2. 61%
48% 48%
36%
34%
30%
25%
20% 20%
18%
16% 16%
14% 14% 14% 13% 13%
11%
9% 9%
7% 7%
5% 5% 4% 4%
2% 2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
Your investment in 2016
eCommerce investments in 2016
Mobile is the most important area of interest for
eCommerce Managers right now!
Methodology of this report:
• We selected eCommerce Managers and
Directors around Europe
• We sent them a detailed survey
• We received 60 high quality responses
4. Changes in investment goals
• popularity of mobile messaging apps
• artificial intelligence to enable a new generation
of eCommerce tools.
2017 is the year of the Bot
Two trends emerged
Echo has been a surprise hit - over 3 million units sold in less than
18 months. The device has been receiving positive reviews from
customers and has even prompted Google to develop its own
version - Google Home.
http://venturebeat.com/2016/06/16/the-state-of-bots-11-examples-of-conversational-
commerce-in-2016/
http://thevbbotslandscape.pagedemo.co/
Trends Change from 2016 to 2017
Bots / Messengers 20%
Big Data 14%
Recommendation Systems 13%
Automated Pricing Optimization 11%
Data-driven Loyalty 11%
Cross Border Commerce 9%
Automated Promotion Management 7%
Drop Shipping 7%
Algorithmic Driven Supply &
Demand
7%
IoT 5%
Wearables 5%
Social Commerce 5%
Personal shopping 4%
Virtual Reality 4%
3D printing 2%
Omnichannel 2%
Subscription Business Models 2%
mPayments 2%
Open API Economy 0%
Beacon Technology 0%
Bitcoin 0%
Marketplaces -2%
Mobile -4%
Digital Content -4%
In-Store PickUp -4%
Online Security -4%
Drones -4%
Own Brands / Customized Products -4%
Free Shipping / Returns -4%
5. What are the business trends that are going to revolutionize the eCommerce market
in the next five years?
In 5 years retail will be a totally different place
Amazon launches Amazon Go, a mind-blowing brick-and-mortar grocery
store with no checkouts
http://venturebeat.com/2016/12/05/amazon-launches-amazon-go-a-brick-and-mortar-
grocery-store-that-does-away-with-checkouts/
Trends Potential
Omnichannel 41%
Bots / Messengers 39%
Big Data 39%
Algorithmic Driven Supply &
Demand 36%
IoT 36%
Data-driven Loyalty 32%
Personal shopping 32%
Marketplaces 32%
Virtual Reality 30%
Recommendation Systems 29%
Automated Promotion Management 29%
Cross Border Commerce 27%
Digital Content 27%
Automated Pricing Optimization 25%
Mobile 25%
Social Commerce 23%
Open API Economy 21%
mPayments 18%
Subscription Business Models 16%
Wearables 14%
3D printing 14%
Own Brands / Customized Products 13%
Beacon Technology 11%
Drones 11%
Free Shipping / Returns 11%
Drop Shipping 9%
Bitcoin 9%
In-Store PickUp 9%
Online Security 7%
6. eCommerce Trends for 2017
•
• Quick Wins
Game Changers
• Mobile
• Omnichannel
• Social Commerce
• Drones
• Big Data
• Digital Content
• Marketplaces
• Recommendation Systems
• Data-driven Loyalty
• Bots / Messengers
• Cross Border Commerce
• IoT
• Algorithmic Driven Supply & Demand
• Automated Promotion
• Management
• Automated Pricing Optimization
• Personal shopping
• Virtual Reality
• Own Brands / Customized Products
• Subscription Business Models
• mPayments
• Open API Economy
• Free Shipping / Returns
• Drop Shipping
• In-Store PickUp
• Wearables
• Online Security
• 3D printing
• Beacon Technology
• Bitcoin
maturity / ROI
potentialimpactonmarket
7. B2C eCommerce Sales Worldwide
• 26% (1.436 mln) people are eShoppers
• 7% is the estimated share of online goods within
total retail of goods
• eCommerce Growth
• Asia-Pacific + 28%
• North America +13%
• Europe +13%
• Latin America + 28%
• Middle East and North Africa + 19%
• Others +23%
Ecommerce Foundation (September 2016) - https://www.ecommercewiki.org/Reports_Ecommerce_Foundation
$1,895bn
2014 2015 2016(f)
Global B2C E-commerce Turnover
$2,273bn $2,671bn
+23,3%
+19,9%
+17,5%
8. B2C eCommerce Sales Worldwide
• Asia is still the leading region for eCommerce sales.
