Understanding the eCommerce Opportunity

© Ideal Interface Ltd

Understanding the eCommerceOpportunity

Hayden SutherlandOctober 2013


IntroductionWho am I ? Hayden Sutherland

Founder and lead consultant at Ideal Interface

A strategic digital and eCommerce consultancy

Based in Glasgow

Twitter: @haydens30Blog: http://press20.blogspot.co.uk

http://press20.blogspot.co.uk/




IntroductionSome of our clients


The Digital EconomyThink Big. Think Global • Two billion people are now connected to the

Internet.

• Almost $8 trillion changes hands each year through eCommerce.

• In some developed markets, about two-thirds of all businesses have a Web presence of some kind and one-third of small & medium-sized businesses extensively use Web technologies.


eCommerceDefinition time • Definitions of what eCommerce actually is differ.

• “The buying and selling of products or services conducted over electronic systems such as the Internet (and other computer networks)” Wikipedia

• It’s not just…• B2C: Business to Consumer• B2B: Business to Business• And.. System to System


Population & Internet Penetration

Population2012

Penetration2012



Population2012

Penetration2012

North America80% penetration

281M online users



Population2012

Penetration2012 South America & Caribbean

40% penetration244M online users



Population2012

Penetration2012

Middle East & Africa20% penetration

263M online users



cPopulation2012

Penetration2012

Europe62% penetration

503M online users



Population2012

Penetration2012

Asia & Oceania29% penetration

1,133M online users


Online SpendUK

$49 BillionGermany

$32 Billion

Japan$64 Billion

China$169 Billion

India$1.6 Billion

Argentina$1.9 Billion

Brazil$12 Billion

Mexico$1.7 BillionUSA

$226 Billion


eCommerceAdoptionPath

EmailSocial Networks

Online BankingTravel

Online retailTech & Books

Online retailFashion & Food

Phase 1 Phase 2 Phase 3 Phase 4


eCommerceAdoptionPath

Phase 1 Phase 2 Phase 3 Phase 4

Indonesia

India

Brazil

UK

USA

China

Markets are maturing

EmailSocial Networks

Online BankingTravel

Online retailTech & Books

Online retailFashion & Food


But forget about International eCommerce…

… if you can’t get the basics right at home first


• Merchandising & catalogue management• Payment & security• Fulfilment & returns• Customer Service• Marketing• User Experience & conversion optimisation• Analytics

The basics


• Stand up please• Stay standing if you currently have an

eCommerce site• Stay standing if you are using web analytics• Stay standing if you use it to get regular

KPI’s (visits)• Stay standing if you have ‘goals’ set up on

your site• Stay standing if you are measuring

eCommerce values• All of this is free!

Analytics


• It’s not just about replicating your shop or catalogue

• You have less physical and product restrictions online

• Combine different approaches to find what works

• It’s far easier to test & learn online

New modelsNew markets


eCommerceIsn’t just for the big boysBiccies.com


eCommerceIsn’t just for the big boysBiccies.com

• Started by a local cake shop owner• Identified an opportunity for biscuits as

presents and corporate gifts• Uses postal service for fulfilment• Opportunity to franchise & scale the business


eCommerce:The ability to create a businessaskherfriends.com




• Combines eCommerce with Social Media & email

• Builds up recommendations from friends & family

• Doesn’t actually transact online, acts as an affiliate



eCommerce:The ability to transform an industryuber.com




• Disrupting the taxi market in 20+ cities worldwide

• Combines location-based app & eCommerce• Uses familiar (Amazon.com) features:

• Cashless payments (billed to credit card)• Ability to ‘rate your driver’

• Founded in 2009• Now currently valued at $3bn+



• There is still a huge opportunity• The UK is one of the most mature markets• Consider the local vs. international opportunity• Measure everything• Online practices don’t have to replicate offline• Make £Billions!

In Short


My Contact Details• Hayden Sutherland

• [email protected]• www.idealinterface.co.uk

• @haydens30• 0780 1341955

mailto:[email protected]

http://www.idealinterface.co.uk/