Probably the Smartest Thread You’ll Read on (Social) E-Commerce…

March 13, 2013

Found this little gem at Social Commerce Today. Some really interesting ideas taken from the comments of 117 thought leaders. Some are listed below:

And for the time-pressed, here’s the speed summary of key insights/takeaways.  Brilliant.

  • The future is e-commerce; offline commerce will serve only two purposes:immediacy (stuff you need right away), and experiences (showroom, fun venues).
  • But immediacy may no longer a promise for offline commerce companies as both Amazon and eBay have announced same day delivery.
  • The role of offline lies in the value of the “showroom” and “entertainment” aspects to places like Williams Sonoma. The future of commerce is a hybrid model with (entertaining) showrooms + online fullfillment
  • The future of e-commerce is combining online and offline experiences in disruptive ways. (Chloe + Isabel, Warby Parker, Everlane, and Stylemint)
  • There is no such a thing as e-commerce any more. There’s just commerce. You can innovate in commerce with technology, but the e-commerce silo is dead/dying (mobile payments are disrupting/removing the online/offline divide).
  • The future of e-commerce is vertical integration in markets where there is significant markup in both wholesale and retail (think Shoedazzle, Bonobos, J Hilburn, Warby Parker, IndoChino).
  • Few successful e-commerce companies were started in the early 2000s, although a slew of recent new entrants appear to be getting traction - flash salessocial commercesubscription commerce and other new “content + commerce” models
  • The first wave of e-commerce was about commoditization this wave online and offline is about being a “merchant” (point of view, authority, experience etc).
  • The key equation driving e-commerce is: profit = lifetime customer value minus customer acquisition costs
  • If it has a UPC code, Amazon will beat you.”
  • Before you enter the e-commerce game, visit an Amazon warehouse.
  • E-commerce is good for two things – price and exclusives. Amazon will beat you on price, so you have to beat it on exclusives.
  • The only way to escape commoditization and catalogue commerce dominated by Amazon is to a) sell used stuff, or b) make your own products (or provide a marketplace for those things), or c) (possibly) offer customisation
  • Be wary of e-commerce businesses based on customization – they’ve  existed for a decade (cafePress, Shutterly, Vistaprint) and yet none are thriving. Customers don’t want customization, they want great brands and great design, and they want to be told what they want.
  • The e-commerce opportunity is to contribute to the e-commerce ecosystem rather than sell directly yourself; four opportunities – 1) supply chain innovation, b) marketplaces, c) e-commerce solutions for small businesses, d) mobile payments
  •  There’s room for innovation in the space as long as the ecommerce company creates value for all participants – the retailer, the supplier and the customer
  • To make money in e-commerce, you need to sell in emerging markets where there are no huge incumbents
  • Compete in an industry with a grey market, where consumers are willing to pay higher prices for reducing risk, for authenticity, and warranties
  • The opportunity is to venture into segments where Amazon won’t go (adult, arms… !)
  • The opportunity for e-commerce success is a) sell to iPad owners (iPad owners are 10x more valuable than non iPad owners), b) mobile commerce (nobody owns this yet), and b) target your customers who use social features  (3 to 4 x more valuable)
  • You can’t sell to people who know exactly what they want – Amazon owns that; focus instead either a) ‘discovery‘ (“the best place to discover the stuff you don’t know you need”) or b) deep domain expertise
  • to succeed in e-commerce, you need to sell exclusives. You can’t sell stuff that Amazon sells, Amazon will crush you
  • Amazon is not a store, it’s the world’s best supply chain and logistics company. Amazon is transforming from a retailer to a marketplace+services provider over time.
  • Domain expertise, live assistance, and overall experience are the critical success factors for success in a market where price-competitiveness and scale rule
  • Necessary (but not sufficient conditions) for e-commerce success are a)remarkable,  unique and branded experience and remarkable, unique and branded service; do what Apple, Tiffany & Co., Coach, Lululemon do in bricks and mortar commerce, but online

Creating a magical in-store experience that is different from your online store

January 24, 2012

In early December, Amazon announced a new promotion where it would incentivize consumers to competitively price-check in retailers’ stores by providing up to $15 in Amazon.com credit. Retailers were floored, leading to many organizations speaking out against the online retailer and providing resources for retailers to boycott Amazon and its app.

The fact of the matter is many retailers simply cannot compete against the low-prices and broad inventory of online retailers. To be successful, independent retail business owners must differentiate their offering beyond price and convenience. Instead, they must focus on offering a remarkable in-store experience, provide the inventory that really matters at appropriate price points, and arm the store with sales associates that are likable and can offer expert advice to inquiring customers.

To executive on recreating a magical in-store experience that is differentiated from online retailer, retailers must focus on three main strategies.

1. Offer more than products. Retailers have to move beyond the belief that a store just needs to stock the shelves low-priced products. Instead, the store should be a place where customers come to experience the products (and brand), interact with the items and others, learn how to better use the products, and be able to inquire about the products.

2. Rethink the store inventory. It is no longer necessary to pack as much inventory as possible within the store. Customers that want a large selection at the lowest price will turn to online retailer. Instead, retailers should focus on carrying only the right mix of products at various price points. Additionally, the appropriate use of signage and a clear store layout can help customers quickly come in and out of the store to find the products they need fast.

3. Hire likable experts. This one is one of the most difficult, because it’s maybe the most intangible. Instead of training a staff of commissions-focused sales associates, retailers should replace and encourage their staff to be likable product consultants and brand ambassadors. These associates should be more focused on problem-solving than making a sale.

There are a number of point-of-sale software features that can assist retailers hoping to differentiate their stores. Here are a few features to be on the lookout for when evaluating new systems:

As with all technology, retailers must be dedicated to ensuring that their store experience is remarkable. They must offer an environment where customers will be excited to enter for the first time, as well as return.

Michael Koploy is an ERP Analyst for Software Advice (retail website here). He reports on news and trends in point of sale and supply chain management software. He can be reached directly at michael@softwareadvice.com.

C24 would like to thank Michael for this blog.


Amazon’s new Silk browser video

October 14, 2011

Great video about Amazon‘s new browser silk, blow is an advert for the new Kindle Fire as well. The question is could Amazon be looking to take Apple’s crown, we think they could be a major competitor as they have all the elements in place. 


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