Welcome

Michael Sonier

Head of Product Management

“Omnichannel”

The Shift to Unified Commerce

“Retailers are shifting their focus from channel integration to a

holistic customer experience. Retailers can no longer afford to

operate from within channel silos, and must transform the

organization, business processes and technology to align with

the demands of their customers.”

Top Investment Drivers – Not All About Stores

“Please identify the top three reasons for investing in a retail order management system.”

First Second Third

To support buy-online, pick-up-in-store program

To enable us to fulfill online orders from our physical stores

To support the rollout of additional web

distribution centers (DCs)

To support shipping to store

To enable a single view of inventory across channels

To enable drop shipping from suppliers

To enable drop shipping from marketplace sellers

To enable a single view of customer orders across channels

To replace an existing legacy or homegrown system

To enable store associates to place orders from the

online channel

To enable omnichannel returns

18% 12% 10%

9% 17% 12%

16% 13% 9%

11% 12% 14%

9% 10% 13%

8% 9% 8%

8% 8% 5%

6% 7% 8%

11% 6% 5%

3% 11%

3% 5%

Order Management for Magento

~500 Extensions On Magento Connect Marketplace

Connecting Supply to Demand

SUPPLY DEMAND

STORES

DROPSHIP

NETWORK

Distribution

Centers

STORES

MOBILE

WEB

CUSTOMER

SERVICE

MARKETPLACE

Connecting Supply and Demand

STORES

DROPSHIP

NETWORK

DISTRIBUTION

CENTERS

STORES

MOBILE

WEB

CUSTOMER

SERVICE

MARKETPLACE

Turning

Orders to

Cash

And then monetizing the transaction safely and securely

Why Many Merchants Are In the Market

47% of retailers will purchase an OMS in the next 2 years

Questions We Hope to Answer

What about payments; do you know where your fraud is?

What’s your service barometer; are you meeting customer expectations?

How are you doing with assortment; can you reduce your overhead and risk?

Do you/should you/will you have stores? If so, how to leverage them in new ways?

What is the future of Point of Sale in unified commerce?

How best to leverage marketplaces to expand your reach?

Harold Paulson Jr Director, Risk Management

Andy Barker Director, Payments

Optimizing

Payments and

Fraud

Converting Good Business

FACT: ONLY 3% OF VISITORS WILL EVER MAKE A PURCHASE

Once a shopper commits to buy…

ARE YOU READY

TO CONVERT THEM?

What is your payment acceptance rate?

Don’t I just ‘connect the electricity’ and it works?

What else is there to do?

Is there more than

an auth request?

Do you have a fraud problem?

Industry Benchmarks • Reject rate= 2.3%

• Fraud loss rate= .9%

• Order review rate= 27%

Do

criminals

want your

products?

Are you

impacting

good

customers?

How much

does it cost

you to

manage

fraud?

What do

you

measure?

How much

are you

taking as a

fraud loss?

Right Size Your Risk Approach

Determine the best fraud management strategy for your business

• Assess your current risk and costs

• Set appropriate goals

• “Right size” your approach

Use your data

• Know your customers

• Look at your patterns

• What can you measure?

Do your homework - research

Payments & Fraud Optimization

Total payments cost Total fraud cost Total cost of ownership + = Interchange

Decline Rate

Approval Rate

Payments Infrastructure

technology, 24x7 monitoring,

vendor cost, data

Payments Resource &

Process

acquirer/vendor management,

data analysis, approval

optimization, reporting

Fraud Loss

Customer Impact

review rate, bad cancels

Fraud Infrastructure

technology, monitoring, data

storage, vendor costs

Fraud Resources

rules management, data

analysis, order review,

chargeback processing, loss

recovery

Chad Caperelli

Jon Jessup

Senior Product Manager, eBay Enterprise

Founder and CEO, Cloud Conversion

Delivering good customer

service

Why Customer Service is Important

89% moved to a

competitor due to a

bad service

experience

75% valuing a customer’s

time is the most

important thing a

company can do

62% purchased more

after a good

customer service

experience

Direct agent support continues to be a top preference

Implementing the right CS toolset is critical for customer engagement

Omnichannel integration is key to success

Why Customer Service is Important

Customer Service ranks 2nd for

software strategy and investment

The right strategic and technological

decisions are critical

What are the options?

Broad range of options

The “leaders” prevail due to:

– Robust out-of-the-box capabilities

– High configurability

– Add-ons (i.e., appexchange)

– Scalability

– Low setup and run cost (cloud)

– Ease of deployment

– Integration capabilities

How To Choose The Right Option

Intuitive

interface, unified

experience, easy

information

access

“Right-

sized”

features and

functionality

Flexible

integration

and

scalability

Support for

multichannel

capabilities (i.e.,

chat, email, text,

etc.) Quick access

and resolution to

most common

scenarios

The Success of the CS Toolset

Good customer

service requires

deep evaluation of

both customer and

agent needs (i.e.,

define the

customer journey)

Adapt as

needs

change

(because

they will)

Toolset and

commerce

platform

integration can

be a

differentiator

A superior

customer service

toolset is

important to help

deliver great

experiences

Robert Schlussler Product Manager, Dropship

Dropship Best Practices

Low Risk Assortment

Expansion

Why Dropship?

