Welcome to

Commerce Acceleration 1017th February 2013

From one store to multichannel,

Presented by Chris Tanner

the easy way

Own store, marketplaces, or both?

Ecommerce store / online shop

- Transaction is handled by your ecommerce platform

- Easy to launch using a hosted platform

- Strong brand presence

- 100% ownership of customer experience

- Requires effort to generate sales

Own store, marketplaces, or both?

Online marketplaces; eBay, Amazon

- Transaction is handled by the marketplace

- Easy to launch

- Immediate access to large, global audience

- Low marketing cost but higher sales fees

Multichannel challenges

- More sales, more customers! You're going to be busy ...

- Managing more orders and shipments

- Managing more customer service issues

- Selling the same item twice on different channels

- Making new inventory available on all channels

- Channel “branding” / trading names

First, build the foundations for growth; be

Operationally stable

Centralised inventory management

- Maintain one product master list

- Organise your product database properly

- Decrease inventory on all sales channels automatically

- Increase inventory levels as soon as new stock comes in

- Understand the difference between kits and assemblies

- Maintain a common SKU across all sales channels

All orders, shipments and customers in one system enables:

- Holistic, cross-business sales reporting

- All customer history in one place

- One interface for all staff

- One workflow for all orders

Centralised order processing

“Which products are selling well?”“Which channels are the most profitable?”“What's on back order?”“What stock do I need to buy?”

Centralised order processing

Take control of your purchasing

- Buy smarter using inventory and sales reports

- Put a formal purchase order process in place

- Share information with your team

- Minimise your inventory levels

- Spend on the right products at the right time

- Understand how much you are spending, and when

Automation, efficiency & insightA successful multichannel business will …

- Download orders from ecommerce stores & marketplaces

- Integrate carriers for faster shipping and fewer mistakes

- Integrate POS for real-time inventory updates

- Integrate financials for up to date, insightful reports

- Be on the cloud for sharing and collaboration

Next, expand. More channels, more products.

Sustainable expansion

Expand your online sales

Launch an ecommerce storeTry hosted a system like Shopify, Magento, Big Commerce

Launch further ecommerce storesMake use of a niche and become the market leader

Start selling on eBayUK, Europe, USA … immediate global market!

Start selling on AmazonReach millions of new buyers overnight

Automate.Become operationally stable.Expand. You're now in control.Buy smarter. Spend less.Report better.

Grow faster.

Find everything you need to know at:

www.brightpearl.com/CA101

Presented by Lee Adams

How I built an incredible online business

Today will help you grow your business.

Lee Adams

My story

• Great place to test the market for your products

• List it once, reap the awards over and over again

• Low Margins - Not always – Build Value

• Automate

• ALWAYS Give your customer a reason to come back

Selling on

Building my first website

Turning over 2-3k per month initially

• Price is key for branded products

• Great way of selling quickly

• Replicate/feed the content straight onto Amazon

• Make sure your returns system is efficient

Selling on

Why would someone selling electronics want to sell garden furniture?

Building a website, the

do’s and donuts

Building a website, the

do’s • Trust

• Understanding

• Need

• Hurry

• Affordability

Building a website, the

donuts • Lack of product information – size material weight

• Hiding contact information

• Require an account to order

• Checkout that asks too many questions –

pre-populate where you can (by improving our

checkout process, we increased conversion by 30%)

Building a website, the

donuts • Small images or only one

• Only one payment option

• No product up sells

• Not displaying shipping

• Not having a security policy

December 2009 The Crash

• We were selling £20-30K per month

• I had cash flow issues, and was selling stock I didn’t

have to keep up with orders for Christmas

• We were too busy to manage our customers

and our standards slipped

• Grew too fast & didn’t have a scalable system in place

Outsource your life• Tim Ferris – 4 hour work week

What’s the right structure for a web business?• Marketing

• Accounts

• Warehouse

• Sales

• Customer services /technical support

What I've learnt building an ecommerce company

If I was to start again, I wouldn’t do it….

• Specialise, Specialise, Specialise – The market is big enough

• Use easy scalable platforms to get you selling online

e.g. Magento and Brightpearl

• Feed into every marketplace from the beginning; eBay,

Amazon and Google Products. If you do it properly then you

will start selling from day one.

