The document discusses various e-commerce trends from 2013 to 2014. It covers topics like:
- Increased e-commerce sales and venture capital investment from 2013 to 2014
- The growth of mobile commerce and same-day delivery
- Emerging payment methods like Bitcoin and the decline of NFC
- The rise of content marketing and new business models using content
- The connection between online and offline retail through technologies like beacons
- The growth of e-commerce in emerging markets like Brazil, Russia, India and China
2. eCommerce Buyers
in 2013 (in Million)
Source:
http://www.rishabhsoft.com/blog/e-commercegrowth-statistics-and-forecast
eCommerce Buyers
by Region
2
3. Venture Capital in e-Commerce
• 2012:
– 554 venture capital deals, agregate value of $4.4bn
• 2013:
– 589 venture capital deals, agregate value of $5.2bn
• The countries that have received the most ecommerce investment during 2013 are:
– USA ($2bn), China ($800mn), India ($680mn).
• 75% increase in average deal size, from $6mn in
2012 to $10.5mn in 2013.
Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013
3
4. Venture Capital – biggest
investments in their class
360Buy, a Chinese e-commerce
firm which offers consumer
electronic products, Kingdom
Holding Company invested
SAR $400mn
Zozi, a discount e-Commerce
busines, $7.1mn multi-investor
deal
Fab.com, a homeware ecommerce business, $150mn
Series D investment
Source: https://www.preqin.com/blog/101/7990/venture-capital-activity-2013
4
5. 16 Companies that are leading
a Retail Revolution – by Morgan Stanley
1.
2.
3.
4.
5.
6.
7.
8.
9.
Amazon
Blue Nile
eBay
Costco
Macy's
Nordstrom
Walmart
WilliamsSonoma
Urban
Outfitters
10.
11.
12.
13.
14.
15.
16.
Under Armour
ASOS
MercadoLibre
Rakuten
Belle
Intime
Sun Art.
MercadoLibre - Largest pure
player marketplace in Latin
Amerina. www.mercadolibre.com
Source:
http://www.businessinsider.com/morgan-stanley-best-ecommerce-companies-2013-1?
op=1#ixzz2oEvl6Mzg
5
6. E-Commerce startups to watch
•
Level Money
https://levelmoney.com/
Personal finance.
•
Routehappy
https://www.routehappy.com/
Helping travelers compare flights in new
ways.
•
Uber
https://www.uber.com/
They may expand into same-day delivery
•
Datasift
http://datasift.com/
Process and deliver social data to
business
•
Clinkle
https://www.clinkle.com/
Uses a high-frequency sound to process
m-payments.
•
Flipboard https://flipboard.com/
They just added shoppable magazines
Oyster
https://
www.oysterbook
s.com/
e-book
subscriptions
Source: http://mashable.com/2013/12/16/startups-to-watch-in-2014/
6
7. The new project methodology:
The Lean Startup
• The new project methodology is
based on the constant optimization
of key project indicators .
• Minimum Viable Product ( MVP).
– Instead of investing in research - just
quickly create a simple version of
the product and put in to the
market.
• You should use techniques such as
A / B testing to optimize your ebusiness.
Source: http://theleanstartup.com/
7
8. Growth Hacking
• Standing in opposition to
traditional marketing, growth
hacking is gaining popularity.
• Main points of this philosophy
are:
–
–
–
–
stable growth engine
efficiency
experimenting instead of planing
focusing on sales rather than brand.
Source:
http://www.amazon.com/Growth-Hacker-Marketing-Advertising-Portfolio-ebook/dp/
B00BPDR3JM
http://thedigitalexperiment.wordpress.com/2013/04/12/growth-hacking-2013-hack-to-thefuture-mindset-or-skillset/
8
9. Big Data
•
•
Reco
engines
Marketing
automation
Personalization.
Data from multiple touch points
can be processed in real-time to
offer a personalized experience,
including content and promotions.
Dynamic pricing
This requires gathering data from
competitors, on-line and off-line.
•
Predictive analytics
Big Data is helping retailers
predict events before they occur.
reMarketing
+ reco
eCommerce
& CRM
integration
Source:
http://www.practicalecommerce.com/articles/3960-6-Uses-of-Big-Data-for-Online-Retailers
9
10. Smarter prices
• Amazon is changing prices of
some goods even few times a day.
– In the future, companies will work
harder to put on the intelligent control
of the price. You can try tools like
WisePricer (
https://www.wisepricer.com/amazonrepricer ).
• Some retailers use really complex
techniques to set prices.
