So you've got this far. Starting an Online Store is a lot easier when you've got the right info and this is the place where you can find it. It takes a lot of drive do get through Part 1 and Part 2 of this guide, so good for you!
During this part of the guide, you'll get a better understanding of what fulfillment means and how to build a company that can effectively manage orders and ship the right products to the customer.
Good, good fulfillment. Yeah! But wait …
Good question! Although the term fulfillment is used quite a lot, not everyone has a clear grasp on the whole idea. I mean – why fulfillment? Well, it's actually a pretty simple concept. Order fulfillment is anything that has to do with fulfilling your promise to the customer. That promise is you're going to ship the products they've purchased, those products are going to be in good condition and they will arrive as soon as possible.
Fulfillment also covers the reverse process (also called reverse logistics). That means getting merchandise back from the customer. That type of operations happen:
So basically when your ecommerce business is fulfilling an order, it is actually making good on its promise to deliver merchandise in the best way possible. Although the concept is not that really hard to grasp, making it happen is a little bit harder.
In order to make sure your fulfillment operations you'll have to look for the answer to four very important questions:
Fulfillment is probably the most complex and tedious part of ecommerce. It is also the one thing that is the least talked about in terms of ecommerce. It's not flashy and it's not cool. It's complex, involves a lot of tweaking and a lot of work to getting it right. While most ecommerce guides will point out to the importance of picking the right shade of orange for the "Buy now" button, few will speak of how important fulfillment is.
Just to get a glimpse of how important fulfillment is - think of your car. While having the right color and the right type of leather is important, the car won't start without an engine. Fulfillment is the engine that keeps ecommerce going.
There are just five basic steps in fulfilling ecommerce orders. Four of them are mandatory and one is optional. Hopefully you will cover this last step as few times as possible. These five very important steps are:
Overview of the Fulfillment Process (including returns)
Customers will place the orders through one of your sales channels. It may be your online store, on the phone or through a mobile application or a pop-up store.
There is a great variety of order management software out there and later on on this guide will get through some of them. It matters less what you will be choosing later on. What matters from a fulfillment standpoint is what the order info should contain. Here is the minimal information you will be needing:
Most of the time, you will be receiving more info from your order management tool but these are the essential blocks of information to keep in mind.
Before moving on to the actual order fulfillment bullet points I have to make a point. You don't HAVE to fulfill the orders yourself. Some companies outsource their fulfillment to other companies. My advice is you should keep most of your fulfillment operations within your company. You won't be able to ship products across the globe but you can pick, pack and carefully wrap orders for your customers.
When medium and large online stores are fighting each other over consumer mind share, we only see the marketing and superficial aspect of this battles. But the fact is, underneath all this visible struggles, the real battles are won in the warehouse. Your real chance for success stands in picking, packing and shipping the right products, within the timeframe you've promised.
It may seem hard to handle fulfillment operations and it sure is. But because it is hard, you have to master it before the competition does. Walmart and Amazon, two of the largest retailers in the world, are also two of the best supply chains in the world. It's not that these companies have developed spectacular fulfillment operations because of their huge sales but the other way around.
Glad we've got that out of the way. Now – what's the best way you can receive products in your inventory?
It all starts with an order to your supplier. It is usually called a "Purchase Order" as you are placing an order to purchase products. We will assume that you have already set up an agreement with your suppliers and they will ship the products. You will probably pay as you place your order, when the order arrives or at a given time after the order has arrived, if you have agreed as such with your supplier.
Once the products have arrived at your warehouse you will need to:
( Basic check list when receiving products from the supplier )
Placing the products in the inventory is a very important part in receiving the products. The better you keep track of where the products are, the less time and effort you will need when picking and packing the products.
When placing the products in storage you need to keep in mind some very important aspects:
Hopefully at this point you have managed to get the products in your inventory, they are correctly marked and stored and you are ready to pick said products for the orders you are going to be shipping.
Once you have the products in the inventory and orders are coming in, it's time to process these orders.
Order processing is split between four main areas:
Picking is probably the most time consuming part of order processing. It also gets a lot more complicated as your business grows and it may be prone to errors. Having more products in your inventory will increase the complexity of picking the right products in the fastest way possible.
If you've managed to place the products in the right spots (as stated in the step above – receiving products) your chances of correctly processing orders increase big time. The reason is it will be easier for picking staff to move fast through the aisles and pick the right products.
To have a streamlined picking process that works just as well with 10 orders per day or 1000 orders per day you have to decrease the chances for errors. To do so, your picking staff will cycle through these steps:
( A basic example for a picking list )
Packing is the next step in the fulfillment operation. Once the products have been picked from the corresponding aisle, shelf or bin, they are sent to the packing station where they will be split into orders and prepared for shipping.
The packing operation is usually split into these further steps:
Once the products are placed in the right package, a quality control station will check for any errors that may happen.
Quality control personnel will usually check for one of the following errors that may appear:
Once the products have been picked, packed and quality control made sure there were no errors in the order management process, the package is ready for shipping.
Online stores usually partner with one or more shipping companies to deliver the goods. The shipping station will check the package weight and direct it to the right shipping partner.
Most shipping companies will provide you with a general framework on how to handle packing and preparing for shipping. Here are the most popular ones:
When these companies (and others) will charge you for their shipping services they will take into account some (or all) of the following variables:
Once the orders are picked by the shipping company, the order status is constantly updated so customers and the online store knows where the packages are at the moment.
When the products are delivered the status is updated and the order is confirmed. After this point the product is in the customer's ownership and any reverse process wil be treated as a return.
Oh, returns – can't live with them, can't live without them. Just kidding. A clear and friendly return policy is what sets the likes of Zappos.com apart from the competition. They will let you return the products you've purchased within 365 days, free of charge and as their return centers will check the products you will be credited within 7 days with the money you've spent.
Ecommerce customers love a great return policy and you need to be ready to handle one. The logistics involved in such a return process are usually dubbed reverse logistics. This means you will reverse the steps mentioned above.
Basically you will unship the products, unpack, unpick and un-order everything.
If you offer free shipping, you will have to handle the shipping costs from the customer to your return center (for small and medium companies, the return centers are the same as the fulfillment facilities).
Now, the big problem when getting information on handling returns is that most of the resources out there are either
What will follow will hopefully be a bit more relevant and a bit less boring. The big idea you have to keep in mind is returns are the reverse process of everything you have read so far.
You will have to tailor the following concepts to your specific company structure, accounting, IT systems and processes.
