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e-Commerce eGuide
2015 version
SynopsisWhat this whitepaper providese-Commerce Market Facts & Figurese-Commerce Strategye-Commerce – Getting startedLaunching an existing retailer in e-CommerceUpgrading to a mature e-Commerce platforme-Commerce implementation roadmapRFP done right. Solution and implementation partner selectione-Commerce platformsMarketing strategyMobile strategyOmnichannel customer engagementMultiple Payment OptionsBenefits of big data in e-CommerceBenefits of the cloud for e-CommerceThinking of going international ?e-Commerce TrendsConclusionsResources
E-Commerce eGuide Agenda
Facts & Figures
e-Commerce Strategy
Advice for different stages of
the e-Commerce
journey
Newcomer exploring thee-Commerce opportunity
Existing Retailer planning for ane-Commerce
launch
Existinge-Commerce
player evaluating an upgrade
What the eGuide provides
Synopsis
This eGuide is designed to be a guide for those who want to embark on the e-commerce journey, either new entrants to the market or established retailers that want to take advantage of e-commerce opportunities. Companies who already have an e-commerce presence can also benefit from this eGuide, as it information on upgrading/modernizing existing infrastructure. Our technical and business skills are available, in the areas covered within this eGuide, to all these companies, in the various stages of their e-commerce journey.
We have exciting years ahead of us in the e-Commerce industry, as consumer behavior across multiple devices drives marketers to implement new strategies such as: applying programmatic buying, conceptualizing feature rich mobile applications, moving offline retailers online and online retailers offline.
This eGuide will provide the context and guidance any company needs throughout their e-commerce journey. Our business and technical services complement the information contained here and, when added to our vast experience of implementing e-commerce strategies and solutions, companies should therefore feel confident they have the right e-commerce partner to share their journey. […]
e-Commerce Market Worldwide
The e-Commerce market is growing rapidly worldwide, with Retailers moving online and e-Commerce players beginning to see the benefits of physical stores. e-Commerce sales worldwide will reach $1.7 trillion by the end of 2015, from $1.471 trillion in 2014 (20% increase in comparison to 2013). The growth rate is higher for B2B e-Commerce (34%) and now represents twice the size of B2C Worldwide e-Commerce market (B2C 13%). […]
2015 Forrester Research, Online Retail Forecast
Projected online retail sales by country
e-Commerce Strategy
• Research and strategy definition: All strategies should start with a thorough research phase that includes various actions such as:
Understand the industry and market needs Choose your niche carefully - research and identify the profitable customer niches, products missing from the market or
products with high demand or high potential for growth Identify all products available within the chosen niche Do a thorough competitive analysis […]
• Planning phase• Build the business case (each e-Commerce business case should include: executive summary, goals, objectives,
market analysis, sales and marketing strategy, pricing strategy, promotions strategy, operational plan, technolgy costs, projected P&L and cash flow, ROI calculation […]
• How to test/validate your business idea• Don’t overlook operations (marketing, processes management, sales and distribution, financial, inventory
management, distribution, HR Management, etc)• How to choose your technical platform• Agile marketing
e-Commerce getting started
• e-Commerce Business Models• B2B: Business to business: refers to all e-Commerce transactions of goods or services conducted
between companies• B2C: Business to consumer: refers to all e-Commerce transactions of goods or services conducted
between businesses and final customers • C2C: Consumer to consumer: refers to all e-Commerce transactions of goods or services conducted
between final customers;
• e-Commerce process• e-Commerce activities you need to handle (web and mobile design, BI, order processing, IT development,
customer service, inbound, storage, dispaching, delivering, production and photography, payments […]• The functional e-Commerce organisation• Drawbacks regarding e-Commerce• […]
Launching an existing retailer in e-Commerce
Due to the huge growth potential of the e-Commerce market, most retailers start to see the benefits of being online and are now tapping into the e-Commerce. Furthermore, anyone who has ambitious growth plans can easily see that the start-up costs for establishing an e-Commerce business are far less than expanding the business in new offline locations.
E-Commerce business case:
• Increased sales
• Increased gross revenues
• Competitiveness
• Easier to build customer loyalty
• Possible downsides of e-Commerce in comparison to physical shops
[…]
Upgrading to a mature e-Commerce platform
If you are a growing online business you might face challenges with your existing e-Commerce platforms, which may mean you’ve outgrown your platform and an upgrade is required. Problems to be aware of include:• Downtime and revenue loss triggered by high traffic volumes• Inability to support sophisticated online marketing activities• Unfavorable economics associated with adding new functionality and updates• Lack of readily available third-party development resources
What should you expect from a future proof, new platform?
[…]
Upgrading to a mature e-Commerce platform
• Features and functionalities to be evaluated• Maintenance costs• Technical specifications• Platform scoring tips• In-house or outsource?
[…]When comparing offers make sure you compare the same things. A paid
specifications phase is a good idea before you get the final offers and it usually helps making business decisions before actually starting the project.
What is the typical software architecture?
• E-Commerce implementation roadmap
• How to implement an e-Commerce roadmap?
• Who should implement it?
