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The “Commerce Graph” is a new framework we have developed to think about the future of physical exchange. The model offers an alternative to the dominant narrative about the commerce landscape that frames digital networks as an adversary of physical exchange — a force that will inevitably drive us to buy and sell nearly everything virtually.
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
Commerce Graph: Charting a future for physical exchange
Steven Jacobs, Deputy Editor at Street Fight
1910 2014@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
“Retail guys are going to go out of business and ecommerce will become the place everyone buys.
You are not going to have a choice.”
- Marc Andreessen
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
Consumers should have a choice.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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E-CommerceCOMMERCE GRAPH
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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about the way we buy goods and services bringing together
remote and in-person commerce !into one cohesive system.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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First, three assumptions about the future
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The growth in connected devices will make the distinction between “online” and “offline”
behavior less distinct.
This will force “e-commerce” and “local
commerce” companies into each other’s markets.
One.50#billion#connected#devices#
2020
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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The process of “buying” will become invisible.
!
The moment we decide to make a purchase, the transaction will
go through.
Two.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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E-CommerceThe Internet will not replace the physical world.Three.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Decide Remotely, Fulfill Remotely
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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In the commerce graph, there are two axes: decisioning and fulfillment.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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The process of making a decision to buy a product.
The process of bringing the product/service to a customer
after point-of-purchase.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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These axes are weighted by “in-person” and “remote” activities.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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An interaction with a product/service provider in the real world
An interaction with a product/service provider which is not physically present.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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‘Brick-and-mortar’
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Decide In-person(Brick-and-mortar retail)
Ecommerce
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Decide In-person, Fulfill Remotely (Brick-and-mortar retail)
‘Omnichannel’
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Consumers already shop across the commerce graph.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Nearly everyone buys goods or services
offline.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Nearly everyone buys goods or services
offline.
196.6 million Americans shopped
online last year. That’s 90% of all
Internet users
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Nearly everyone buys goods or services
offline.
196.6 million Americans shopped
online last year. That’s 90% of all
Internet users
78% of consumers said they bought in-store after browsing
digitally.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Nearly everyone buys goods or services
offline.
196.6 million Americans shopped
online last year. That’s 90% of all
Internet users
78% of consumers said they bought in-store after browsing
digitally.
72% of consumers said they bought
online after browsing in store.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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But sellers have lagged demand. The bulk of digital
innovation has remained in the remote — or e—
commerce quadrant.
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Ecommerce sales are projected to hit $491.5
billion by 2018.
$125.00
$250.00
$375.00
$500.00
2012 2013 2014 2015 2016 2017 2018
(billi
ons)
!25
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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$10 trillion
!
The biggest opportunity today is in where
remote and in-person commerce intersect.
But that’s still only 9% of the $10 trillion
consumers spent on retail goods last year.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Over the next decade, the companies driving value
creation will bring together remote and in-person
commerce.
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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A portion of that market will be owned by the existing players.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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E-CommerceHowever, new (and existing) firms will grow by solving problems within each
“omnichanel” quadrant.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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We’ve already seen explosive growth in the decide online, buy in-
person quadrant. !
These companies are often labeled as “local
commerce” firms
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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Yelp has nearly doubled unique
visitors since 2009. !
Today, the reviews company draws 128
million UVs every month.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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In 2013, the company announced Yelp Platform, a new
initiative to close the gap between discovery and
transaction.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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The decide in-person, fulfill remotely quadrant
has seen less innovation. !
But there’s a big opportunity for new brands to flourish.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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This is the Tesla showroom in LA. (There’s no lot.)
Customers can test drive and buy a car, but its delivered
weeks later. !
A “showroom” model allows Tesla to sell its product in
malls and other high-traffic areas.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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The future of commerce lies at the intersection of digital and physical marketplaces.
@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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@ 2014 Hyperlocal Industries LLC. #commercegraph@stevenhjacobs
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E-CommerceSTEVEN JACOBSDEPUTY EDITOR, STREET FIGHT
Decide Remotely
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