That being said there are three main areas you need to focus:
There are usually three main options to do this:
Once the products are back at the fulfillment center you will have to get them back into inventory. The process is similar to what you would do if you were to receive goods from your supplier. The main differences are:
Once the products have been checked and returned to the inventory, you will need to issue a refund to the customer and inform said customer of these changes.
And … that's it.
It may seem complicated right now but keep in mind that thousands of online store owners are doing all these things. Now that you've got the basics, you will be able to deal with most of the operation challenges you will face. If there is anything else you need to know – just ask in the comments sections bellow.
This concludes this part of this guide. This is probably the hardest and the most important part of making your store run smooth. It involves many operations, usually lots of people and it needs to be built in such a way that it will easily scale when your company is growing at double digits.
Next week we will focus on branding, designing and choosing an ecommerce platform for your online store. See you soon!
Last week we've covered the basics of starting your online store. We've talked about choosing your market and your particular niche, We've covered the main questions you need to figure out before you start building your actual store. Finally we went through the main business models and scanned some of the most innovative and interesting implementations in B2C (business to consumer) ecommerce.
Now that we've covered the basics, let's turn your idea into a real store. This part of the "Starting an Online Store" guide will show you how to register your business and how to build the operational basics for your store. At the end of part two of this guide you'll know how to find the right suppliers, integrate your business with said suppliers and set the prices for your products.
Note: This part of the guide is intended to work as a guide mainly for readers in the US. That's why some of the acronyms and type of companies you'll find in here are going to be aimed at those of you registering your business in the US. If you are registering your business elsewhere please leave a comment as to where you intend to register your business and I will try to get back to you with more info.
That being set, most of the information you'll be reading here is in essence applicable in other countries or regions. Even though business structures may have different names and have slightly different usage in different parts of the world, their purpose remains pretty much the same, as globalization tends to level the playing field.
Sure, planning and building your business is a great way to spend your time and effort. But you also need to work as a legal entity.
There are basically two ways you can register your business:
You can start as a Sole Proprietorship (the most popular type of business for ecommerce entrepreneurs) and move to other forms of businesses as your chances of success increase.
If you are the sole owner of an online business, the Sole Proprietorship (also known as DBA – "Doing Business As") is the easiest form to register and manage your business. It actually works as an alias for the individual doing the business. Because of this, the owner is personally liable for the company. That means that all debt is imputable to the owner. However, as Sole Proprietorships are usually low-liability businesses, a lot of startups work under this type of legal entity.
The second big option in starting an un-incorporated business is the General Partnership. In Partnerships, more individuals get together to start some kind of business. Just like the Sole Proprietorship, Partnerships are easy to set up and manage and because partners share equal control on the company, the liability and profits are also shared.
Like I've mentioned above, the second category of companies falls under the "corporate" model. When you're incorporating your company you don't become a corporate behomoth and you don't automatically get billions in revenue, as you'd expect. It just means you're operating under a different set of rules. Plus you get to do a lot more paperwork and pay some extra taxes.
Pros of incorporating the business
The most important reasons to incorporate your company as an entrepreneur are liability protection and documenting deals with partners.
By far liability protection is the most important reason to incorporate your company. Under a corporate structure, your business is treated as a separate legal entity. If things go awry in your business (and sometimes they do) the company is liable for paying all debtors, not you. That, of course, if you have been operating your business in a legal manner.
Basically, registering as a corporation will keep your assets (house, car, golf clubs) protected from any issue that might arise operating the business.
The second important reason to incorporate your company is documenting a business deal with partners. Whether you are raising money from investors or selling shares in your company, you need a corporate structure to do this.
Cons of incorporating the business
You may hear other reasons why you should incorporate your company, things such as tax benefits, business credit and transferable ownership. But don't rush to register your corporation just yet. Most entrepreneurs are doing just great running un-incorporated business in the beginning. Tax benefits are usually tangible when your company is already successful enough. So if you are just a startup, you can probably forget about tax benefits.
Building business credit means companies are evaluated independently from their owners but that doesn't necessarily have to be a good thing. If you are a startup with no cash in the bank, no sales and no clear plan, that fresh business credit won't be of help much.
Finally, saying an incorporated company is a lot easier to transfer to other individuals or companies leaves out a very important aspect. Before transfering your company (hopefully selling it for lots of cash) you need to build this company. So again – this won't help you that much either.
But the biggest disadvantage small businesses that incorporate have to face is paperwork. Lots of paperwork. You will have to fill in state reports, organize annual meeting and deal with involved bureaucracy.
Then there's the fees. You'll be paying fees for legal council, tax filling and others. Professional help is not cheap. Plus you get the minimum franchise taxes and others. These amount to thousands of dollars in fees, which is a bit much for small business owners.
So incorporating a company is no easy feat. Or better said – it's not easy to manage an incorporated company if you are a small business owner.
But if you do find yourself in need of incorporating the business, here are the most important type of corporations you can choose:
You have probably heard one thing or two about LLC (Limited Liability Company). It's the most popular form of business among small and medium businesses, including online store owners. It combines what is called pass-through taxation for its members with the limited liability corporations provide.
Although not technically a corporation, it is a great choice for those that want to join a limited liability partnership. It basically works as partnership or sole proprietorship in terms of taxation. This means the owners (called members) pay taxes on the LLC's profit directly. The company doesn't fill taxes separately, which makes things a lot easier to manage.
This types of businesses are actually pretty young as a commercial concept. The LLC structure was first formed in 1977 and now it's accepted in all US states and a throughout most of the world.
At the heart of LLC stands the "Operating Agreement", a document signed by all members, setting the rules under which the company will be managed. It covers things such as profits sharing, company management, adding or removing members and more.
The LLC is the most popular choice in the world right now for forming partnership, usually chosen by groups of up to 5 members.
Although starting and managing a LLC is less complicated than a corporation, it is still more complicated than starting and managing a sole proprietorship or a partnership. You will probably have to hire a legal counselor to help you with the set up and operating the company.
The Regular Corporation is … well … the corporation. A company organized as a corporation is a separate legal entity from its owners (called shareholders). The company can thus protect owners from liability issues or company debt.
The corporation provides advantages such as:
Once the corporation is set up, it will pay taxes separately from its owners. This can lead to double taxation as companies are taxed on profits and once those profits are distributed, shareholders will also have to pay income taxes. The double taxation problem is solved by incorporating as a S Corporation (see below).
Corporations are not necessarily ran by its owners. The shareholders own company stock. This gives them the ability to elect Directors, organized under a board of directors. Once this board of directors is set up, they appoint Officers (CEO - Chief Executive Office, CFO - Chief Financial Officer etc.), which are the people that actually run the company on a daily baisis. Of course, if you own 100% of stock, you can appoint yourself as the one and only director, be the officer and run the company.