Asia holds a majority share of global online sales
(52.5%).
• China – still the leader, even as growth slows
• India – retail demand is increasing driven by
urbanization, an expansion of the middle class and
more women entering the market.
• Indonesia – the population of 256 million along with its
market is opening to foreign investors.
• Cross-border - Canada, the UK, and Brazil are US
merchants’ top cross-border corridors in terms of
revenue.
Where to invest - The 2016 Global Retail eCommerce Index™
https://www.atkearney.com/documents/10192/8226719/Global+Retail+Expansion+at+a+Cross
roads%E2%80%932016+GRDI.pdf/dc845ffc-fe28-4623-bdd4-b36f3a443787
https://www.paypalobjects.com/digitalassets/c/website/marketing/global/shared/global/medi
a-resources/documents/combined-deck-paypal-merchant-insights-combined-report-2016.pdf
2016 rank Country Market size (25%) Country risk (25%)
1 China 100,0 61,2
2 India 53,7 54,3
3 Malaysia 81,2 83,4
4 Kazakhstan 56,4 37,3
5 Indonesia 64,3 38,9
6 Turkey 85,9 46,4
7 United Arab Emirates 95,2 100,0
8 Saudi Arabia 91,2 64,9
9 Peru 47,3 52,8
10 Azerbaijan 33,9 30,8
11 Vietnam 22,7 24,5
12 Sri Lanka 25,4 38,7
13 Jordan 52,3 47,5
14 Morocco 29,8 51,2
15 Colombia 49,0 63,6
16 Philippines 36,6 42,6
17 Dominican Republic 54,4 14,8
18 Algeria 17,6 6,0
19 Nigeria 21,3 9,1
20 Brazil 85,9 65,7
9. B2B eCommerce Sales
• Forrester forecasts that US B2B eCommerce will grow
from $780 billion in 2015 to $1.13 trillion in 2020 – at
which time it will constitute 12.1% of the total US B2B
commerce market.
• 86 percent of B2B organizations say customers can
make purchases via their website; only 14 percent offer
no online purchasing options.
• B2B organizations rely (92%) on email marketing to
promote online sales.
• Today, 74% of B2B buyers research at least one-half of
their work purchases online.
https://www.accenture.com/pl-en/insight-channel-shift-measuring-b2b-efforts
http://blogs.forrester.com/andy_hoar/15-04-02
us_b2b_ecommerce_to_reach_11_trillion_by_2020
http://divante.co/blog/invest-ecommerce-b2b/
Nearly 75% of B2B buyers say buying from an
ecommerce site is more convenient that buying
from a sales rep.
• Automated pricing optimization – 62%
• Personalized recommendations – 56%
• Use of wearable computing in distribution centers –
49%
• Sensors in shipments/products – 46%
• Robots/automation in distribution center/supply chain
– 34%
• Shopping cart abandonment analysis – 32%
B2B companies are eager to invest in:
eCommerce Maturity x Percentage of Customers
Buing Online
22% 10% 55%
Legging firms Mild Maturity Firms Digital-First Firms
10. Digital Media
• Revenue in the "Digital Media" market amounts to $91.102mln in 2016.
• The market's largest segment is "Digital Games" with a market volume of
$46 billion in 2015.
