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eCommerce Trends for 2015


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An explanation of eCommerce Trends for 2015. Discussion of eCommerce on Mobile, Responsive Design, UPS and FedEx Dimensional Weight Changes, and advice for eCommerce Startups. Presented at #TechCampMemphis 2014 on November 1st, 2014.

Published in: Retail
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eCommerce Trends for 2015

  1. 1. Where is eCommerce going? 1 Trends, pitfalls, and where eCommerce will go in 2015 PRESENTED BY Grant Morrow eCommerce 2015
  2. 2. 2 Meet me Grant Morrow eCommerce Program Manager Orgill, Inc. About me: Grant Morrow Managed hundreds of web and eCommerce implementations, directed eCommerce business units and logistics operations. MBA from the University of Memphis. Skill eCommerce SEO Logistics Business Analytics experience 10 years working in eCommerce, web development and logistics Currently: eCommerce Program Manager for Orgill, Inc. Directed eCommerce business units from ground up to profitability Consults with retailers of all sizes at all stages of eCommerce growth cycle
  3. 3. 3 Agenda 01 TRENDS OVERVIEW 2015 General eCommerce Trends in 2015 02 MOBILE, MOBILE, MOBILE! Mobile is affecting everything in eCommerce now 03 SHIPPING Logistics and how it will change in 2015 DESIGN 04 Responsive design is here, embrace immediately! PRODUCT MIX, MARKETPLACES AND SEO 05 What works for overall? What works for startups? SUMMARY 06 eCommerce in 2015 and beyond
  4. 4. 4 eCommerce Trends 2015 Subscription & Curation Services Continual growth of “boutique in a box” Amazon Subscribe and Save Shopping behavior? Where do users start? Research From using mobile to research prices to using Social Media, Users will be smarter shoppers than ever Growth Year over Year Logistics Choices What do you users want? Marketplaces Amazon, eBay, Sears, Newegg, Pinterest: New Entrant
  5. 5. 5 Total Internet Retail Sales in the U.S. 2012 2013 13% Year over Year 10% Of All Retail Purchases Are now made online $211B Total Internet Retail 2012 $184 Billion 2013 $211 Billion 1Q14 Mobile 11% of all eComm sales Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  6. 6. Logistics Choices 6 93% Take Action for Free Shipping The leading action is adding more items to the cart 83% of Shoppers will wait 2 more days to get free shipping Delivery Speed is the 4th most important • 50% of shoppers will choose a slower transit time for free shipping • 7 Business Days is the average time shoppers are willing to wait • 50% of shoppers abandoned carts that did not give an estimate on delivery FREE SHIPPING factor Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  7. 7. Marketplaces 7 18% Retailer 28% Amazon 10% Pinterest Retailers Sites 18% of online shoppers start off on a retailers web site to begin searching. Importance of brand Loyalty Amazon Dominance & Business Model Changes 28% of online products searches are on Amazon has become by far the largest marketplace, larger than eBay, and combined. Many online retailers have ditched having any website themselves. Emerging: Pinterest 20% of online shoppers say that Facebook helps influence their decisions. 10% say the same of Pinterest. Pinterest will be rolling out eCommerce functionality this holiday season Pinterest being more product focused will move much faster into eCommerce Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  8. 8. 8 Curation & Subscription Services Curation Personalization Tactic Boutique-In-A-Box: • Trunk Club (Sold to Nordstrom for $350M) • Birchbox • • Nature Box Subscription Order again and save money • Amazon Subscribe & Save • Dollar Shave Club (Gillette already has responded) 22% of users Have already signed up for this type of service And 47% say they would consider enrolling Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  9. 9. 9 Shopping Behavior 44% Prefer to buy on a desktop or laptop computer 41% Still would prefer to purchase in brick and mortar store 55% 11% Regular Online shoppers would prefer to buy online Would prefer to buy on a tablet or Smartphone Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  10. 10. 10 Smarter Shoppers Research More 36% 22% 27% Price Comparison Shopping Percentage of shoppers who check prices online while in the store Research on Products Percentage of shoppers who will research a product on their Smartphone while in store Reviews Percentage of shoppers who will read online peer reviews of a product while in the store Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  11. 11. 11 MOBILE, MOBILE, MOBILE OMNICHANNEL Mobile fuels the ability of a retailer to interface with their customer on a variety formats and Developed societies now sit within arms reach situations of the world’s information and almost any product with a few touches, 24 hours a day. MARKETING SMS, Mobile Coupons, Mobile Apps HUGE GROWTH Mobile Commerce represents $25 Billion