On the other hand, if your company will be owned by more individuals, the Board of Directors and the Officers will run the company. Both the Board of Directors and The Officers have to abide to an internal company document called "Corporate Bylaws". This document sets the rules on operating the company and can be extended or modified as the company evolves.
The Corporation is a lot more formal than the LLC and of course, the Partnership or the Sole Proprietorship. The records have to be carefully maintained, there is a mandatory yearly Directors and Shareholders meeting and every decision has to be documented and reported.
Although the corporation is harder to form and maintain, it is the oldest and most reputable form of business organization.
When registering as a corporation, you should take into account the S-Corporation. By filling in the appropriate tax election form to the Internal Revenue Service, the company will be taxed as a Sole Proprietorship or a Partnership.
The main advantage for you and your partners is that income and profit is passed through to the shareholders, thus solving the double taxation problem mentioned above.
Even though you've solved the double taxation issue – you're still stuck with the paperwork and specific regulation, which can be a burden for online retail startups.
To wrap things up, here is a rundown of the main types of incorporated business structure you can choose, each with its own pros and cons:
Once you have decided on whether you're registering your business as a sole proprietorship or incorporating it you can check the specific regulations for your state here and start the registration process.
You've figured out your market, planned on how you'll build and run your store and what your business model is. You've registered your business and you are ready to go. Or are you?
Well hold on there, you still need to have those products you're selling. That means you need to source your merchandise from suppliers.
Generally speaking, suppliers are those businesses or individuals that are willing to supply you with products priced below end consumer value. Still a bit unclear? Well say you will be selling plain t-shirts. You know you can buy those t-shirts for $20 at the closest store. If you do buy t-shirts in that store, you will be buying them at end consumer value. You are the end consumer. Because you cannot price them at a higher level you are basically stuck with them – hence the "end" in end consumer.
What you need to do is go find yourself some suppliers that are willing to sell you those t-shirts for less than $20. Why would they do that, you say?
Remember the whole B2B business model? Some companies just work this way. They manufacture the products or sell them in bulk and let other companies sell directly to the end consumer.
( The basic operations needed to run your store )
When dealing with suppliers you have to be ready to make a commitment before they agree to do business with you. This commitment can come in many forms but usually it's one of the following:
Once you've made a deal with one or more suppliers you will be selling your products right on your store. When the orders start pouring in (or maybe just trickle in the beginning) you have to make sure customers receive the products they've paid for. This part is called "fulfillment" as in fulfilling your promise to send the product to the customer in exchange for the payment you have received.
Fulfillment means any task done inside or outside the company that assures the right products are shipped to the customer. Usually this means:
We will talk a lot more about fulfillment later on in this guide but for now I just wanted to give you an overview on the usual processes in handling orders and shipping products to the end consumer.
Fulfillment can be done either within your company, by the supplier or as a mix between the two. Let's have a look at these scenarios:
Usually, most online retailers (such as yourself) choose a combination between the two and maybe some other processes.
( The example below is illustrated in the figure above. Combining basic operatiosn with supplier drop-shipping. )
For example, let's say you partnered with two suppliers (see figure above). Supplier A will provide you with plain t-shirts. Supplier B brings in sneakers. After you start your store you receive two orders. Customer X is asking for 2 plain t-shirts. Customer Y is asking for a plain t-shirt and a pair of sneakers.
You will have to treat these orders differently. Order number one, the one where customer X paid for 2 plain t-shirts is forwarded to Supplier A and he will dropship these items and then invoice you for the products.
Order number two is a bit more complicated. You will have to ask supplier A to send you one plain t-shirt (if you don't already have it on your inventory) and Supplier B will send you a pair of sneakers. You will be invoiced on those products and once you have them in your warehouse you can pack and ship them to the customer.
You can also choose to work with external fulfillment services, such as Fulfillment by Amazon. These services relieve you of the burden of picking, packing and shipping your orders. For a cost.
By building and interlinking separate operations such as those mentioned above, you are actually building what is called a supply chain. The supply chain means any interlinked process that enables you to move products from the manufacturers or wholesalers to the consumer.
The supply chain is not a static structure. It can and it will change as your online store evolves. As you add new suppliers to your supply chain, your ability to distribute products to consumers will increase and so will your revenue. But speaking of adding suppliers to the supply chain …
Yeah, how DO you find suppliers for the online store? Now that you've got a sense of why you need suppliers, how to negotiate and deal with them, let's have a look at how to actually find them. When you're looking for merchandise suppliers you'll see that you have two big options when choosing, each with its pros and cons. These two options are domestic suppliers and overseas suppliers.
Assuming you are in the US, using domestic suppliers will be a very viable option but you should also consider the second. Overseas suppliers can be a great addition to your supply chain. They can be used when in need of additional product options or lower prices. Let's have a look at the pros and cons of using these two types of suppliers.
( Directories providing links to domestic US suppliers )
The most important thing you need to remember when dealing with overseas suppliers is that you have to be very, very careful. If you are inexperienced, you should ask for professional advice on how to get the best deals and protect yourself from fraud. Also – if you do find yourself in need of doing business with overseas suppliers, choose to contact those that provide a local sales office or agent or order using established marketplaces that provide escrow payment options.
( The most reliable services that connect you to B2B suppliers overseas )
Although the services mentioned above are a great way to find the right suppliers, you can also do your own digging and search for independent manufacturers or wholesalers.
There is no standard way of doing this but some tips may help you get closer to your ideal suppliers:
So hopefully you now know a thing or two about finding suppliers and you're going to get the best deal possible. Great! What's next? Oh, yeah, prices:
When it comes to pricing, you have two rather simple concepts to always keep in mind:
Basically, the prices of sold products have to cover the sum of these expenses. The bottom line is always the same: Profit = Revenue – Costs.
Your company will report a gross revenue by selling products. Profits come when you are selling enough merchandise, at the right price, to cover your costs.
Of course, it's a bit more complicated than this but you get the picture. You have to price your sold products where you can be profitable. However, prices need to stay competitive to the market. This means that there's a balance you have to keep. Prices should be big enough to keep you in business but small enough to be competitive with other online retailers.
1. Markup on cost means you add a certain percentage to he cost associated with the product. It is usually a standard percentage somewhere between 15% and 40%, enough to keep you profitable and your prices competitive.
