“Welcome to the live blog for ChannelAdvisor. We’ll be
live blogging the general sessions at Catalyst to make sure attendees don’t
miss anything. Also, make sure you’re following hashtag #EUCatalyst and
@ChannelAdvisor on Twitter for all of the latest updates.
Speaker: Scot Wingo
Title: State of E-Commerce
Where are we in the e-commerce adoption
2004–only 4% of retail sales were online, more than doubled by 2012 to
10% (comScore). Only the beginning.15% in the UK, 20% in S. Korea.
Forrester predicts 15% CAGR over the next 4 years.
It’s predicted by eMarketer that by 2016, we’ll hit a trillion dollars
in e-commerce. But Scot feels like this is conservative.
Scot believes that there are four waves of e-commerce that retailers
should be aware of…
Wave No. 1: Amazon Effect
Amazon growing at 25%, compared with 15% for e-commerce as a
Amazon Financials are perplexing to financial analysts. This is because
Amazon’s growth rate is coming down. Well above e-commerce and overall
retail sales. Profits are shooting up. Why? Third-party
Amazon has lowered its costs, so its profits are increasing.
Kindle, fulfilment centres, China, Prime all being funded by 3PM.
A genius model–other 3PMs are following suit. (Newegg, Taobao,
Groupon, Facebook, Best Buy, etc.)
Scot shows some great pictures of
fulfilment centres that had the audience amazed. He explained that fulfilment centres
in the UK are typically higher in height as there is less vast spaces in the
UK, compared to the US where they are low and flat.
Scot discussed that Amazon lockers are now expanding across
the UK due to the demand for easy access to Amazon products in central
locations like train stations.
A really interesting stat Scot shared with the crowd was a
Forrester stat that said 30% of consumers started online shopping at Amazon vs
13% at Google. For Google to counteract Amazon’s strength is for Google to
become a marketplace. Google Shopping has been driven by Amazon’s success.
Wave No 2. Mobile
Mobile e-commerce is growing at 73% growth. UK owner ship of
smartphones is at 64%.
You want to go to one app and have a selection rather than
going to each individual retailer’s apps. Investing in a well-functioning
mobile-friendly website is where you capture additional customers. Utilise the
aggregating apps like eBay and Amazon.
Google has married Product Listing Ads with local. Google will
now tell you where products are available near you through a PLA. This is a
great intersection of mobile and local.
Wave No. 3
“Social and e-commerce aren’t married yet, they’re still
flirting! I firmly believe they will get married, it’s just been a long
engagement” says Wingo!
Fashion retailers are really embracing Pinterest and
Instagram, especially those targeting 15-24 aged females!
Facebook Gifts in the US is a way that Facebook is dabbling
with marketplaces with Facebook Gifts, where users can buy a gift for their
friends directly through Facebook.
Wave No. 4
Cross-border trade is becoming a major focus for retailers
of all sizes. Today in the EMEA region is £184bn, Forrester is predicting that
this will grow to £264bn in 2017.
Scot is now inviting Peter Lilley, co-owner and director of
TrueShopping to the stage to discuss CBT.
40% of TrueShopping’s revenue comes from cross-border trade.
Most of that is European. The company started with Germany and the company’s
expansion grew from there.
“We evolved with our translations. We cherry-picked the
top-performing products and translated them initially then researched for what
additional products to follow with.” TrueShopping uses marketplaces like eBay
and Amazon to test the waters of expansion and gauge demand. The company is
looking to be in its third continent by the end of the year and is aiming to continue
the same path that they have done so far.
4 years ago TrueShopping had 25,000 sq ft, today they have
70,000 sq ft and cross-border trade has allowed them to add an additional
70,000ft in the last three weeks.
Brief reminder for Catalyst Europe’s social presence:
· Follow @ChannelAdvisor on Twitter as we’ll be tweeting out
updates, reminders about sessions, networking events and more
· Tag your social posts, Instagram pics with our show
· Keep tabs on discussions, networking opportunities and
more on the Pathable community at http://catalysteurope2013.pathable.com/
· Keep an eye on the eBay Strategies blog where we’ll be
live blogging the Keynotes and Main Sessions at Catalyst”