© 2012, amazon services llcecx.images-amazon.com/images/i/b14z1tur16s.pdf · © 2012, amazon...


Agenda

Macro trends in online commerce

Specialty Sites & how they can create new revenue opportunities

Case study ‐ UNIONBAY

© 2012 Amazon Service LLC


The web outpaces stores

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Total retailE-commerce

Source: U.S. Department of Commerce


More growth ahead

$0.0$50.0

$100.0$150.0$200.0$250.0$300.0$350.0$400.0

2011 2012 2013 2014 2015 2016

U.S. E-Retail Sales

U.S. E-Retail Sales

CAGR=13.3%

Source: eMarketer


Online Retailing…

“Today’s multichannel businesses are increasingly

multisite and multibrand businesses. This trend enables

more specific and targeted marketing opportunities for

customers…”

-- Brian Walker, Forrester*

* The Forrester Wave™: B2C Commerce Suites, Q3 2012


Think beyond your primary web site…

Flash-sale sites Specialty sites Outlet sites


Flash-sale sites

Gilt Groupe 2007 Rue La La 2008 Hautelook 2007 Ideeli 2006 One Kings Lane 2009


Flash-sale sites

Gilt Groupe 43% Rue La La 28% Hautelook 24% Ideeli 19% One Kings Lane 13%

Source: Forrester Inc., Q2 2011 survey of flash-sale shoppers

Please select the sites you receive e-mails from and/or visit


Flash-sale sites


Specialty sites


Outlet sites


Creating new revenue streams with specialty sites

Don Davis, editor in chief,Internet Retailer

Danna RambergDirector of ITSeattle Pacific Industries

Scott PulsipherDirector of Amazon WebstoreAmazon.com


• Presenter: Julian Sell, Sr. Product Manager, Amazon Webstore

© 2012 Amazon Service LLC


Multisite Businesses…

Multisite businesses increasingly launching specialty sites – Provide better targeting

Match your products with the right buyers

Respond to online shopper’s changing behavior

Capitalize on bargain hunters

Grab a share of the growing holiday sales

Quickly reach new international markets

Review of case studies…


Began in 2009 Sell off specific inventory Trending up Driving ‘lift’ in transaction rates Increasing number of sites Flash sale traffic jam!

Case Study - Flash Sales

Sources:1 www.marketingprofs.com2 www.Statista.com

Statistica2

1 Flash Sales can generate uplift of ~35%


Example: Flash Site Jurlique Australian skincare product Primary sales in AU, US, UK

direct to consumer Featured on Today’s show

“steals & deals” Sept 12th – 13th only $202 worth of products

for $52.00 @ 74% discount! Limited supply

Result - Complete Sell Out!


Example: Flash Sites

Thirty-One Gifts Ohio-based catalog

company Offer purses, portable

totes and organizing solutions that make life simpler

For Home parties, Parties-to-go, Catalog parties

Offers bi-annual sales to through Flash Site


Case Study - Online outlet stores Extension of bricks & mortar Open 24/7 Shopping for deals - e.g. ‘back-to-school’ Save money / find low prices on

markdowns, clearance items, overstocks, and more

Attracting the value-conscious consumer

Source: Accenture, 2011


Offer 30% - 50% off regular store prices

Geared toward clearance & Holiday shopping

Wide selection of products online discounts

UK delivery only

Example: Marks & Spencer Outlet


Example: Secondipity

Liquidity Services Inc. Reconditioned and

overstock items Deals in returns and

excess inventory items Cheap prices every day ‘Deal of the Day’ item


Case Study - Multi-Brands

Broaden offers Increases Relevance Enables Differentiation Manage through single platform Optimizes relevancy in SEO /

SEM


Example: Fruit of the Loom

Est. 1851 in Rhode Island, over 32,000 employees

Owns multiple brands Fruit of the Loom Spalding Russell Athletics Russell Outdoors

Created multiple Brand sites to complement its retail operations


Example: Viacom

24 separate brands Sells merchandise

from many of its online entertainment brands Comedy Central MTV + Shop Nickelodeon + shop VH-1 + Shop


