ecommerce summit atlanta state of ecommerce

Download eCommerce Summit Atlanta State Of eCommerce

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From the eCommerce Summit Atlanta June 3-4, 2009. Presented by Scot Wingo of Channel Advisor sharing the current trends and future projections on where eCommerce is heading. To find out more about eCommerce Merchants please visit http://www.ecmta.org

TRANSCRIPT

Corporate PPT Template

PESAState of E-commerceScot WingoCEO ChannelAdvisortwitter.com/scotwingoebaystrategies.blogs.com, csestrategies.com, amazonstrategies, searchmarketing.com

ChannelAdvisor Corporation*

AgendaEconomic backdropOverall E-commerce TrendsE-commerce Channel TrendsPaid-searchComparison Shopping EnginesMarketplaces

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US Consumer Confidence

ChannelAdvisor Corporation*

US Consumer Confidence Improving

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2008 E-Commerce Results

Growth rate has come down from the 20%+ y/y to flat/downPersonally, I think this will mirror consumer confidence

ChannelAdvisor Corporation*

Q408 Category Breakdown

ChannelAdvisor Corporation*

Source: JP Morgan, Forrester, US Dept of commerce.E-Commerce Forecast 2009-2011

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E-Commerce Category 08/09 Growth * All amounts are $US Billions

20082009Y/Y Growth Pets1.51.820.0% Personal Care/Health + Beauty55.918.0% Food and Beverage7.38.617.8% Apparel23.62714.4% Music/Video5.56.212.7% Consumer Electronics11.112.512.6% Furniture1.61.812.5% Auto Parts3.23.612.5% Appliances/Home Improvement17.219.211.6% Movie Tickets11.110.0% Jewelry3.13.49.7% Flowers2.22.49.1% Toys and Video Games6.77.27.5% Sporting Goods2.72.97.4% Computer25.527.26.7% Books5.15.45.9% Collectibles1.71.85.9% Office Products5.25.55.8% Event Tickets55.24.0% Other7.27.42.8%

ChannelAdvisor Corporation*

Consumer Behavior Has Changed

Fewer consumers go direct over 80% of GMV driven by e-commerce channelsIf you arent on all of these channels, you are missing a material opportunity.FBR Research based on publicly available GMV Information.

ChannelAdvisor Corporation*

2008 Coupons Go Mainstream

35m visitors equates to 18% of the audience

ChannelAdvisor Corporation*

ChallengesRecessionary head-windsDiversification takes time, resources and attentionIf you are eBay only, you are missing 75% of the pie

OpportunitiesMulti-channel e-commerce gives you an advantage over competitorsPlenty of growth left in e-commerce, think of 08/09 as a minor speed bumpCoupons are hitting the mainstreamEveryones instinct is to hunker down, but this is probably the best time in our lifetimes to take share. But do so cautiously and with a measured approach

E-Commerce Trends - Summary

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E-Commerce Channel Trends

ChannelAdvisor Corporation*

Paid Search

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Huge Growing MarketPaid-search market size

Paid-search growth rates

200620072008200920102011 US$8,602$11,764$14,518$15,951$20,102$23,576 International$6,233$10,235$14,993$17,208$21,315$25,701 Total$14,835$21,999$29,511$33,159$41,417$49,277

2006-20072007-20082008-20092009-20102010-2011 US Y/Y Growth37%23%10%26%17% Intl Y/Y Growth64%46%15%24%21% Total Y/Y Growth48%34%12%25%19%

ChannelAdvisor Corporation*

Search Share TrendsSource: ComScore data

US Search Market ShareOct-08Nov-08Dec-08Jan-09Feb-09Google Sites63.1%63.5%63.5%63%63.3%Yahoo! Sites20.5%20.4%20.5%21%20.6%Microsoft Sites8.5%8.3%8.3%8.5%8.2%Ask Network4.2%4.0%3.9%3.7%4.1%AOL3.7%3.8%3.8%3.9%3.9%

ChannelAdvisor Corporation*

Search SummaryOpportunitiesMany e-commerce players like CSEs and eBay have decreased their paid-search spend due to changes Google has made with quality scoreDont believe the naysayers, search still worksWill Yahoo! and Microsoft merge or partner to create a balance to Google?Google Product Search is a great on-ramp to paid-search ChallengesSearch is very different than a marketplace or CSEYou have to generate keywordsA great e-commerce site with advanced merchandising and high conversion rates is a requirement to be able to compete successfully in the world of paid-search

ChannelAdvisor Corporation*

Comparison Shopping

ChannelAdvisor Corporation*

ChannelAdvisor some customers see CSE as large as 40% of GMV10-20% on averageForrester 55% of online shoppers influenced by CSEChannelAdvisor assist technology shows this is the case.

