tag:econsultancy.com,2008:/topics/ecommerce Latest Ecommerce content from Econsultancy 2016-05-04T14:27:00+01:00 tag:econsultancy.com,2008:BlogPost/67809 2016-05-04T14:27:00+01:00 2016-05-04T14:27:00+01:00 Five digital trends for retail in the next five years Nikki Gilliland <p>Try sticking that in your supermarket trolley.</p> <p>Ovum and Criteo’s <a href="http://www.criteo.com/resources/ovum-future-ecommerce/" target="_blank">Future of Ecommerce</a> report recently predicted the biggest trends to impact retail in the next five to ten years.</p> <p>Brace yourselves as we take a look at some of the biggest:</p> <h3><strong>1. Shopping as an immersive experience</strong></h3> <p>From virtual changing rooms to in-store selfie competitions, brands are becoming more intent on creating a shopping ‘experience’ to remember.</p> <p>With the rise of virtual and augmented reality, this looks set to explode on a whole other level. </p> <p>In future, technology will allow us to build on the likes of <a href="https://econsultancy.com/blog/63574-augmented-reality-the-ikea-catalogue-and-beyond/" target="_blank">Ikea’s AR app</a> and <a href="http://www.digitaltrends.com/mobile/dior-eyes-vr-fashion-show-headset-news/" target="_blank">Dior Eyes VR</a>, creating experiences both at home and in-store that blur the lines between the digital and physical world.</p> <p>Of course it is important for brands to ensure an intrinsic benefit for the consumer, otherwise there is the risk of this technology being used as merely a sales gimmick.</p> <p>Advantages also lie in resolving practical issues, such as reducing the likelihood of returns by allowing us to ‘try before we buy’.</p> <p><img src="https://assets.econsultancy.com/images/0007/4607/dior_eyes.jpg" alt="" width="770" height="403"></p> <h3><strong>2. Brands know where you live</strong></h3> <p>Thanks to the likes of Uber and Deliveroo, we’re used to giving away our location on a regular basis.</p> <p>In future, the world of ecommerce looks set to utilise this behaviour to build on the ultimate curated shopping experience.</p> <p>As well as using algorithms to monitor what we’re browsing, brands will be able to find out where we are doing it, meaning timely and <a href="https://econsultancy.com/blog/67418-what-is-location-based-advertising-why-is-it-the-next-big-thing" target="_blank">ultra-targeted marketing</a> being sent direct to our mobiles.</p> <p>So, if you regret not buying that shirt you saw on sale, don’t worry, Bluetooth Low Energy technology (BLE) means that the brand will know exactly how long you spent debating it.</p> <p>In turn, this means you will probably receive a reminder or even an offer tempting you to make the purchase long after you’ve left the shop.</p> <h3><strong>3. Pop-ups are here to stay</strong></h3> <p>Pop-up shops have been popular for a while, however until now they have been seen as the hallmark of the new or independent boutique brand.</p> <p>In future, both online retailers and established brands will utilise physical space to maximise resources and build awareness around a particular product or release.</p> <p>A great example of this is Lidl’s ‘Duluxe’ restaurant – a pop up designed <a href="https://econsultancy.com/blog/65423-four-reasons-to-admire-the-lidlsurprises-campaign/">to promote the supermarket’s Christmas range</a>.</p> <p>During its short run, diners were invited to sample the food without prior knowledge of where it was sourced from.</p> <p>With both surprise and interactive elements, the pop up succeeded in attracting new audiences as well as creating hype.</p> <p><img src="https://assets.econsultancy.com/images/0007/4600/pop_up_shops.jpg" alt="" width="800" height="560"></p> <h3><strong>4. Mobile-first for advertising</strong></h3> <p>Further to brands marketing directly to mobiles, it is predicted that by 2019 global mobile advertising revenues will increase from $22.64bn dollars to an impressive $63.94bn.</p> <p>Why the big leap? Up until now, most of this revenue has stemmed from basic mobile web advertising, however in future it will continue to be integrated into messaging platforms.</p> <p>With this type of in-app advertising, <a href="https://econsultancy.com/blog/67767-will-conversational-marketing-become-a-reality-in-2016/">direct conversations between the brand and the consumer</a> will become the norm.</p> <p>And the good news is that it won’t only benefit the retailer – it could also help improve service, delivery and general levels of customer satisfaction.</p> <p>On another note, the use of mobile for payments is also predicted to sky rocket, increasing from an estimated $452.78m to $2.07bn global users by 2019.</p> <p><img src="https://assets.econsultancy.com/images/0007/4610/Mobile_Advertising.PNG" alt="" width="784" height="405"></p> <h3><strong>5. The rise of digital assistants</strong></h3> <p>If your feelings towards Siri or Cortana are neither here nor there, you might grow to appreciate the digital assistants of the future.</p> <p>In an ever-expanding world of online retail, it can often be hard to find exactly what we’re looking for. Do we even know ourselves? </p> <p>By filtering out wrong sizes or products we’re unlikely to purchase, digital assistants will be able to help us hone our shopping activity in a more streamlined and ultimately successful fashion.</p> <p>Of course, with concerns over privacy, initiatives like <a href="http://www.gsma.com/personaldata/mobile-connect" target="_blank">GSMA’s Mobile Connect</a> – a tool that allows users to control how much data they share – are likely to also gain in popularity.</p> <p><img src="https://assets.econsultancy.com/images/0007/4606/digital_assistants.jpg" alt="" width="800" height="532"></p> <p>For more information on the future of ecommerce, check out our report on <a href="https://econsultancy.com/reports/digital-transformation-in-the-retail-sector" target="_blank">Digital Transformation in the Retail Sector</a>.</p> tag:econsultancy.com,2008:BlogPost/67793 2016-04-29T10:05:11+01:00 2016-04-29T10:05:11+01:00 15 startling digital marketing statistics from this week Ben Davis <h3>Organic social visitors have 4% higher AOV than average at MADE.COM</h3> <p style="font-weight: normal;">Hannah Pilpel, social project manager at MADE.COM, <a href="https://econsultancy.com/blog/67778-made-com-on-the-value-of-social-commerce">gave us an interview</a> this week.</p> <p style="font-weight: normal;">She let slip some very interesting figures about the value of social to ecommerce.</p> <ul> <li>People who came to MADE.COM from organic social had an average order value 4% higher than the site average in Q1 2016. </li> <li>Users who visited MADE Unboxed (MADE.COM's own social network / community hub) during their visit had 3x higher dwell time and an average order value up 16% on the site average in Q1.</li> <li>Collections with videos have sold four to nine times more pieces than those without.</li> </ul> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/4269/made.com.gif" alt="made.com video" width="427" height="306"></p> <h3>Internal competition hindering digital transformation</h3> <p style="font-weight: normal;">Forrester and Squiz have a <a href="https://econsultancy.com/blog/67792-what-does-startup-culture-really-mean-how-can-it-help-big-businesses-transform/">new report on digital transformation</a> that reveals some startling news.