online retailers must capitalize

on this holiday season

The 3 Megatrends

Jackie Jenkins Product Manager

Link Walls VP of Product Management

#HolidayECom

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•#HolidayECom

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#HolidayECom

Agenda

1

2

What Did We Learn in 2012?

Mobile

3

4

Visual Commerce

Rising Consumer Expectations

What did we learn in 2012?

2012 Weekly Online Holiday Season Spending vs. Corresponding Days in 2011 Non-Travel (Retail) Spending, Total U.S. – Home & Work Locations Source: comScore, Inc.

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Week 1 (11/4)

Week 2 (11/11)

Week 3 (11/18)

Week 4 (11/25)

Week 5 (12/2)

Week 6 (12/9)

Week 7 (12/16)

Week 8 (12/23)

Week 9 (12/30)

2011

2012

What did we learn in 2012?

2012 Weekly Online Holiday Season Spending vs. Corresponding Days in 2011 Non-Travel (Retail) Spending, Total U.S. – Home & Work Locations Source: comScore, Inc.

0%

10%

20%

30%

40%

50%

60%

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Week 1 (11/4)

Week 2 (11/11)

Week 3 (11/18)

Week 4 (11/25)

Week 5 (12/2)

Week 6 (12/9)

Week 7 (12/16)

Week 8 (12/23)

Week 9 (12/30)

2011

2012

% Change

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2011 Cyber Five 2012 Cyber Five

0%

2%

4%

6%

8%

10%

12%

14%

16%

2011 Cyber Five 2012 Cyber Five

Mobile is now!

+63% y/y

+100% y/y

Source: http://ebaystrategies.blogs.com/ebay_strategies/2012/11/holiday-2012-cybermonday-and-cyber-five-recaps.html

% of Overall Clicks

% of Overall Clicks

meg·a·trend

(you)

Source: comScore

#HolidayECom

Source: comScore

#HolidayECom

Traffic v.

Sales

#HolidayECom Source: IBM

~10%

~20%

Mobile Tip 1: Mobile is here.

Get optimized

to CONVERT!

#HolidayECom

#HolidayECom Source: YesMail Holiday Consumer Behavior Report, 2012

And coming soon…

At peak traffic times, more than

75% of online consumers left

for a competitor’s site rather than suffer

delays.

Source: Akamai Study – Why Web Performance Matters

Mobile Tip 2:

Know your numbers

& develop a mobile

bid strategy

#HolidayECom

CPC

CPC

CPC * Adjustment

Automate Bid Adjustments

Mobile Tip 3:

Prep your feeds

BEFORE the rush!

#HolidayECom

66 percent use comparison shopping apps

Source: Pricegrabber Survey, 2012

63 percent use price check

apps

Source: Pricegrabber Survey, 2012

Mobile Tip 4:

Go where the

shoppers are

#HolidayECom

Big e-commerce players that

have poured resources into mobile shopping,

like Amazon.com and eBay, are seeing significantly

more mobile commerce.

-VP Communications, eMarketer ” ”

Are the LEADING

COMMERCE Apps

eBay

&

Amazon

#HolidayECom Source: Nielsen

Mobile Holiday Checklist

Optimize Your Website for Mobile Develop a Mobile Bid Strategy & Know Your

Numbers

Update Feeds For Price Comparison Go Where the Shoppers Are (eBay and Amazon!)

#HolidayECom

future is in between. We think the

There are useful sites &

there are inspiring sites…

-Devin Wenig, eBay

” ”

#HolidayECom

#HolidayECom

#HolidayECom

#HolidayECom

#HolidayECom

Visual Commerce Tip 1:

Invest In Quality

Images

#HolidayECom

#HolidayECom

Visual Commerce Tip 2:

Comply with image

requirements!

#HolidayECom

bit.ly/ecomimages

Visual Commerce Tip 3:

Differentiate Google

Shopping With

Images

#HolidayECom

• Price

• 35 Characters Promo Text

• Image

Options For Image Testing • Product colors

• Product angles

• Level of Zoom

• Models –vs- Products

Visual Commerce Tip 4:

Prep images for all

devices

#HolidayECom

Photo credits: Natori

Visual Commerce Checklist Invest in quality photography

Comply with the new requirements

Differentiate Google Shopping

With Images

Prep images for all devices

3

Source: Baynote, 2012

Top 4 Expectations

Consumer Expectations Tip 1:

Put your best price

forward

#HolidayECom

Importance of Repricing on Amazon

In a recent webinar, we polled attendees and

51% reprice products only ONCE every year.

Win the BUY BOX!

•Think about product specific strategies •Evaluate competition and your cost structure •Frequency

Consumer Expectations Tip 2:

Provide Free

Shipping Whenever

Possible

#HolidayECom

Source: comScore #HolidayECom

36% of online shoppers do not make a holiday purchase unless free shipping is offered.

Free Shipping Day

•Free Shipping Day in

2012 helped bring in

$1 billion in spending

(comScore)

•Encouraged 2012 late-

season surge?

Consumer Expectations Tip 3:

Communicate and

DELIVER on

shipping promises!

#HolidayECom

Not paying attention to lead-time-to-ship =

a TOP Amazon Mistake!

•Set correct expectations for each SKU!

•Accuracy trumps value, especially for the holidays when consumers are more likely to leave behind reviews.

Communicate Your Promotions, Shipping and Timelines!

Drive home the value

Time sensitivity & “exclusive” codes

Clear Expectations In Ads

Easy Bake Ovens

www.toys.com

Order By December 22 For Holiday

Delivery. Select 2-Day Shipping!

Consumer Expectations Tip 4:

Manage Reputation & Reviews

#HolidayECom

of shoppers say merchant reputation and

product reviews affect holiday decisions.

More than 70%

Source: Baynote, 2012 #HolidayECom

Google Trusted Stores Badge

3.1% increase in conversion 5.5% increase in average order size

Order Defect Rate

Buyer Claims

Amazon Reputation

Negative Feedback

Comments

Amazon 360 Dashboard

Consumer Expectations Checklist But Your Best (Re)Price Forward

Provide Free Shipping If Possible

Be Transparent With Shipping Times,

Delivery Dates and Promotional Periods Actively manage reputation and product

reviews

#HolidayECom

Holiday Checklist

#HolidayECom

• Optimize Your Website for Mobile

• Develop a Mobile Bid Strategy & Know Your Numbers

• Update Feeds For Price Comparison

• Go Where the Shoppers Are (eBay and Amazon!)

Mobile

• Invest in quality photography

• Comply with the new requirements

• Differentiate Google Shopping With Images

• Prep images for all devices

Visual Commerce

• Put Your Best Price Forward

• Provide Free Shipping If Possible

• Be Transparent With Shipping Times, Delivery Dates and Promotional Periods

• Manage reputation and product reviews

Consumer Expectations

Thank You!