If I was to start again, I wouldn’t do it….

• Choose carefully the products your going to sell - easy

to send out, lower chance of returns

• Spend time listing products and get someone to help

you, I could have grown twice as quickly if I had done

this with both of my sites

How Multichannel can transform your 2013

Presented by Mattew Ogborne

One  GoalWhen  you  leave  this  room  I  want  you  to  be  thinking…  

“I  must  do  marketplaces  right  now”

Do  you  want  access  to

X  3000  buyers

+  Ability  to  pay

Today?

What  we’ll  be  covering

• Sharing  my  passion  for  online  marketplaces• Showing  what  has  happened  to  markets• CorrecFng  a  few  misconcepFons• Opening  your  eyes  up  to  the  potenFal• Comparing  the  differences• Apple  pie• Your  quesFons

Who  am  I  &  What  do  I  do?

• 3  years  running  my  own  marketplace  business• 5  years  with  mulF-­‐channel  soNware  companies

Best  of  all  I  get  to  work  with  the  cool  people

YOU

“I  solve  other  peoples  eCommerce  problems”

What  is  a  Marketplace?

• An  open  space  where  a  market  is  or  was  formerly  held  in  a  town.

• An  open  place  where  people  meet  and  trade• All  that  has  happened  is  that  marketplaces  have  moved  “online”

Where  did  these  marketplaces  go  to?

If  you  think…

=

=

You’re  Wrong…

So  Wrong…

Are  these  brands  for  a  carboot  sale?• Armani• FCUK• Bench• Burberry• Chanel• D&G• Diesel• Dior• DKNY• Gucci

• Karen  Millen• Lacoste• Louis  VuiZon• Miss  Sixty• Monsoon• Next• Nike• Prada• River  Island• Chanel

And  do  these  look  like  small  players?

eBay  fashion  outlet

• Only  started  in  April  2010• There  are  over  600,000  consumer  sellers  and  40,000  businesses  within  the  fashion  category

• The  number  of  shoppers  has  more  than  doubled  in  two  years

• Over  4.5  million  shoppers  visit  the  fashion  category  every  month.  

AucFons,  what  aucFons?

68  %  of  all  eBay      sales  are

INSTANT

Amazon?

100  %  of  all                                  sales  are

INSTANT

How  Fast?

A  pair  of  shoes  sold  every  3  seconds

Women’s  accessories  sold  every  4  seconds

A  woman's  dress  sold  every  5  seconds

A  pair  of  women’s  jeans  sold  every  18  seconds

A  pair  of  men’s  sunglasses  sold  every  20  seconds

A  video  game  system  sold  every  20  seconds

(Including  the  best  games  system  created  the  Commodore  64)

A  GPS  Device  sold  every  minute

An  Apple  Laptop  or  Notebook  sold  every  2  mins

An  iPad  sold  every  2  minutes

A  major  appliance  sold  every  37  seconds

The  Reach  of  eBay  &  Amazon• eBay  reported  108M  acFve  users  in  Q3  2012• Amazon  200M  acFve  users  in  Q4  2012• eBay  is  predicFng  $13B  via  a  mobile  in  2013• Amazon  increased  net  sales  22%  to  $21B• Expanding  into  Europe  =  180M  buyers

way  beyond  a  normal  market  place

X  3000  full  of  buyers

40%  of  department  store  visitsDepartment  Store  Sites Place  in  Hot  Shops  top  50Amazon  UK 1Argos 3Next 4Amazon.com 5Your  M&S 6Tesco 7John  Lewis 8Debenhams 10Tesco  Direct 13ASDA  Direct 15

November  2012

AmazonAmazon  sold  over  $1B  paid  items  for  the  first  Fme  in  a  quarter  in  Q4  2012

• That's  126  items  sold  a  second• OR  7,548  items  sold  a  minute• OR  452,899  items  sold  an  hour

Think  about  that…10.8M  items  sold  a  day  during  Q4  2012.Source:  Scot  Wingo,  ChannelAdvisor

What  do  customers  want?