The formula works like this:
Item cost + (Item cost x Markup Percentage) = Price
Say for example we are selling plain t-shirts, with a cost of $20. We've set the markup at 30%. The the price would be:
$20 (Item cost) + ($20 x 30%) = $26
2. Manufacturer suggested retail price (MSRP) is another way small businesses can set their prices in such a way that they are profitable but not too expensive. MSRP is the price the manufacturer recommends to resellers so they don't start price wars that can benefit no one. This type of price setting leaves out a lot of options for the online store owner and should not be a general rule in the long run.
Above are just two of the simpler ways prices can be set to attract the consumers. We will get into a lot more details in the "Marketing your store" part of this guide so stay tuned.
For now, this concludes part two of the "How to Start an Online Store" Complete Guide. Part three will focus on building your fulfillment operation (picking, packing, shipping and returns) and how to build a brand identity and the actual store front. See you soon!
Featured image source: https://www.flickr.com/photos/27017674@N06/8915361750
If you are here you're probably thinking about opening an online store and you need some help to get your business up and running. The good news is you've come to the right place. This guide contains all the information you need to get your business started.
I'll guide you through the most important steps in starting an online store. You'll notice that, just like a car, the things that make an online store are usually under the hood. Of course, an efficient web store and a carefully crafted logo are important but even more important are the products you sell, where do you get them from and how you fulfill your promise of sending them to your customer.
Basically there are ten main areas you need to focus on when starting your online retail business. These are:
That's a whole lot of bullet points. Of course: an online store is still a business and businesses are not simple. If you're trying to build a business because you need money fast or because you're tired of your day to day job, you should stop reading this post right now.
The truth is building your store or any other type of business is hard work. Seems obvious, right? If it were easy, everyone would be running their own business. It's hard but if you are ready to take on this challenge, prepare yourself with grits and start chewing as much info as you possibly can. The more information you have and the more data you gather, the more likely you are to succeed.
This guide will work as a framework, an outlook on what you have to do to maximize your chances for success. Depending on your current location and specific market factors, you may need to adapt as you go but you can rely on this framework to guide you through.
So let's dive in:
There are three very important things to take into account when starting your online store and looking for your niche:
The first thing you have to understand is that your business has to provide value for other people. Just as people do, businesses strive for purpose. Without providing value in a clear and straightforward way, you cannot expect your business to be successful.
Find out what people need or want. A combination of both is great but if you have to choose, go for need – it is way better in the long run. Find out how you can supply these products or services. This is the value.
The second thing you have to take into account is that other online stores may provide the same kind of value. Do your research. Google the type of products you want to sell. Check Google Trends to see how the terms for your products have evolved throughout the years. Compare the number of product searches with the number of companies providing the same type of value you're planning on offering.
There is a dynamic between demand and supply that you cannot ignore. You are looking for a market that is booming but there are not many competitors. And that's were the third point comes in: you have to provide value for lots of people. You may like hoodies for cats very much. But it is probably not such a great idea. You are addressing people in your country (don't think you're going international just yet), who own cats, who think that dressing up cats is a good idea and who like hoodies. A pretty small market, don't you think?
The lower the market size, the lower your chances for success. The higher the market size, the higher are your chances at building a great business.
See the graph below on where you'd want to place your business in:
So there are two great combinations that you can choose. Both need as many customers as possible. You should strive for a market where there are plenty of people ready to buy your product.
The ideal situation is the one in the lower right corner. That's where few companies will compete with you and there are plenty of customers willing to buy your products. But to position your online shop there, you need to identify a need before the competition and quickly get as much market share as possible. However, in this situation, you'll need to market your products and your brand, advocate product usage and purchase. That means actually building a market. This is no easy feat for a startup.
The upper right area shows a combination of many competitors and many customers. This means this is an established market and you're more likely to succeed if you prove yoruself better than (part of) the competition. With slight adjusments to the business model, you can compete to established leaders (see below for innovative ecommerce models).
Once you have discovered the kind of product(s) you will be selling it's time to start building The Plan. You will notice that I'm using the term "the plan" and not business plan. That is because this is your plan. It has to come as a natural idea and set of targets you want to acomplish in the future with the business you're building.
There are nine big questions you need to answer here. You have to be as pragmatic as possible when answering these questions because when you start building your online store there won't be any place for wishful thinking.
These questions are simple but the answers are usually not:
Answering these questions will get you thinking and preparing for the future. You will notice that these are actually the questions you need to figure out the answers to when building a business plan.
However, take your time to think through these questions. Find information to support your expectations. Question your own assumptions because the market will surely do so. If you've taken into account all these questions you are likely better prepared to starting yoru online shop. Remember, "failing to plan is planning to fail".
You're probably thinking the ecommerce business model is pretty straight forward. You post some goods online, someone orders them and then you ship them and collect the big bucks.
Well, that is why you need to know that even if the logistics and operations may look the same in all ecommerce business, the differences can have a huge impact on how you're building yours.
I'll walk you through the 4+1 main segments of ecommerce business model. Than we'll look through different implementations of the B2C model (business to consumer), the one you're probably aiming for.
B2C Ecommerce is the most popular form of commerce online. The B2C stands for Business to Consumer and that's exactly what it means.
Online retailers (aka "The Business") will stock goods, post them online and sell directly to the customer ("The Consumer"). The Consumer will reach the web shop, browse and hopefully buy the items posted online. When this happens, the operational team will be notified. They will pick the merchandise from the warehouse shelf, pack it and ship it to the consumer.
(Illustrating the B2C ecommerce model)
Most of the online shops you are familiar with are focused on this type of ecommerce business model. Some examples you might be familiar with are Walmart.com, Target.com or HomeDepot.com.
But B2C is not just for the big players. Many ecommerce startups employ this type of business model. For example Bonobos.com and WarbyParker.com are doing just great selling directly to the consumer.
Bonobos is a fashion ecommerce retailer for men. The company manufactures and sells its own line of men wear and its main selling point is it makes shopping easier. How it does that? You'll find out later in this guide.
WarbyParker.com sells stylish eyeglasses and sunglasses directly to the consumer. It is a great example of finding the right type of product at the right time and packaging it with the right type of social activism twist. When you buy a pair of glasses from them, a social mechanism makes sure that part of the money you've paid go to those in need of eyewear in the developing world.
But wait, isn't Amazon a B2C ecommerce site, you might ask? Glad that came up. See, Amazon has started as a B2C online shop but since then it evolved past a single model. Most of its sales are still directed at the end consumer but Amazon also ships items to businesses (B2B ecommerce) through its Amazon Supply outlet. It also brings other sellers (businesses and consumers) in contact with its own customer database. This means Amazon is indeed the largest online retailer in the world, but it's not just a B2C ecommerce website.
