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TRANSCRIPT
© 2012, Amazon Services LLC
Agenda
Macro trends in online commerce
Specialty Sites & how they can create new revenue opportunities
Case study ‐ UNIONBAY
© 2012 Amazon Service LLC
© 2012, Amazon Services LLC
The web outpaces stores
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Total retailE-commerce
Source: U.S. Department of Commerce
© 2012, Amazon Services LLC
More growth ahead
$0.0$50.0
$100.0$150.0$200.0$250.0$300.0$350.0$400.0
2011 2012 2013 2014 2015 2016
U.S. E-Retail Sales
U.S. E-Retail Sales
CAGR=13.3%
Source: eMarketer
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Online Retailing…
“Today’s multichannel businesses are increasingly
multisite and multibrand businesses. This trend enables
more specific and targeted marketing opportunities for
customers…”
-- Brian Walker, Forrester*
Page 5
* The Forrester Wave™: B2C Commerce Suites, Q3 2012
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Think beyond your primary web site…
Flash-sale sites Specialty sites Outlet sites
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Flash-sale sites
Gilt Groupe 2007 Rue La La 2008 Hautelook 2007 Ideeli 2006 One Kings Lane 2009
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Flash-sale sites
Gilt Groupe 43% Rue La La 28% Hautelook 24% Ideeli 19% One Kings Lane 13%
Source: Forrester Inc., Q2 2011 survey of flash-sale shoppers
Please select the sites you receive e-mails from and/or visit
© 2012, Amazon Services LLC
Creating new revenue streams with specialty sites
Don Davis, editor in chief,Internet Retailer
Danna RambergDirector of ITSeattle Pacific Industries
Scott PulsipherDirector of Amazon WebstoreAmazon.com
© 2012, Amazon Services LLC Page 14
• Presenter: Julian Sell, Sr. Product Manager, Amazon Webstore
© 2012 Amazon Service LLC
© 2012, Amazon Services LLC
Multisite Businesses…
Multisite businesses increasingly launching specialty sites – Provide better targeting
Match your products with the right buyers
Respond to online shopper’s changing behavior
Capitalize on bargain hunters
Grab a share of the growing holiday sales
Quickly reach new international markets
Review of case studies…
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Began in 2009 Sell off specific inventory Trending up Driving ‘lift’ in transaction rates Increasing number of sites Flash sale traffic jam!
Case Study - Flash Sales
Sources:1 www.marketingprofs.com2 www.Statista.com
Statistica2
1 Flash Sales can generate uplift of ~35%
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Example: Flash Site Jurlique Australian skincare product Primary sales in AU, US, UK
direct to consumer Featured on Today’s show
“steals & deals” Sept 12th – 13th only $202 worth of products
for $52.00 @ 74% discount! Limited supply
Result - Complete Sell Out!
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Example: Flash Sites
Thirty-One Gifts Ohio-based catalog
company Offer purses, portable
totes and organizing solutions that make life simpler
For Home parties, Parties-to-go, Catalog parties
Offers bi-annual sales to through Flash Site
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Case Study - Online outlet stores Extension of bricks & mortar Open 24/7 Shopping for deals - e.g. ‘back-to-school’ Save money / find low prices on
markdowns, clearance items, overstocks, and more
Attracting the value-conscious consumer
Source: Accenture, 2011
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Offer 30% - 50% off regular store prices
Geared toward clearance & Holiday shopping
Wide selection of products online discounts
UK delivery only
Example: Marks & Spencer Outlet
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Example: Secondipity
Liquidity Services Inc. Reconditioned and
overstock items Deals in returns and
excess inventory items Cheap prices every day ‘Deal of the Day’ item
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Case Study - Multi-Brands
Broaden offers Increases Relevance Enables Differentiation Manage through single platform Optimizes relevancy in SEO /
SEM
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Example: Fruit of the Loom
Est. 1851 in Rhode Island, over 32,000 employees
Owns multiple brands Fruit of the Loom Spalding Russell Athletics Russell Outdoors
Created multiple Brand sites to complement its retail operations
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Example: Viacom
24 separate brands Sells merchandise
from many of its online entertainment brands Comedy Central MTV + Shop Nickelodeon + shop VH-1 + Shop
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Example: Samsonite Global Brand Est. over 100 years ago Focused on luggage &
luggage accessories Acquisitions drove
addition of multi-brand Sites including: Samsonite Hartmann
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Customer Segment Specific
Target buyers with Specific interests
Specific age groups or demographic
Product Specific
Highly focused sites for unique products
