Logistics and ecommerce
description
Transcript of Logistics and ecommerce
e-commercebottlenecks and opportunities
I work at WijsA digital Agency in Ghent
>>> 3 shifts in e-commerce >>>
from Brands to Products1
BR
AN
D PRO
DU
CT
50% 40%
There is no longer ‘1-DOOR’
Growing share of visitors lands on a specific product page
Front-page entrances
Bron: Google Analytics Wijs » random retail clients - exclusive direct traffic
Multi-channel consumerpath
YouTube
Social media
Blogs &niche sites
Online shops
Baekdal, new media expert
People only care about one of your products at a time, so focus your attention on each one, and stop spending all your time creating brand influence for a mass market.
eCommerceelectronic => everywhere
2
Everybody is excited about the growth of online shopping.
2-3%the share of internet-sales on the total Belgium Retail turnover.
Bron: TNS, IAB and Google » Consumer Barometer » People who purchased the product/service and are part of the online population
International sales
26%
2010 2012
Online sales grows slightly+8
%
24%
59%
International research pre-sale
36%
2010 2012
Online researc
h +64%
Bron: TNS, IAB and Google » Consumer Barometer » People who purchased the product/service and are part of the online population
Focus on research
Inspire
Advice
If online influences offline, does this goes the other way as well?
Coolblue
Over 200 webshops
Opens offline shops as ‘service points’
and extension of the webshop
Online sales increases in the
neighborhood of offline shops
YouTube
Social media
Blogs &niche sites
Online shops
No longer a difference between online & offline
The trend of mobile3
But what is mobile?
It’s a verb
It’s an action
Mobile is not a device
mobile is freedom
TIME
PLACE
CHOICE
mobile is freedom
Freedom to not have to plan
When will I do it?
Where will I do it?
How will I do it?
The ability to act on impulse
NOW
HERE
THIS WAY
Growing trend of buying cross-border
Evolution of cross-border shopping
0%
5%
10%
15%
20%
2006 2007 2008 2009 2010 2011
12%9%9%9%9%
7%
EU consumers purchasing online cross-border within the EUBought cross-border in a Belgian shop
18%
‣ For 50% of the product searches, prices are 10% cheaper when buying cross-border than buying from a belgian web shop.
‣ 65% of the products we search are only available in foreign shops.
Why cross-border shopping?
So who is your real client?
CUSTOMERSHOP
DISTRIBUTIONPARTNER
Challenges?bottlenecks and opportunities
Delivery points
Delivery is among the top 3 reasons to buy online
Because I can fi nd products and services at lower prices
Because it saves time
Because it gets delivered to my door
Because I get access to special discounts, promotions...
Because I’m able to shop 24 hours a day
Because I have a wider selection of products/services online
Because I can compare and review different products/services
Because I avoid crowds
Because there is more product information online
Because I get access to products/services that aren’t available in my country
Because I can see whether items are in stock
Other reason
0% 25% 50%
4%
12%
14%
15%
16%
23%
24%
33%
34%
35%
42%
43%
Source: Comeos Belgium 2013
Home delivery is by far the preferred option
Source: Comeos Belgium 2013
Home delivery
Pick-up at pick-up point
Pick-up at the shop
Delivery at work
Pick-up in a locker (sealed container to be opened with a code
Does not matter
Other
0% 35% 70%
1%
2%
0%
4%
7%
15%
70%
But what is home delivery?
CU
STO
MER
SER
VIC
E M
AG
IC
I just ordered something, but I might not be home tomorrow. Can I change it to a delivery point? How do I do that?
1
2 The options, advice about the best solution. Where would you like to get your delivery?
3 We changed it for you. You’ll get confirmation mail.Don’t forget to bring your passport ;)
My home is where... where my car is
My home is where... I am at that moment
Are you ready for this?
On and offline
A pizza (low margin) can be delivered within 30 min., and it stays hot!
Shop local stores online and get items delivered the same day
Google is entering the market
for everyday items
Product > brand > shop
‣ Same prices and promotions as in-store (on- & offline)
‣ Shopping made simple - wherever you are (impulse)
‣ Getting it delivered on your schedule (freedom)
‣ Combining delivery (price) from different stores
Google shopping express
Are you ready to face your new competitors?
Shipping costs
One of the (main)reasons we buy online, is because of price
I find cheaper products online
I save time by buying online
I can order at any time of the day/week
It’s easier to compare prices online
I can only find certain products online
There’s more choice online
Products are delivered to a convenient place
I can find product reviews by other consumers
I can find more information online
I don’t like going to shops
I find better quality products online
I can return products easily
14%
16%
22%
31%
27%
16%
22%
39%
42%
37%
2%
6%
8%
9%
10%
11%
19%
22%
33%
33%
50%
66%
Europe (2011) Belgium (2012)
and in general, it’s true that its cheaper online
Mobile phones
Laptops
Digital cameras
In-car navigation
LCD TVs
Portable MP3 players
Premium women’s fragrances
Video games hardware
Traditional toys
Men’s outerwear
Women’s outerwear
Power tools and accessories
Instant standard coffee
Standard milk formula 8,70%4,00%
-6,40%-1,80%1,50%
-13,90%-7,60%
-16,50%-4,10%
-11,10%-8,10%
-1,60%-4,50%
-0,90%
Average price difference online vs offline (excluding delivery costs)
Mobile phones
Laptops
Digital cameras
In-car navigation
LCD TVs
Portable MP3 players
Premium women’s fragrances
Video games hardware
Traditional toys
Men’s outerwear
Women’s outerwear
Power tools and accessories
Instant standard coffee
Standard milk formula 40,80%46,90%0,50%5,30%7,80%
8,50%-6,30%
-9,30%1,70%
-8,90%-5,20%
2,60%-3,10%
0,70%
Average price difference online vs offline (including delivery costs)
but not so true, once shipping costs are added to the equation
$5
$8
$0
$2
$5
$5
‣ 7 places to check up on my delivery
‣ 7 mails to remind me
‣ 7 different payment methods
‣ 7 different prices
‣ 7 different delivery days
‣ 7 risks of losing something
‣ 7 times frustrations and risks
Clusterf*ck
DISTRIBUTIONPARTNER
$5
$8
$0
$2
$5
$5
Are you ready to make the shift?
Payment models
if your shopping-cart > 20 euros
price
Delivery
€ 13
€ 2
Price increase 15%
Source: bol.com
Limits the freedom to shop NOW
I will wait till there is something else I need
Spotify
Spotify
Source: CarDrops
Monthly fee payed by the consumer
If price is the bottleneck for shops AND customers today, do you think you could address this?
So who is your real client?
CUSTOMERSHOP
DISTRIBUTIONPARTNER
How will you leverage freedom without adding complexity?
How will you leverage freedom without breaking the connection with the shop?
QUESTIONS?
GRATIS
http://wijs.be/nl/downloads/de-shift-in-retail
@lisamille_be