how i built a 10 million dollar ecommerce company
DESCRIPTION
Interested in learning how Will Royall and his team at Royall Advertising built an eCommerce empire? Maximize your eCommerce sales by reading this presentation. Visit Royall Advertising at http://royalladv.comTRANSCRIPT
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How I Built a $10,000,000 eCommerce Company in 2 Yearswith a mere $2,500 investment.
Entire presentation © 2013 - Royall Media, Inc.
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Agenda
✤ Why are we here?
✤ How do we create success?
✤ Why eCommerce?
✤ Best practices
✤ What do we change?
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Why Are We here?
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How Do We Create Success?
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Where Are We Going?
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Vision
✤ Values
✤ Passion
✤ Alignment
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Exit Strategy
✤ Start
✤ Now
✤ End
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Leadership
✤ Defining a vision
✤ Inspiring people
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How Do We Make Money?
✤ Market need
✤ Customer benefit
✤ Value proposition
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Getting Business
✤ Marketing
✤ Ideal customer WANTS
✤ Sales
✤ Ideal customer BUYS
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Analyzing the OpportunityCan you make money before you run out of your investment capital?
✤ Average Order Value✤ Initial Profit Margin✤ Profit Margin After Marketing Expenses✤ Enough Fuel?✤ Seasonal Timing
✤ $900✤ 25% (After Product Cost and Shipping)✤ Estimating 7% (After Initial Marketing of 18%)✤ Enough Fuel? - YES! $63 per sale!✤ We launched in October 2010
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Analyzing the OpportunityCan you make money before you run out of your investment capital?
✤ Google PPC keyword tools estimating $.80/visitor✤ Estimating low 0.5% conversions since high A.O.V. of $900✤ Conversions may be lower or higher✤ We may or may not get some free traffic/sales
Calculates to 17.7% of the A.O.V. (18% Marketing)
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Have a Little Faith!You’re Going to Need It
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Building the Foundation
✤ Selecting the Right Platform
✤ Tapping into Immediate Revenue
✤ Getting Free Traffic
✤ Reinvesting in Ad Campaigns
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Selecting the Right Platform
✤ Free Community Version!
✤ Open Source!
✤ Great Community Support Online
✤ Multi-store (multi-domain)
✤ Annual Conference
✤ Lots of 3rd Party Integrations
✤ Easy to Customize Front End
✤ Easy Backend System to Manage
✤ Hosting Partners with Staff who Know Magento
✤ Good for SEO
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Tapping Into Immediate RevenueLeveraging Marketplace Web Traffic to Your Advantage
✤ Etsy.com✤ Pricefalls.com✤ Shoply.com✤ SOCexchange.com✤ iOffer.com✤ eCrater.com✤ Bonanza.com✤ Blujay.com
✤ ArtFire.com✤ Wigix.com✤ Offeritem.com✤ Shophandmade.com✤ Zibbet.com✤ 3tailer.com✤ Atomicmall.com✤ Sell.com
✤ Bikerbids.com✤ Facebook Marketplace✤ HiBidder.com✤ Hobly.com✤ Shopify.com✤ OnlineAuction.com✤ Wensy.com✤ WeBidzAuctions
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Getting Free TrafficMaking Sales with $0 Marketing Can Help Boost Your Chance for Success
✤ Olx.com✤ USFreeAds.com✤ AmericanListed.com✤ Recycler.com✤ PennySaverUSA.com✤ ElClasificado.com✤ Claz.org
✤ Inetgiant.com✤ Sell.com✤ Daype.com✤ Geebo.com✤ TraderOnline.com✤ Ocala4Sale.com✤ Vast.com
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Getting Free TrafficYep... a Second Slide... It’s That Important
✤ Sitemap.xml file for faster/better SEO indexing✤ Free Shopping Comparison Engines (TheFind.com, Price.com, etc.)✤ Free or Paid Directory Submissions (DMOZ, Yahoo, etc.)✤ Free Press Release Distribution (Free-Press-Release.com, etc.)✤ Blog!✤ Social Media (Facebook, Twitter, Squidoo, YouTube,)✤ Social Bookmarking (Reddit, Digg, Delicious, Folkd, Fark, etc.)✤ $75 Off Google PPC Coupons to Start Your PPC✤ Brick and Mortar? (List on Google Places, Yelp, CitySearch, etc.)