Example: Samsonite Global Brand Est. over 100 years ago Focused on luggage &

luggage accessories Acquisitions drove

addition of multi-brand Sites including: Samsonite Hartmann


Customer Segment Specific

Target buyers with Specific interests

Specific age groups or demographic

Product Specific

Highly focused sites for unique products

Provides optimized buyer experience

Case Study – Curated sites


Example – Customer Segment Specific

Official Sports Sell Referee strips

Learning Outlet Teacher supplies

La-Z-Boy La-Z-Boy Kidz La-Z-Boy Hospitality La-Z-Boy Outdoor


Example: Product Specific

Stash Tea Specialty drinks

Amoretti Specialty Foods

Turtle beach Specialty Electronics


More international shoppers Expand international reach Low risk entry to international markets Expand buyer base rapidly

Case Study – International Sites


Example: Taylor Swift International Sites Expanded reach into new

geographies Offers pre-sale purchasing for

fans, including CDs and merchandise

Creates special bundles and limited-time offers

Great merchandising and cross-marketing with ‘Bonus’, ‘Deluxe’ and ‘Ultimate’ packages

Available in: US Canada Australia International destinations


Multisite strategies and types…- Summary

Online retailers increasingly multisite Enables more targeted positioning and traffic-driving

efforts Drive increased traffic and conversion uplift

Better alignment with targeted buyers Accelerate launch, reduce risk of new Options to consider: Flash sale – discounted products, end-of-season inventory Outlets – 24/7 outlet for bargain shoppers Multi-brand/Curated – align products, offers with target

customers New ventures – new countries, brands, segments


UNIONBAYCase Study


Brand Overview

Seattle Pacific Industries has been in business for 31 years.

UNIONBAY is our most well known brand. Large volume at value price

points Sell to department stores, such

as Kohls, JCPenny, Fred Meyer…

Cater to young adults and children

Biggest competition is private label

www.unionbay.com


Brand Overview

Union Jeans was founded in 2005 Mens Premium Denim and Tops Handcrafted details Latest wash techniques Finest rigid and stretch denim All inclusive brand appealing to

younger and older customers Sell to the Buckle, Nordstrom,

Specialty stores, etc. www.unionjeans.com


Brand Overview Howe Clothing was founded in 2001 Sophisticated brand that caters to action

sports and music-inspired lifestyle The Howe customer is a hard working –

hard playing, creative career-minded guy, who is as comfortable in the studio as he is on the sand.

www.howeclothing.com


Business Background

Our business model has strictly been wholesale

Large shipments from our DC in Kent, WA, not single piece orders

We had never sold directly to consumers via the web

We launched Ecommerce for our UNIONBAY brand in August 2011


What products did we evaluate

We evaluated many solution providers

Looked at revenue share models – some as high as 35% + Marketing spend

Looked at purchasing software –ROI was huge as we would have to staff and purchase hardware and software


Why we chose Amazon Webstore for UNIONBAY

We could open a new sales channel with little risk

Minimal upfront costs and low fees

Ability to walk away at any time Ability to integrate to our backend

systems No need to deal with payment

processing and credit card fraud Amazon has a great reputation

and is a leader in the industry


What has worked well

Time to launch was very fast. The most time consuming part was creating our internal processes

Onboarding process was excellent – we had support during all hours of the day and weekends

System is flexible and improving all the time. We can choose to use FBA or CBA.

We have been able to launch and run an eCommerce site with no staff adds We have automated customer setup, order entry and ship confirmation. Not having to deal with the technology has allowed us time to focus on

marketing Sales have increased 400% since we went live a year ago and continue to

increase each month


We launched two more Webstores in September 2012.

Union and Howe Launch


Successes

Sites were launched simultaneously in less than 8 weeks

Backend processes did not have to be modified

Custom in house reports did not have to be recreated

One common admin interface for all three sites

Each store is creatively different, to appeal to the audience we are targeting

Technical account manager is always looking for new ways to drive business for all three stores


THANK YOU!

SPI would like to offer you 20% off any regular priced item at any of our stores www.unionbay.com www.unionjeans.com www.howeclothing.com

Promo code is BRANDSTR and is good today through November 17th


How Webstore can help you…

Turnkey - everything you need to create an online Flash, Specialty or new brand site… Speed Scalable Cost-effective Low risk Ease of Use Simple merchandising

Easy to Get Started – Sign up for a Free Trial!


Questions?

Online flash Sales, Outlets and Specialty Stores

UNIONBAY SPI Promo code is BRANDSTR(good through November 17th, 2012)

Amazon Webstore Free trialSign up and details at webstore.amazon.com

© 2012, amazon services llcecx.images-amazon.com/images/i/b14z1tur16s.pdf · © 2012, amazon...

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