UK eCommerce - aicep Portugal...
Transcript of UK eCommerce - aicep Portugal...
An introduction toUK eCommerce
Josh Duggan - Vervaunt
ABOUT ME...
8 Yearsdigital experiencePredominantly ecommerce/ retail and paid media
Managed clients inclGoogle, Nintendo, Schwarzkopf, Wilkinson Sword, Butlins and many others
6 Yearsexperienceworking for digital marketing agencies
2 Yearsco-owning anecommerce & paid media consultancy (London) - Muji, Playstation, Dr Martens, Lulu Guinness, Poundshop, Self Portrait..
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AGENDAUK eCommerce market
Customer behaviour / expectations
eCommerce platforms
Key channels
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UK ECOMMERCE
MARKET
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HOW BIG IS THE UK ECOMMERCE MARKET IN 2019The UK eCommerce markets continues to grow, expected to be worth...
81.99Bn. €+6.5% YoY 63m users (+1.7% YoY)
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THE UK MARKET HAS SEENCONSISTENT & CONSIDERABLE GROWTH
UK eCommerce sales (in GBP million)
2000
1500
1000
500
0
JAN 2013
JAN 2014
JAN 2015
JAN 2016
JAN 2017
JAN 2018
JAN 2019
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ECOM SALES ARE TAKING AGROWING % OF OVERALL RETAIL SALES
UK Retail eCom Sales (billions £)150
100
50
0
2017
2018
2019
2020
2021
2022
30.00%
20.00%
10.00%
0.00%
% of Total Retail % Change Retail eCom Sales 7
US$561
UK$93
GERMANY$77
FRANCE$55
RUSSIA$19
CHINA$740
SOUTH KOREA$69
JAPAN$87
AUSTRAILIA$22
BRAZIL$16
CANADA$44
10 largest ecommerce markets (by billion USD)
• The UK is the 3rd largest ecommerce market globally, second to only China and the US
• A Payvision study of last year has shown that Britishconsumers are the most likely to shop online cross-border as well, with 54% making at least one purchase on a foreign website
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The UK is the 3rdlargest ecommerce market globally,second to onlyChina and the US• Before expanding internationally, it’s crucial to
understand your potential target markets, including how digitally mature and business-friendly they are
• The UK’s growth is as strong as other EU markets, with Spain seeing the largest growth (relative) between 2014 and 2017
% Share of Core EU Markets Ecom Sales
15%
10%
5%
0%UKGERMANY
FRANCE SWEDEN NETHERLANDS SPAIN
20%
POLAND ITALY
2014 2015 2016 2017
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FASHION ISTHE LARGESTECOMMERCE CATEGORY
Revenue by category (in million €)125,00
0
100,000
75,000
50,000
25,000
0 2017
2018
2019
2020 2021 2022 2023
Food & Personal Care Furniture & Appliances Toys, Hobbies, DIY Electronics & Media Fashion10
CLOTHING & SPORTING GOODS ARE THEMOST POPULAR ECOM PRODUCTS
Most popular ecom goods60.0%
40.0%
20.0%
0.0%clothes
or sports goods
household goods
holiday accom
travel tickets for events
films, music
books, mags, papers
food or groceries
electronics
gaming/ comp
software
telecom services
computer hardware
medicine e-learning material
shar
e of
resp
ond
ents
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AMAZON & EBAY ARE THELARGEST RETAIL SITES IN THE UK
eCom Store visitors (in 1000s)
visi
tors
in t
hou
san
ds
25,000
20,000
15,000
10,000
5,000
0 Amazon eBay Home Retail Group
Tesco Stores
Wal-Mart John Lewis
Dixons Retail Pic
Marks & Spencer
NEXTGroup
Sainsburys
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ECOM SALES ARE TAKING AGROWING % OF OVERALL RETAIL SALES
UK Retail eCom Sales (billions £)
60
40
20
0
2016
2017
2018
2019
2020
2021
60.00%
40.00%
20.00%
0.00%
% of Total Retail Mobile Sales
80
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MARKETPLACES
IN THE UK
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• Before launching a localized online store, consider experimenting with a marketplace that serves your target region or country. A total of 60% of online sales takes place on marketplaces (Shopify)
53%of online shoppers are making purchases on marketplaces three or more times per month
• Marketplaces are also growing faster than general ecommerce retailers
• Over two thirds of brands and retailers are already using marketplaces
• BenefitsFulfillment Immediate audienceInternational expansion with less risk/ investment
MARKETPLACEINTRO
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STRATEGY & HOWTO GET STARTED...• Make sure you are building your brand and pushing your brand
message and USPs with your contentBuilt out product pages and details Quality photos
FAQ and reviews (where possible)Include cards/ promotions/ loyalty options in deliver package
• Focus on your top selling and relevant products and expand out based• Build up reviews etc and assess order management and feedback etc• Choose Fulfillment And Warehouse Partners Carefully Accurate delivery, tracking capability
