E-Commerce 101: The Portable Class for Busy Retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

E-COMMERCE 101

E-Commerce 101: The Portable Class for Busy Retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

E-Commerce 101: The Portable Class For Busy RetailersE-Commerce is flourishing: By the end of 2014, global business-to-consumer (B2C) e-commerce sales are set to reach $1.6 trillion (AUD),1 and more than 50% of Australians are already shopping online.2 The opportunities are there to be seized, but with boundless possibility comes uncertainty. You know that having an online presence isn’t an option and that your webstore is doing well, but where to next? What are your options? And how do you put your best strategic foot forward without tripping?

Multiple channels. Multiple devices. Disparate data. It’s information overload! Before you can receive your ‘Bachelor in Advanced E-Commerce’, you’ll need to master the basics. Your first step starts here.

Welcome to E-Commerce 101! Find a seat and peruse the syllabus. Class is now in session!

1 http://www.emarketer.com/Article/Global-B2C-Ecommerce-Sales-Hit-15-Trillion-This-Year-Driven-by-Growth-Emerging-Markets/10105752 http://www.abc.net.au/news/2013-06-04/more-than-50-per-cent-of-australians-shopping-online/4731590

SYLLABUS

3 Module 1: Multichannel: The Whole Is Greater Than the Sum of Its Parts

3 Module 2: The New Consumer Paradigm

3 Module 3: Make Your Mark on Marketplaces

3 Module 4: Google: Usurp the SERP

3 Module 5: Engineer Increased Visibility with Comparison Shopping Engines

3 Module 6: Mobilise Your Mobile Strategy

3 Module 7: Share Ideas on Social Media

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Multichannel: The Whole is Greater Than The Sum Of Its PartsThe importance of a multichannel approach cannot be overstated. But why is it imperative to a thriving online business?

Getting a grasp of channels is an important discussion happening within the e-commerce industry, and it’s easy to forget that consumers have probably never given the concept a second thought. Shoppers don’t care about channels; they care about experience. Being a multichannel retailer isn’t merely about expanding your presence – it’s the most effective means of reaching and engaging customers, and in turn, driving revenue and growth for your business. With customers’ increasingly fragmented paths to purchase, retailers who are able to close gaps between devices, channels and services will lead the charge in providing an optimal shopping experience.

Module 1

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The New Consumer Paradigm Today’s consumers have an ocean of choice at their fingertips. Consequently, to track down the perfect product, their shopping experiences are increasingly complex. The New Customer is savvy, engaged and demanding. In this multichannel, multiscreen, multiregional landscape, ‘always-on’ consumers will shop whenever, wherever and however they want.

Module 2

The New Customer’s Path to Purchase

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The expectations are higher. Gaining loyalty is harder. And the only way to stay ahead of the game is to understand and leverage consumer psychology and behaviour. But what do customers crave?

1. A Personalised Experience: Marketing and service can no longer adhere to a ‘one size fits all’ approach. Shoppers desire interaction via social media, targeted promotions and tailored product suggestions. Gone are the days of selling to your customers. Rather, you should be speaking with your customers, enabling conversion through collaboration.

2. A Convenient Experience: According to Forrester Research, 71% of consumers expect to view in-store inventory online, and 50% expect a click-and-collect service.3 While only a third of retailers have operationalised these offerings4 at even a basic level, the demand won’t dwindle. The level of ease a customer experiences from search to delivery will act as a big brand differentiator.

3. A Consistent Experience: Regardless of device or channel, a brand’s offering and interaction with customers should remain consistent across all touch points. A retailer should aim to ensure a seamless journey, no matter how fragmented the path.