– For example - their change prices
based on your location
http://venturebeat.com/2012/12/24/
staples-online-stores-price-changes/.
Price differences at staples.com. The dot
sizes mark the mean price surplus for the
locations, from 0%(small dots) up to 3.9%
(large dots).
More
http://conferences.sigcomm.org/hotnets/2012/papers/
hotnets12-final94.pdf
10
11. SEO – is it still alive?
1. Paid is where Google
wants to be.
2. Technical SEO isn’t
working anymore.
3. Building links and social
media shares is more
expensive than ever.
Source:
http://wrightimc.com/blog/2013/11/21/
future-seo-complicated-seotrends-2014/
You should consider more traffic
sources because Google strategy is
“pay per click” and sooner or later
– You will pay for all your clicks.
The best case scenario is that one
source of traffic should not exceed
20-30% of overall traffic of Your site.
To do this, you should test marketing
tools such as affiliations, RTB, mailings
to external databases, building own
mailing list, call-center .
The ultimate way to stability is building
a strong brand.
11
12. E-Mail Marketing
• Customer acquisition
by email marketing has
quadrupled over the
last 4 years.
• The average customer
lifetime value (CLV) of
users acquired via
email is higher than
those coming from
social media.
• Email marketing ROI is
around 4300%
(according to the Direct
Marketing Association)
http://www.shopify.com/blog/9196929-why-email-marketing-isthe-key-to-ecommerce-success#axzz2oEyzmw3r
Source:
http://blog.custora.com/2013/06/e-commerce-customer-acquisition-snapshot/
12
13. Content
Marketing
• In 2014 we will see
brands stop talking
about 'acting like a
publisher' and start
actually acting like one.
-Justin Pearse, head of
marketing at Bite and board
member of the British
Interactive Media Association
Source:
http://www.smartinsights.com/
content-management/contentmarketing-strategy/the-contentmarketing-matrix-new-infographic/
Source:
http://www.theguardian.com/media-network/media-network-blog/2013/dec/10/expertsdigital-content-trends-2014
14. Technology
•
•
•
•
•
Variety of devices, user contexts, and
interaction paradigms.
HTML5 and the browser as a
mainstream enterprise application
development environment.
Growth of 3D Printers - 75 percent in
the 2014, and 200 percent in 2015.
Many firms have cloud strategies and
mobile strategies, but the Forrester
Top Technology Trends report makes
the point that the benefits of the cloud
are still limited by old applications.
Mobile is becoming only one part of a
broader omni-channel approach.
Source: http://store.makerbot.com/replicator2
Source: http://www.forbes.com/sites/peterhigh/2013/11/25/forrester-top-technology-trends-for-2014-and-beyond/ ,
http://www.forbes.com/sites/peterhigh/2013/10/14/gartner-top-10-strategic-technology-trends-for-2014/
14
16. Responsive Web Design
• RWD is a standard now.
• Today users prefer to use
mobile websites than
apps.
• Build an app when you
have something extra to
offer.
• Mobile first approach is
getting popular
http://www.lukew.com/resources/
mobile_first.asp.
http://global.tommy.com/en
Source:
http://www.business2community.com/online-marketing/10-awesomeexamples-of-ecommerce-sites-using-responsive-web-design-0465157#!qqdM6
16
17. New Business Models
•
•
•
•
In 2013 we saw a lot of new
business models in e-Commerce.
One of our clients promotes
recipes for homemade cosmetics
by content marketing. To each
recipe they add set of products
(ingredients). Just one click and all
these ingredients end up in the
cart.
Another customer - LOT Airlines,
created the duty-free online store .
Buy on-line from home and pick up
the product on board when you fly.
In the coming year FMCG
companies will try some new ways
of selling on-line.
Source: http://airkiosk.lot.com/
17
18. Digital Content
• Freemium is main
acquisition model in
software and content.
– Paywalls doesn't work.
• Free To Play Games are
taking over the world.
• Streaming services
- new distribution
platforms.
Source:
http://www.siia.net/blog/
index.php/2013/09/10-digitalmedia-trends-you-cant-ignore/
Supercell (Finnish startup) is generating $1 million in
gross revenue a day from just 2 games - Hay Day and
Clash of Clans.
http://www.insidemobileapps.com/2013/01/10/supercellgenerating-1m-a-day/
18
19. Same-day delivery
• Amazon, Walmart,
Nordstrom, Macy’s, Google,
and eBay all launching it
already.
• Amazon found that merely
displaying an icon touting
same-day availability
increased conversions by 20
to 25 percent!