</p> <p style="font-weight: normal;">43% of firms with a mature digital strategy see competing departments wanting to own digital as the most significant barrier to effective digital transformation.</p> <p style="font-weight: normal;">Other findings from the survey of 410 IT and business decision makers include:</p> <ul> <li>54% say that fostering a culture of innovation is a critical enabler of digital business.</li> <li>89% are planning to improve partnerships with external startups and accelerators in order to innovate.</li> </ul> <h3>51% of UK searchers can't spot a paid ad</h3> <p>Ofcom's annual Media Use and Attitudes report is fascinating as always.</p> <p>We <a href="https://econsultancy.com/blog/67783-five-key-findings-for-marketers-from-ofcom-s-media-report/">covered it fairly extensively</a> - here are some highlights.</p> <ul> <li>18% of searchers think that if a website has been listed it must be accurate and unbiased.</li> <li>12% say they have not thought about it.</li> <li>8% say they do not know.</li> </ul> <p>Away from search, the continued rise of very successful intermediaries such as Facebook means users are discovering fewer new websites and apps.</p> <p><img src="https://assets.econsultancy.com/images/0007/4277/Screen_Shot_2016-04-25_at_13.06.11.png" alt="app usage" width="615"></p> <h3>Average product page conversion rate is 7.91%</h3> <p>Receiptful has conducted <a href="https://receiptful.com/academy/product-page-conversion-rates-report/">a large study</a> of 2,687 online stores and found the average product page conversion rate is 7.91%.</p> <ul> <li>For one site studied this was as high as 49.73% of its product page traffic turning into sales.</li> <li>The median product conversion rate is 5.97%.</li> <li>At the low end, some brands convert only 0.10% of the traffic that hits their product pages.</li> </ul> <p>Of course, although global <a href="https://econsultancy.com/reports/conversion-rate-optimization-report/">conversion rates</a> have been estimated in many studies (usually given as 2-3%), the undertaking is somewhat arbitrary, given that conversion rate is influenced by so many factors (from product to web design to marketing).</p> <p><img src="https://assets.econsultancy.com/images/0007/4444/Screen_Shot_2016-04-28_at_18.20.12.png" alt="conversion findings" width="615"></p> <h3>UK newspapers lose £155m in print advertising</h3> <p>The total UK ad market grew 7.5% to £20.1bn in 2015, the fastest rate of growth since 2010.</p> <p>However, Warc's <a href="http://expenditurereport.warc.com/">Expenditure Report</a> shows it's far from a rosy picture for print.</p> <p>National newspapers endured an 11% fall in ad revenue to £1.2bn in 2015.</p> <ul> <li>Cinema advertising was up 21%.</li> <li>Internet advertising grew 17.3% in 2015 to £8.6bn.</li> <li>Mobile ad spend was up 61% to £2.6bn.</li> <li>TV advertising was up 7.3% to £5.2bn. </li> </ul> <h3>Bing has 11% of worldwide PC searches</h3> <p>Microsoft's Q1 earnings revealed the current hold that Bing has in the global search market. </p> <ul> <li>Bing now has 31.1% of the US PC search market,</li> <li>17.3% of the UK market,</li> <li>and 11% worldwide.</li> </ul> <p>That equates to 16bn monthly searches globally. What the figures look like across all devices, well, I'm not sure.</p> <h3>Mobile and desktop experiences are on a par in the travel industry</h3> <p>eDigitalResearch conducted a <a href="https://edigitalsurvey.com/survey/do/session/a05c412c3ca4e479999eb6883bf5d4dcbbb4dc8e581d88f02a892104bdea1f75/restart_url/L3N1cnZleS9lbnRlci9zL0VTVi04MzQ0MTM3ODA/is_entering/1">travel benchmark report</a> based on user testing of a variety of travel websites.</p> <p>For the first time, mobile experiences are now rated on a par with desktop with both touchpoints achieving an overall average score of 84%.</p> <p><a href="https://econsultancy.com/blog/66362-is-booking-com-the-most-persuasive-mobile-website-in-the-world">Booking.com</a> tops the standings for a fifth consecutive time.</p> <p><img src="https://assets.econsultancy.com/images/0007/4448/Screen_Shot_2016-04-28_at_18.36.04.png" alt="travel ux" width="615"> </p> <h3>39% of telcos display a phone number on their homepage</h3> <p>A further 20% show a phone number after one click.</p> <p><a href="https://nowinteract.com/telecoms/lack-proactive-contact-channels-harming-telcos/">Now Interact's research</a> looked at 54 leading telecoms companies across the US and Europe and found that:</p> <ul> <li>Despite 56% of telcos analyzed displaying a phone number within the order flow, only 6% connect the visitor directly with the right call centre agent.</li> <li>78% of all channels offered to website visitors were offered in a reactive way – visitors have to seek out a channel in order to use it.</li> </ul> <h3>16% of UK adults will never complain in person</h3> <p>Review platform Trustpilot found that two thirds of Brits (66%) will avoid confrontation where possible, and 16% are so shy that they will never complain in person.</p> <p>50% feel they can express themselves better online than they can in person.</p> <p>The online poll of 2,000 UK adults was conducted by One Poll in April 2016. Sadly, I don't have a link.</p> <h3>Programmatic display viewability improved 62% year-on-year</h3> <p><a href="https://econsultancy.com/reports/programmatic-branding">Programmatic media</a> trading volume has maintained robust growth rates both globally and across Europe in Q1 2016.</p> <p>Accordant Media's <a href="http://pages.accordantmedia.com/l/120912/2016-04-19/2xnnr5%20">Programmatic Media Market Pulse</a> revealed the following: </p> <ul> <li>Q1 2016 RTB media auction volume jumped 217% year-over-year.</li> <li>Viewability is improving by 62% year-over-year and non-human traffic (NHT) decreasing by 81%.</li> <li>Smartphones accounted for 71% of all mobile programmatic transactions in Q1, up from 59% in Q4.</li> <li>Cross-device marketing can lead to a 19% higher conversion rate.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4445/Screen_Shot_2016-04-28_at_18.25.56.png" alt="programmatic trends" width="615"> </p> <p><img src="https://assets.econsultancy.com/images/0007/4446/Screen_Shot_2016-04-28_at_18.26.09.png" alt="programmatic trends" width="300">  <img src="https://assets.econsultancy.com/images/0007/4447/Screen_Shot_2016-04-28_at_18.27.00.png" alt="programmatic trends" width="300">  </p> <h3>73% of Brits do not expect to be paying with cash in five years’ time</h3> <p>Starcom's study of 1,500 Brits also suggested that half the nation currently distrusts cashless technology</p> <p>No link I'm afraid.</p> <h3>Insurance companies answer only 40% of Facebook queries</h3> <p>The sector is delivering excellent service on email (answering 80% of questions), but lags behind on Twitter (50%) and Facebook (40%). </p> <p><a href="http://www.eptica.com/resources/white-papers">Eptica reviewed</a> 100 major UK insurance brands (find the methodology in the report).</p> <ol> <li>Response times range from eight minutes to over five days and few companies deliver consistent answers across different channels.</li> <li>Every brand included in the study had a presence on Twitter, but only half responded successfully to a tweeted query.