Another business model that works great is the B2B Ecommerce model. In this model Businesses sell merchandise to other Businesses through an online shop.
You might wonder why even mention this model. I mean, couldn't those listed above just allow businesses to buy from their shops? Of course they could and most do. But here, I'm talking about a different type of companies, different type of products and most of all – different number of items purchased and different pricing.
(B2B model illustration)
Say you're a company manufacturing hoodies for cats. Supposedly your market is not as popular as the smartphone market and your factory can ship 1000 beautiful cat hoodies every year. You could, of course, open an online shop and ship these hoodies directly to the consumer. But you'll find out that it implies development costs, marketing costs, customer service costs and you just want to be in the factory all day, trying to finally manufacture the perfect cat hoodie.
Along come Business A and Business B. These companies are probably retailers and have an established commerce operation, with a huge database of customers and they think they can sell 500 hoodies this year. And they want everything you manufacture.
Before these companies came along you've done the math and thought: "My cost for each manufactured hoodie is 10$. I'll sell these hoodies for 20$ and make a nice proffit." But then you went on and started selling on your own and saw that including marketing, shipping and other expenses your cost rose up to 18$ and you're actually making only 2$. Not that much, is it?
But now both Business A and Business B decide they can offer you 15$ for each hoodie and they are going to buy everything you manufacture. On one hand they are offering you less than your asking price but in the end your earning 5$ instead of 2$ so you decide you're better off selling directly to Businesses.
This simplified scenario is the basis of the B2B ecommerce business model. It means that businesses (either manufacturers or wholesalers) sell directly to businesses and offer incentives to those that buy in bulk. The usual incentives are lower prices, extended payment conditions, free shipping or custom manufacturing.
Some of the most popular B2B ecommerce sites are Quill.com, AmazonSupply.com and of course AliBaba.com, the largest B2B marketplace, connecting businesses in China to buyers all over the world.
(Business to Business to Consumer business model graph)
This is a rather new type of ecommerce business model. It stands for Business To Business To Consumer.
How does it work? Say you have your own stocks and you're selling your cat hoodies through your very own ecommerce website and it works pretty well. But you're thinking – why not sell more?
So you think of new sales channels, the type of opportunities where your cat hoodies can sell even better if exposed to a larger number of customers. Kinda like Amazon or eBay.
Larger retailers, such as Amazon, offer you the possibility of selling on their own website. You supply the goods and post them on the Amazon Marketplace, for example, and next thing you know -bam! – your cat hoodies can be purchased by Amazon's customers. Depending on your decision you can either fulfill orders on your own (receive orders from Amazon, pick, pack and ship yourself) or just let them handle the logistics, through their Fulfillment by Amazon program.
So we've covered businesses selling to customers and other businesses. Shouldn't consumers sell to other consumers too? But they do and this area is actually booming.
Consumers usually meet other consumers through online marketplaces. By far, the most popular is eBay.com, the place where anyone can sell and buy anything. Even though eBay hosts businesses also, we will focus on the individuals selling their items through these type of systems.
The online marketplaces enabling C2C ecommerce help sellers post their goods online and buyers to find them.
There are many mechanisms in place to handle these transactions, things such as product showcasing, selling, payment and feedback. But if we were to look at what makes C2C marketplaces work this has to be the network effect and peer review. The network effect means that the more people engage in trading goods in a marketplace, the more people will come and more successful the marketplace will be. This effect also ensures seller and buyer lock-in: the more people are buying or selling, the harder it is for someone to leave the marketplace. The reason – where else will this person find so many customers or merchants?
The second big feature that defines C2C marketplaces is peer review. When you're buying or selling through this type of systems, you really don't know who's on the other end. And because relying on luck and having faith in the good character of people is not the most efficient solution, marketplaces introduced peer review.
When someone buys from a merchant and they get what they asked for, they offer a positive review. When they don't, and things take a turn for the worse, they slap the merchant with a negative review so others know the merchant is not to be trusted.
The same goes for the merchant. If the customer doesn't pay up or somehow tricks the merchant – there's always a bad review at hand to get things leveled.
Once these reviews start pilling up, they start working as a certificate of good standing (or bad standing). If you are a honest merchant or customer, you won't leave the marketplace that stores this certificate. That's because reviews are a valuable asset that help members trade in better conditions.
Why mention all these? Because building a C2C marketplace is really, really hard and expensive. For example eBay lost $100 million trying to enter the Chinese market before giving up to AliBaba. It's that kind of expensive so I would rather advise against building a general C2C marketplace if you're a startup.
You could, however find a niche where individuals are willing to trade with one another and cater to that specific niche.
For example: Etsy.com is famous for building the biggest handcrafted C2C ecommerce community. Uber and Lyft bring individuals in need of transportation in contact with those able to provide these type of services. In fact, Andreessen Horowitz, one of the leading Venture Capital firms lists Online Marketplaces as one of the most promissing directions for startups.
Yes, C2B (Consumer to Business) eCommerce is a thing. It might look a little off but there are great ways to start an C2B ecommerce business. There are also some great established services that help connect individuals to the businesses in need of their products or service.
(Consumer to Business Ecommerce Business Model)
Take this blog for example. You see those banners posted on the side? These ads are served through AdSense (a Google program that connects advertisers and website owners). What AdSense does is connect the individual (in this case a blogger) to those businesses in need of relevant advertising. In return for posting these ads, the blogger gets paid everytime someone clicks an ad.
Reverse auctions are a great way for individuals to post how much are they willing to pay for a certain product or service. A C2B Ecommerce site can collect these auctions and forward them to companies willing to fulfill them. For example – the basic model behind the likes of Groupon.com or LivingSocial.com is a combination between B2C and C2B. Companies post their offers but the consumers have to vote by purchasing these offers. If the minimal number of offers is not met, the offers are not activated.
Another great example of the C2B ecommerce model is Elance.com. The website is one of the first businesses that connected freelancers to potential contractors (usually businesses). Freelancers would go online, post their capabilities and those in need of their services would hire them for a limited time or project based.
Monster.com is another great C2B example. Yes, people posting their resumes and getting recruited is a type of commerce where The Individual is pitching The Business to buy his services (aka hiring).
If you're an one-man startup, this can be a great way to setup something quickly. In fact, most freelance developers or graphic designers practice this type of commerce. Either through large marketplaces such as Elance.com or just by posting their resume and portfolio online and getting orders through a simple contact page.