• Confidence• SelecFon• Safety• Convenience• Ease  of  use• Buy  anything,  anywhere,  anyFme

They  want  their  order  delivered

Tomorrow

Credit  Card  Warriors

• These  are  not  pseudo  TwiZer  or  Facebook  users• Real  people  in  buying  mode  • Most  with  linked  payment  accounts  to  facilitate  a  transacFon  

• Make  no  mistake  they  will  use  them

They  are  using  them

That’s  a  credit  card

The  Growth  of  eBay

Source:    seekingalpha.com

16%  GMV12%  Users

The  Growth  of  AmazonAmazon  Metrics  Q4  ComparisonsAmazon  Metrics  Q4  ComparisonsAmazon  Metrics  Q4  Comparisons

Amazon  Metrics Q4  -­‐  2011 Q4  -­‐  2012

AcFve  customer  accounts 164  million  (up  26%) 200  million  (up  22%)

Worldwide  acFve  seller  accounts 2+  million 2+  million

Seller  units  as  a  percentage  of  total  units 36% 39%Worldwide  unit  growth 46% 32%

Third-­‐party  sellers'  unit  growth 65% over  40%

Net  Sales Increased  35%  to  $17.43  billion Increased  22%  to  $21.268  billion

Source:  eCommerceBytes.com

How  Many?

eBay  say  there  are  190,000  registered  businesses  in  the  UK

When  I  checked  last  year  there  were  

+400,000  eBay  UK  shops

The  difference  between  eBay  &  Amazon

• eBay  is  purely  a  marketplace• Amazon  has  a  marketplace  that  accompanies  their  core  business

• Payment  fees  (PayPal)  are  on  top  of  eBay  Fees• Amazon  fees  include  a  payment  processing  fee

The  difference  between  eBay  &  Amazon

“When  some  buys  from  eBay  they  buy      from  a  seller  on  eBay”

“When  some  buys  on  Amazon,  they  buy    from  Amazon”

Openness  &  clarity

People  think  they're  going  to  get  ripped  off  online

But  the  reality  is…

It’s  the  other  way  around

Transparent  feedback  systems

Everything  is  open

Even  on  Amazon

What  businesses  are  doing  right  now

• One  UK  Fashion  Retailer  did  £4M  in  Dec  12• In  2008  four  eBay.com  accounts  reached  1M  feedback• In  late  2011  the  first  EU  eBay  account  hit  1M  feedback• In  June  2012  the  UK’s  first  account  reached  1M  feedback• 2  Weeks  ago,  the  UK  had  their  2nd  1M  account  feedback

Cost  per  sale  model

Unlike  other  forms  of  markeFng  such  as  PPC  Marketplaces  are  CPA

You  pay  the  majority  of  the  fees  when  you

Make  a  sale

How  much?

Inser[on  Fees• eBay  20p  to  Free• Amazon  £25  per  month

Final  Value  Fees• eBay  5%  to  12%  +  PayPal  fees• Amazon  7%  to  35%  -­‐  Most  goods  15%

Fulfilment  by  Amazon

• They’ll  pick  &  pack  your  orders  for  you• Access  to  “Amazon  Prime”  buyers• They’ll  do  the  customer  services  &  returns• Fulfil  into  Europe• You  can  make  more  wonga

The  role  of  soNware

• Keep  your  sanity• Automate  tasks• Control  product  &  stock  data• Manage  orders  at  scale• Personalise  the  process  with  documents• Grow  and  not  worry  about  the  small  stuff

Barrier  to  entry

Is  LOW

The  potenFal  is

Global

NoFce  that  I  didn’t  say  it  was

EASY

And  the  best  thing  is…

YOU  CAN  have  some  of  this  pie  too

Top  Fps  to  gevng  started

1. Start  small2. Look  &  learn  from  other  businesses3. Ask  when  you  have  quesFons4. You  don’t  need  a  “designed”  eBay  shop5. If  you  have  large  amounts  of  inventory  see  #16. Do  not  buy  any  eBooks  they’re  all…

Where  to  start?

eBay.co.uk/sell

Where  to  start?

services.amazon.co.uk

Marketplaces

• Customers  are  already  there  in  their  squillions• They’re  spending  bucket  loads  of  cash• The  potenFal  is  massive• The  potenFal  is  global• Best  of  all…

The  game  has  only  just  begun

WHERE  ARE  YOU?

QuesFon  &  Answers

Over  to  You!@MaehewOgborne  /  LastDropofInk.co.uk

Thank you