</li> <li>Email response rate (80%) has improved dramatically from 50% in 2015.</li> </ol> <p><img src="https://assets.econsultancy.com/images/0007/4450/Screen_Shot_2016-04-28_at_18.47.48.png" alt="insurance experience" width="615" height="481"></p> <h3>51% of Europeans will check digital sources daily to catch up during Euro 2016</h3> <p style="font-weight: normal;">And 88% will check in at least once per week.</p> <p style="font-weight: normal;">RocketFuel's research (no link I'm afraid) also concludes:</p> <ul> <li>Nearly half of Europeans are planning to use online video to catch up on games (51%).</li> <li>Half of fans are planning to use the internet more than they have in previous years, and 57% will access Euro 2016 content wherever they are.</li> </ul> <p style="font-weight: normal;">TV viewing still dominates, but:</p> <ul> <li>66% said they’ll watch more TV.</li> <li>41% will increase their desktop use.</li> <li>37% will increase their smartphone use.</li> <li>27% use a tablet more.</li> </ul> <h3>Two thirds of fashion traffic is now mobile</h3> <p><a href="http://blog.affiliatewindow.com/wp-content/uploads/2016/03/Fashion-Focus-White-Paper.pdf">Affiliate Window's internal data</a> confirms that:</p> <ul> <li>More than 50% of multi-device sales occur one week after the cookie is dropped.</li> <li>65% shop across multiple devices.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4449/Screen_Shot_2016-04-28_at_18.41.15.png" alt="fashion web traffic" width="615"></p> <h3>John Lewis the biggest desktop PPC spender in 2015 for home decor</h3> <p>John Lewis has been named as the biggest UK paid search advertiser on 500 selected keywords in the home décor sector.</p> <p>All fitted wardrobe fans will be pleased to see the term topping the tables for PPC spend (according to new research released today by the Kantar Media company AdGooroo).</p> <p>The study examined Google desktop activity on 500 non-branded search terms in the year ending January 2016.</p> <ul> <li>£45.5m was spent by 4,892 advertisers on 500 non-branded home décor keywords in 2015.</li> <li>After John Lewis, Argos, Amazon, blind retailer Hillarys and US furniture retailer Wayfair invested most in paid search advertising on the keyword group.</li> <li>But although John Lewis spent the most on the keywords in the study, the data reveals that Amazon attracted the most clicks.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4451/Screen_Shot_2016-04-28_at_19.07.37.png" alt="kantar ppc analysis" width="615" height="597">  </p> tag:econsultancy.com,2008:BlogPost/67778 2016-04-25T14:21:00+01:00 2016-04-25T14:21:00+01:00 MADE.COM on the value of social commerce Ben Davis <h3>Does social engagement correlate with customer value?</h3> <p>Yes. Here at MADE.COM our customer is a savvy online shopper. They buy big ticket furniture items online.</p> <p>Social is a way for us to build confidence in the brand by showcasing our personality. Engage with them, inspire them and answer their questions quickly.</p> <p>And it shows; people who came to MADE.COM from organic social had <strong>an average order value 4% higher than the site average</strong> in Q1 2016. </p> <h3>Is paid social a big part of your media mix?</h3> <p><a href="https://econsultancy.com/training/courses/social-media-paid-advertising/">Paid social</a> is really important to us here at MADE.COM. We love to innovate and have been the first to test new paid social betas with Facebook, Instagram, <a href="https://econsultancy.com/blog/67720-how-made-com-succeeds-on-pinterest/">Pinterest</a> and Twitter.</p> <p><em>MADE.COM has rolled out promoted pins.</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3741/Screen_Shot_2016-04-07_at_12.13.16.png" alt="made on pinterest" width="615"> </p> <h3>What metrics do you use to track the success of Unboxed?</h3> <p><a href="https://econsultancy.com/blog/65933-retailer-owned-social-networks-can-they-work/">MADE Unboxed</a> is all about building customer loyalty and brand advocacy.</p> <p>We measure success by the dwell time on site and average order value of people who visit Unboxed during their time on MADE.COM.</p> <p>We have seen that <strong>dwell times on the site are over 3x higher</strong> for those visitors. And the <strong>average order value was up 16%</strong> on the site average in Q1.</p> <h3>What's the MADE take on influencers? Does your community mean you don't need them?</h3> <p>From day one we have worked hard to attract those influential early adopters and they continue to be incredibly important to us.</p> <p>Back when we began six years ago, we had a very innovative business model and it was the influencers who gave us a go that really got the business off the ground.</p> <p>Getting people to buy a sofa online from a brand they’d never heard of was tricky.</p> <p>By building a brand and attracting those <a href="https://econsultancy.com/reports/the-rise-of-influencers/">influencers</a> early on means they have always been part of our community. </p> <h3>How important is the MADE brand? </h3> <p>Building the brand has always been important to us. As we grow and mature, we’re careful not to lose sight of how important it is to evolve and continue to be innovative.</p> <p>It’s only by staying ahead of the curve that we manage to keep a brand that both existing and new members of the community want to affiliate with.</p> <h3>Product photography seems to <a href="https://econsultancy.com/blog/67377-10-ecommerce-sites-with-grand-product-photography/">work well for MADE</a>, so how do you adapt to video?</h3> <p>Video is extremely important to us. It’s a tool we’ve used on the ecommerce site <a href="https://econsultancy.com/blog/66040-how-should-you-approach-product-videos-for-ecommerce">to showcase products</a> in more detail.</p> <p><strong>Collections with</strong> <strong>videos have sold 4 to 9 times more pieces</strong> than those without.</p> <p>And with social platforms putting more and more focus on visual content (the rise of Instagram and also Twitter integration with visual content) it is a format we want to do more with in 2016.</p> <p><em>Part of a MADE.COM product video.</em></p> <p><img src="https://assets.econsultancy.com/images/0007/4269/made.com.gif" alt="made.com video" width="427" height="306"></p> <h3>How have your physical stores changed your social strategy, if at all?</h3> <p>We use social to promote the fact that we have showrooms as we now have three in the UK alone.</p> <p>People still think of us as a purely online brand and whilst that’s our main base, we hope the showrooms bridge that gap for people who want to touch and feel the products.</p> <p>It is also important to engage with people who share their showroom visits on social.</p> <p>These people are already invested in the brand, they’ve made an effort to come and see us. We use social to nurture this relationship.</p> <h3>What new developments in social media are you excited about?</h3> <p>We’ve been eagerly awaiting Promoted Pins on Pinterest and are thrilled to be one of Pinterest partners for its UK launch.</p> <p>We also work closely with Facebook, Instagram and Twitter and know they have some exciting developments in paid social coming to the UK market soon. </p> <p>The way social and ecommerce are integrating is fascinating.