e-commerce is not really happening ye in Israel. In the presentation I propose my approach to why e-commerce in Israel is not yet developed and why this is about to change. Retailers in Israel are facing hard times with the economic downturn along with last years protests against the high cost of living. e-commerce might just be their way to deal with it!
2. Shay Rosen
Head of Strategy & Consulting, realcommerce
Shayr@realcommerce.co.il
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539
3. • Strategy
Business analysis, Concept creation, UX, UI
• Technology
Robust, Smart, efficient content management & e commerce platforms for
mega sites
• Leadership
Powering Israel’s largest and most successful enterprises
11. E-commerce Maturity
SOCIAL
• 79% of online European consumers plan to purchase products or
Relationship Collaboration
services via the Internet in the next six months CRM
Online consumers in Norway (89%) and GB (86%) show the greatest
propensity planning a web purchase in the near future
(Nielsen Global Consumer Report June 2010)
100% 89% 86% 84% 83%
79% 81% 78% 77%
80% 74% 72%
68%
60%
40%
20%
0% EU Poland Ireland France Netherlands Spain Belgium
Norway UK Denmark Italy
Average Austria Switzerland
Germany &
Czech Republic
11
13. Israel E-commerce Myths
• Israelis are afraid to pay online
•
• Israel is a Small Country, Stores are near by, There’s no need for e-commerce
•Everybody believes prices are
better in the store
14. Israel E-commerce Myths (1)
•Israelis are afraid to pay online
• Changed dramatically since the arrival of the coupon trend.
•54% of credit card holders already bought
something online
•Large growth of Paypal accounts in Israel
15. Israel E-commerce Myths (2)
• People need to feel and touch the merchandize, Nobody will buy
clothes online
16. Israel E-commerce Myths (3)
• Israel Is a Small Country, Stores are near by, There’s no need for
e-commerce
• Really? what about traffic, parking, standing in lines?
17. Israel E-commerce Myths (4)
• Everybody believes prices are better in the store –
unfortunately that’s right
18. Israel E-commerce Truth
• E-commerce in Israel is poor
• Most Retailers don’t sell online
• Many of Those who do sell online offer better prices in
stores
• Majority of online stores in Israel have bad UX and bad customer
service
20. Israel 2011 - change is here
• Digital revolution is here
• 40% Smartphone penetration (Higher than US and Eu)
• 90% Facebook penetration (2nd in the world)
• Highly engaged and active
2009
25. OMG! Cannibalization
• Staples – 45% of sales are online
• Office Depot – 40%
• Victoria’s Secret - 16%
• Gap – 10%
It’s not Cannibalization – it’s adjustment
26. Setbacks
• Integration
• High costs
• Synergy with retail operation
• Lack of know how
• Does not fit organization structure
Postponed e-commerce projects
29. Fact:
Consumption is a digital activity
• 75% research online prior to buying(!)
• Price comparison sites
• Search for information
• Product reviews
• Social (Talking about) shopping
Consumers already visit your website for information – why send
them away?
30.
31.
32. Price
• In Bold – Lowest prices online!
• In the front – Selected items must go lower than in store
• Inside – Can be equal
• Never higher than in store prices!
A mater of perception
Prices on the website just can’t be higher
38. “In terms of the three
major areas - service,
selection and price -
you can really offer two
of them in the same
time.
Our brand was in
service and selection”
Tony Hsieh, CEO
39. • Toll-free number shown everywhere and not hidden
• Free shipping and returns
• 365-day return policy
• 24/7 availability (same working hours as the Internet…)
• 24/7 Warehouse
• Promise delivery within 4-5 business days*
* Usually upgrade to overnight shipping by surprise
42. User Experience –
It’s about breaking barriers
• Create confidence
• You are not alone
• Nothing is irreversible
• Special deals online
• Ease of use
• Fun & smooth experience
43. User Experience –
It’s about breaking barriers
• Think about the bounce rate
• 8-12 Seconds to bounce!
• Return policy & customer service
• Lower Prices & Free shipping
• Invitation to enter
• Attractive Deals & related products
• Orientation:
• Search
• Flat Navigation
• Intuitive Product browsing
• 24/7 customer service
• Trustworthy product reviews & Ratings
• Shopping Cart always present
• Keep in touch
Measure & Optimize Constantly
50. Social Media – Handle with care
• Facebook / Twitter:
• Customer care
• Support
• Drive Traffic
• Keep in touch
• Blog: Info & Review
• Youtube: Product info videos
52. Looks Complicated ? Expensive?
• This is life
• Create a new P&L – that’s the only way
• Assign a team
• Plan
• Set Goals, Objectives & Budget
• Launch
• Be patient, Measure, Optimize and Evolve
• It’s worth it!
Do it – it’s 2012!
53. Shay Rosen
Head of Strategy & Consulting, realcommerce
Shayr@realcommerce.co.il
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539