Download - Omni-Channel Commerce
New eCommerce markets often follow a similar path
Source: June 2013 “The Evolution Of Global eCommerce Markets”
© 2014 Forrester Research, Inc. Reproduction Prohibited 5
Omnichannel means different things in different markets
Tactics dominating omnichannel
investments in the US
Endless aisle
Ship from store
In-store pickup (including ship to
store)
Inventory visibility across channels
Effective
Unproven
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
In other markets, omnichannel = everywhere commerce
› Mobile
› Social
› Marketplaces
› Cross-border
› Payments flexibility
Services must evolve in sophistication L
evel
of
mo
bile s
op
his
ticati
on
High
Low
Evolution of services over time
Nothing
Multichannel
•Migrate services that are
frequently used online
and are mobile.
Consistency
Cross-
channel
•Mobile doesn’t have to
be a holistic replacement
for other channels or
touchpoints.
Enhancement
Mobile-
unique
•New products,
processes, and
services
Breakthrough
Advanced
contextual Simplicity
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
eBay Now is doing this in the US with fast delivery
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
A creative presence on Facebook can help lesser known brands
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Image-based discovery is promising
39%
70%
73%
81%
84%
Getting offers from retailers andbrands
Inspiration on what to buy
Entertaining myself
Enjoying what others share
Discover new products, styles,ideas
26%
17%
61%
72%
24%
Base: 4,700 recent online buyers with
Facebook accounts Base: 1,200 recent online buyers who
have visited Pinterest
› Source: Forrester-Bizrate Insights Flash Survey, Q3 2012
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
And these guys may be even better than Pinterest
Zoomingo Houzz Glimpse Fancy
Amazon’s marketplace revenue dwarfs its profitability
Source: Forrester estimates; GMV=gross merchandise value, the total value paid by shoppers in a transaction
$359 $631
$467
2005 2011
Global net income Estimated marketplace revenue
$4 172
US$MM
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Estimated cross-border route sizes
Dyad Estimated
size
US-UK $15B
China-US $10B
UK-US $10B
US-China $8B
US-Canada $5B
Germany-US $5B Source: PayPal; Forrester (confidential, unpublished data)
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Estimated cross-border route sizes (contd.)
Dyad Estimated
size
Germany-UK $5B
China-Japan $5B
UK-China $3B
Australia-US $3B
Brazil-US $1B
Source: PayPal; Forrester (confidential, unpublished data)
2. Strong web marketing Industry average $100MM+ retailers
% retention 22% NA
% acquisition 49% NA
% to other channel 17% NA
% brand awareness 12% NA
Email (not prospecting) 17% 18%
Paid search 37% 41%
SEO 9% 3%
Affiliates 13% NA
Display advertising 5% 6%
Other (CSEs, portals, etc.) 19% 32%
© 2014 Forrester Research, Inc. Reproduction Prohibited 27
Take cues from Amazon
› Superior order tracking
› Underpromising and overdelivering on deliveries
› Prompt and immediate refunds
› Easy payments, as few keystrokes as possible
› Not necessarily a liberal return policy but money-back guarantee
© 2014 Forrester Research, Inc. Reproduction Prohibited 29
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Sucharita Mulpuru
Blog: http://blogs.forrester.com/sucharita_mulpuru
@smulpuru