</p> <p>Pinterest’s link-back approach mean it has done social commerce from the get go and apps like Depop, as well as developments such as Facebook Canvas, show that there is an appetite to better integrate the buying cycle into social.</p> <p>These developments will surely change the social media landscape, and showcase the power of a community. </p> tag:econsultancy.com,2008:BlogPost/67772 2016-04-25T11:22:08+01:00 2016-04-25T11:22:08+01:00 A day in the life of... a food & drink startup entrepreneur Ben Davis <p>She tells us about her daily life.</p> <h3>Please describe your job! What do you do?</h3> <p>I am the co-founder of EatCleanTea, a UK-based matcha green tea company that offers worldwide shipping.</p> <p>Essentially, I do the marketing, branding, sales, outreach, logistics and partnerships for the company.</p> <p>I felt inspired to start the business (initially launching as an online ecommerce business) as someone with a personal interest and passion in health who felt utterly betrayed and disappointed in all the fad weight-loss methods out there.</p> <p>And so EatCleanTea was born! I wanted to bring the matcha health benefits to the masses, encouraging a sustainable healthy lifestyle, instead of the quick-fix false promises made by other ‘health’ brands.</p> <p><img src="https://assets.econsultancy.com/images/0007/4234/sylvie.jpg" alt="sylvie hall" width="400"></p> <h3>Whereabouts do you sit within the organisation? Who do you report to? </h3> <p>I report to myself! Whether this is a good thing or bad thing will remain to be seen!</p> <p>However, when it comes to major business decisions, my business partners James Wilson and Edward Creedon have to be on board with my vision and strategy.</p> <h3>What kind of skills do you need to be effective in your role? </h3> <p>Starting your own business is hard work. This may sound obvious and although anyone can do it, it all comes down to motivation.</p> <p>You need to be extremely motivated, especially on those days when you have no energy and when your outgoings seems to be far outweighing your incomings.</p> <p>Some days it can be easy to give in and ‘loosen’ the reins. However, you must keep going.</p> <p>A key component of being successful in business is recognising trends quickly and spotting the opportunities that are relevant for your business.</p> <p>But most of all, you must be uber positive... even when everything is going wrong.</p> <p>You can’t beat the power of positive thinking, every problem you can learn from and there’s always a way to turn a situation around. Be creative!</p> <h3>Tell us about a typical working day… </h3> <p>The first thing I do when I wake is check my inbox which is usually full of emails (and if it wasn’t, I’d be worried!).</p> <p>I’ll then check Instagram, Twitter and Facebook to see what activity has happened over night and respond accordingly to comments, questions and any photos we’re tagged in.</p> <p>Our marketing model is focused mainly on Instagram and based on <a href="https://econsultancy.com/blog/65495-five-lessons-for-effective-blogger-outreach/">blogger outreach</a> and <a href="https://econsultancy.com/reports/the-rise-of-influencers/">influencer marketing</a>, so I spend most of my day looking for and contacting people that I feel align well with our brand and would make good brand ambassadors for EatCleanTea.</p> <p>Then I plan budgets, create visual and written content, liaise with celebrity agents and work on future social media posts and creative campaigns.</p> <p>I spend a large proportion of the afternoon sending out samples of products and following up with bloggers for feedback.</p> <p>We never really switch off at EatCleanTea HQ, but it’s a product and brand we hugely believe in.</p> <p><img src="https://assets.econsultancy.com/images/0007/4235/Screen_Shot_2016-04-22_at_14.37.44.png" alt="eatcleantea" width="615" height="308"></p> <h3>What do you love about your job? What sucks?</h3> <p>I love the fact that I’ve created something all on my own. I wake up every day feeling excited and can’t wait to begin exploring all the different avenues to growing my business.</p> <p>There are so many positives of working for yourself and I love that I am my own boss. I don’t ever feel pressure from anyone but myself. This makes me more productive than working for someone else.</p> <p>I love the control I have over my day and having full responsibility for revenue.</p> <p>However as a startup, funds are limited so I constantly have to think outside the box on how to make our marketing strategy stretch to deliver ROI, considering we only have a very small budget.</p> <p>Money can be a big worry and when we spend a considerable amount on a certain tactic yet get little in return of website traffic or sales, it can have an impact on morale.</p> <p>But we must keep on going!</p> <h3>What kind of goals do you have? What are the most useful metrics and KPIs for measuring success? </h3> <p>My main goal is to make matcha mainstream and for EatCleanTea to be the leading brand in the UK and worldwide.</p> <p>The main challenge is that people assume matcha is a trend, a fad, similar to the weight-loss and tea-tox teas out there (not naming names here).</p> <p>We want to change public perception and get the world to recognise matcha for the superfood it’s recognised as in Japan, where it originates.</p> <p><a href="https://econsultancy.com/training/courses/google-analytics/">Google Analytics</a> is my favourite tool for measuring our traffic and <a href="https://econsultancy.com/reports/conversion-rate-optimization-report/">conversion rates</a>, which are two of our main KPIs for measuring success.</p> <p>We have a great conversion rate on the website (which can always be improved of course) so the goal is generating more targeted traffic to maximise sales.</p> <p>One of the new metrics we’re analysing is site behaviour, for example did someone read one of our blogs and then buy? Or did they drop off within two seconds of reading and leave the site?</p> <p>This kind of information is vital and only helps us improve our onsite content leading to a higher conversion rate. </p> <h3>What are your favourite tools to help you to get the job done?</h3> <p>I’ve been using Iconosquare to plan our Instagram <a href="https://econsultancy.com/blog/67647-nine-incredibly-helpful-influencer-marketing-tools/">influencer strategy</a>.</p> <p>It shows you the strength of an Instagram influencer's engagement, which is a good indicator as to what kind of return you can expect from their promotion.</p> <p>And it also weeds out those fake influencers who buy followers and likes!</p> <p><img src="https://assets.econsultancy.com/images/0007/4236/Screen_Shot_2016-04-22_at_14.41.01.png" alt="instagram eatcleantea" width="500"></p> <h3>How did you get started in the digital industry, and where might you go from here?</h3> <p>My degree is in marketing which wasn’t digital focused at all, but after graduating I worked as a marketing exec for Sanako for four years and was promoted to Manager after a year.</p> <p>Although the role was mostly offline marketing, there was an element of digital marketing and this is what sparked off my interest.</p> <p>I could see how quickly the landscape was evolving and saw all the possibilities that social networks opened up for businesses and consumers to connect in a more authentic way.