% of Internet audience directly using CSEs by geographyCSE Trends

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CSE Y/Y growth 5%

ChannelAdvisor Corporation*

CSE 1.0Vintage 2006Variety of models to enhance experience/businessReviews (Ciao)Social (Pronto)Traffic/fun (Jellyfish)BizModel (CPA )

CSE 1.0 vs. 2.0

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CSE Trends I

RankOct-2008Nov-2008Dec-2008Jan-2009Feb-2009Mar-2009March ShareTotal Internet : Total Audience 190,616190,775190,650191,863192,187192,173Comparison Shopping71,17576,32180,32371,59966,38466,26534%1Yahoo! Shopping25,32127,64629,72225,38723,41422,95712%2Shopzilla.com Sites24,35024,61829,41024,09720,15420,51111%3Shopping.com Sites15,12214,70416,36214,70013,01213,6247%4PRONTO.COM (w/ history)11,67511,02513,75912,14110,63511,0856%5ValueClick Sites11,31911,60812,39011,65310,69710,2865%6Google Product Search11,75311,84113,86412,46611,3829,9935%7Nextag.com Sites6,9858,2009,6578,3967,1177,5314%8MSN Shopping8,22910,76010,4297,4006,0795,4993%9SHOPLOCAL.COM5,52012,23110,4195,4465,3505,1723%10AOL Shopping (w/ history)5,3817,43310,1635,2515,3624,6092%11PriceGrabber3,5605,1016,6534,5743,7943,9272%12Become, Inc.N/AN/AN/AN/AN/A3,8882%

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CSE Trends II

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Amazon ProductAds

ChannelAdvisor Corporation*

Amazon ProductAds II

ChannelAdvisor Corporation*

Amazon ProductAds III

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ProductAds Categories and PricingOpen categoriesBaby, Computer, Consumer Electronics, Health and Personal Care, Home and Garden, Office, Sports and Outdoors, Tools and Home Improvement and Toys Restricted categoriesApparel and Accessories, Beauty, Jewelry and Watches and Shoes

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CSE - SummaryOpportunitiesForrester 55% of online shoppers influenced by CSE.Economics still work, niche sites highly effective.Next wave of innovation coming with CSE 2.0 are you ready?Google Product Search! Did I mention that its FREE?In the US 34.5%+ consumers use a CSEAmazon ProductAds are an interesting new entrant in this space

ChallengesDatafeeds are complicated.CSEs require a pretty sophisticated e-commerce site with .merchandising to hit ROI targets.ROI management is complex and requires datafeed manipulation.

ChannelAdvisor Corporation*

Marketplaces

ChannelAdvisor Corporation*

eBay is losing share in e-commerceQ408 GMV was down 12% y/y (ex-vehicles)Q109 GMV was down 20% y/y (ex-vehicles)eBay Faces Substantial Challenges

ChannelAdvisor Corporation*

eBay Major ChallengesBoth auction and fixed-price GMV accelerating their decline

ChannelAdvisor Corporation*

Top eBay Seller Areas of ConcernDemandDSRsNumber of unintended consequences is largeAre Auctions in death spiral?Is the consumer abandoning them or is eBay effectively killing the format with decreased BestMatch ExposureOff-eBay advertisingFees/costsSearch/BestMatchDid I mention demand?

ChannelAdvisor Corporation*

What are they doing to fix eBay?

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Amazon Taking ShareQ109:Amazon: 21% (21% greater than e-commerce, 41% greater than eBay)E-Commerce: 0% eBay: -20%

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Amazon Why?Prime ShippingSeller Business

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Amazons Seller Business

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eBay vs. AmazonWhat if the eBay/Amazon share change continues?

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eBay Changes June 15Smart FAQPackage TrackingMulti-sku Biggest seller change since Fixed-Price introduced linkBut not without complexity and some complex thinking

ChannelAdvisor Corporation*

Marketplaces - SummaryOpportunitiesIn face of eBays decline, you can take share on eBay if you are aggressive and early to the game with FP30, DSRs, RS.Catch the Amazon wave and hang on.New entrants like Buy.com give you an opportunity to establish a leadership role moving forward in your category. ChallengesMarketplaces are only 25% of e-commerce, dont over-focus here.eBay is 13% of global e-commerce, but losing share.Diversification can be complex if youve built your processes around a single-marketplace world.Concerns over partnering with Amazon who is a retailer.

***********US 8.9% CAGREU 9.1%Total 12.1%

Forrester has the most aggressive forecast saying that in the US we will see 11% from 08 to 09 vs 13% last year.I personally think you should think about 5-6% and be prepared for flat if the economic backdrop doesnt improve or god forbid worsens****Over 80% of your sales will come from an ecommerce channel**********Note:* If we compare the ecommerce growth rate of 11% to paid-search at 10%, they are close*Talk through the %s Show that things have pretty much stabilizedIn the UK, Google has north of 85% even than USA.Talk about persistent Microsoft/Y! rumors******UK has come down some over time from 50% to 40%Every geo sees holiday bump************************Mark lewis will give us more info.**Q4 was 30%**********