• With a market volume of $32,510mln in 2016, most revenue is still
generated in the United States followed by China, Japan, the United
Kingdom and South Korea.
• The average revenue per user (ARPU) is the highest in the "Video-on-
Demand" segment and its amounts to $50.94 in 2016.
http://www.statista.com/outlook/200/100/digital-media/worldwide
Video-on-Demand Digital Music Video Games ePublishing
2015 2016 2017 2018 2019 2020 2021
InmillionUS$
11. Top eRetailers (eCommerce retail sales)
• eCommerce accounts for the majority of the sales growth for many
retailers today.
• Omnichannel retailers dominate the world of e-retailing
• Alibaba is often cited as the largest e-retailer in the world but they mostly
make money through sales on their marketplaces. They do however own a
stake in Suning.
• The fastest growing e-retailer from the list is Suning (+95%) followed by
JD.com (55%) and Amazon (13%).
Global Powers of Retailing 2016, Deloitte https://en.wikipedia.org
https://www.ystats.com/
E-retailing, as defined in this analysis, includes business to consumer
(B2C) e-commerce only, where the business owns the inventory and sales
are made directly to the consumer.
French mass retailer with operations around the
world.
American media conglomerate
Mainly based in Germany and France but operating
in more than 20 countries
Chinese electronic commerce company. It is a major
competitor to Alibaba-run Tmall
One of the largest non-government retailers in
China. More than 1600 stores.
1. Amazon
2. Apple
3. JD.com
4. Walmart
5. Otto
6. Tesco
7. Macy’s
8. Liberty
9. Casino Guichard
10. Suning
12. The World's Most Popular eCommerce Sites
• Top 10 eCommerce sites in the world based on visitors.
• Amazon accounts for 8% of global B2C eCommerce sales of products.
http://www.dollarfry.com/worlds-top-10-ecommerce-sites-alexa-rank-basis/
https://en.wikipedia.org
https://www.ystats.com
Indian sites gained more popularity: flipkart,
snapdeal and jabong.
Flipkart is an online shopping destination for
electronics, books, music and movies.
Snapdeal is an online marketplace offering best priced
deals on branded products such as mobiles, electronics,
apparel and accessories..
Jabong.com is an Indian fashion and lifestyle
eCommerce portal. In July, 2016 Flipkart acquired
Jabong.
1. Amazon
2. Taobao
3. Ebay
4. Tmall
5. Alibaba
6. Flipkart
7. Walmart
8. Snap
9. Deal
10. BestBuy
11. Jabong
13. Capital Market
• In this year to-date, the eCommerce sector saw just one global IPO
• M&A activity is on track to outpace the last year, with over 100 M&A exits
in 2016 to-date. The current run-rate would imply a full-year total of over
200 M&A exits in 2016
• Alibaba Group paid $1bn for Lazada. Dollar Shave Club Sells to Unilever for
$1 bn n
• Walmart Agrees to Acquire Jet.com for approximately $3 bn in cash.
• Salesforce spend $2.8 bn to acquire Demandware
• Gilt Groupe’s acquisition by Hudson’s Bay Company for just $250mln, when
Gilt had previously reached a valuation of $1bn in 2011.
https://www.cbinsights.com/blog/e-commerce-startup-exits-2016/
http://www.recode.net/2016/12/28/14100762/ecommerce-ipo-surprise-predictions-2017
https://en.wikipedia.org/wiki/Lazada_Group
These three hot eCommerce startups could
have surprise IPOs in 2017
• Chewy - an online retailer of pet food, was projecting nearly $900 million in
revenue for 2016 and $1.5 billion for 2017
• Stitch Fix - the online retailer and personal styling service, $500 million in
annual sales
• Casper - mattress startup has built the best-known brand in the young bed-
in-a-box space, $200 million in annual sales.
