Top E-commerce Trends 2012

Grzegorz WojcikHead of Corporate Relations

MIH Internet Europe, Allegro Groupgrzegorz.wojcik@allegro.pl

Ro New Media 6.0May 18th, 2012

E-commerce Trends Agenda:

• E-commerce Business Models

• Top E-commerce Trends in 2012

• Conclusions

1E-commerce Business Models

>> E-commerce - part of Commerce

Shopping is a process of many phases:

• Awareness

• Interest

• Decision

• Action

• Post-sale

• Re-sale

>> follow the consumer <<

>> Consumer Perspective

Consumer is making decisions based on:

• Priceo total sales cost

o future benefits (loyalty gratuity)

• Selectiono product availability (including delivery timing)

• Convenienceo superb product presentation

o shipping options

o payment options

>> follow the consumer <<

>> Seller's perspective

Boundaries of e-commerce models are blurring:

• Internet Retail (online retailers/e-tailers)

• Intermediaries - 3rd party Marketplaces

• General and Vertical Classifieds

• Lead Generation (Comparison Shopping)

• Payments

>> follow the consumer <<

Amazon eBay

Allegro.pl

Blocket.se

Mercador.roeMag.ro

Ceneo.pl Heureka.cz Compari.ro

Comparison Search Engines:

Retailers: 3rd party Marketplaces: Classifieds

Examples:

2Top E-commerce Trends 2012

TOP E-COMMERCE TREND

• Consumers: what is my unique selling proposition?o What is my product catalogue (price, selection, convenience)?

o How am I effective in consumer acquisition (marketing)?

o What do I do to boost my customer satisfaction?

• Who is my competitor?o What is my leverage on suppliers?

o Should I compete alone or cooperate with platform providers?

o How can I scale for growth?

• How am I efficient? - measure everything!o What is a fact and what is a prediction?

o What is my priority for growth?

o Am I local or do I go for cross-border trading?

5

Rethink the basicscross-border

TOP E-COMMERCE TREND

• Lead generation - social networkso Comparison Shopping

o Facebook, YouTube, Google+, Twitter, etc.

o Pinterest – visual discovery

• Recommendations and gamificationo Connect people, ideas and ...products

o Convertion of fans into loyal customers

o Loyalty programs based on personalized expectations

• Business inteligence integrationo Quality based marketing

o Convertion based website usability

4

Social Integration

FacebookYouTube

New Visual Discovery:eg: PinterestTwitter

Examples:

TOP E-COMMERCE TREND

• Visual: from operational to beautifulo eye catching images

o interactive video

o 3D presentation and augmented reality

• Hyper-verticalizationo Single Page Stores

o One Category Verticals

o Discovery Zones in Comparison shopping

• Dynamic pricingo Know your customer: traffic sources, ARPU, LTV (LCV)

o Loyalty program and recommendation systems

3

Inspirational Design

Interactive – Clickable video

3D presentations across many categories

Hi Resolution ZoomVirtual Dressing Room

Examples:

TOP E-COMMERCE TREND

• New format of potential consumers:o internet users --> general public

o product: simplicity or resignation

o tablet browsing experience:mobile apps vs mobile optimized sites

• Location based serviceso Product Discovery

o Emotional Shopping

• Smartphone personalization and loyaltyo Recommendation Deals

o Coupons & loyalty programs

o Payments

2

Mobile Experience

Examples:

TOP E-COMMERCE TREND

• Technology innovationo Remote payments

o Proximity payments

o Cash-killer vs at-the-door experience

• Consumer experience beyond single transactiono Electronic Wallet (Simple-Universal-Secure-Fast)

o Loyalty club cards

• Business model disruption:o banking industry

o telecommuniction industry

o intermediaries

1

M-Payments

Credit Card - Square

iWallet Patent from Apple

NFC Payment Apps

PayU – integration with banking

Examples:

See also YouTube videos:

• PayPal - Future of Shopping

• Google - Google Wallet

TOP E-COMMERCE TRENDON TOP

Brands GO onlinewith multi-channel strategies

TOP E-COMMERCE TRENDON TOP

Regulatory Affairs1. E-commerce package

2. Notice and Action procedures

3. Common European Sales Law (CESL)

4. Data Protection Regulation

5. Online Dispute Resolution

6. E-Payments

7. European Consumer Agenda

8. Internet Security

9. Anti-Counterfeiting Trade Agreement (ACTA)

10. Net Neutrality

11. Cloud Computing

12. European Retail Action Plan

3Conclusions

>> Conclusions

Start-up DNA and professional processes:

• Define your strategy (model, USPs)

• Listen to your users & customersand measure everything!

• Fire, Aim, Load! Repeat!

• Checkout

Thank you :-)

Grzegorz WojcikHead of Corporate Relations

MIH Internet Europe, Allegro Groupgrzegorz.wojcik@allegro.pl

>> YouTube Videos used as examples

Click to see YouTube videos:

• Google – Google Analytics (http://www.youtube.com/watch?v=3Sk7cOqB9Dk)

• PayPal - Future of Shopping (http://www.youtube.com/watch?v=V7q1jx8mYi8)

• Google - Google Wallet (http://www.youtube.com/watch?v=DsaJMhcLm_A)