These are the four most popular and used business models but they are not all. There is a separate class of ecommerce business models that has to do with the government. When the government wants to buy products or services from businesses it will post the tenders on a G2B (Government to Business) portal that handles auctions and offers.
If the businesses want to market their their offers to the government, they will employ a B2G business model. See that? G2B vs B2G – pretty simple stuff.
A final model is G2C – government to citizen. Using this model, government authorities can auction goods directly to the consumer. It also works as a way of connecting citizens directly to the authorities and decrease bureaucracy when issuing documents or collecting taxes.
So you've glanced through all these great ways of starting an ecommerce business and you finally decided on one of them. The vast majority of online shop startups are built on top of the B2C business model so the next part of this guide will focus on a few innovative ways of implementing an online shop.
The basics all stay the same. You are still an online shop owner trying to attract the right kind of consumers and provide them with products they will love. But how about some inspiration from the most innovative business models out there?
Remember Bonobos.com we've talked about earlier? Well their whole selling point goes something like this: most men don't really like shopping. They like to wear clothes that make them look good, without spending too much time choosing. We can make this happen.
That is especially hard when you're an online store and your customer can't see, touch or try on the product your selling. But it can be done. To make it happen, Bonobos mixed its great designs with few things to keep the customers happy and relaxed:
The key take away is if you're building an online store, it has to solve a problem. Bonobos solves the "shopping for clothes is boring" men problem and promisses the right fit without the headaches of chasing a pair of pants all day.
There's a whole post on Netonomy dedicated to Flash Sales. Basically, these type of online shops sell discounted merchandise to registered members.
Take for example Ruelala (pic above). Customers have to provide the shop with their email address to register as a member. This means that basically anyone who enters the website is also subscribing to an email newsletter.
In exchange customers get discounted, usually designer or brand name products. If you like to know more about this ecommerce model, please click here.
Most online shops have thousands of products listed. This is a great advantage over brick and mortar stores which have to actually stock on all those products. Online shops can stock on the minimal amount and later on deal with orders through supplier dropshipping but more on that later.
A new trend emerged that deals with showing just the right amount of products customers need in a given period and ship those products in a subscription based model.
Take Manpacks.com for example:
What Manpacks does is list just the minimum amount of products men need in any given month. Customers setup their pack and receive it every month, based on a subscription.
There are many advantage in starting such an online shop:
Are you familiar with the term crowd sourcing? It basically means asking lots of people to do something for you or your company. In this case, we're talking about designing products.
What Threadless.com did was build a community around the concept of designing t-shirts. Designers would submit their designs and the community would choose what t-shirts were sold. In exchange, the website shared revenue with said designers.
Of course, going against Threadless now is probably not a great idea but you can always build a business by channeling people's passion towards a commercial goal.
Mass customization is an ecommerce segment that's growing really fast. Customers want to express their creativity and they are ready to pay for this.
This type of online sales are technologically advanced and need three really important things to function:
For example Nike launched NikeID, a great way to customize their products. After a successful trial period, the program extended to many of the company's products.
If you'd like to find out more about mass customization, you can get more info at "Is Mass Customization the Future of eCommerce?"
The final innovation I think you should take into account is 3D printing. Using specially designed machines you can build 3D objects and sell them to customers.
3D printing is a technology that is actually yet to take off but it sounds really promissing. For certain products it can mean a reinvention of manufacturing and commerce. Imagine having your customers build the product in your store and having this product instantly printed and shipped. Imagination is the only thing that could limit what can be done with such technology.
Shapeways for example, started in 2007 as a marketplace for 3D Designers willing to design and sell their ideas. In 2012 it has passed the 1 million products sold threshold so there really is a market out there.
Because it is connecting designers to buyers, Shapeways is a C2C marketplace but probably the future will show 3D printing is not restricted to individual designers so B2C online shops might also leverage the trend.
This was the last of the six innovative ecommerce trends you could use to spark the right idea for your future shop. This ends part one of this guide. To wrap things up let's walk through what you've learned here. First – the importance of finding the right niche and how you cult do that. Next, you've learned about the necessity of building your Plan when starting an online shop and the questions you need to answer when building said plan.
Last but certainly not least, you've discovered the main business models you can use to build your shop and six of the most innovative B2C ecommerce models. Pretty good for a day's work.
Featured image source.
What does it take to turn a store visitor into a loyal customer? Any retailer that can answer this question is surely a leader in its respective niche but it is not a simple question.
There are a multitude of factors at play and we thought we might ask the experts. We’ve reached out to George Skaff, CMO of TouchCommerce, the leading company in omnichannel engagement. George has over 25 years of marketing leadership experience in the computer industry. Prior to joining TouchCommerce, he has held marketing leadership positions with SGI, DigitalPersona, Wyse Technology and NEC Computers.
George Skaff: TouchCommerce is the innovative leader in omni-channel engagement solutions. We have been in business since 1999. Our company was built with a results-driven retail perspective to replicate and enhance the in-store customer experience online, with chat technology. We have award-winning technology platform and mobile solution with an emphasis on data, self-service and automation. We are focused on Enterprise Global F1000 eCommerce companies. TouchCommerce real-time customer targeting engine leverages “BIG DATA” to target and engage customers in a personalized digital assistance experience on desktops, tablets and smart phones across the omni-channel environment. TouchCommerce operates in 16 countries across North America, EMEA, and Japan.
With mobile revolution happening right now, the way customers want to interact with retailers is changing fundamentally. There is a shift in customer behavior underway. You can no longer rely on them dialing your number when they have a problem and talking to a customer service agent. There are hundreds of ways they could contact you and they may well try several different ways to get the information they want. However, make no mistake: your customers are not aware that by clicking out of a webchat session and picking up the phone that they are ‘changing contact channel’. They do not care. All they are concerned with is getting their query answered in the easiest, quickest way possible. And they want their experience to be consistent across all these channels.
Combined or stand-alone, the fully-integrated custom solutions we create for customer acquisition and customer care and retention contribute to an enhanced online, mobile or in-store customer experience and increase self-service in the omni-channel environment.
George Skaff: To maintain consistent consumer experience, it’s vital that retailers start thinking in terms of the customer journey and the conversation you are having with them, rather than the platform for that conversation. In order to have a cohesive, joined-up omni-channel offering, it’s essential that the different channels are integrated at the back-end. There should be one view of each individual customer, no matter which channel they have chosen to contact you. Ideally, this view should be presented to the agent in one, single desktop application too, so when a customer calls, the agent has a clear idea of their previous interactions and account details, and can quickly access information to help solve their query.