• Typical software architecture
• SOA
• The 3 Tier Architecture
• What are the business priorities when considering technology investments?
Marketing strategy
We must consider the marketing strategy from the digital buyer’s profile. Who is it? What are his shopping preferences? What are the trends? What social media channels does he prefer?
For example B2C buyers will almost always hunt low prices whilst the same is not true for B2B where you are selling to someone who is spending someone else’s money. In this case, it’s about making their personal experience better and making them trust the quality of your product and service. A B2B buyer might be willing to pay an extra 10-15% for a safer experience, tools that turn their projects into success, services that enable them to save time or for improve delivery. […]
of consumers once/month
once a week (27% increase from 2014)
would spend more than $100 on a product without seeing it first
are willing to pay for drone delivery
expect to receive their first drone-delivered package in the next five years. People are likely to buy more due to drone delivery
would shop more online if they were able to try on a product virtually using a product like Oculus Rift
How often/how much do people shop online?
68%
28%
76%
80%
66%
35%
What drives people to shop more?
• 83% free shipping• 65% free returns• 62% one day shipping
Source: Walker Sands Future of Retail Study 2015
Buyer behavior
Source: Walker Sands Future of Retail Study 2015
Which of the following products would you never buy online?
• 3% is the average conversion rate for B2C eCommerce
• 40% of website visitors use site search
• visitors who use search convert at a rate 50% greater than those who do not utilize search (eConsultancy)
• 60% was the abandoned shopping cart rate in 2014
Conversion rates
Conversion rates
DIRECTBrandingPromotionsDealsIn store promotionsDirect mailOutbound salesFree giveawaysContestsLoyalty rewards Gamification
EMAIL MARKETING
PromotionsNewsletters, newsEvents SEOBlog/content marketingOn page/off page SEOBacklinks
PAID ADVERTISING
SOCIAL MARKETING
REFERRALLocal/international listingsNiche websitePartners
MARKETPLACES
Websites that convert• Focus on tactics that work – what are the tactics that work?• Websites that convert• Conversion rate optimization tips and tricks• General tips and tricks• Home page tips and tricks• Category page tips and tricks• Search function tips and tricks• Product pages tips and tricks• Shopping basket tips and tricks• Ordering process/checkout tips and tricks• Mobile optimization tips and tricks• Fast website tips and tricks• Preferred payment and shipping options• SEO• Tools that help you optimize conversion and SEO
[…]
Promotions that work
[…]
Multi-merchant cards Themed campaigns Progressive discounts Promotional banners ads
Exclusive gifts for higher orders Last chance emails Custom theming Checkout/part
promotions
Inactive buyer credits Surprise customers in real time Promotional graphics Shipping promotions
Contest integration Flash sales Contests Gamification
Quick facts about Mobile Payments
12%of all eCommerce
sales was mobile in 2014
50,3%of ecommerce traffic comes from
Mobile (Shopify)
40%have used a mobile
payment application in 2014, up from just 8% in
2013
4% have tried Apple Pay in 2014 only but 18% say the introduction of Apple Pay makes them more likely to make a purchase on their phone in the near future
Other payment methods are fragmented and can vary greatly from country to country – debit/credit card, net term invoice, COD (cash on delivery) and even direct bank payments are alternatives
that range from popular to rarely used depending on the consumer culture of a specific country.
80% customers are hesitant about using mobile
payments due to security and privacy concerns
Mobile Payments
Which of the following mobile payment applications have you used in 2014?
Which of the following forms of payment do you feel is most secure?
Source: Walker Sands Future of Retail Study 2015
Omnichannel Customer Engagement
Analyze the status quo …in terms of website responsiveness and sources of traffic coming to your website (desktop, smartphones or tablets), including conversion rates and bounce rate for each
“Head of” If you are a large e-Commerce organization you should consider having a Head of Omnichannel
Mobilize your e-Commerce platform
including tools for mobile engagement: analytics, mobile checkout, mobile apps and location based marketing
Use relevant social media
Use these channels to engage with your customers (which channels do your customers use?): ask opinions and feedback, voting favorite products, videos, coupons, sharing articles, quotes, images etc
Make shopping fun Send offers by email, have reward/point programs in place, use interactive video & games, launch a blog, offer free samples
Provide exquisite customer service
Implement tools for increasing customer satisfaction (live chat, creative shipping, intelligent product recommendations, etc)
Always follow up Engage customers post purchase (customer reviews and feedback, rewards, newsletters, private special offers, easy returns)
Measure everything …and adjusts results accordingly
Use long term cookies …for each device a customer uses to login to your site to achieve this; by using the cookie, the customer can add products to the same shopping cart from multiple devices and locations, while only having to login once
Email reminders Use these to prompt customers to login to save their shopping carts Proactive offers Send discount offers and product updates for items customers have already added to
their carts
According to Google, 85% of online shoppers start a purchase on one device and finish on another