Lazada is a Southeast Asia-focused ecommerce retailer offering a
convenient, safe and fast shopping experience with brands and options
to choose from, such as mobile phones, tablets and home appliances,
toys and accessories. Founded by Rocket Internet in 2011.
Alibaba Group paid $1bn for Lazada. Dollar Shave Club Sells to
Unilever for $1 bn n
14. eCommerce Startups to Watch
• Operator - connects you with a network of concierges and can execute any
shopping related request. You can order concert tickets, get gift ideas, or
even receive interior design recommendations for new furniture.
https://www.cbinsights.com/blog/early-stage-e-commerce-startups-company-list/
• Rebagg - buys luxury pre-owned handbags and resells them online. Sellers
can submit pictures of their bags by phone to receive pricing quotes and, if
accepted, can ship the bags to Rebagg for free.
• ThirdLove - a more comfortable bra by providing a wider range of sizes
than standard bras. ThirdLove’s smartphone app uses image recognition
technology to offer personalized sizing in users’ homes.
https://operator.com/
15. Social Commerce is growing but there is no one path to follow
https://www.emarketer.com/Report/US-Social-Commerce-2017-Influencing-Driving-Sales/2001922
http://venturebeat.com/2016/08/12/are-buy-buttons-working-social-commerce-for-2017-vb-live/
http://www.demandware.com/shopping-index/
https://chatbotsmagazine.com/the-complete-beginner-s-guide-to-chatbots-8280b7b906ca#.wvopg7wrm
http://ecommerceconsulting.com/2016/12/2017-year-social-commerce.html
http://www.forbes.com/sites/rachelarthur/2016/03/30/sephora-launches-chatbot-on-messaging-app-
kik/#4c34500d512c
https://medium.com/chris-messina/2016-will-be-the-year-of-conversational-commerce-
1586e85e3991#.pfj0hn55t
• US retailers attributed just 2% of their revenues to social commerce. In Q3
2016, social media only made up 3.1% of traffic to commerce sites.
• However 60 percent of marketers use the buy button. In 2017 Buy Buttons
won’t gain traction in any meaningful way.
• People are using messenger apps more than they are using social networks.
Messaging apps are the platforms of the future and bots could be how
their users access all sorts of services.
• Conversational commerce – started with Uber and WeChat, fast followed
by WhatsApp and Facebook.
Facebook trying commerce again
with Facebook Marketplace.
kik.com and Sephora chatbot. Bots on Kik
let brands engage with their fans in a whole
new way.
16. Design Trends - mobile
http://www.practicalecommerce.com/articles/130171-5-Ecommerce-Site-Design-Trends-for-2017
http://www.webdesignerdepot.com/2016/01/9-ecommerce-design-trends-to-embrace-in-2016
1. Growing importance of the user experience in general: The customer
experience (including employees) is the ultimate goal. Every touch point
matters.
2. Mobile - for many e-stores, most clients will use mobile devices. Websites
will be designed for mobile first and made responsive for larger screens
later.
3. Material Design - many online stores have already adopted card-like
layouts, responsive animations and transitions.
4. GIFs are here - cinemagraph is really a still picture, a photograph to which
a small repeating animation has been added.
5. Personalization - soon sites could massively adapt to specific users -
changing layouts based on user data.
6. Hidden menus - have become tremendously popular thanks to clearing a
lot of clutter on eCommerce sites.
7. Push notifications
In 2017, many eCommerce sites will be using JavaScript and Ajax-
powered search to display products dynamically. Look at
https://jadopado.com
In 2017 there will be many major mobile-centric redesigns. Odlo Case
Study: 103% higher mobile conversion rate after mobile redesign
http://divante.co/case-studies/odlo/
17. Marketplaces – where growth can be found
https://www.willistowerswatson.com/en-CA/insights/2016/10/marketplace-realities-2017-the-search-for-
growth
http://ecommercenews.eu/why-marketplaces-are-important-for-european-ecommerce/
http://raconteur.net/business/marketplaces-underpinning-the-growth-in-e-commerce
• 50% of Europeans are shopping online and 50% of these shoppers engage
in cross-border shopping.
