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

Spar to include Amazon Lockers in selected stores

January 24, 2013

Spar has announced it is to include Amazon Lockers in a number of stores, allowing customers to retrieve Amazon parcels at a local Spar store. The Lockers are currently located in nine Spar stores with further Lockers planned to be added in the future.

The initiative lets Amazon customers choose their Locker option and location when ordering online. They then receive a secure pick-up code via email which they use to open the Locker and retrieve their parcel.

The nine Blakemore Retail Spar stores offering Amazon Lockers are: Fosse Road, Bocking Lane, Upton, Birmingham University, Bannerbrook, Broomhill, Grantham, Burbage and St. Albans.

Spar UK retail development controller Barry Wallis said: “This is a highly innovative move from Spar UK, showing our commitment to launching the latest technologies that provide the best possible convenience to shoppers.

“Online sales are growing with more than half of the UK population now shopping online. In recent months, we have introduced mobile phone charging units, free WiFi and mobile marketing apps instore for our customers. This is the next step in making our stores even more service-friendly.”

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Online meets offline and creates a great product

May 11, 2011

Image representing Facebook as depicted in Cru...

Image via CrunchBase

If you have time have a look at the social memories app that automatically generates a 30 page premium book based around  your Facebook updates, friends and the surrounding social interaction. We think at C24 that this would be a great idea for people to create these books at certain times in their life and build over the years a complete picture.

Anyway a great idea that can be used in a variety of different ways. Enjoy……….


Shopping online/offline and conversion rates

November 24, 2010

Westfield Stratford shopping centre
Image by Mall Secrets via Flickr

In The Times yesterday was a fantastic article about Westfield‘s new shopping centre in Stratford City which lies next to the 2012 Olympic site. The development has seen massive interest from retailers and Westfield have recently sold 50% of the scheme; a year before opening, to the Dutch pension fund APG and the Canada Pension Plan investment Board for £871.5 million apparently giving Westfield a £150 million profit.

Although the information is interesting in itself, further statistics were released about shopping for online and offline shoppers. American retailers are working with web companies to develop even more creative ways of getting online shoppers into real bricks and mortar businesses, the reason conversion rates. Although online sales are growing faster than those of traditional shops 93% is still done in person and this is not expected to drop in the near to mid-term and the conversion rates also outstrip there online rates too.

Statistics recently released show that online conversions run at as little as 3%, compared to 20% in retail clothes stores, 60% in  electronics stores and 95% in supermarkets, however online does influence as much as 42% of retail sales due to research undertaken before purchase.  So the new push is now to look at developing strategies that allow customers to use their smartphones to shop online and in store at the same time, thus increasing conversion rates of in store shopping. It is clear that companies now need not only to reward shoppers with discounts/coupons on purchases but also rewards for simple browsing.

It would seem that organisations like Westfield now have a fantastic opportunity to deliver real value to their clients both online and instore, it is plain that shopping in the real world is not dead it is just that people are better informed. 


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