Eliminate the risk of inventory overhead while:

Expanding product assortment

Testing new products

Offering product customization

EXECUTION IS KEY

Executing Your Dropship Strategy

Consider employing best practices in the following key areas:

Cultural & Operational Infrastructure

Supplier Collaboration

Supplier Compliance

Cultural & Operational Infrastructure

Organize to support your dropship program

Assign an

E-level

champion

Define roles &

responsibilities

Invest in

automation

Employ industry

standards Plan for peak

Supplier Collaboration

Foster open communications with suppliers

Routinely

communicate sales

forecasts with your

suppliers

Hold quarterly

meetings with your

suppliers

Cultivate strong

personal/business

relationships with

suppliers

Supplier Compliance

Measure supplier performance

Create a Supplier

Compliance

Guideline document

Have suppliers sign

the document

Use the tools at your

disposal to measure

& enforce

compliance

Best Practices Recap

Cultural & Operational

Infrastructure

Organize to support

your dropship program

Supplier Collaboration

Foster open

communication with

suppliers

Supplier Compliance

Measure supplier

performance

Considering these key areas will set you up for success

Want to talk about dropshipping?

Come see us at the eBay Enterprise Kiosks

Robert Schlussler, Product Manager

Jaimie Atherton, Sr. Manager Technical Services

Anthony Hockaday, Director, Client Services

Thank You

The Future

Significance of

Stores – Why You

Should Care

David Geisinger Head of Retail & Mobile

Innovation

What’s Trending

• Digital and physical is merging

more than ever

• Brick & mortars are bringing digital

in-store

• Pureplays are getting physical

• Clientelling is taking center stage

• Mobile is key

• Omnichannel is Omnipresent.

Consumers have stated the importance of feeling valued

when in store

in

Stores are here to stay

• Retail is currently over a $4.75 Trillion dollar market

– 90+% of that still occurs in brick and mortar stores

• 75% percent of consumer spending occurs within 15 miles of the average American’s front door (U.S. Census)

• Traditional online retailers continue to expand into physical

– Warby Parker, Bonobos, Birchbox, Zappos

– Amazon now has a store as well!

I am a store

and I’m here to

stay

Today’s Omnichannel Customer

Web, mobile, apps, location and social technologies

assimilated into their shopping journeys

Omnichannel customers spend 3-4x times more

than single channel customers

84% of smartphone shoppers use their devices to

help shop while in-store

1 in 3 shoppers bypass associates and use

smartphones to find product info

63% percent of shoppers buy online and pickup

in-store at least a few times per year

Today’s In-store Customer

• Shopper store satisfaction declining 15%

• Customer’s expectations changing rapidly due to experiences outside the store

• Consumer view offline as not competitive to on-line prices and not as convenient

• Consumers expect service while in-store and demand access to full inventory

• Expect associates to “get me”

• Consumers are mobile first

40% Purchase at a higher rate

in-store

80% Use devices before/during

store visits

22% Spend more in-store

Anytime & Anywhere Expectations

Omnichannel customers spend over 90%% more than customers who shop direct/online

Omnichannel customer spend over 200% more than customers who shop in store only

• Customers need to be allowed to

shop on their own terms

• Bridge the gap between social,

digital, and traditional commerce

points

• Customers expect access to

products regardless of where and

when they shop

Keeping it Personal

• Customers expect more

personalized service

• Understanding the breadth of a

consumers purchase behavior

• Leverage customer service data

• Unified recommendation engines

and shopping carts

• Better engagement can create

better results

20% Increase in customer

satisfaction

15% Lift in sales revenue

82% Reduction in servicing cost

of customers

One Click Experiences

• Speed is key for today’s

consumers

• Access to accurate inventory

• Enabling services at the touch of a

button are more important than

ever

– Buy Online Pick Up in Store /

Click & Collect

– Reserve Online Try On In Store

• Direct access to ratings and

reviews

• One Click Purchasing

Get on the Floor

• Associates need to get out from behind the register

• Increase customer engagement

• Be where the action is

• Adopt mobile tools for associates

86% will offer assisted sales

tasks for associates on mobile

67% will provide customer

profile/transaction data

available to associates

100% or more revenue can

be brought in through more

educated and engaged

associates

Sell Experiences and Not Products

• Differentiation is key to retail success in-store

• Product selection and price points are important but not enough

• Capturing the customers “interest” is paramount

• Be innovative

Bringing it All Together

Know you customer

Invest in omnichannel where appropriate

Pilot before production

Think mobile

Innovate

Howard Pressman Senior Manager

Technology Product Management –

Ecosystem and Integration

Simplifying Market

Expansion

Why Sell on Marketplaces?

“99¾% of people

who buy online have

purchased something

on either ebay or

Amazon in 2014…

and even more plan

to in 2015”

- made up obvious statistic Purchased on marketplace

Lived in cave

Why Sell on Marketplaces?

Internet Retailer, October 2014 eBay’s

U.S. Marketplace sales grow 7% in Q3

ebay

Marketplaces

gained 3.4 million

buyers

152 million active

buyers 2%

Revenue Uplift

Large

Retailers

5%

Mid-tier

Retailers

10%

Multi-

Marketplace

Why Sell on Marketplaces?

Know your reasons to

determine your approach

to implementation

Think toward the future

Expand market presence

Enter additional global markets

Create brand awareness

Test product variations

Differentiate sub-brand products

Product liquidation

Decisions, Decisions

On which

Marketplace

do you sell?

How will you

fulfill those

orders?

Who are

you

competing

against?

Pricing?

Promotions?

Customer

service:

support, returns

-data?

How to

manage

inventory? Reporting,

analysis?

Consumer data / brand identity

Product classifications

Integration

Data sources, content

management, images

API upkeep

Avoiding stock-outs

System capacity planning, operational scale

Issues / Concerns

Best Practices in Managing Marketplaces

Integrate from the “back end” not the front end

Consolidate management tools and single stream when possible

Rules engines for categorization, naming

Product attribution

Leverage a repricing tool

Share inventory

Hire an expert marketplace manager

Amazon – general marketplace ebay – custom store

Monitor, Analyze, Change, Repeat