Think Niche for Your Industry!!!
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Reinvesting in Ad CampaignsDon’t Take a Dime Until You Absolutely Have To
Amazon ran at a loss, losing millions of dollars for several years, before ever turning a profit.
✤ Adroll Remarketing✤ Facebook Ads✤ Twitter Ads✤ Linked In Ads✤ Vibrant Media✤ Kontera✤ TrafficVance✤ InfoLinks
✤ ResultLinks✤ Business.com✤ AdKnowledge✤ Criteo✤ Bidvertiser✤ Chitika✤ Clicksor✤ PocketCents
✤ BlogAds✤ Kontera✤ CPX Interactive✤ Affinity Ads✤ ValueClick Ads✤ AdHitz✤ AdMobile✤ ClicksMob
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Comparison Shopping EnginesEssential for eCommerce Sites
You don’t have to be the lowest, but you do have to provide the best overall value...
and many times in the early stages online, that means being the lowest.
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Hiring People
William Royall Jr.CEO
Duties include operations, IT, big picture growth, strategic
partnerships, and overall company management
Chief Marketing Officer
Duties include all things marketing including, site analytics, paid ads, SEO,
customer programs, promotions, and communications
Chief Financial Officer
Duties include all things financial including company
budget, department budgets, manufacturer and vendor negotiations, taxes, and
banking
Chief Logistics Officer
Duties include all things financial including company
budget, department budgets, manufacturer and vendor negotiations, taxes, and
banking
Chief Service Officer
Duties include all things sales and customer service oriented,
customer phone calls, customer emails, and damage
control.
Developer
VP Marketing
Director: Creative Director: Media Director: Research
Designer
Director: PR
Designer
Designer
Chief Information Officer
Duties include all things technical including hosting,
web development team, inner office computers, email, and
communication channels
Director: Technology
Developer
Developer
IT Service Tech
IT Service Tech
IT Service Tech
Buyer/Manager
Buyer/Manager
Buyer/Manager
Product Researcher
Consumer Researcher
Competitive Researcher
Social Media
Online Publicist
Online Publicist
Director: Accounting
Bookkeeper
Bookkeeper
Bookkeeper
Director: Vendor Relations
Product Development
Product Development
Director: Online Director: TelesalesDirector: Damages Director: Shipments
Processor
Processor
Processor
Processor
Processor
Processor
Developer
Developer
Developer
VP Human Resources
Assistant
Assistant
Assistant
Assistant Assistant Assistant Assistant
Phone Rep
Phone Rep
Phone Rep
Online Rep
Online Rep
Online Rep
Director:Conversion Optimization
Analytics Analist
Who ever said ecommerce companies don’t have overhead...
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Hiring PeopleWho ever said ecommerce companies don’t have overhead...
✤ IT/Tech✤ Developers✤ Service Techs✤ Analytics✤ Conversion Optimization
✤ Shipping✤ Damages✤ Shipments
✤ Customer Service✤ Online Reps✤ Phone Reps
✤ Marketing✤ Creative✤ Media Buying✤ Research✤ PR
✤ Financial✤ Accounting✤ Bookkeeping✤ Product/Vendor Development
✤ Human Resources
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Shipping & Fulfillment
✤ Free Shipping is Never Really Free✤ Tracking Numbers and Email Notifications✤ Watching Costs - 21%✤ Using Multiple Providers - Areas, Services, Costs✤ Damage Control 2.5% / 1% - Warranties✤ Return Processes✤ Audits and Accuracy✤ Shipping as a Service - White Glove
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Customer Service
✤ Customer Service will Make or Break You - Live or Die by Reviews✤ 50%+ of Bad Reviews Are Customer Service or Shipping Focused✤ It Could be the Only Difference Between You and The Other Guy✤ Track and Record Everything - Response Times, Phone, Email, etc.✤ Go Above and Beyond What’s Expected✤ Make it Personal✤ Toll Free Number (Also adds credibility)✤ 24 Hours or Business Hours, 5 or 7 Days/Week?✤ Live Chat - Zopim✤ Don’t Cut Costs Here!!