4. An Affordable Experience: While product pricing has always been a major influencer when weighing up a potential purchase, shipping has become an increasingly important factor: 59% of consumers say they consider shipping costs when making online purchase decisions and 53% say low-cost shipping would sway them towards a different retailer.5

30%30%

90%

3 http://www.accenture.com/us-en/landing-pages/Documents/Seamless/Accenture-hybris-Forrester-new_2014.pdf4 http://www.accenture.com/us-en/landing-pages/Documents/Seamless/Accenture-hybris-Forrester-new_2014.pdf5 http://www.internetretailer.com/2013/10/09/free-shipping-more-fast-shipping-draws-consumers-back

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Make Your Mark on MarketplacesSelling through online marketplaces is one of the quickest and lowest risk ways to grow your business. Essentially, a marketplace is a high-volume channel where third-party sellers list products, but overall operations are run by the marketplace itself. Amazon is the notable exception, featuring both third-party and first-party items. The payment transactions occur through the marketplace, and most of the time, the seller will handle the packaging and delivery.

Marketplaces now account for a huge chunk of global e-commerce activity: 30% in the US and UK,6 and a staggering 90% of online spending in China.7

Module 3

Marketplaces now account for a huge chunk of global e-commerce activity: 30% in the US and UK,and a staggering 90% of online spending in China.

30%

U.S. & U.K. China

6 Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor estimates based on our transactional data.7 http://www.mckinsey.com/insights/asia-pacific/china_e-tailing

90%

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If you already have a webstore up and running and are wondering if it’s worth taking on the additional task of listing your products elsewhere, here are a few benefits to consider:

1. Selection: Often with upwards of thousands of sellers, marketplaces have the ability to deliver a wide range of products to consumers. In 2013 alone, for example, eBay offered 550 million items for sale.8 Because of this breadth of product scope, marketplaces are one of consumers’ first touch points, and therefore a great channel increase brand visibility.

2. Value: Consumers want the best offer, marketplaces provide this with competitive prices and deals. Retailers also experience added value: there are no costs in driving shoppers to the site – marketplaces do all the heavy lifting for you.

3. Convenience: Consumers can research, compare, and buy all on one site. Marketplaces are often able to provide customers with an ease of experience that individual retailers can’t provide on their own. For example: Amazon’s free, expedited shipping with Prime and eBay’s Click & Collect service that will launch in Australia this October.

4. Confidence: Displaying their customer-centric philosophies, eBay and Amazon promise shoppers the same quality of service and goods across the board – despite what seller they’re purchasing from, or where they’re located. While this guarantee requires sellers to adhere to a marketplace’s (often strict) requirements, being associated with a trusted name will increase the likelihood of conversions.

LocalEBay.com.au is Australia’s largest online marketplace, representing one of the 39 regions in eBay’s growing global network. The marketplace sees 134 million9 searches per year across key verticals, and in 2012 more than 150 Australian businesses achieved upwards of $1 million in sales on eBay Australia.10 If you’re not selling on eBay yet, reach out to ChannelAdvisor for tips on getting started.

8 http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=EBAY9 eBay Fast Facts, Online Retail Statistics10 http://pesaaustralia.wordpress.com/category/partner-updates/

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GlobalAlthough eBay is the only global marketplace to have an Australia-specific site, retailers shouldn’t discount the likes of Amazon, New Zealand’s Trade Me, and the plethora of other international marketplaces. Regional boundaries are disappearing, and opportunities to reach new markets through cross-border trade (CBT) are aplenty. In 2013, cross-border e-commerce between Australia, Brazil, China, Germany and the UK totalled $105 billion. By 2018, the figure will jump to $307 billion – a near 200% increase.11 By the end of 2014 alone, the number of CBT shoppers will rise by 38%12, a consumer base that’s waiting to see what you’re offering.

Traditional offshore expansion can be daunting: You’d have to build a website, localise content and select which of your goods might be attractive to each regional audience. After months of hard work and readying yourself for launch, you’re left crossing your fingers in the hopes of conversion.

Why take this risky route? At ChannelAdvisor, we invert this cycle to make sure you’re not putting all your eggs in one basket. Through our Agile Cross-Border Trade Framework, we show you how to stagger the expense and use marketplaces as your lead into these new geographies.