</p> <h3>Which brands do you think are doing digital well?</h3> <p>There are some really inspiring brands that do digital and social media marketing incredibly well.</p> <p>Dollar Beard Club, Frank Body and Triangl Swimwear are all stellar examples of a strong and successful digital marketing strategy.</p> <p>For me, I think tone of voice is everything. Once you nail that, people can really connect with you and what you’re doing online.</p> <h3>Do you have any advice for people who want to work in the digital industry?</h3> <p>Digital marketing is always evolving, so never become complacent in what you think you know is best. Read and learn about <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends">new trends</a>, whilst continually testing and optimising.</p> <p>Not everything you try will work but it’s better to try something new and different then be the same as the rest.</p> <p><em>If you're looking for a new challenge in digital, see the <a href="https://jobs.econsultancy.com/">Econsultancy jobs board</a> or benchmark your own digital knowledge using our <a href="https://econsultancy.com/training/digital-skills-index-lite/">Digital Skills Index</a>.</em></p> <p><em>Alternatively, if you already work in the digital industry and would like a Day In The Life profile, you can email us via press@econsultancy.com.</em></p> tag:econsultancy.com,2008:BlogPost/67771 2016-04-22T14:01:00+01:00 2016-04-22T14:01:00+01:00 A beginners' guide to Alibaba's Tmall Ben Davis <h3>Overview</h3> <p>Tmall, owned by Alibaba, is China's largest online marketplace.</p> <p>In 2008, Taobao, Alibaba's C2C marketplace, spun off Tmall as a platform for official brand stores.</p> <p>In 2013 Tmall Global was introduced, designed for international brands selling imported goods.</p> <p>Tmall takes less revenue than Taobao - at the end of June 2015, the gross merchandise volume (GMV) ratio was <a href="http://ar.alibabagroup.com/2015/financials.html">37% Tmall to 63% Tabao</a>.</p> <p>Customer experience is not dissimilar to other international online marketplaces.</p> <p>Tmall <a href="http://about.tmall.com/tmall/consumer_experience?spm=3.6636093.0.0.mnEQYU#place">offers an overview here</a>; I have included an image of a product page below.</p> <p><img src="https://assets.econsultancy.com/images/0007/4225/product_tmall.jpg" alt="tmall" width="615"></p> <h3>Market share</h3> <p>Tmall's share of B2C ecommerce is somewhere between 50% and 60% in China, depending on which source one consults.</p> <p>Its nearest competitor is JD.com at around 18% of total market share.</p> <p>China's ecommerce market is the biggest in the world.</p> <p><img src="https://assets.econsultancy.com/images/0007/4193/Screen_Shot_2016-04-21_at_15.49.02.png" alt="china market" width="615" height="363"></p> <h3>Users</h3> <p>The Alibaba group as a whole has <a href="http://www.alibabagroup.com/en/news/press_pdf/p160128.pdf">407m annual active buyers</a> across its two retail platforms at the end of 2015.</p> <p>Tmall's figure is close to this number at <a href="http://tmall.com.hypestat.com/">around 375m</a>.</p> <h3>Sales figures</h3> <p><strong>GMV: </strong><strong>$123bn products sold in 2015</strong></p> <p>The chart below shows GMV up to end of June 2015, with Taobao and Tmall separated out.</p> <p>Looking at <a href="http://www.statista.com/statistics/323077/tmall-quarterly-gross-merchandise-volume-gmv/">figures up to March 2016</a>, the full financial year of 2015 saw Tmall generate <strong>GMV of ¥1,141bn.</strong></p> <p>This equates to US$123bn in products sold.</p> <p><img src="https://assets.econsultancy.com/images/0007/4192/Screen_Shot_2016-04-21_at_15.27.31.png" alt="gmv tmall" width="614" height="614"></p> <p><strong>Revenue: up 32% YoY at end of 2015</strong></p> <p>Growth in Tmall revenue in Q4 2015 was 32% year-on-year (YoY).</p> <p>The overall annual revenue of Taobao and Tmall combined is shown below at ¥76.2bn for 2015, up from ¥52.5bn in 2014.</p> <p><img src="https://assets.econsultancy.com/images/0007/4194/Screen_Shot_2016-04-21_at_16.12.47.png" alt="revenue growth" width="500"></p> <h3><strong>Brands</strong></h3> <p>Tmall now has over 70,000 brands in 50,000 online stores.</p> <p>The overall top 20 Tmall stores by total transaction values on Singles Day 2015 are shown below.</p> <p>(via <a href="http://www.chinainternetwatch.com/15457/tmall-double-11-2015/">China Internet Watch</a>) </p> <ol> <li>Huawei</li> <li>UNIQLO</li> <li>Xiaomi</li> <li>Meizu</li> <li>Sitrust</li> <li>Suning</li> <li>Jzez</li> <li>NIKE</li> <li>Haier</li> <li>JackJones</li> <li>New Balance</li> <li>Letv</li> <li>Linshimuye</li> <li>Gap</li> <li>Peacebird</li> <li>GXG</li> <li>Senmir</li> <li>Handu</li> <li>La Chapelle</li> <li>Balabala </li> </ol> <h3>Payment</h3> <p>Alipay, Alibaba's own payment platform, is the preferred payment method on Tmall (over credit and debit cards). There is a 1% charge for merchants.</p> <p>Much like PayPal, Alipay offers a perceived level of trust beyond credit cards.</p> <p>Third-party payment systems are increasing in popularity in China, with Alipay and <a href="https://econsultancy.com/blog/67490-10-things-you-didn-t-know-about-wechat/">WeChat's WePay</a> seeing huge adoption.</p> <h3>Delivery</h3> <p>Tmall standard delivery is around one to two days, with Tmall Global taking anything up to two weeks.</p> <p>In 2015, Tmall introduced a pre-pay option for duty free customers, beginning in Thailand and South Korea.</p> <p>Tmall's Janet Wang <a href="http://adage.com/article/special-report-women-to-watch-china-2015/q-a-international-brands-alibaba-s-tmall/299895/">spoke to AdAge</a> about offering this service:</p> <blockquote> <p>This is a new model we are exploring as the Chinese middle class travels overseas more... We want to offer them a comprehensive experience.</p> <p>Instead of waiting to check out in shops and waiting to be served, you can place orders online in advance and collect them when you travel to that country to avoid inconvenient experiences.</p> <p>It goes back to our philosophy. We're not only offering general commodities as a lot of other online retailers do. We're thinking of consumers and merchants and how we can bring them together in the most convenient way. </p> </blockquote> <p>Tmall also has a supermarket, <a href="https://chaoshi.tmall.com/">chaoshi</a>, shown below, which offers same-day delivery to those that order before 11am.</p> <p><img src="https://assets.econsultancy.com/images/0007/4222/Screen_Shot_2016-04-22_at_11.03.28.png" alt="chaoshi" width="615" height="347"></p> <h3>Tmall Global</h3> <p>Tmall Global is a growth area for Alibaba, capitalising on demand for imported goods and foreign brands. Waitrose was <a href="https://econsultancy.com/blog/67763-china-how-can-waitrose-profit-where-asos-couldn-t/">the latest British brand to join.</a></p> <p>The platform operates on an invitation-only policy, with many merchants going through a certified third-party.</p> <p>A handful of British brands sell through the Royal Mail's store front, which partners with Avenue51 (Tmall implementers).</p> <p>Commission on sales can be anywhere betwee 0.5% to 5%. Retailers can sell via bonded warehouses in Chinese free trade zones, which shortens delivery time.