Provides optimized buyer experience
Case Study – Curated sites
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Example – Customer Segment Specific
Official Sports Sell Referee strips
Learning Outlet Teacher supplies
La-Z-Boy La-Z-Boy Kidz La-Z-Boy Hospitality La-Z-Boy Outdoor
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Example: Product Specific
Stash Tea Specialty drinks
Amoretti Specialty Foods
Turtle beach Specialty Electronics
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More international shoppers Expand international reach Low risk entry to international markets Expand buyer base rapidly
Case Study – International Sites
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Example: Taylor Swift International Sites Expanded reach into new
geographies Offers pre-sale purchasing for
fans, including CDs and merchandise
Creates special bundles and limited-time offers
Great merchandising and cross-marketing with ‘Bonus’, ‘Deluxe’ and ‘Ultimate’ packages
Available in: US Canada Australia International destinations
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Multisite strategies and types…- Summary
Online retailers increasingly multisite Enables more targeted positioning and traffic-driving
efforts Drive increased traffic and conversion uplift
Better alignment with targeted buyers Accelerate launch, reduce risk of new Options to consider: Flash sale – discounted products, end-of-season inventory Outlets – 24/7 outlet for bargain shoppers Multi-brand/Curated – align products, offers with target
customers New ventures – new countries, brands, segments
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Brand Overview
Seattle Pacific Industries has been in business for 31 years.
UNIONBAY is our most well known brand. Large volume at value price
points Sell to department stores, such
as Kohls, JCPenny, Fred Meyer…
Cater to young adults and children
Biggest competition is private label
www.unionbay.com
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Brand Overview
Union Jeans was founded in 2005 Mens Premium Denim and Tops Handcrafted details Latest wash techniques Finest rigid and stretch denim All inclusive brand appealing to
younger and older customers Sell to the Buckle, Nordstrom,
Specialty stores, etc. www.unionjeans.com
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Brand Overview Howe Clothing was founded in 2001 Sophisticated brand that caters to action
sports and music-inspired lifestyle The Howe customer is a hard working –
hard playing, creative career-minded guy, who is as comfortable in the studio as he is on the sand.
www.howeclothing.com
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Business Background
Our business model has strictly been wholesale
Large shipments from our DC in Kent, WA, not single piece orders
We had never sold directly to consumers via the web
We launched Ecommerce for our UNIONBAY brand in August 2011
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What products did we evaluate
We evaluated many solution providers
Looked at revenue share models – some as high as 35% + Marketing spend
Looked at purchasing software –ROI was huge as we would have to staff and purchase hardware and software
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Why we chose Amazon Webstore for UNIONBAY
We could open a new sales channel with little risk
Minimal upfront costs and low fees
Ability to walk away at any time Ability to integrate to our backend
systems No need to deal with payment
processing and credit card fraud Amazon has a great reputation
and is a leader in the industry
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What has worked well
Time to launch was very fast. The most time consuming part was creating our internal processes
Onboarding process was excellent – we had support during all hours of the day and weekends
System is flexible and improving all the time. We can choose to use FBA or CBA.
We have been able to launch and run an eCommerce site with no staff adds We have automated customer setup, order entry and ship confirmation. Not having to deal with the technology has allowed us time to focus on
marketing Sales have increased 400% since we went live a year ago and continue to
increase each month
© 2012, Amazon Services LLC
Successes
Sites were launched simultaneously in less than 8 weeks
Backend processes did not have to be modified
Custom in house reports did not have to be recreated
One common admin interface for all three sites
Each store is creatively different, to appeal to the audience we are targeting
Technical account manager is always looking for new ways to drive business for all three stores
© 2012, Amazon Services LLC
THANK YOU!
SPI would like to offer you 20% off any regular priced item at any of our stores www.unionbay.com www.unionjeans.com www.howeclothing.com
Promo code is BRANDSTR and is good today through November 17th
© 2012, Amazon Services LLC
How Webstore can help you…
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