omni-channel commerce
TRANSCRIPT
Omni-Channel Commerce
Sucharita Mulpuru, VP & Principal Analyst
February 6, 2014
@smulpuru
Consumers shop online for 3 reasons
Selection
New eCommerce markets often follow a similar path
Source: June 2013 “The Evolution Of Global eCommerce Markets”
Countries are at different phases
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
Adoption of mobile phones has exploded globally
Installed base of tablets will grow ~ 10x over the next 5 years
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
YouTube is also a powerful social channel
© 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
This was the innovation that put the wind in Amazon’s sails
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
Everyone needs a marketplace strategy
That means having a marketplace
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That also means selling on marketplaces
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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)
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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)
New payment experiments are emerging
© 2014 Forrester Research, Inc. Reproduction Prohibited 23
The fundamentals are
important
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1. Strong product detail pages
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%
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3. Transparency in post-purchase
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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 28
4. Fast site speed
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Next Steps
› Follow Sucharita Mulpuru’s blog
› View our Mobile Trends 2014 webinar replay
Thank you
Sucharita Mulpuru
Blog: http://blogs.forrester.com/sucharita_mulpuru
@smulpuru