</p> <p>Clothing, household items, and accessories are the most popular products. Merchants must use Chinese labelling and provide Chinese-language customer support.</p> <p>The benefits of using Tmall Global range from greater brand awareness to improved infrastructure and logistics - something <a href="https://econsultancy.com/blog/67735-five-reasons-asos-is-pulling-out-of-china/">ASOS learnt the hard way with its .cn site</a>.</p> <p><strong>Notable successes</strong> </p> <ul> <li>Baby milk, following the <a href="https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal">2008 baby milk scandal</a>.</li> <li>Luxury cars e.g. Mercedes.</li> <li>Classic American foods - Costco nuts are incredibly popular. In 2015 <a href="http://fortune.com/2015/12/29/alibaba-tmall/">they generated sales of $3.5m</a> in just the first hour of Singles Day.</li> <li>Wine. </li> </ul> tag:econsultancy.com,2008:BlogPost/67769 2016-04-21T15:19:06+01:00 2016-04-21T15:19:06+01:00 The rise of Amazon's private labels shows the perils of not owning your data & customers Patricio Robles <p>As <a href="http://www.bloomberg.com/news/articles/2016-04-20/got-a-hot-seller-on-amazon-prepare-for-e-tailer-to-make-one-too">detailed by</a> Bloomberg's Spencer Soper, Amazon's private label brand, AmazonBasics, has grown to more 900 products.</p> <p>And its expansion appears to be driven by insights the mega-retailer has gleaned from its troves of sales data:</p> <blockquote> <p>At first, AmazonBasics - launched in 2009 - focused on batteries, recordable DVDs and such. Then for several years, the house brand 'slept quietly as it retained data about other sellers’ successes', according to the report.</p> <p>But in the past couple of years, AmazonBasics has stepped up the pace, rolling out a range of products that seem perfectly tailored to customer demand.</p> </blockquote> <p>Soper points to Rain Design, maker of a best-selling laptop stand, as an example of Amazon's strategy.</p> <p>Last year, AmazonBasics began selling a similar laptop stand, but at half the price, cutting into Rain Design's sales.</p> <p>Unfortunately for Rain Design, because Amazon's stand doesn't infringe on the company's patent, there isn't much it can do.</p> <p><img src="https://assets.econsultancy.com/images/0007/4156/laptopstand.png" alt="" width="861" height="493"></p> <p>According to Chad Rubin, who runs ecommerce firm Skubana, Amazon "know[s] what people want and they're going to mop it up."</p> <p>By Skubana's count, Amazon is increasingly doing just that, and added nearly 300 products to its AmazonBasics portfolio last year alone.</p> <p>Beyond AmazonBasics, the 800-pound gorilla of online retail has launched a number of private label apparel brands, including Lark &amp; Ro, Scout + Ro, Franklin &amp; Freeman and Franklin Tailored.</p> <p>These are now estimated to sell more tham 1,800 different products, putting Amazon directly in competition with former partners like Gap and Eddie Bauer.</p> <h3>Amazon's advantages</h3> <p>While sellers like Rain Design hope that customer loyalty will help them weather the competition from AmazonBasics, Amazon has a number of major advantages.</p> <p>The biggest: it owns the data.</p> <p>That gives Amazon the ability to identify the ripest opportunities, including those that others don't even know about, and attack them with a level of insight that competitors don't have access to.</p> <p>Amazon also owns the customers and customer experience, making it more difficult for sellers like Rain Design to build the kind of loyalty that might encourage customers to pay significantly more for a product.</p> <p>Finally, Amazon has the wherewithal to experiment and fail quickly. As Soper notes:</p> <blockquote> <p>Amazon's size gives it an advantage over so-called direct-to-consumer startups such as mattress seller Casper and eyewear merchant Warby Parker because Amazon can experiment with one product rather than having to build out an entire line. If an item flops, it's no big deal.</p> </blockquote> <h3>It's not just ecommerce</h3> <p>Of course, Amazon isn't the only company that's seeking to take advantage of ownership and control of data and customers.</p> <p>Publishers are increasingly being pushed to <a href="https://econsultancy.com/blog/67691-content-creators-it-s-time-to-abandon-yourself-to-facebook">abandon themselves to Facebook</a>, which is working to get more and more publishers to publish their content directly on Facebook using <a href="https://econsultancy.com/blog/67544-facebook-to-open-up-instant-articles-what-publishers-need-to-know">Instant Articles</a> and <a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push">Facebook Live</a>. </p> <p>Other popular social platforms, <a href="https://econsultancy.com/blog/67686-is-pinterest-using-how-to-pins-to-exploit-third-party-content-for-seo-benefit">like Pinterest</a>, are also taking advantage of the willingness of third parties to publish content outside of the channels they own and control.</p> <p>Obviously there's no guarantee that platforms will eventually look to cut out these publishers – Snapchat's <a href="http://digiday.com/publishers/lessons-snapchats-retreat-editorial-content/">retreat from original content</a> reveals numerous challenges in doing this.</p> <p>But the rise of Amazon's private labels and the impact it is having on Amazon sellers like Rain Design serves as a powerful reminder to <em>all</em> companies: if you don't control your data and customers, you can't really control your future.</p> tag:econsultancy.com,2008:BlogPost/67763 2016-04-20T16:19:00+01:00 2016-04-20T16:19:00+01:00 China: How can Waitrose profit where ASOS couldn't? Ben Davis <p><em>For more on this topic, download Econsultancy's </em><em><a href="https://econsultancy.com/reports/the-china-digital-report-q1-2016/">China Digital Report, Q1 2016</a>.</em></p> <h3>Are international groceries viable?</h3> <p>ASOS can't succeed with mid-ticket items - designer clothing - yet Waitrose is hoping its brand will help it sell groceries to the Chinese market.</p> <p>I can see how Waitrose has a great head start here, already partnering with Royal Mail and laying the groundwork for its products to be considered by the upper-middle class and those buying gifts.</p> <p>Just look at the <a href="https://rm.tmall.hk/p/rd026424.htm?spm=a1z10.5-b.w11074752-13299271857.6.cGzDk3">aspirational Tmall page</a> (top half shown below). It's a proper, 1904, heritage British brand.</p> <p><img src="https://assets.econsultancy.com/images/0007/4136/Screen_Shot_2016-04-20_at_11.50.26.png" alt="tmall waitrose" width="615" height="694"></p> <p>But, at the same time, Waitrose won't have physical stores in China, and everything will be shipped straight to consumers' doors.</p> <p>The question is whether Waitrose can market enough of its range successfully off the back of its heritage. Well, the brand has chosen some good products to start.</p> <p>British and Australian baby formula is already popular in China (see <a href="https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal">this article for background on baby milk</a> as a big import). </p> <p>The Royal Mail Tmall site already sells lots of baby formula from Aptamil and others (see pic).</p> <p><img src="https://assets.econsultancy.com/images/0007/4135/Screen_Shot_2016-04-20_at_10.52.49.png" alt="baby milk tmall" width="615" height="344"></p> <p>So, naturally Waitrose has started with some baby products to get in on the act, too. Smart move - I can see Baby Bottom Butter selling well.