Welcome. Michael Sonier Head of Product Management

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2 Welcome Michael Sonier Head of Product Management

3 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.

4 Top Investment Drivers Not All About Stores Please identify the top three reasons for investing in a retail order management system. 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%

5 Order Management for Magento ~500 Extensions On Magento Connect Marketplace

6 Connecting Supply to Demand WEB STORES MOBILE DROPSHIP NETWORK SUPPLY DEMAND STORES Distribution Centers CUSTOMER SERVICE MARKETPLACE

7 Connecting Supply and Demand And then monetizing the transaction safely and securely WEB STORES MOBILE DROPSHIP NETWORK Turning Orders to Cash STORES DISTRIBUTION CENTERS CUSTOMER SERVICE MARKETPLACE

8 Why Many Merchants Are In the Market 47% of retailers will purchase an OMS in the next 2 years

9 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?

10 Andy Barker Director, Payments Harold Paulson Jr Director, Risk Management

11 Optimizing Payments and Fraud

12 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?

13 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?

14 Do you have a fraud problem? Do criminals want your products? How much does it cost you to manage fraud? How much are you taking as a fraud loss? Are you impacting good customers? What do you measure? Industry Benchmarks Reject rate= 2.3% Fraud loss rate=.9% Order review rate= 27%

15 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 Do your homework - research Use your data Know your customers Look at your patterns What can you measure?

16 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

17 Chad Caperelli Senior Product Manager, ebay Enterprise Jon Jessup Founder and CEO, Cloud Conversion

18 Delivering good customer service

19 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

20 Why Customer Service is Important Customer Service ranks 2 nd for software strategy and investment The right strategic and technological decisions are critical

21 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

22 How To Choose The Right Option Intuitive interface, unified experience, easy information access Rightsized features and functionality Quick access and resolution to most common scenarios Support for multichannel capabilities (i.e., chat, , text, etc.) Flexible integration and scalability

23 The Success of the CS Toolset Adapt as needs change (because they will) Good customer service requires deep evaluation of both customer and agent needs (i.e., define the customer journey) A superior customer service toolset is important to help deliver great experiences Toolset and commerce platform integration can be a differentiator

24 Robert Schlussler Product Manager, Dropship

25 Dropship Best Practices Low Risk Assortment Expansion

26 Why Dropship? Eliminate the risk of inventory overhead while: Expanding product assortment EXECUTION Testing new products IS KEY Offering product customization

27 Executing Your Dropship Strategy Consider employing best practices in the following key areas: Cultural & Operational Infrastructure Supplier Collaboration Supplier Compliance

28 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

29 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

30 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

31 Best Practices Recap Considering these key areas will set you up for success Cultural & Operational Infrastructure Organize to support your dropship program Supplier Collaboration Foster open communication with suppliers Supplier Compliance Measure supplier performance

32 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

33 Thank You

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35 The Future Significance of Stores Why You Should Care

36 David Geisinger Head of Retail & Mobile Innovation

37 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. in Consumers have stated the importance of feeling valued when in store

38 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

39 Today s Omnichannel Customer Web, mobile, apps, location and social technologies assimilated into their shopping journeys 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 Omnichannel customers spend 3-4x times more than single channel customers 63% percent of shoppers buy online and pickup in-store at least a few times per year

40 Today s In-store Customer 40% 80% 22% Purchase at a higher rate in-store Use devices before/during store visits Spend more in-store 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

41 Anytime & Anywhere Expectations 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 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

42 Keeping it Personal 20% 15% 82% Increase in customer satisfaction Lift in sales revenue Reduction in servicing cost of customers 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

43 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

44 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 100% or more revenue can be brought in through more educated and engaged associates 67% will provide customer profile/transaction data available to associates

45 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

46 Know you customer Bringing it All Together Invest in omnichannel where appropriate Pilot before production Think mobile Innovate

47 Howard Pressman Senior Manager Technology Product Management Ecosystem and Integration

48 Simplifying Market Expansion

49 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 made up obvious statistic Purchased on marketplace Lived in cave

50 Why Sell on Marketplaces? ebay Marketplaces gained 3.4 million buyers 152 million active buyers 2% Revenue Uplift 5% 10% Internet Retailer, October 2014 ebay s U.S. Marketplace sales grow 7% in Q3 Large Retailers Mid-tier Retailers Multi- Marketplace

51 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

52 Decisions, Decisions On which Marketplace do you sell? Who are you competing against? How will you fulfill those orders? Pricing? Promotions? Customer service: support, returns -data? How to manage inventory? Reporting, analysis?

53 Issues / Concerns Consumer data / brand identity Product classifications Integration Data sources, content management, images API upkeep Avoiding stock-outs System capacity planning, operational scale

54 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