Support and costs• Use translated copy, local currency• Try and place on the Amazon ‘Buy Box’ or ‘Lightning Deal’ promotions• Select other more niche marketplaces which resonate with your brand
Sustainable, fast fashion, luxury, quality,
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CUSTOMERBEHAVIOUR &EXPECTATIONS
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CUSTOMER BEHAVIOUR& EXPECTATIONS
say reviews are a key factor when
shopping
to be rewarded with discounts for their
loyalty
97% 71% 20%of customers of customers want drop in conversion
rate for every 1 second mobile
pages taketo load
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SITE EXPECTATIONS &ECOM RECOMMENDATIONS30% of Amazon’s site revenue is from the recommendations block and for large catalogues this can have really positive impacts on performance
search navigation is becoming more and more prominent (especially on mobile) where users can navigate much more quickly to specific product pages
email is a huge channel for UK retailers; 86% of marketers say it is ‘important’ or ‘very important’ to their multichannel marketing strategy
64% of customers find customer experience more important than price. By 2020, the quality of customer experience provided by a brand will be more important than price
Personalisation
Search
CRM
Price Vs brand
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THE IMPORTANCE OF LOCALISATION & LANGUAGE FOR EXPANSION
of users want to buy products in their native language
75%
of consumers spend most of their time on websites in their own language, so adapting your offering totheir native tongue is crucial
72%
• ASOS are a great example of a retailer who have successfully internationalised (2009-2010 international sales increased by 95%)
• Dedicated websites in strategic country markets (e.g. the UK, US, France, Germany, Australia and Russia)
in-country teams and locally-relevant product offers payment methods, currencies, delivery options.
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• Up to 16% of shoppers abandon cart if their preferred payment option isn’t available
• Card dominates, accounting for close to 52% of all online payments made in the UK in 2018. The most popular
Visa, Mastercard, and AmEx• Paypal is the leading payment app• Emerging payment methods are becoming more important
Apple Pay, Amazon Pay & Google Pay27% of UK consumers listing Apple Pay as their favourite method of buying things
• Short term financeKlarnaAmazon Pay Monthly Buy now, pay later
LOCALISE YOUR CHECKOUT& PAYMENT GATEWAYS
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(91%) of consumers check delivery options prior to check out• Unexpected Extra costs at checkout are the number one cause for drop offs• UK respondents believed paying for shipping costs to be the worst part of
online shopping (24%), followed by waiting to receive the product (17%) and, finally, an inability to touch or try on the product (16%)
• Look at your competitors and ensure shipping speed is in-line with UK retailers (furniture is often 8 weeks)
• Apply an expected delivery date and if possible customer tracking details• Nearly two-thirds of online shoppers state they would like to receive
products within a matter of hours after ordering. However, less than 33% are willing to pay extra for faster delivery
• 25% of UK respondents would pay up to £5 for a same day delivery – although 23% said they’d expect this service to be free
• Post & Parcel study - 99% of respondents would expect packages to arrive within 7 days
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SHIPPINGEXPECTATIONS• Postcode search and find my address are options to help users more
quickly add in their address• 57% of shoppers will cancel orders if shipping costs are too high. How
does free shipping impact online purchases?• The cost of not offering free shipping of customers will abandon cart if
free shipping isn’t covered• When it came to women’s fashion items, 48.3% preferred next
day delivery. 43.4% also preferred next day delivery for electronics,housewares, and furniture, while another 20.4% didn’t mind the delivery timeframe for these categories
• Evidence shows that introducing tracked shipping leads to higher shopping cart spend
• Some 72% of customers said they were either “likely” or “somewhat likely” to shop more with a retailer that made the returns process easier
• 70% increase in conversion rate when websites were fully localised. 56% of the shoppers said the ability to obtain information in their own language is even more important than price
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ECOMMERCEPLATFORMS
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THE UK’S LARGEST ECOMMERCEPLATFORMS FOR MID-SIZED RETAILERS
Pros
Cons
International..