Source: http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveries-matter/
http://storefrontbacktalk.com/e-commerce/the-amazon-same-day-delivery-mystery-great-conversions-fewactual-users , http://amazon.com,
http://www.mypersonalfinancejourney.com/2010/02/review-of-amazon-prime-program.html
19
20. Same-day delivery
To enable quick home deliveries we need to start
forecasting what will be ordered by day, what the
volumes will be on those days, and where those
consumers live; based on the forecast, a routing
optimization engine then prebuilds routes for the next
day that include inventory locations (stores) and homes.
- Victor Allis, the CEO of Quintiq
Source:
http://www.forbes.com/sites/stevebanker/2013/12/03/same-day-deliveries-by-amazon-drones-ridiculous-whatreally-makes-sense/
20
21. Buying local
• Amazon uses huge warehouses that serve a whole metro
area to offer same-day delivery.
A local retailer might have several stores in a particular
city, enabling shorter delivery paths.
• Local stores will bring the web right to where shoppers
can psysically touch it.
• Local stores will merge digital with retail to offer a more
personalized shopping experience
Source: http://www.ibm.com/smarterplanet/us/en/ibm_predictions_for_future/ideas/index.html
http://logisticsviewpoints.com/2013/02/04/an-amazon-study-shows-why-same-day-deliveriesmatter/
21
22. Buying local
• Shutl couriers make pointto-point deliveries from a
store directly to the
customer.
• Approximately 75% of
commerce happens within
15 miles of the consumer’s
home
• Aquired by eBay in
october 2013
Source: http://shutl.com/uk/
22
23. Buying local
Postmates is a revolutionary same-day urban
delivery platform. It enables anyone to ship any
product within a city in under one hour.
Source: http://postmates.com/
23
24. Mobile payments are growing fast.
Uber is pushing payment transactions further into the
background. The flat fare is deducted automatically.
24
Source: https://www.uber.com/
25. mPayments
• Now there are many new payment methods.
• Braintree processes about $4 billion in mobile
payments annually for Uber, Airbnb, TaskRabbit
and others.
NFC didn’t solve any real-world
problems - says David Marcus,
PayPal’s president.
Source:
http://www.informationweek.in/informationweek/perspective/
285724/practices-commerce-emerging-markets
25
26. mCommerce
• Mobile is the only media time
that is growing
– based on U.S. Consumer
Media Consumption Share
• 52% of tablet users now say
that they prefer to shop using
tablet than PC.
Top commercial venues
where people use their
mobile devices:
1. Retail (31%),
2. Restaurants&Cafes
(19%),
3. Service (19%),
4. Financial (15%)
Source: BI Intelligence, eMarketer 2013
http://www.supermonitoring.com/blog/2013/09/23/state-of-mobile-2013infographic/#tt
26
27. Showrooming
• 80% of consumers use
mobile in-store to enhance
the shopping experience.
• Best Buy CEO: „Let's
embrace showrooming”
– Plans for that include converting
more online and offline
shoppers from browsers to
buyers through redesigned
stores, better trained employees
and other incentives like online
price matching.
– http://www.cbsnews.com/news/
best-buy-ceo-lets-embraceshowrooming /
Source:
http://www.supermonitoring.com/blog/2013/09/23/state27
of-mobile-2013-infographic/#tt
28. On-line – Off-line connection
• Sensor-based analytics and
engagement platforms.
• Bluetooth and WiFi give us
opportunity to understand
how people behave in
stores.
• Bluetooth Low Energy
is supported by Apple,
Google, and Nokia.
• Internet of Things.
http://www.mckinsey.com/insights/
high_tech_telecoms_internet/
the_internet_of_things
Source: http://estimote.com/
28
29. Bitcoin – new possibilities
in on-line payments
• Bitcoin allows any bank, business or
individual to securely send and receive
payments anywhere at any time, with or
without a bank account.
• Payments are possible without slow and
costly middlemen.
• Can process payments to the scale of a
dollar and soon even much smaller
amounts.
• Can be used in a new generation of
automated services.
Source: http://bitcoin.org/en/ , https://bitpay.com/
Over 12,000 businesses and
charities accept bitcoin with
BitPay.
29
30. New markets
• BRIC (Brazil, Russia, India and China) is the future
of e-Commerce growth.
• The penetration of smartphones and tablets is
rapidly increasing in BRIC countries.
• Smartphone penetration: China (59%), India
(37%), Brazil (35%), Russia (28%).
• This channel of communication with the
potential customer will force retailers to use
m-commerce.
Source:
http://www.informationweek.in/informationweek/perspective/285724/
practices-commerce-emerging-markets?utm_source=referrence_article
30