</p> <p>Cosmetics seem to sell well, too. Again, Waitrose has picked some products from this range.</p> <p><img src="https://assets.econsultancy.com/images/0007/4132/Screen_Shot_2016-04-20_at_10.50.07.png" alt="waitrose tmall" width="615" height="341"></p> <p>But where to go from here? There are tea and coffee on offer, and it's here I start to wonder about the longevity of selling this kind of product.</p> <p>However nicely this is branded, just look at the prices. Currently around 70-80 yuan for one item, usually 200-300 yuan.</p> <p>That equates to about £7.50 now (on offer) and £25 RRP for 100 teabags. The British price is £2.80, and that's the high end of the groceries market.</p> <p>Yes, I understand these products will be seen as quality gifts, but for how long?</p> <p>British tea and coffee already sells in Chinese supermarkets, but without the premium of delivery, VAT and extra middle men.</p> <p><img src="https://assets.econsultancy.com/images/0007/4133/Screen_Shot_2016-04-20_at_10.50.37.png" alt="tea and coffee on waitrose tmall" width="615"></p> <p><a href="http://avenue51.com/tmall">Avenue51</a>, the company that integrates Royal Mail with Tmall, advises 'if your products do not currently sell in China, and you do not have multiple categories, we suggest listing popular products in the £20 - £50 price range'.</p> <p>Surely grocery products are mostly below this range, even at marked up prices?</p> <p>Isn't it companies like Cambridge Satchel Company, selling secondary goods (also via Royal Mail on Tmall), that stand to attract the most Chinese patrons, even if ASOS didn't manage it?</p> <h3>Competition and the climate</h3> <p>If selling via Tmall gets more popular, what's to stop boutique coffee /tea /cosmetics /baby companies from selling to the Chinese market and outcompeting the supermarket?</p> <p>It's only the Waitrose brand that can keep it ahead for now; the products, taken in isolation, are not necessarily world-beating.</p> <p>As a range they are, sure, I love shopping in Waitrose. But would Chinese customers choose Waitrose tea over, say, Twinings, if they had the choice? </p> <p>They might do when doing a full grocery shop, but that's not the service Waitrose is providing in China.</p> <p>There are also the factors that spelled trouble for ASOS - local competition, red tape and the economic slowdown.</p> <p>If the middle classes stop spending, or favour Chinese products (as <a href="http://www.bloombergview.com/articles/2015-08-05/chinese-consumers-prefer-chinese-brands">Bloomberg has warned</a>), British brands exploring the market may not get the boost they need.</p> <h3>Will Waitrose open stores?</h3> <p>The categories on the Tmall Royal Mail website include baby formula, fashion, beauty, and health food. I can see Waitrose succeeding here.</p> <p>But Waitrose will need to have local ops/distribution and stores if it wants to sell, for example, fresh goods.</p> <p>In every other of its markets Waitrose has stores, so I imagine it will have to do so fairly rapidly in China if it's to hit the three to five year ambition (of being the second-biggest market for the retailer).</p> <p><img src="https://assets.econsultancy.com/images/0007/4134/Screen_Shot_2016-04-20_at_10.51.28.png" alt="categories royal mail tmall" width="615" height="229"></p> <p>I'm not a retail insider, and I'm not a pessimist either, so please qualify my thoughts appropriately.</p> <p>I'd love to know what our readers think. In general, hats off to Waitrose for dipping its toe in the Alibaba waters. Let's hope the temperature is right.</p> <p><em>For more on international expansion:</em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67639-five-tips-for-retailers-targeting-international-expansion">Five tips for retailers targeting international expansion</a></em></li> </ul> tag:econsultancy.com,2008:Report/3008 2016-04-20T15:45:00+01:00 2016-04-20T15:45:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports (in addition to a B2B report) across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet, statistics and online market research with data, facts, charts and figures.The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need, to help make your pitch or internal report up to date.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Those looking for B2B-specific data should consult our <a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B Internet Statistics Compendium</a>.</strong></p> <p> <strong>Regions covered in each document (where available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/67757 2016-04-19T15:25:12+01:00 2016-04-19T15:25:12+01:00 Unlock Amazon's Buy Box with the power of data Arie Shpanya <p dir="ltr">You're also racing to find it against countless other explorers. But your aimless wandering and naiveté to the landscape can all change with data.</p> <p dir="ltr">Data can turn a novice explorer into Indiana Jones. It gives you a better view of the marketplace's competitive landscape and offers actionable insights that allow you to make decisions with confidence.</p> <p dir="ltr"><img src="https://lh4.googleusercontent.com/GwFnQGtKr0kYksWRVoULGEwGOlwWAaHsYTnM-aYY9H9sJle3jaONkNVcXFsbsKBO0PdQwvl1n3uOYnT_zoulvXYUpZ2cNKEufFt4xhxDStOXvP9JUDLHZijpRGEMDObe0uTyzN4B" alt="" width="500" height="230"></p> <p dir="ltr">The path to the coveted Buy Box still is a difficult one to take.</p> <p dir="ltr">Amazon is known to host some of the most vicious price cutting in ecommerce, and it's all in an attempt to win the most valuable box on the internet.</p> <p dir="ltr">The Buy Box is responsible for <a href="https://www.internetretailer.com/commentary/2014/10/22/five-tips-winning-amazons-buy-box-during-holiday-season">70%-82%</a> of sales on Amazon. When a lot is on the line, some sellers tend to make poor decisions, like slashing their prices and eliminating profit margins just to win some sales over the competition.</p> <p dir="ltr">Data can help you turn those irrational pricing decisions into well calculated ones that help you earn sales while posting impressive margins.</p> <p dir="ltr">Here are the different kinds of data you need in order to have your Buy Box cake and eat it too.</p> <h3 dir="ltr">Assortment data</h3> <p dir="ltr">Assortment data is the best way to measure who you're going to be directly competing against in order to win the Buy Box.</p> <p dir="ltr">This is important when you're trying to understand how you stack up against your competition's inventory.</p> <p dir="ltr">You can also use assortment data to identify new opportunities where you're the only seller. In this case, you might sell out of these products faster than you previously anticipated.</p> <p dir="ltr">Remember, having poor inventory levels can seriously hurt your chances of earning the Buy Box, so stay on top of it.</p> <p dir="ltr"><img src="https://lh5.googleusercontent.com/0wbeGyJw8sKxODm5Fy1tabp3cXoK4EIchY2cdUDsKDmID0mFpoYxWLZJ5Az-UH3WaAJClxbjcZHZOy-PwdV6hLmp2MBxMGz86c4nGoJOjQod_q-3lPnpVwEruhySvH2ddiQwInbH" alt="" width="280" height="191"></p> <p dir="ltr">Assortment data, when delivered in real-time, can also help you identify competitors who are "in hot pursuit."