Ecommretail - Why no one understands ecommerce

No one understands e-Commerce

@ecommretailBarcelona April

24th 2010

Agenda• 1. Meet the curtain raisers

• II. Cognitive dissonance

• III. 3 bottlenecks to progress

–User interfaces

–Customer service

–Payment systems

• IV. Conclusions

• V. A new hope?

• VI. Q & A

Meet the curtain raisers@abarrera

Addicted to Silicon Valley, returns every year to cope with Spain

Founder @Inkzee and Resident Hacker @TetuanValley

alwaysnewmistakes.com

@luisriverag

Wrote business plans with clickballs before dotcom burst

Startup advisor and investor @OkuriVentures and @TetuanValley

luisriverag.com

Reward $100k

“buying and selling of products or services over electronic systems such as the Internet and other computer networks”

Wikipedia

5

“[...] Commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design and collaboration on the World Wide Web.”

Wikipedia

Cognitive dissonance

The excuse• Visitors don’t come to

my site because Internet usage is low and the advertising agency ripped us off

• Spaniards don’t like to enter their contact details

• People don’t complete purchases because they are afraid of entering their credit card

Reality• Your proposal is wrong,

even the smallest niches can be profitable online

• Site blinks “I’m going to spam you”

• User experience is so bad only hackers can find their way through some websites

USER INTERFACE FAIL

Circa 1992

Circa 2005

Circa 2007

FAIL

?

WTF!!

CUSTOMER SUPPORT FAIL

WTF (again)

Hours??

WTF (again)

http://www.botillo.com

0

250

500

750

1000

Millones d

e dolares

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Zappos Annual Revenue

PAYMENT SYSTEMS FAIL

2006

3M customers

+55 M €

CONCLUSIONS

• e-Commerce doesn’t work in Spain because customer experience and payment systems are subpar

• Real success cases have quickly shifted to larger markets (Privalia vs Barrabes) but most of us still “think small”

• We are missing out the Latin American opportunity

THANK YOU!!

Q & A

alex@inkzee.com (@abarrera)luisrivera@okuri.es (@luisriverag)

http://www.slideshare.com/luisriverag