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Customer Service
Begin forwarded message:From: "David Hendrie" <**********@davidhendrie.com>Date: July 20, 2012 7:39:56 PM EDTTo: <[email protected]>Subject: our order
My wife and I are going to order the beds etc on Sunday and I will forward you the order so you know it is us. I want to make sure we put everything in one order and she is undecided on one or two extra items. Thanks you so much for your special customer service, way above normal in any shopping arena. Talk to you later. David Hendrie(973) ***-‐**** cellhHp://www.DavidHendrie.com
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Customer Service
Begin forwarded message:From: Toni B <t***********@live.com>Date: September 20, 2012 6:34:55 PM EDTTo: "Drew Farmer" <[email protected]>Subject: Part Numbers for Damage.....Fwd: email pics....Re: DAMAGED ORDER....Re: Factory Bunk Beds: Shipmen
Hi Drew, Everything came today and I want to thank you for your endless efforts to help me get this resolved. I know it would not have happened if not for you. Thank you, thank you again. Toni
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Customer Service
Begin forwarded message:From: Gloria Madonia <****************@bellsouth.net>Date: November 1, 2012 5:54:35 PM EDTTo: Drew Farmer <[email protected]>Subject: Re: Box Count....Re: Factory Bunk Beds: Shipment # 100003504 for Order # 100004546
I want to thank you so much for all you have done for me. Your employer is very lucky to have such a wonderful employee like you. If you will give me his or her e-mail address I would like to tell them myself.
Thank you!Gloria Madonia
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AnalyticsYour definitive guide for keeping score and learning the game of making $ online
✤ GA Code for Visitor Data✤ Goal Tracking✤ eCommerce Specific Tracking✤ URL Parameter Tracking✤ Funnels and Flows✤ Geographic✤ Language✤ Platform/Device
✤ Demographics & Psychographics✤ Birds of a Feather✤ Pre-visit & Postvisit information
✤ SEO Analytics✤ Link Analysis✤ Competitor Analysis
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Google AnalyticsThe Daddy of Analytics
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Google AnalyticsThe Daddy of Analytics
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Google AnalyticsThe Daddy of Analytics
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Google AnalyticsThe Daddy of Analytics
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MOZ.comSEO Driven Analytics
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MOZ.comSEO Driven Analytics
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MOZ.comSEO Driven Analytics
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MOZ.comSEO Driven Analytics
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QuantcastDemographics: Great for Targeting Future Campaigns
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QuantcastDemographics: Great for Targeting Future Campaigns
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QuantcastDemographics: Great for Targeting Future Campaigns
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QuantcastDemographics: Great for Targeting Future Campaigns
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QuantcastDemographics: Great for Targeting Future Campaigns
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A/B Testing & Conversion Optimization
✤ Feedback is Key to Improving Conversions✤ Heat Maps✤ User Testing ✤ Recorded Sessions
✤ Be Scientific About It✤ Best ROIs Come from Conversion Optimization
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Conversion Optimization is a Science
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Conversion Optimization Provides ROI - It’s Simple Math
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Top Conversion Factors
