The ABC s of Selling Online

Transcription

1 DEFINITION E Commerce: Business done on and through the web The ABC s of Selling Online FOREIGN LANGUAGE QUICK HISTORY 1979: Michael Aldrich invented online shopping 1984: CompuServe launches an electronic mall 1994: First online bank, Pizza Hut has ordering online, flowers online and : Amazon.com & ebay Launch 1998: Google Launches 1999: Zappos.com Founded 2000: The Dot com Crash & Paypal Launches 2003: Amazon.com Turns a Profit 2010: Groupon Launches 2011: Warby Parker Launches 2014 REALIZATION E Commerce is continuing to evolve and grow It has been around for over THREE decades STILL DON T BELIEVE ME???? Time for a Reality Check!! 2013 REALIZATION 2012 Total Retail: 2.2 Trillion Dollars E commerce: 218 Billion 10%! 9% CAGR $4, per second via PayPal Cyber Monday 2013: $2.29 billion 2.38 shopping sessions per month 1

2 3 CS OF E COMMERCE Content Content Drives Growth Beyond Brochures Community Audience is a community by providing tangible value Online Forums, Social Media Integration Commerce Provide Products & Services via a transaction web presence BUSINESS MODELS: GENERAL ADVANTAGES Catalog Flexibility Search Capabilities Easier to Compete (easily can compete on quality, price and availability) Unlimited Marketplace (world wide sales) 24 Hour Operation Reduced Overhead (Brick & Mortar costs) No Middleman Detailed Data Better Payment Systems 2

3 BUSINESS MODELS: B 2 C Online sale between businesses and consumers (end user) Earliest Model Product Driven B 2 C: EXAMPLE WEBSITES Challenges: Getting People to the Site Getting People to Buy (cart abandonment rate 26%) Building customer loyalty Fulfillment issues Large target market If selling other products, brand identity issues B 2 C: EXAMPLE WEBSITES B 2 C: EXAMPLE WEBSITES BUSINESS MODELS: B 2 B B 2 B: EXAMPLE WEBSITES Online sale between businesses and businesses Industry sponsored marketplaces Suppliers vs. Customers Remove Barriers Reduced Costs Challenges: Investment much higher Delivery Risks More barriers to entry 3

4 BUSINESS MODELS: C 2 C C 2 C: EXAMPLE WEBSITES Online sale between consumers and consumers Intermediary Websites Customers vs. Customers Commission or Fee Charged Reduction in Costs Challenges: Customer Issues Platform Investment Quality of Products Liability (Craigslist.org Killer) C 2 C: EXAMPLE WEBSITES OTHER BUSINESS MODELS Deal of the Day Websites Time Limited Discounts of Specific Items/Services Usually Certificates Daily Deal Remorse Living Social, Groupon, Woot Flash Sale Websites Time Limited Sales of Branded Goods Moving Unwanted Inventory Advertising Costs, Customer Satisfaction MyHabit, Rue La La, Giltcity.com Subscription Models Shoedazzle.com, jewelmint.com, birchbox.com Examples BUSINESS MODELS: SOCIAL COMMERCE SOCIAL COMMERCE: EXAMPLE Subset of e commerce that involves social media, and user contributions to assist in online buying/selling of products/services coined in 2005 Facebook & Twitter Commerce Pinterest State of Online Advertising 4

5 WHAT S IN IT FOR US? As the increase in popularity of social networking is on a constant rise, new uses for the technology are constantly being observed. Making New Friends Seeking answers Spending time (Facebook apps) Knowledge Sharing Recruiting Job Search Marketing Sales Lead Generation Company Intranet NOT 3.6 CS OF E COMMERCE (SOCIAL) Content Community Commerce Context Online world is able to track real world events Connection Defining and documenting the relationships between people Conversation All conversations are markets.or an opportunity SOCIAL MEDIA: MARKETING SOCIAL WORD OF MOUTH Consumers generate and tap into the opinions of an exponentially larger universe scope was previously limited to the people you knew and interacted with on a daily basis. Social media has removed that limitation and given new power to consumers. SOCIAL MEDIA: MARKETING HYPER INFORMED CONSUMERS Social media is transforming the way that consumers across the globe make purchase decisions. Consumers around the world are using social media to learn about other consumers experiences, find more information about brands, products and services, and to find deals and purchase incentives. SOCIAL MEDIA: MARKETING OPPORTUNITY FOR ENGAGEMENT More than a quarter of social media users say they are more likely to pay attention to an ad shared by one of their social connections. Additionally, more than a quarter of consumers are ok with seeing ads on social networking sites tailored to them based on their profile information. 5

6 TOP SOCIAL NETWORKS 2013 WHY DO IT??? 50% Share Complaints/Concerns about Brands, Products & Services 2013 SOCIAL MEDIA TRENDS Social TV: Transforming TV into a more social immediate experience. For example, 33% of Twitter users actively tweeted about TV content. Revolutionizing Experience! Social Care: Important channel of customer service, with more than 50% reaching out via social media Mobile: Time spent on mobile apps and the mobile web account for 63 percent of the year over year growth in overall time spent using social media. 46% use smart phone to access Proliferation: New sites emerge. Example: Pinterest (over 1000% growth) SOCIAL MEDIA SUCCESS STORIES 24x Increase in Sales in 2 years, only using Facebook 5 10x return on Facebook advertising Build, Engage, Connect Started in 2010, now over 3.5 million likes E COMMERCE PACKAGES All in One E Commerce Website Packages Volusion Shopify Amazon Webstore ANALYTICS Stand Alone Systems Magento (owned by ebay) Payment Gateway Authorize.Net Paypal GOOD DESIGN!!! 6

7 SEARCH ENGINE OPTIMIZATION Content is King Link building is Queen! Use Specific/Niche Keywords Titles, Descriptions, and Metatags A good domain name helps Google/Bing Local Listing User Interaction Integrate Social Media Add Video Load Time GETTING THE WORD OUT: ADWORDS Target Search Based Ads based on keyword Geographic Location Time of Day Like a faucet Pay per Click E COMMERCE SUCCESS STORIES E COMMERCE SUCCESS STORIES E-COMMERCE SUCCESS STORIES E-COMMERCE SUCCESS STORIES 7

8 Questions? Contact: Robert Stein