• 82% of the world’s consumers have already shopped for products abroad
but for the most part, they prefer to buy on global marketplaces with
strong reputations.
• Marketplaces offer a real opportunity for merchants to boost their bottom
lines. Retailers can get visibility in a foreign market without investing too
much time or money.
• The marketplace business model - commission for sales that varies from
2.5% to 15% depending on the number of sales and product categories.
Unlike price comparison sites, marketplaces don’t charge a few cents every
time shoppers are referred to merchant sites and instead charge only when
a sale is made.
• Marketplaces offer a logical starting point for retailers looking to expand
internationally as they offer low barriers of entry and less risk than setting
up a domestic website for each country.
Niche marketplaces dominate national markets
• UK - Play.com (Rakuten) and PriceRunner.
• Germany - Zalando and Otto.
• Poland – Allegro.
• Spain - Popular sites in Spain include BuyVIP and eBay.es. However, Amazon is the
most dominant marketplace.
• France - RueDuCommerce, Cdiscount, Fnac, La Redoute and PriceMinister are among
the leaders in the space, in addition to Amazon. 9 out of the top 15 ecommerce sites
visited by French shoppers are marketplaces!
50 Places to sell online in 2017: eCommerce marketplaces and platforms -
http://www.brisksale.com/blog/50-places-sell-online-2017-e-commerce-marketplaces-
platforms/
18. Content Marketing is here for good but it will be harder to attract attention
http://www.comscore.com/Insights/Blog/What-Millennials-YouTube-Usage-Tells-Us-about-the-Future-of-
Video-Viewership
http://www.practicalecommerce.com/articles/131596-5-Ecommerce-Content-Marketing-Trends-for-2017
http://mashable.com/2016/12/31/live-video-dominated-2016.amp
1. Mobile-friendly formats will grow
2. Shift from creation to promotion - 80 percent of content marketing budget
goes into content creation, about 20 percent of that same budget to
promote or advertise content. This will shift somewhat toward promotion
because of high competition.
3. Video content is still hot! In 2017, marketers who admire the success of
popular YouTube shows or podcasts may begin to release their own,
episode-based content.
4. Livestreaming - YouTube, Facebook and Instagram -- have made
livestreaming a priority as users increasingly utilize the format.
5. There is still a big gap to fill in B2B content – even with product
descriptions and photos.
6. The New York Times, The Wall Street Journal and Condé Nast have all
created content agencies that will help fuel this trend.
The amount of content we consume on a daily basis has grown from
two hours a day in the 1920s to nearly 11 hours per day today. How
much higher can this go? 12 hours a day?
On the supply side of the equation, the amount of information on the
web is expected to increase by 500 percent (conservatively) in the next
five years.
https://www.businessesgrow.com/2014/01/06/content-shock/
19. Virtual Assistants – Amazon is way ahead
http://venturebeat.com/2016/12/30/2016-chat-wars-are-over-amazon-won/
• Alexa - made immense progress this year, both in its AI smarts and in its
success as a commercial product. More than five million Alexa-enabled
smart speakers have been sold so far
• Google Home - Developers can now create Actions for Google Home using
Actions on the Google platform.
• Cortana, Siri, and Google Assistant lack the ability to make purchases today.
• Alexa Skills Marketplace, a single place to find every bot available.
Competitors like Facebook and Microsoft aren’t as hip to this yet.
• Microsoft Bot Framework, Facebook Messenger bot platform, iMessage
App Store, Lex Framework are other examples of bots.
Alexa Skills Marketplace, a single place to find every bot available.
Competitors like Facebook and Microsoft haven’t gotten hip to this yet.
23. Intelligence in eCommerce
• Data-driven Loyalty - as more companies offer loyalty programs, top
performers are settings themselves apart by using data
• Visual search - particularly via mobile. This helps consumers to find exactly
what they are looking for right away.