When choosing a software provider, retailers should consider if the solution:
George Skaff: The Dynamic Targeting Engine is the core of the entire RightTouch platform and underlying technology. It tracks all user behavior and website variables to identify optimal engagement opportunities. This highly flexible tool can be configured in limitless ways to identify any group of users and target their specific needs. All direct consumer engagement activities are managed via this robust engine.
By using Our Dynamic Targeting Engine, you can focus your energy and resources on the customers by presenting them with the products they want most. This targeting tool allows us to identify consumer behavioral attributes in order to launch any one of our products with the right context, including chat, guides, offers, survey invitations or any other rich content offering a targeted engagement experience online.
The Targeting Engine enables:
George Skaff: The retailers should be very specific in selecting the metrics to measure their omni-channel marketing performance, and not to focus on metrics for each individual channel. Engagement metrics should include consumer visits, consumer interactions, conversion ratios, LTV, incrementality in all of the above measurements, as well as customer satisfaction.
George Skaff: Several innovations are happening as we speak, among them ability for the consumer to effortlessly move across the channels, as well as the ability for the retailer to follow consumer journey across the channels. Retailers are starting to pay close attention to consumer’s shopping journey online and offline (in-store.) Products like TouchStore from TouchCommerce are a good indication of the future entails.
George Skaff: Apple Pay improves the ability of the consumer to effortlessly complete the purchase, but it does not change the purchase paradigm in principle. While there has been other payments method (Google, Amazon, etc.), Apple massive outreach in promoting this is helping the fast adoption.
George Skaff: The store of the future will be like a country without borders, where consumer moves effortlessly across different channels executing their intent to purchase. The thing to remember is that customers do not generally have a preferred channel. They will just pick whichever one they think will get them the result they need most quickly with least effort.
Consumers want choice – they will want to use different channels depending on their needs – and the ease with which they can contact a company increasingly forms part of the criteria for choosing one brand over another.
For example, a customer might call their mobile provider to find out if they were on the best price plan, but they will go online to see their current balance – and then turn to Twitter to chat with an agent about data limits abroad.
Another example is when a customer is doing their research online on their laptop looking to purchase a new TV, they check with their friends on social media regarding their friends recommendations on their tablet while sitting on the couch at home, then search for best prices using Amazon mobile app, and still will end up in a physical store to touch the product before they buy, and they might get engaged with the brand chat agent while in the store, ending up purchasing the TV of their choice in the store but using the coupon pushed by the chat agent to their mobile device.
Apple announced online sales in Russia will stop due to the ruble’s volatility. Indeed, the Russian currency has taken a blow recently as it plummeted to an all-time low against the dollar.
The Russian Apple online store has been taken offline while prices are reviewed and commercial activity on iPhones, iPads and other Apple products has been halted.
But how did Apple went from more than $1 billion in sales in Russia in 2013 to pulling out in 2014?
In 2013 Apple failed to reach an agreement to local mobile operators so it went straight to retail chains and selling online. It didn’t go too bad. iPhone sales doubled to 1.57 million units. After seeing huge spikes in demand, the local operators finally gave in and agreed to Apple’s terms. Nevertheless, almost 80% of all sales came directly from retail, skipping carriers.
So basically Apple sold $800 million worth of unsubsidized products without any help from local carriers, a surprisingly good result for the Russian market. “We’re really happy“, said Tim Cook in 2013.
Yes, the ruble drop may be a problem for Apple. But why close the store? Why block sales? Why not just switch to foreign currencies only? Why leave such a huge market? Sure, Russia is struggling with an economic a crisis but on a smaller scale – so is Europe. You don’t see Apple stopping sales there.
It may be that Apple was bound to leave Russia anyway and it figured this is the best moment to do so without worrying investors.
Starting January 2015, Russia will pass a law forcing tech companies to keep Russian users’ data in Russia. That means Apple will have to move some of its servers to Russia and keep them there.
Now this is obviously an unacceptable situation. With tensions between Russia and the US, privacy and data security concerns will force the company outside anyway.
It may be that the ruble collapse is the best Apple can go about a bad situation: leaving a billion dollar market and still look like its saving the day.
They say a picture is worth a thousand words. Add a cool filter in Instagram and it may be worth more. So luxury retailers have taken up on the chance of showcasing offline products in the most popular photo-sharing app in the world.
It’s definitely worth it. With more than 300 million Instagrammers, the social network is a colorful powerhouse, just waiting for fashion retailers to tap into it. And it’s not just the numbers. From Taylor Swift to Robert Downey Jr everyone who’s anyone is walking the red carpet of Instagram.
Along these stars came the most popular and desired luxury brands in the world. With social incentives, aspiring fans can become customers and customers will become brand lovers. So photo sharing on Instagram is a go for brands looking to connect online and offline sales and marketing.
Let’s have a look at these three most effective brands on Instagram:
Hermes is unconventional and creative, focusing on outlining the brand identity without being too pushy. It’s rather “modest” fan base of just over 670k followers shouldn’t be bigger either. After all, Hermes addresses a special kind of audience – the kind that doesn’t come busting doors in look for discounts. They discreetly shop online for $11.300 leisure bicycles and $7.600 bags.
You’ve spotted that special kind of turquoise and the must-have diamond ring that’s globally recognized. 1.8 million Instagrammers are constantly connected to the stylish social media outlet Tiffany’s employs.
The Instagram page is a mix of colorful illustrations, products showcased in glamorous yet simple and stylish photos and fashion advice from models and designers. The whole philosophy is outlined by Francesca Amfitheatrof, Tiffany & Co. design director: “I believe there is great power in simplicity.”
Just like its brick and mortar stores, as well as the online store, the Instagram page is a stylish, simple and elegant work of art.
Burberry is almost unbeatable in terms of using technology to connect to its esteemed audience. Digital retail is so important to Burberry that they’ve designed a flagship store that resembled their website, in 2012. Talk about omnichannel.
Digitally connecting to their customer has been the main ingredient to Burberry’s recent growth and Instagram was not bound to be left behind. The 2.4 million followers can get a glimpse in the lives of the rich and beautiful through Burberry’s Instagram channel.
Models, carefully crafted products and celebrities all mix to give followers, customers and aspiring Burberry product owners, that warm “I’ve got to have this” feeling.
And once that feeling kicks in, the monogramed scarf is just a step away in the online store, ready to be picked up in the closest store. Or sent home. Worry not, there’s free shipping and returns.
What better way to get advice on implementing and improving omnichannel retail than asking the experts. So we did ask the experts and we started with Mattias Pihlström, founder and omnichannel consultant at Brightstep AB.