  12. 12. 12 Mobile Activities 22% 65% Where are we seeing opportunity/growth? Everywhere. 40% 51% Holiday Shopping Marketing E-mails Mobile Coupons Tablet Purchases 1 in 4 Orders Last Holiday Season were from mobile shoppers Seek Out Percentage of Mobile users who look for or redeem mobile coupons. Have Used Mobile to Purchase Opened on Mobile Percentage of where Marketing e-mails 41% Have used their Smartphone were opened Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  13. 13. 13 Mobile Opportunities Mobile Coupons Mobile Coupons are 10X more likely to be redeemed than regular coupons 1 in 5 made a purchase After opening a retailer’s email on their mobile device 6 out of 10 kept Shopping While using a retailer’s mobile shopping app Mobile Shopping App Lowers propensity of users to leave to “shop around”. 59% of users say they will generally stay within the app Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  14. 14. 14 Where are retailers with mobile? If Not Optimized 38% Say they will not return to a retailer’s website if it is not mobile optimized 38% 73% Image Pictures 43% of shoppers prefer to shop on a desktop or laptop because the pictures are still too small 43% 51% Mobile Optimized Retailers surveyed who say they already had or were going to implement in 2014 Retailers with a mobile app 51% of retailers surveyed already had a mobile or were working on implementing one in 2014 Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  15. 15. 15 SHIPPING UPS/FEDEX RATE CHANGES UPS and FedEx have moved to recoup money from shipping large packages US POSTAL SERVICE The Postal Service finally moves to packages FREE SHIPPING Buyers are less willing to pay shipping
  16. 16. 16 UPS/FedEx Dimensional Rate Change 17% Average increase 2014 2015 LxWxH 166 DIMENSIONAL WEIGHTING UPS and FedEx as of 2015 will now rate packages based on dimensional weight calculations Source: U”PS plans 4.9% Increase for US, Canada” Wall Street Journal. Oct 20, 2014.
  17. 17. 17 Industry Overall – US Postal Service 3rd 52% 15% 30% 3% UPS FedEx Postal Svc Regionals Market Share of all parcel shipping Postal Service has dropped it’s prices on Priority Mail for business customers by up to 58% Source: “US Mail Cutting Rates to Win eCommerce Business” to-win-e-commerce-business-1409850185 Wall Street Journal, Sept 4, 2014,
  18. 18. 18 Free Shipping Is King 58% Will wait extra days for free shipping Abandon the cart after seeing shipping charges 50% 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2 Days 3 Days 4 Days 5 Days 6 Days 7 Days 8+ Days Number of Days Consumer is willing to wait Source: UPS ComScore Survey 2014 “UPS Pulse of the Online Shopper” June 2014
  19. 19. 19 DESIGN RESPONSIVE DESIGN Must be embraced AVOIDING NAVIGATION BARS Navigation is getting stale IMAGES Bigger is better
  20. 20. 20 Responsive Design 01 All elements must resize 04 All experiences are equal Assume the User Experience could happen anywhere 02 “Mobile site” should not be used 03 Static ideas dead, urge to control must be eased Mobile Site Design User Experience Elements
  21. 21. BIG GRID Examples of what designers are trying to avoid a navigation bar. Image: Accessed 10/31/14
  22. 22. HUGE IMAGE Examples of what designers are trying to avoid a navigation bar. Image: Accessed 10/31/14
  23. 23. 23 SEO, PRODUCT MIX, MARKETPLACES SEARCH ENGINE OPTIMIZATION Can control the fate of the entire enterprise PRODUCT MIX Shotgun approach doesn’t work at first MARKETPLACES Why beat them if you can join them?
  24. 24. 24 SEO and Product Mix VS SEO Standard Internet Marketing Best ROI Extremely necessary early on when launching a new venture, new service, new product offering SEO is by far the most effective over the long run Your product mix and offering, combined with how unique your products are will help drive the ease of your SEO
  25. 25. 25 Combine 01 SEARCH ENGINE OPTIMIZATION Google shopping feeds, Google stars, reviews services 02 GOOD PRODUCT MIX Analytics and Market Research 03 SUCCESS Continue to leverage your good relevancy Sales Success
  26. 26. 26 Marketplaces 02 Business Model Listing instead of any site 03 Commissions Razor thin margins eBay,,, More channels than ever Marketplaces have to be leveraged Pinterest 01 Amazon Larger than all other marketplaces combined
  27. 27. 27 2015: What should eCommerce startups do? Ramp 5 4 Launch Test 3 2 Business Explore 1 Case Find niches underserved Explore what offerings are missing from certain demographics or traditional retailers Test Marketing Sell some of the products on a trial or small scale to see how the market responds. Use Marketplaces Ramp Marketing Capacity planning is important, but ramping the marketing is most important. Suppliers and Partners can provide a safety valve The Business Case Do you have the logistics or programming capability to deliver your goods/service? Launch selling Launch your product listings, site or service
  28. 28. 28 SUMMARY Free shipping is king Add Shipping into price of products Constant change Keep abreast of what competitors do and what changes happen in the market Mobile is necessary Mobile technologies will continue to evolve and be used by consumers more and more, retailers must adapt
  29. 29. 29 Contact Info eCommerce Social Media SEO Grant Morrow eCommerce Program Manager Orgill, Inc. Consultant, Burning Root Phone: 618-534-9303 Email: Twitter: Granto101
  30. 30. THANK YOU Questions?