• Price intelligence is a commodity now. Quick win for eRetailers.
• Personalization – Personal representative for every customer.
https://www.entrepreneur.com/article/284637
Viv is an artificial intelligence platform that enables developers to
distribute their products through an intelligent, conversational
interface. http://viv.ai/
24. Omnichannel: The gap is still here
http://divante.co/blog/omnichannel-gaps/
• We noticed that there is a constantly growing gap between customer
expectations and business possibilities. The companies that cope with
these problems first will win the market and satisfaction of their customers
• 71% of customers expect the possibility of checking the availability of
goods online, but only 32% of retailers offer basic functions of Click &
Collect and checking product availability
• 45% of consumers agree to a home delivery of goods, which couldn’t be
found in a store but only 32% of retailers enable such a process.
• You need to connect silos and encourage cooperation between various
departments but only 6% declare that there are no major problems with
channel Integration.
• Gartner predicts that by 2020, the customer will manage 85% of the
relationship with an enterprise without interacting with a human.
26. Security
http://www.csoonline.com/article/3149556/security/top-15-security-predictions-for-2017.html
• Internet of Things (IoT) devices have already been conscripted as zombie
troops for cyber attackers. This will get much worse in 2017.
• DDoS attack firepower in 2016 increased to frightening levels.
• rising from 400Gbps bandwidth to 1Tbps or more becoming the norm –
thanks to millions of IoT devices.
• That firepower will be used sometime in 2017 to take down critical
infrastructure.
• Financial institutions will start testing the cloud on workloads and move
some services beyond just the corporate data center.
• High-impact vulnerabilities from open source software will continue to be
discovered.
15 Ways to Protect Your Ecommerce Site From Hacking
and Fraud
http://www.cio.com/article/2384809/e-commerce/15-ways-to-protect-your-
ecommerce-site-from-hacking-and-fraud.html
27. eCommerce Platforms
• WooCommerce expanding its share within the ecommerce platforms
market
• Magento 2 is released, with added omnichannel modules and acquired
companies looks very close to hybris
• Magento CE is more successful in 10K and 100K Alexa Top websites listings,
while WooCommerce is bigger within Alexa, 1 mln
• Demandware is a part of salesforces, now acquiring clients aggressively.
Demandware replaced Zen Cart among the most popular platforms with a
22.3% Relative Growth Rate.
• OroCommerce – a new, fast-growing, and strong eCommerce B2B platform
(Open Source + Enterprise License) - https://www.orocommerce.com
WooCommerce 26,0
Magento CE 24,8
PrestaShop 9,1
Shopify 9,0
Magento EE 5,0
VirtueMart 3,5
OpenCart 3,2
Interspire Internet Shop 2,2
Demandware 1,8
Volusion 1,8
Zen Cart 1,7
osCommerce 1,5
OXID eShop 1,3
Yahoo! Stores 1,3
IBM Web Sphere 0,9
CS Cart 0,9
ASPdontnetStorefront 0,8
3D Cart 0,7
Xcart 0,6
WP E-commerce 0,6
Miva Merchant 0,6
ECShop 0,5
Ubercart 0,5
BigCommerce 0,5
Hybris 0,4
Shopware 0,4
Oracle ATG Commerce 0,3
eZPublish 0,1
Ecwid 0,1
https://blog.aheadworks.com/ecommerce-platforms-popularity-october-2015-top-five-solutions-take-three-
quarters-of-the-market
https://blog.aheadworks.com/2016-ecommerce-platforms-analysis-and-comparative-report
28. Divante: eCommerce & eBusiness experts in the Omnichannel Era
• Divante is a eCommerce Software House
• We create a customized Omnichannel or Magento-based online platforms
with CRM, ERP and PIM, a custom web application or a Big Data solution.
• Tell us about your project - http://divante.co/contact/