Mattias is experienced in implementing ecommerce, multi-channel and omnichannel processes with industry leaders such as ABB, Apoteket, Ericsson, SCA, Indiska, Interflora, TeliaSonera and many others. He specializes in integrating internal processes, in terms of logistics, financial flows, user experience, loyalty, analytics, increased conversion rate and order value.
Mattias Pihlström: Multichannel for me was the first phase for retailers, meaning getting up new parallel sales channels (e-commerce, m-commerce etc). Omnichannel retail is the next phase where retailers start getting this channels to work together seamless to the consumers.
Mattias Pihlström: I think these are the main challenges:
Mattias Pihlström: There are many leaders in this area and too many to mention all, but SAP/hybris, Oracle, Adobe, Intershop, IBM are a few I would like to mention as niche players.
Mattias Pihlström: Here in the Nordics we see many pure-players setting up physical stores, both pop-up and normal stores. I also think a pure-player should have an omnichannel strategy in place even if they don’t have physical stores. There are so many other channels and touch points that should be part of such a strategy (like e-mail, social media, customer service etc).
Mattias Pihlström: Very much.
Mattias Pihlström: Reserve online and pick up in store (meaning not sending goods from central warehouse, but fulfill orders directly from store).
Mattias Pihlström: Change management and getting the understanding from top management.
Shopping cart abandonment is one of those dreaded issues both online and omnichannel retailers hate. There are many reasons for customers to just leave a webstore after they have picked their products, instead of completing the order.
Some customers find better prices elsewhere, some fail to navigate the store but most (56%) give up on their order when they are presented with unexpected costs.
Data gathered and compiled by the Payroll Blog shows that 68% of all consumers abandon their cart, leading to $18 billion in revenue lost each year but there are ways to avoid this. The infographic below outlines some of the most effective ways to avoid shopping cart abandonment and increase conversions.
Previously, the company used Commercehub’s marketplace technology to connect its vendors to its Ecommerce sales channels. With this new development there are two big things happening:
The first and most important, Staples moves technology development in house. This is a clear sign the company is shifting from a brick-and-mortar centric strategy to a technology centric strategy.
With its legacy store network already in place, growing online sales and the new marketplace, Staples can compete with Amazon on an omnichannel level. Its vendors can now access its online sales channels but with future improvements, their products will be probably ordered offline as well.
The second biggest change is in Staples’ logistics strategy. So far the company relied heavily on its own fulfillment centers. Now orders are increasingly shipped by vendors through drop shipping. This is the most efficient way for Staples to increase its product count and it seems to be working: Staples increased its product count from 30 000 in 2012 to 200 000 in 2013 to a whooping 1.5 million SKUs in 2014, according to Internet Retailer.
As Internet Retailer reports, Staples is still curating the vendors’ offers but it will soon switch to a fully integrated platform in 2015. Even now the new tool allows vendors to receive orders, see real-time alerts, access analytics data and manage inventory, without the cost Commercehub’s technology implied.
Could waiting for online orders to arrive actually be a pleasant experience? What about all those next day delivery and in-store pick-up features retailers brag about? What is the point in that?
Apparently not only is it pleasant but it may sometimes be more fun than buying products in store. The anticipation of orders arriving at our doors keep us on our toes. As a recent Razorfish report mentions, 76% of American consumers and 72% of UK consumers are more excited when their order is delivered at home than when they buy it in store.
Let’s stop for a moment and really look at these numbers: 3 out of 4 customers in the US, UK, Brazil and China would rather wait for purchases than receiving them right away.
This are amazing findings. It shows that instant gratification may no longer be the optimum trigger in marketing messages. It also means that what we thought was a liability for online sales is actually an asset, if used properly.
Building anticipation and delivering items on time is making customers happier than receiving it right away.
But don’t think that customers have lost their interest for offline OR online purchases. The channels have started blending with the help of smartphones. The same study reveals that:
1. Digital has a major impact on the retailer’s brand: Almost all those interviewed responded that a bad web store negatively impacts their opinion on the brand. 84% of consumers in Brazil, 92% in China, 73% in US and 79% in the UK are turned off by lousy digital experiences.
2. Customer journeys are not delivering what the customer wants: a cross-channel experience that works. Retailers are not yet delivering on the omnichannel promise. This leads to frustration and a growing gap between what the consumer wants and what the retailer delivers.
3. There is a huge difference between Gen Xers and Millennials, in terms of shopping. That difference lies in how much they rely on their smartphones. Millennials use their phones at least twice as much as Gen Xers when shopping offline (see figure above).
Achieving clarity in Omnichannel Retail is no easy task. Retailers, especially large ones, need to get all departments, all sales channels, suppliers and fulfillment operations on the same page. And that’s just the first step. Then comes the IT integration where legacy systems are connected to a central management tool that handles at least inventory transparency, CRM […]
What does it take to turn a store visitor into a loyal customer? Any retailer that can answer this question is surely a leader in its respective niche but it is not a simple question. There are a multitude of factors at play and we thought we might ask the experts. We’ve reached out to George Skaff, CMO of TouchCommerce, […]
Here are 5 companies whose combined online sales in 2011 amount to almost $75 Billion, US and Canada only. Let’s also have a look at their background and how did they manage to reach the top 5. The winner is one of the fastest growing companies in the world, a company born and raised online and […]
What better way to get advice on implementing and improving omnichannel retail than asking the experts. So we did ask the experts and we started with Mattias Pihlström, founder and omnichannel consultant at Brightstep AB. Mattias is experienced in implementing ecommerce, multi-channel and omnichannel processes with industry leaders such as ABB, Apoteket, Ericsson, SCA, Indiska, Interflora, TeliaSonera and […]
Shopping cart abandonment is one of those dreaded issues both online and omnichannel retailers hate. There are many reasons for customers to just leave a webstore after they have picked their products, instead of completing the order. Some customers find better prices elsewhere, some fail to navigate the store but most (56%) give up on their order […]
Unless you’ve been living under a rock for the past 5 years you’ve probably heard about a little thing called flash sales sites. Well … maybe not so little. It seems that, according to Gilt founder and ex-CEO Kevin Ryan, the flash sales sites you’ve probably heard about, such as Gilt, Fab and Rue La […]
In a recent outlook on China’s eCommerce Evolution, Brent Cohen outlines the astonishing evolution we might be missing. In 2012 China had a 66.5% growth rate and registered RMB 1,2 trillion ($197 billion) in eCommerce transactions. Cohen says an expected RMB 4 trillion ($655 billion) increase by 2020 is a “conservative” estimate. That shouldn’t be too […]