Benefits for small retailers
Pros
Cons
International..
Benefits for small retailers
Pros
Cons
International..
Benefits for small retailers
Pros
Cons
International..
Benefits for small retailers
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DISTRIBUTION
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FULFILLING IN THE UK WITH THIRD PARTY LOGISTICS (3PL)• Pick and packing
Full warehousing infrastructure, products selected, scanned and packed in high quality condition. Gift wrapping and messaging are all possible
• Systems & Inventory managementIntegrate with your existing sales and ecom systems. Manage CRM and customer transaction data
• Despatch3PL will manage the distribution relationship and will often delivers lower costs
• ReturnsSeamless returns process managed through the 3PL incl. re-labelling, re- packing etc
• Customer Service Contact CentreOutsource customer service to a local team. Full visibility from receipt to delivery (incl. 7 days a week, social media etc)
• Inventory ManagementReal time stock management, sales and stock analysis and immediate and easy access to stock levels
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SHIPPINGVIA COURIER
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SHIPPINGVIA COURIER• Next day delivery is possible
• Routes and courier based on cost effectiveness and reliability
• Door to door solution, fully tracked throughout the journey as well
• Couriers can also link with ecommerce platforms, order management systems and warehouse management systems
• Parcelhub for example will pull order data automatically and wait for approval to book the pick-up and print the labels etc
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KEYCHANNELS
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PAID SEARCH TOP TIPS& RECOMMENDATIONS• Paid search and Google Shopping are typically the quickest and
most efficient methods to grow new customer acquisition• Text ads serve based on keywords you select - terms your customers
are searching for which you want to bid on
You want to create tightly themed ad groups which groups keywords with ads and landing pages.Ad copy should reflect (ideally include) your keyword and you want to send users to the most specific pageYou can enter your site URL into the keyword planner for search volume and cost forecasts
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GOOGLE SHOPPING TOP TIPS& RECOMMENDATIONS• Google shopping now accounts for 80% of paid retail traffic (excl.
Branded terms)
It is becoming a bigger channel than text ads for retailers and typically drives higher conversion rates and lower CPCs
• Set-up is easier than text ads - where Google simply uses your product feed data (to build ads and appear select which terms to appear on)
• This can lead to ads serving on irrelevant queries and negative keywords should be updated regularly
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ORGANIC / SEOTOP TIPS & RECOMMENDATIONS
Meta tags
Meta title
Content Links
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SOCIAL TOP TIPS & RECOMMENDATIONS• 30% of Gen Z buyers saw an ad about the product on social
media & 23% online shoppers are influenced by social media recommendations
• Dynamic product ads will be the most effective ad format and then you can expand and test targeting new users - lookalikes, competitor brands, and then broader audiences based on insights etc
• To grow your social following organically you need to post interesting and engaging content and understand your audience. Create the right content for your customers, engage with them and also interact with the influencers they trust
• The best approaches for your first social strategyGiftingGuest posting Sponsored content Social media mentions
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EMAIL TOP TIPS &RECOMMENDATIONS• Email generates around £29bn retail sales annually (Marketing
Week) and delivered a 32:1 ROI for retailers in 2017 (DMA)• Personalisation & automation are two of the most important
considerations when planning email• ~70% percent of online carts are abandoned and cart
abandonment emails are typically the most effective form of email and automation (“your cart is expiring soon”)
• Other automated behavioral emails may includeUp-sell & cross-sell - User buys (product), recommend this product set
Promotional and sale emailsCustomer Loyalty and Re-Engagement Emails
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THANK [email protected]
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