</p> <p dir="ltr">You can spot competitors who recently began to carry the same products as you, and you know that you're about to face stronger competitive pressures from these sellers.</p> <p dir="ltr">You can get a head start and plan accordingly. Knowing the differences between where you're the only seller and where you have a lot of pressure is important when it comes to your pricing strategy.</p> <h3 dir="ltr">Pricing data</h3> <p dir="ltr">Price is one of the most important factors that goes into Amazon's mysterious Buy Box algorithm.</p> <p dir="ltr">Since the marketplace has a reputation for low prices, you know that it's important to stay competitive.</p> <p dir="ltr">But pricing data can keep you from going too low and hurting your margins to get a sale. When you use an algorithm to find a price, you can discover one that also takes your seller rating and inventory levels into account to earn the right Buy Box price.</p> <p dir="ltr">Combining pricing data with assortment data can help you capitalize on times where you're the only seller of a product.</p> <p dir="ltr">It can also help you stay extra competitive when you're going toe-to-toe with dozens of other competitors. Because when you have pricing power over the competition, you can command a premium price and earn more. </p> <h3 dir="ltr">You've won it, now what?</h3> <p dir="ltr">If you land in the Buy Box, then congratulations! While you can enjoy a victory lap, make it a quick one because Amazon will cycle you out no matter what you do if there are a lot of competitors.</p> <p dir="ltr">That means you have to stay on your toes at all times and get ready to change your price at any given moment.</p> <p><img src="https://lh3.googleusercontent.com/ZKTduOp-ZL-0L8SKKV84Lh5N7FFeKRsoDTNEV87j6lQxKKQIk9vkCH5iNwuixOenE5pilzzsXg1lRr6NqES70q77ml59oEfgEuVwWsg4JH0kMOrbOrHMauxLrfeXreLTJIwFPhGD" alt="" width="528" height="300"></p> <p dir="ltr">But while you're enjoying your time in the Buy Box, you can increase your price incrementally over time to maximize profit. Once you lose it, reprice lower.</p> <p dir="ltr">Unless you're the only seller of a product, in which case you're going to have the ability to command a price premium.</p> <p dir="ltr">If you've enjoyed your Buy Box ownership and no one has overthrown you in a week, then maybe a 1% increase can be justified. Setting up a repricing algorithm to do this is the best and most effective way of going about this.</p> <p>Winning the Buy Box can take a lot of work, but that doesn't make it impossible.</p> <p>Let data guide you to the Buy Box and make sure you keep your seller rating satisfactory by having an awesome fulfillment process or signing up for FBA.</p> <p>Once you have this in place, you can let data guide your pricing and assortment decisions that will boost you into the Buy Box.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/65327-why-dynamic-pricing-is-a-must-for-ecommerce-retailers/"><em>Why dynamic pricing is a must for ecommerce retailers</em></a></li> <li><a href="https://econsultancy.com/blog/67699-how-online-retailers-can-improve-price-optimization-strategies/"><em>How online retailers can improve price optimization strategies</em></a></li> <li><a href="https://econsultancy.com/blog/67666-three-ways-to-optimize-for-amazon-s-pricing-strategy/"><em>Three ways to optimize for Amazon's pricing strategy</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/67736 2016-04-19T09:36:37+01:00 2016-04-19T09:36:37+01:00 Five great examples of creative commerce Patricio Robles <p>Here are five examples of companies taking advantage of so-called 'creative commerce'.</p> <h3><a href="http://www.nike.com/us/en_us/c/nikeid">Nike</a></h3> <p>Nike's NIKEiD service gives customers the ability to create their own shoes, apparel and accessories.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4018/nikeid-blog-flyer.png" alt="" width="470" height="213"></p> <p>When it comes to shoes, the level of customization offered is significant.</p> <p>Not only can customers choose the colors of the shoes and design elements on the shoe, in many cases they can change the material style and select a symbol for the tongue of the shoe.</p> <p>And they have the option of adding personalized text to the heel of their shoes, making them a truly unique creation.</p> <p>At times Nike capitalizes on events, like the retirement of NBA basketball superstar Kobe Bryant, and entices customers with the opportunity to customize limited-edition products.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The Kobe XI <a href="https://twitter.com/hashtag/MambaDay?src=hash">#MambaDay</a> iD is now available for 24 hours only. Make the moment yours. <a href="https://t.co/MXTKUYqosM">https://t.co/MXTKUYqosM</a> <a href="https://t.co/ekULdW8EWT">pic.twitter.com/ekULdW8EWT</a></p> — NIKEiD (@NIKEiD) <a href="https://twitter.com/NIKEiD/status/720443813647544324">April 14, 2016</a> </blockquote> <h3><a href="http://www.buildabear.com/">Build-A-Bear Workshop</a></h3> <p>Most companies add customization to their product mix but Build-A-Bear Workshop is a brand that is built on customization.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4013/5616800137_3b50b5b261_z-blog-flyer.jpg" alt="" width="470" height="314"></p> <p>The retailer, which has been in business for nearly 20 years now, invites customers and their children into its stores where they can let their imaginations run wild as they build their own stuffed toys.</p> <p>Build-a-Bear Workshop is publicly traded and generated over $375m in revenue last year, proving that creative commerce isn't just fun for customers but also profitable when employed well.</p> <h3><a href="https://blendbee.com">BlendBee</a></h3> <p>Creative commerce isn't limited to products we wear or use. Case in point: BlendBee, which offers custom tea blends.</p> <p>Customers select a base tea, up to eight ingredients, and a name for their blend, and BlendBee's "tea expert will create the best tasting tea from your ingredients."</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4016/blendbee-blog-flyer.jpg" alt="" width="263" height="162"></p> <h3><a href="http://villycustoms.com/">Villy Custom</a></h3> <p>Creative entrepreneurs are finding ways to customize products that historically have been quite expensive.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4014/villycustoms-blog-flyer.jpg" alt="" width="470" height="243"></p> <p>Fleetwood, the founder of Villy Customs, created his company to allow customers to build their own "bad ass custom bikes."</p> <p>Claiming to be the "digital online cruiser bike builder," Villy Custom appeared on the television program Shark Tank in the United States, where he raised investment from billionaire internet entrepreneur Mark Cuban and real estate mogul Barbara Corcoran.</p> <h3><a href="http://www.funkysofa.com/">FunkySofa</a></h3> <p>True customization of large items, like furniture, is now accessible to everyday consumers through companies like FunkySofa.</p> <p>It allows customers to design custom sofas, as well as sleepers, loveseats, chairs, sectionals and ottomans. </p> <p>With many of the pieces customers have literally hundreds of combinations to choose from.</p> <p><img src="https://assets.econsultancy.com/images/0007/4017/funkysofa.jpg" alt="" width="706" height="280"></p>