E-Tail and E-Commerce, Getting Started In Ireland

StudioForty9 / E-Commerce: For first-time eTailers
E-commerce: For first-time eTailers
Gerard Keohane
info@studioforty9.com
087 225 1250
EEI, Dublin, July 2013

Who Are StudioForty9?
 Web design, web development and E-Commerce / E-tail boutique
 Based in Cork, Ireland
 Online Marketing, SEO, PlugIn Development
 Magento, WordPress (WooCommerce), Expression Engine
 Web User Interfaces (UI)
 Web User Experience (UX) expertise#
 Responsive Design, Adaptive Design, Moblie Websites

Presentation Overview
 Thinking about E-Commerce & E-Tailing
 E-Commerce Budgets & Web Design / Dev Timelines
 Open Platform E-Commerce vs Proprietary Technologies
 M-Commerce – Adjust vs Mobile Website vs Responsive Design
 Quick Wins For Conversion Optimisation
 Clever Wins – Cornering The Market

Thinking about E-Commerce
StudioForty9 / E-Commerce / Thinking about E-Commerce EEI, Dublin, July 2013

Irish Population
90% access to the internet
Irish Online Population
29% have made a purchase online
Irish Online Population
65% researched purchases online

Everybody’s at it
It’s time to get in on the
game

How long will this take?
How much will this cost me?
How much marketshare can I own?
How big is the market nationally?
How much can I sell if for?
How many can I sell?
I have a great product.
What technology do I use?
Where do I begin??

Confused.

Just like Commerce
E-Commerce
, but with an E

Treat your E-Commerce Store like
any other store in your business
Proposal:

You are not starting from scratch
 An understanding of Product and Market
 The Strength of your Brand
 Established physical presence adds value
As a retailer you have some key advantages

Parallels
 Fit out
• Initial website design and build
 Maintenance
• Ongoing build work and support, hosting
 Rent (a key cost to acquire footfall)
• Organic SEO, PPC, Re-marketing, Social
 Staffing
• Updates, Administration, Customer Service
Similarities with Bricks & Mortar retail

Pitfalls
Don’t Underestimate…
 Getting the Money
 Delivering the Product
 Staffing, Customer Service and Resources
 Customer Retention

 2006: First Shop
Introducing Joe
He likes fishing
 2010: Two more shops
 Exclusive Deal

 Rent, rates, services, utilities: €40,000
 Payroll: €46,000
 Fit-out: €15,000 /2 yrs
 Marketing: €8,000
 Stock: €150,000
 Costs per Annum: €261,000
 Turnover: €340,000
 After V.A.T.: €277,000
 Net Profit: €15,000
Thinking about a new shop

 Fit-out, design & build: €10,000 / 2yrs
 Payroll: €10,000
 Marketing – SEO, PPC: €12,000
 Hosting, Maintenance: €2,000
 Stock: Use shop
 Delivery and Banking: Variable
 First year cost: €29,000 + stock
Thinking about going online

Calculating Turnover?
Traffic * Conversion Rate * Basket Value = Turnover
48,000 visits * 2% CR * €150 = €144,000

Sales, Costs, Profits
Back of the envelope calculations
 First year web-cost: €29,000
 Cost of Stock: €64,800
 Cost of Delivery: €4,800
 Banking Fees: €3,900
 Cost per annum: €102,500
 Turnover After V.A.T.: €117,000
 Net Profit: €14,500

 Consolidating National Sales
 Selling Fishing Trips to Tourists
 Growth via Returning Customers
 Expansion to the U.K.
Growth
Joe has new options for growth!

StudioForty9 / E-Commerce / Technologies, Future Friendliness EEI, Dublin, July 2013
Technologies, Future Friendliness

Open source vs. Software as a Service
Dance to your own tune Limited Scope = Focus
Customise Everything
Portable
Need to find expertise
Set Costs
Done for you
Restrictions & Lock-in

The difference between owning your
own pig and buying a packet of ham
Open source vs. Software as a Service
Source: @conoro

Technologies
What do people use?
Source:
http://tomrobertshaw.net/
2013/03/feb-2013-ecommerce-survey/

Technologies
Some criteria for assessing technology
 How commonly used is the platform? Ask.
 Integration options: EPOS, ERP, Payment Gateway,
Accounts
 Feature set: Quantity and Quality
 Costs: licenses, upgrades, development, features and modules
 Vendor Lock-In Issues
 Migration & Portability
 Reliability, scaleability, size, demands, and hosting costs

Future Friendliness

27% of traffic to e-commerce sites comes
from mobile devices
Source: http://www.getelastic.com/global-mobile-commerce-trends-infographic/
Future Friendliness
The Reason
StudioForty9 / E-Commerce / Technologies, Future Friendliness
Global Average

 Leave as is
• Yes, this is a viable option
 Mobile Site
• A different site served to mobile devices
 Responsive Site
• The same site but it ‘responds’ to the device and screen-
size
Future Friendliness
Three Options

Leaving it as is
 Difficult processes to
replicate for moblie
 Make certain the site
functions on a mobile phone
at least!
 Regularly check conversion
rate
Future Friendliness

Mobile Site Approach
 Good where a specific approach
is required for smartphones
 Great for assuming a mobile
context – tourism sites etc
 May be cheaper than
responsive
Future Friendliness

Future Friendliness
Responsive Site Approach
 Ideal for ‘appropriately’
presenting all site content on
all devices
 Adds to time and cost
 Good for presenting content
for the mobile context
 Avoids SEO issues often
associated with the mobile
approach

Future Friendliness
A minor note of caution
 Mobile is a reality: it must be considered
 That said, it is not a “simple add-on”
 It might even double design, build & maintenance
costs
 Think hard about how your customer might benefit
from a mobile approach before you implement one

StudioForty9 / E-Commerce / Quick Wins, Clever Wins, Questions EEI, Dublin, July 2013
Quick Wins, Clever Wins, Questions

Some Quick Wins
Present your Delivery Costs
 If you have Free Delivery
shout about it
 Even if you don’t, make
sure to mention your
delivery options early
StudioForty9 / E-Commerce / Quick Wins, Clever Wins, Questions

Some Quick Wins
Guarantees and Returns Policy
 Reassure your customers
if you have a Guarantee, a “No
Quibbles Return Policy”, a simple
“Return In Store” policy - let
customers know.
 Conversion rates are higher
where customers feel they have
options

Some Quick Wins
Easy to Find Phone Number
 Your customer is at a remove
from you, let them know
they can call you
 Don’t make your customers
hunt for your phone number
 Customers like to know
where you are

Clever Wins
Never forget: Conversion Rates and Order Value
Traffic * Conversion Rate * Basket Value =
Turnover
Once your site is built and traffic established, the best way
to dramatically increase profits is to continually work on
increasing your Conversion Rate and Average Basket Value

Clever Wins
Multiple site – build once, build again
 Cornering the market
• MyShirts.com
• FancyShirts.com
• BudgetShirt.com
 Expanding to International Markets

Questions?
Gerard Keohane
info@studioforty9.com
087 225 1250

E-Tail and E-Commerce, Getting Started In Ireland

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