11 https://www.paypal-media.com/assets/pdf/fact_sheet/PayPal_ModernSpiceRoutes_Report_Final.pdf12 ChannelAdvisor Catalyst Europe 2014

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Here are a couple of key international marketplaces Australian retailers should know:

AmazonOne of the fastest growing vendors in the world and ranked as the most valuable global retailer,13 Amazon boasts 237 million active customer accounts14 and items in more than 30 categories. With a loyal customer base15 and its own fulfilment service (Fulfilment by Amazon), the marketplace makes for a smooth transition to international selling.

Trade MeIf you’re wondering how to enter the New Zealand market, listing on Trade Me is the answer. The country’s premier marketplace accounts for 70% of New Zealand’s domestic page impressions and sees more than 700,000 visitors each day.16 Given New Zealand’s proximity to Australia, the language and cultural similarities, and the country’s small land mass, Trade Me is the ideal first CBT step for Australian retailers.

Want the low-down on each marketplace? Check out our Broadening Your Horizons eBook.

13 http://www.powerretail.com.au/news/amazon-most-valuable-retail-brand-2014/14 http://www.amazon.com/b?ie=UTF8&node=844521101115 http://www.mediapost.com/publications/article/216356/adult-affluents-are-significant-amazon-shoppers.html16 http://www.amazonstrategies.com/2014/06/trade-me-webinar-follow-up-your-questions-answered.html

Branded products, especially branded apparel, are undersupplied in New Zealand. Kiwi shoppers are eager to buy such items, and if you take advantage of the supply gaps on Trade Me, you could grab a huge chunk of the market.

TIP

Other Marketplaces by Region

EU

APAC

US US

EU

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Google: Usurp the SERPWhat’s the first thing you do when you begin shopping? You “Google it.” You’re not alone: 2 million Google searches occur every minute,17 and although one search can generate millions of results, shoppers rarely make it past the first few options presented.

Without an understanding of the workings of Google’s SERP – search engine results page – the likelihood of getting your products in front of consumers is slim. Your webstore could offer free shipping on the Crown of Immortality, but you won’t generate any sales if you’re not seen.

Because sites listed on the first Google search results page generate 92% of all traffic from an average search,18 claiming that territory will make a measurable difference to your business.

Google’s results page is broken down into three main sections: Product Listing Ads, paid search text ads and organic search results.

1. Product Listing Ads (PLAs): Appearing above text ads and among the most prized pieces of SERP real estate, imaged-based PLAs are an amalgamation of paid search and comparison shopping engines. (PLAs also form the basis of Google Shopping.) Newly managed through Google’s Shopping campaigns, PLAs require an optimised data feed, strong advertising copy and dynamic images.

2. Paid search text ads: Paid search ads are the pay-per-click ads located at or near the top of the Google results page. Because these ads don’t include images, you’ll need to write compelling copy to entice clicks. Strategic keyword bidding and an optimised data feed will be key to achieving a good Google Quality Score and earning a coveted spot at the top of the page.

3. Organic search results: While the most difficult aspect of the SERP for retailers to control, search engine optimisation (SEO) is an important part of marketing your products. Google doesn’t publicly release its search algorithm, but it’s generally accepted that the longevity of your website domain, regular updates, number of clicks and social media presence all factor into your ranking.

Module 4

17 ChannelAdvisor Catalyst Europe 201418 http://cdn2.hubspot.net/hub/239330/file-61331237-pdf/ChitikaInsights-ValueofGoogleResultsPositioning.pdf?t=1370612229000

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Engineer Increased Visibility with Comparison Shopping EnginesIf you had any doubt about how savvy online shoppers are, take note of these statistics: Prior to purchasing, 65% of consumers compare goods and 94% compare prices.19

But searching the internet for hours and attempting to find the perfect product amid a cacophony of competing offerings can become frustrating for consumers. The New Customer won’t bother trying to collate information from disparate webstores – she’ll head to a comparison shopping engine (CSE) that will enable her to peruse items side by side from a range of retailers and compare product descriptions, images, reviews, ratings and prices all on the one site.