✤ Cost of shipping✤ Inability to save shopping cart✤ Not being notified when product comes back in stock✤ Not having enough choices of product✤ Ads not going to the right landing page✤ Checkout process too long✤ Product description isn't detailed enough✤ Pictures aren't high quality and detailed enough✤ Price too high compared to competitors✤ Sales Taxes✤ Customer testimonials✤ Product reviews✤ Information security of customer✤ Security of website✤ Number of Payment options✤ Financing options✤ Broken links✤ Ease of Search ability✤ Layered navigation organization✤ Rewards and loyalty programs
✤ Remarking campaigns✤ Company brand recognition✤ # of Customer service options (chat/email/phone)✤ Call to action terminology ie: buy now vs add to cart✤ Customer motivation for purchase✤ Product Sales cycle✤ Customer sales cycle✤ Mobile compatibility✤ Strategic partnerships✤ Well planned suggestions based on user interaction✤ Shipping time✤ Social media integration✤ Ability to ship out of the country✤ Global shopping cart system✤ Trust in brand✤ Exclusive products✤ Added value freebies✤ Comparison charts✤ Discounts✤ Refund Policies
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Metrics to Live & Die By
Customer Service✤ UE - Unanswered Emails✤ CEWT - Customer Email Wait Time✤ CPWT - Customer Phone Wait Time✤ CP - % of Customer Promoters✤ CD - % of Customer Detractors✤ CNPS - Customer Net Promoter Score✤ ORR - Order Return Rate✤ OCR - Order Cancelation Rate✤ TR - Total Refunds✤ AOV - Average Order Value✤ C - Churn✤ OPC - Orders Per Customer✤ ACR - Account Creation Ratio✤ NAR - New Accounts Registered
Marketing✤ CAC - Customer Acquisition Cost✤ CPCV (net) - Cost Per Conversion (net)✤ CPCV (gross) - Cost Per Conversion
(gross)✤ CR (net) - Conversion Rate (net)✤ CR (gross) - Conversion Rate (gross)✤ CAR - Cart Abandonment Rate✤ ACRR - Abandon Cart Recovery Rate✤ FS - % of Products with Free Shipping✤ LPO - % of Products with Lowest Price
Online✤ PLT - Page Load Time✤ TWT - Total Web Traffic✤BR - Bounce Rate
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Metrics to Live & Die By
Marketing Continued✤ SKU - Number of Live SKUs✤ DSKU - Number of Disabled SKUs✤ EOR - Email Open Rate✤ ECTR - Email Click Through Rate✤ S - Subscribers✤ UR - Unsubscriber Rate✤ SR - Subscriber Rate✤ TMS - Total Marketing Spend✤ MPR - Marketing as Percetage of
Revenue
Shipping✤ ASC - Average Shipment Cost✤ DR - Damage Rate
✤ STT - Shipment Transit Time✤ OPT - Order Processing Time✤ DC - Damage Cost
Finance✤ CLTC - Customer Lifetime Contribution✤ ROR - Rate of Return✤ APO - Average Profit per Order✤ CCC - Cash Conversion Cycle✤ COH - Cash on Hand✤ R - Revenue✤ P - Profit✤ VC - Vendor Credit✤ BC - Bank Credit
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Cutting the Losers
✤ Cutting ad campaigns with worst ROI
✤ Cutting products that don’t perform (ROI, Slow Shipping, High Damage, etc.)
✤ Cutting SEO tactics that don’t perform
✤ Cutting landing pages, that don’t perform
✤ Cutting employees that don’t perform
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Our Success & Growth
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Business Performance
✤ Management
✤ Operations
✤ Client Fulfillment
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Long-Term Success
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How Will We Take Action That We Can Achieve?
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The TEND System
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Investing in Change
✤ Money
✤ Time
✤ Energy
✤ Help
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Taking Action
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Questions?
✤ Will Royall✤ (386) 747-1964✤ [email protected]✤ www.RoyallAdv.com
✤ David Shriner-Cahn✤ (212) 731-0770✤ [email protected]✤ www.TendStrategicPartners.com