[…]
Big data applied in retail/e-Commerce
Identify
… customers who are likely to buy specific products and anticipate demand based on their social media activity, their browsing patterns, their purchase history, blogs and forums activity, your customer data, demographic data, weather data, geopolitical situation, etc
Recommendations
… advertisements or real time offers based on advanced customer segmentation and shopping patterns, thus influencing purchase decisions and upsell
Smarter… shopping experience, smarter merchandising and marketing
Predictive
… analytics that enable you to optimize pricing, inventory levels, check your competition pricing, predict the hot items of the season, improve your customer service, increase customer satisfaction and your margins
Contact… your customers and prospects when they are ready to buy, on their preferred channel (social media, SMS, email) in the most appropriate location (driving, at work, at the mall)
[…]
Thinking of going international
Multi-language support ERP/Inventory Multi-store capability
Shipping methods Different Domains Culture
Branding Marketing strategy Payment methods
• Customer service and returns 41% • Fraud management 38% • Legal and regulatory concerns 32%
International capabilities you need
Challenges of selling online internationally
• Ability of the customer to see the final cost in local currency 30%
• Language translation 24% • Payment type preferences 22%
[…]
Emerging trends & recommendations
Big data
Virtual reality
Omnichannel customer
experience & strategies
Video based buying
Multidimensional social sharing
Drones Storytelling
Artful UX/UI
Payment
security
Advanced semantic search/
autocomplete
Contextual e-Commercesocial commerce, mobile
technology, web, CRM, back office, fulfillment, ERP, inventory systems,
etc
Optimized website conversion rate focus on website design, server
performance, mobile responsiveness, product descriptions, checkout experience
E-Commerce Experience
• 60+ ecommerce projects covering:• Complex ecommerce platforms development from scratch• Integration through APIs and XML with existing business systems (eg: finance, CRM,
ERP, inventory management, call center system, etc• Additional plugins/modules extensions • Smooth store migrations to mobile responsive versions of the ecommerce
platform• We cover the full spectrum of services from consultancy, prototypes,
architecture design, UX design, implementation/integration, testing, maintenance and support of multi-platform applications• Experienced in most open source ecommerce platforms • Proven track record in developing and customizing cross border e-
commerce platforms (localization, multi-lingual, multi-currency, integration with all major payment platforms)
e-Commerce Decision & Implementation ProcessPH
ASE
CONS
IDER
ATIO
NSEI
TG SE
RVIC
ES
InitialThoughts
Evaluating
OptionsCommitte
dImplemen
tOptimise Run
Technology
Platform Vendors
Scalability
Integration
T.C.O./R.O.I.
Timescale
Business case
“greenfieldcompany?”
Existing stores?
Existing online presence?
Multi-channel B2C?
Marketdemograph?
Business case approved
E-Commerce platform selected
Contract process
Implementationplanning
Project planning
Business Analysis
Design
Phased approach
Architecture
Build
Test (incl. UAT)
Rollout
Application review
Performance analysis
Benefits realisation
Further phases
User feedback
Scale
Continuousimprovement
Performancemanagement
Cost Management
Service delivery
Independent advice
Analysis & Design
Technical Services
Support Services
• We offer discrete solutions to known business challenges and build bespoke solutions for your specific requirements.
• Our delivery models encompass the full range of development options and our ability to engage from nearshore with UK presence, as required, gives you full control over costs.
• We offer a refreshing approach to commercials, enabled by our unique structure.
• Our final building block to deliver the right business solutions for you is in depth knowledge of your industry sector. This means we talk your language and understand the business impact of our solution.
Banking Insurance
HourlyT&M
ApplicationDevelopment
.NET,Java, PHP/LAMP, C/C++Amazon,Windows Azure,SalesforceIos,Android,Windows Phone, Blackberry, HTML5
Ruby onRails,Python, EmbeddedSoftware,Databases,Sharepoint, SAP,Microsoft,Oracle,OtherTechnologies
ApplicationTesting
ApplicationSupport
ITConsultancy
ProjectManagement
BusinessAnalysis
FixedPrice
Nearshore
Agile
SystemIntegrationInformationSecurity
EnterpriseMobilityWebApplications
CRM &LoyaltyMobileApplications
BusinessIntelligence
CloudStrategyeCommerce Development
CloudMigrationBig DataConsultancyBig Data Dashboards
Iterative Waterfall Prototyping
Onshore Combined
SLA driven TeamAugmentation
DedicatedTeam
Leasing ITC Retail eCommerce Travel Healthcare Media
B U S I N E S S S O L U T I O N SIndustry Experti
seCommercialModels
Engagement
ModelsDeliveryModels
DiscreteSolutions
CoreTechnologi
esCoreServices
TECHNOLOGY
PARTNERSHIPS
Why us
Proven track record in delivering complex projects
We offer a well balanced blend of technology skills, domain knowledge, hands on experience, effective methodologies, complex language skills and a great passion for converting business ideas into technical products
Western business culture, excellent English language skills, French, German, Italian, Hungarian speaking resources
Convenient locations and favorable time zones
Proof of capability based on low cost pilot projects
Capability for fast project initiation and delivery
Well defined and documented software development process
High focus on staff trainings, employee satisfaction and an effective recruitment process – stable qualified teams