Listing your products on CSEs will increase your brand awareness and allow you to meet your customers in the research phase. And, unlike marketplaces, if a consumer clicks on your item on a CSE, she will be taken directly to your webstore. This presents opportunities to upsell, build relationships with new customers and encourage brand loyalty.

If you want to drive buyers to your webstore, listing on CSEs will help them get there and ensure they’re being served the right product at the right time.

Module 5

19 ChannelAdvisor Catalyst Europe 2014

To reduce your reliance on traffic from any one source, consider listing on multiple CSEs, even if only to hone in on which is contributing the most qualified leads.

TIP

ChannelAdvisor CSE Australia: 2013 Revenue and Market Share

My ShoppingAU

27%

eBayCommerce Network

27%

Shopbot AU14%

GoogleShopping AU

14%

GetPrice12%

Nextag6%

Other1%

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Mobilise Your Mobile StrategyAccording to Google, at 65%, Australia is one of the top countries in the world in smartphone penetration. What’s more, we’re using our devices to interact with brands in a variety of places: 82% of consumers are using mobile on the go, and 77% are using their devices in-store.20

Are you sensing a pattern? Retailers need to provide a seamless, integrated experience across multiple devices or risk losing customers along the purchase path. Ensure your website is mobile optimised and that your AdWords campaigns are set up accordingly, using Google Mobile Bid Adjuster and mobile ad copy.

Module 6

20 PeSA Internet Conference 2014 http://go.channeladvisor.com/rs/channeladvisor/images/AU-Presentation-MarkGray-ConversationToConversion-InternetConference.pdf21 http://pesaaustralia.wordpress.com/category/partner-updates/

If you’re listing your products on marketplaces, don’t bother building your own mobile app – which can be expensive and time-consuming. Most sites are visited via web browsers rather than apps, with the exception of eBay and Amazon. EBay sees more than 50% of its traffic via mobile and is the top e-commerce app in Australia.21 Make marketplaces part of your mobile strategy and let them do the heavy lifting for you.

TIP

According to Google, at 65%, Australia is one of the top countries in the world in smartphone penetration.

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Share Ideas on Social MediaSocial media is increasingly becoming a key part of the customer journey, acting as an influencer, conversation starter and a means to share ideas. But in terms of measurable impact on conversions, social still represents a ‘solve for X’ conundrum.

We are, however, seeing the first signs of evolution:

• Pinterest’s Rich Pins, for example, enable businesses to provide extra detail to their pins, including title, real-time pricing, availability, brand and logo, and a link to the retailer’s website.

• In a partnership with Twitter, Amazon recently launched #AmazonCart, which allows shoppers to add items to their Amazon account without leaving the social media site. While currently only available in the US and UK, it will be an interesting space to watch.

Module 7

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The global standard for e-commerce leaders.

Practical Exam PrepIt’s end of semester – congratulations on completing E-Commerce 101! But don’t forget: Although class is over, the final exam is coming up, and it’s a tough one to ace!

In a recent Forrester study,22 only 6% of retailers reported no significant barriers to becoming an integrated omnichannel company, with more than 35% citing a lack of digital e-commerce technology, difficulty in order management and difficulty in sharing customer data across channels, countries, or locations as the top barriers preventing a seamless omnichannel approach.

At ChannelAdvisor, we provide industry-leading software that enables retailers to be seen and sell more across multiple touch points. Our software automates, manages, analyses and streamlines your online business, leaving you more time to focus on service and strategy.

For information on how ChannelAdvisor can help you with marketplaces, digital marketing, and navigating the global e-commerce landscape, visit our website or email ausales@channeladvisor.com. For all the latest updates, industry news and helpful content, register for the ChannelAdvisor newsletter, ECOMmunicator here.

Think holistically. Integrate your offering. Meet your customers – wherever they are.

Trust us. Be Seen.

To learn more:

Call AU 1300 887 239 • US 866.264.8594 • UK 0203 014 2700 Visit www.channeladvisor.com.auEmail ausales@channeladvisor.com

22 http://www.accenture.com/us-en/landing-pages/Documents/Seamless/Accenture-hybris-Forrester-new_2014.pdf

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