2. “Retailers should expand their use of online
marketing tactics on search engines and
comparison-shopping sites since shoppers are
likely to be researching the Web more thoroughly
when deciding on this year's holiday gifts.quot;
Patti Freeman Evans
Forrester Research Vice President and Research Director
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3. Key Takeaways
• A significant % of the internet’s online retail occurs on Marketplaces
and Shopping Sites and many retailers are missing out on these
transactions.
• Over the last 12-18 months, the incumbents have lost market share
to new and emerging online shopping destinations, presenting
interesting alternative channels for online retailers to consider
• Each Shopping Destination has its own nuances, challenges and
best practices, for which it is essential for a retailer to understand to
be successful.
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4. Who is ChannelAdvisor?
• Software and services company, founded in 1999
• Empower retailers to succeed online by managing multiple sales channels from
one platform
• Work with 5,500 businesses of all sizes, from eBay Powersellers up to Corporate
giants
• Based in North Carolina, with offices in New York, Atlanta, Limerick, Richmond,
Berlin and Melbourne.
• Over 280 people employed worldwide
• Highly scalable and robust technology, covering marketplaces, search &
shopping comparison engines
• Over $2.5 billion in transactions processed in 2007 (~1% of NA & EMEA eCommerce)
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6. Where do buyers start their online search?
Online shoppers start their search for products in one of four places.
• Marketplaces
• eBay
• Amazon
• Comparison Shopping Engines
• Kelkoo, myDeco, Ciao, Shopping.com, Shopzilla, Pricerunner, etc.
• Search Engines (Paid & Natural Search)
• Google, Yahoo, MSN, Ask
• Direct URL navigation
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7. Online Channels Growing in Importance
• More consumers shopping online via search, comparison shopping engines, marketplaces.
• Today up to 75% of sales for an internet retailer is driven by online channels.
• FBR Research based on publicly available Gross Merchandise Volume (GMV)
Information. Also corroborated by ChannelAdvisor’s real-world data.
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8. E-Commerce – Large and Growing
• Jupiter Research Data US Retail Forecast 11/07 and European Retail Forecast 8/07
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10. Online Channels Growing in Importance
• More consumers shopping online via search, comparison shopping engines, marketplaces.
• Today up to 75% of sales for an internet retailer is driven by online channels.
• FBR Research based on publicly available Gross Merchandise Volume (GMV)
Information. Also corroborated by ChannelAdvisor’s real-world data.
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11. eBay
eBay GMV Growth vs. E-Commerce Growth
Derek Brown, Cantor Fitzgerald
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12. Marketplaces - eBay
• eBay has historically been strong for end-of-life or liquidation product
• Solve a reverse logistics problem and acquire customers at the same time
• Take good care of the newly acquired customers and then make them buy your new product
on your other channels
• New focus towards fixed price listings
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13. Marketplaces - Amazon
Pixmania recently announced its own marketplace
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14. Marketplaces - Amazon
• Great for in-season retail product
• Increasingly popular marketplace with buyers and sellers
• 3rd party sellers now account for over 30% of sales
• Launched Merchants@ program in 2006 – massive uptake
• Merchants@ is a major growth area for Amazon in 08 and beyond
“Amazon strives to be Earth's most customer-centric company where people can
find and discover virtually anything they want to buy online. By giving
customers more of what they want - low prices, vast selection, and convenience
- Amazon.com continues to grow and evolve as a world-class e-commerce
platform.”
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17. Comparison Shopping Engines
• You pay for traffic on a per-click basis (called CPC in the industry)
• Per-click determined by category and merchant auction
• Traffic driven to your e-commerce site for potential conversion
£/click
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18. Important CSE datapoints
• Forrester – 75% of online shoppers influenced by CSE
• ChannelAdvisor – some customers see CSE as large as 40% of GMV
• Comscore: January 08 UK:
• 33m unique internet users
• 17m visited CSEs
• 51% reach
% CSEs
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
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19. Understanding CSE 1.0 and CSE 2.0
• CSE 1.0 • CSE 2.0
• Vintage <2000 • Vintage >2006
• Product catalog driven • Variety of models to enhance
experience/business
• Usually heavily electronics
oriented
• Reviews (Ciao)
• CPC
• Social (Crowdstorm/Facebook)
• Stagnant, little to no changes
• Traffic/fun (Jellyfish)
since 2006 timeframe
• BizModel (CPA – Jellyfish)
• Primarily acquire traffic from paid-
• Comprehensive
search
• Vertical orientation (Mobile-phones)
• Local (Abcaz)
• Integrated checkout (shop.com)
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26. Retail Agility
• The dynamic nature of the UK’s ecommerce landscape creates both
opportunities and challenges for online retailers
• Opportunities
• Get your products / brand in front of new buyers that you wouldn’t otherwise reach
• Find opportunities to lower customer acquisition cost
• Gain competitive advantage by beating your rivals to these new shopping destinations
• Challenges
• Understanding the different sales venues and developing a strategy for each
• Data challenge – each site is different and needs product data in its own format
• Ongoing management and integration into existing systems
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27. Key Takeaways
• A significant % of the internet’s online retail occurs on Marketplaces
and Shopping Sites and many retailers are missing out on these
transactions.
• Over the last 12-18 months, the incumbents have lost market share
to new and emerging online shopping destinations, presenting
interesting alternative channels for online retailers to consider
• Each Shopping Destination has its own nuances, challenges and
best practices, for which it is essential for a retailer to understand to
be successful.
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