report ecommerce 2020 state of€¦ · in 2020, ecommerce sales are expected to account for 15.5...
TRANSCRIPT
2020 State ofEcommerceReportEverything you need for yourbusiness to succeed online in 2020
February 2020
The State of E-Com in2020
In 2020, ecommerce sales are expected to account for 15.5 percent of
retail sales worldwide. In other words, ecommerce is changing the game of
commerce slowly but surely. Well, not really slowly. It's actually happening
pretty quickly. And, there will be an estimated 2.05 billion online buyers in
2020.
Amazon is still the powerhouse in the space. No surprise there. But,
Shopify, Squarespace, among others are allowing people to go "direct to
consumer at a pace never before seen in the history of business. Want to
create a business? Right now there is quite literally no excuse not to. The
barrier to entry is incing closer and closer to zero.
Am I Screwed?Not quite. Ecommerce is slowly but surely taking over the world of
commerce. While there will surely always be physical stores. The transition
is happening whether your business wants it to or not. Still think it's a fad?
Thats what they said about the internet too at first. If you're a physical
business, don't let your business suffer because you're satisfied with
where it's at now. The business graveyard is filled with businesses who
looked down on innovation.
Try this on, the number one reason people shop online is that they’re able
to shop at all hours of the day. Still think your retail business that's only
making money from 9-5 is going to survive when people are shopping
online 24/7? Make the transition, or stepup your game if you're already
selling online. Things are moving fast, don't get left behind because you
were comfortable.
02
E-com PlatformsOnce you decide to go online the next step is to decidewhere you're going to start.
Shopify – Fastest growing ecommerce platformWoocommerce – The largest ecommerce platformSquarespace – Most affordable ecommerce platform Wix – Website builder with ecom capabilitiesBigCommerce – Shopify's little brother Amazon – The alpha and the omega Etsy – If you're part time ecom
What E-commerceplatform should I use?Well, that's not exactly a simple question to answer. So let's break it down.. Going all in: Woocommerce has the most capabilities and customizability byfar. However, it's also more expensive and complicated to get going for abeginner Most bang for your buck: Shopify. Easy choice here. For $29/month youget a conversion optimized website, a suite of apps, and stellar customersupport. If you already have a website: Setup a store on Amazon and leverageAmazons massive reach and authority. Part time hobby: Again, Shopify has to be the go to here too. It's ease ofuse, and cost is perfect for beginners. More than just ecommerce: Squarespace, Wix or Wordpress are great ifyour focus is a blog or business where the focal point isn't ecommerce, BUTyou want to have the option to add ecommerce capabilities.
03
Digital Strategy Paid Media vs. Organic ReachFront End vs. Back End
"Strategic spending in digital mediacan help improve total reach andtrackable, scaleable growth."
Still not sure where to begin with marketing? Here are thessentials you need to start pushing that bottom line.
07
Website – Obviously! But it has to be said. You need a website.Even if you sell only on Amazon. It shows customers you're legit.
1
Inbound/Outbound Marketing – How you're going to get theword out about your business.2
Social Media – This is how you'll show potential customers whoyou are, what you're about, and why you exist.
3
Backend Profit Strategy – Use email marketing, SMS,Messenger, etc to engage with customers and incentivize themto keep buying from you.
4
Dominating PaidDigital Media
06
Where Are YouStarting From?
First, let's take a look at all the options for paid media.
Google – Highest consumer buying intent Facebook – Best thought of as an awareness & lead gen tool Instagram – Facebook – Best thought of as an awareness & lead gen tool YouTube – Up and coming advertising platform LinkedIn – Best for B2B Amazon – Most underutilized ad platform Snapchat – A complementary channel to Insta/Facebook. Younger audience SMS - Most intimate form of marketing Affiliate Marketing - Leverage other peoples audience and effort to drive sales
Beginner – The most bang for your buck is still going to comefrom Facebook and Instagram. Ad costs are still significantlylower than Google.
Somewhat Established – If you've already started withFacebook/Instagram then the first thing to do is optimize onthose platforms. Then and only then should you branch out toother paid mediums. Next up would be Snapchat, Google, orafifliate marketing.
Established – If you're a certified paid media badass and you'vealready got the fundamentals down. Try testing YouTube, SMS,etc to get another "pillar of profit" as Jay Abraham would say.
Back End Profit: ShowMe The Money!If your business doesn't have a systematized, structuredway to increase the LTV of your customers you're in trouble.
04
Most people think that the big boys make all their money on the front endof their sales funnel, aka their outbound marketing efforts. While that is avital component, and the first step to driving sales, the real money is madeon the backend of the marketing sales funnel. What's the backend youask? think about it as the Front End --> Back End: Front End: The goal is to acquire customers Back End: The goal is to increase customer loyalty, and increase thelifetime value of that customer. We all know (if not, now you will!) that it's much more expensive to acquirea customer than to keep a customer buying from you. Why? Trust. On the front end your marketing should be aimed at getting people toknow who the hell you are, what you stand for, why they should be buyingfrom you over competitors, and really aggravating the pain point andpositioning your company as the solution to that pain. n the back end: The goal here is to stay top of mind. Following up withyour customer via email, SMS, Messenger, social media and making sureyou cut through the noise to keep them coming back for more.
Tracking ROI AccuratelyMeasuring the efficacy of your digital marketing campaigns
This is often a subject of debate amongbusinesses, especially when it comes totracking revenue from digital marketingefforts. How to think about it There are two primary attribution models.Multitouch Attribution and Single TouchAttribution. And even within that thereare nuances for weighting differentmarketing channels. In general though it is standard practiceto use multitouch attribution so that youare able to take into account how onemarketing campaign interacts withanother, and assigning the proper"weight" or impact that it had on the sale.
Paid Facebook/Instagram:Unique Landing Page Views Relevance Score FrequencyROAS/ROICPA/CPP
Google:Unique CTRImpressionsImpression ShareCPC/CPAROAS/ROI
Website:Website Loading Speed Bounce RateConversion Rate Abandoned Cart RatePurchase Rate
Email Marketing:Open Rate Deliverability Rate
General Lifetime ValueRepeat Purchase RateROI/ROAS
Key Metrics to Track Here's a broad list of digital marketingmetrics that you MUST track. There areothers, but we won't list them all here:
05
Where Do I Start Now?Step 1: Layout your goals for ecommerce.Step 2: Think about the budget you're working with.Step 3: Pick the platform that best fits your goals, andresources.Step 4: Build it yourself or hire a specialist to build yourwebsite.Step 5: Make sure your social media and social mediastrategy is setup and on point.Step 6: Promote, promote, promote. Create a plan for howto drive traffic to your website. Just because you build it,does NOT mean they will come. This is by far the mostoverlooked step
08
Goals Is it to go huge, or is it to setup asmall side hustle?
Budget Woocommerce is more expensivethan something like Shopify.
Platform Budget, versatility, customersupport, ease of use.
Social Media Facebook, Instagram, YouTube,TikTok, Snapchat
Digital Marketing Paid Media: Facebook/Instagram,Google, Snapchat, Linkedin
