20% 0% 2006 2008 2009 2010 2011 2013 2016 2000 2001 2002 2003 2004 2005 2007 2012 2014 2015 Source: Eurostat Survey on ICT Usage/nVision Base: UK and Ireland Page 11 26900:
    12. 12. Internet usage forecast – UK & Ireland% of individuals who access the internet, on average, at least once a weeknVision forecast, 2010-based projection 100% UK actual UK 90% Ireland actual Ireland EU 27 actual EU 25 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2005 2006 2007 2008 2010 2011 2012 2013 2014 2016 2004 2009 2015 Source: Eurostat Survey on ICT Usage/nVision Base: All individuals aged 16-74 Page 12 26901:
    13. 13. Internet sales as a percentage of total retailsalesValues. Not seasonally adjusted. 9% Internet sales as a % of total retail sales (left hand axis) £550 Internet retail sales, £ millions (right hand axis) £500 8% £450 7% £400 6% £350 5% £300 4% £250 £200 3% £150 2% £100 1% £50 0% £0 2007 Jun 2008 Jun 2009 Jun 2007 Aug 2008 Aug 2009 Aug 2007 Apr 2008 Apr 2009 Apr 2010 Apr 2007 Oct 2008 Oct 2009 Oct 2007 Feb 2008 Feb 2010 Feb 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2009 Feb Source: National Statistics/nVision Base: UK Page 13 22475: The Future of E-commerce
    14. 14. Why sell online?• Increase your customer base• Profile your shop• Increase your sell through and ASP• Be part of the futureBricks + clicks = success Page 14
    15. 15. Which channel?
    16. 16. Which channel?• As we have seen, there are a number of channels to choose from and these are growing all the time• But there are Pro’s and Con’s which need investigating before deciding Page 16
    17. 17. Channels available – pros and cons! Channel Reach Huge Very Big Small Small Auction / Both Fixed Fixed Fixed Fixed price Audience Broad & Niche Broad Warm NicheFees (listing / Both Both No Bothcommission) Database No No Yes No buildingStorage space Small Medium Small MediumBrand building No No Yes No Page 17
    18. 18. Page 18
    19. 19. How do we sell?
    20. 20. How do shops sell online?• Same principles as High Street• Shops select stock• Stock listed and presented to maximisefeatures• Stock priced optimally to offer value tocustomer and Oxfam• Sales effectively picked and packed on time• Shops replenish inventory to maintain stocklevels Page 20
    21. 21. What makes a good online shop?• 3 key factors based around 4 P’s (People, Product, Property & Pounds)• People • Successful Shop Manager who is able to recruit an additional team of volunteers• Product • Sufficient, suitable quality stock• Property • Adequate space to accommodate equipment and storage of stock• When all 3 things are in place, you get the 4 th P = £’s Page 21
    22. 22. Product Selection• Focus on quality and condition• Sort to identify high value / demand items (ASP and Brand sell through)• Prioritise listing accordingly• List low ASP items only if you have sufficient Volunteers• Provide and use minimum price guide that respects your volunteers time - research as required• Maximise listing through effective photography and complete / punchy descriptions Page 22
    23. 23. A picture is worth a thousand words• Ensure a neutral background• Minimum front and back shot• Angle mannequin for a 3 dimensional view• Take all shots from same distance to ensure constant white balance• Include shots of styling details as required• For books and music, a scanner may be used Page 23
    24. 24. A picture is worth a thousand words Page 24
    25. 25. Back Room SystemsOrganisation• Letter, number system as standard• Monthly system also possible• Label each individual item: • Location code • Product codeDispatching• Must be sent next working day• Packing materials• Posting Page 25
    26. 26. What do we sell?
    27. 27. Online Terminology ASP RPL gh u ro Th ll Se Conve rsion Li ve t Draf Page 27
    28. 28. Online Terminology Revenue per Listing - Average Selling Gross sales divided by Price – The total RPL total number of listings sales divided by the both live and sold. number of items ASP The amount of sold items bought gh divided by the u ro total visitors to The number or Th Conve rsion the site value of items ll Se sold divided by total number or value of items Li listed ve Listed items notListed items available foravailable for aft sale Drsale Page 28
    29. 29. Where’s the money? Page 29
    30. 30. Where’s the Money? Page 30
    31. 31. Where’s the Money? Page 31
    32. 32. What do shops sell on OOS?•We’ve sold some fantastic items •Vintage Christian Dior, Bijou stunning costume jewellery set 1959 •£865.00 £865 Page 32
    33. 33. What do shops sell on OOS?•We’ve sold some fantastic items •Back To The Egg by Wings, Paul McCartney. Original promo only picture disc, vinyl 33 RPM, •£800.00 £800 Page 33
    34. 34. What do shops sell on OOS?•We’ve sold some fantastic items • The Velveteen Rabbit - Margery Williams - 1922 first with jacket £1,250.00 £1,250 Page 34
    35. 35. What do shops sell on OOS?•And some unusual items too.. •Duncan Maclennan Standard Boomerang •£15.00 £15 Page 35
    36. 36. Investment requiredRequired Equipment
    37. 37. Required equipment £150 Lights £71 mannequins £60 £50£400 £75 £34 Page 37
    38. 38. W Do I Need? ho
    39. 39. What roles are available?• VIP Scout • Van driver• Fashionista • Van buddy• Photographer • Administrator• Creator • Role leaders• Picker & packer • What else do you• Media officer need?• Stock sourcer Page 39
    40. 40. What Does That Mean?VIP scouts• Can you tell a D&G from a Dorothy Perkins? Ideal for those with an eye for quality and detail, this role is challenged with selecting quality saleable items, stock control & inventory management.Photographers• An interest in photography and styling would make you a perfect candidate for an online photographer. Dressing mannequins and taking good quality photographs of garments and details.Fashionistas• A passion for fashion, retro or vintage clothing would make you the ideal person to optimise the value of the donations for Oxfam through research into current trends and market prices.Creators• Do you have the skills in creative writing to describe products with the accuracy of detail and passion for product that will excite buyers and lead to increased sales for Oxfam online?Pickers and Packers• SOLD! Items now need to be picked from the racking, packed up and posted. Are you organised to ensure the efficient and smooth running of the production centre and careful updating of dispatch systems?Media officers• If you’re a people person and have recruitment or media experience, we would love you to help promote these opportunities to the local community and media and maintain a core base of volunteers. Page 40
    41. 41. Where Can I Find Them?
    42. 42. Recruitment sources• For general recruitment- • Specifically for online• Posters in shop window selling-• Posters in community buildings (library/leisure centre/places of worship etc.) • Gumtree• Job Centre Plus• Probation Service • Facebook• Local Council Volunteer Bureaux or Volunteering Service • Twitter• Prison placement schemes• V involved• Reach • Local amateur• Working with community groups e.g. Rotary, Lions’ Club, photography groups Book Clubs, Music Groups, Women’s Institute.• • Community IT courses Duke of Edinburgh• Asking current volunteer team Page 42
    43. 43. Case Study- Madeleine• Wallingford Shop- Has whole upstairs dedicated to online shop• Promoted 2 volunteer ‘Open days’ To let people come in and have a look around and talk about opportunities with the online shop.• Published open days in local magazine and on chalk board outside the shop• Result = 5 new online shop volunteers from one open day! Page 43
    44. 44. What’s So Great About your Shop?!
    45. 45. What’s So Great About your Shop?!• Be competitive!• Promote the aspects of your shop or teamwhich are really different/interesting• Ask your current team what motivates them towork in the shop• Always keep these ideas in mind when talkingto prospective volunteers/designing materials Page 45
    46. 46. Questions?

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