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ECOMMERCE 2008

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Title: ECOMMERCE 2008


1
E-COMMERCE 2008
BEYOND
2
uknetweb
This presentation was prepared by uknetweb, a
company specialising in the technical end of web
development. Based in Cornwall, UK, the company
has successfully developed a number of sites for
clients within the small to medium enterprise
(SME/SMB Market), as well as working as partners
on projects for the likes of Nokia. The company
is owned and run by Toby Parkins, who boasts 14
years of web experience, working on some of the
earliest web projects at his university.
uknetweb specialise in spotting technical
opportunities for businesses operating on the
web. The company has created sites with a number
of world firsts including The Cornwall Kawasaki
Centre featuring a parts database of over 1.5
million parts linked with diagrams and Beachbeat
Surfboards featuring the first custom board
shaper and webcam store with live see and buy.
Anyone interested in learning more on what the
company can do can contact Aren Grimshaw or Toby
Parkins on 44(0)1872 555933.
3
key areas
This presentation focuses on e-commerce and
emerging internet technologies for business in
2008 and beyond. We have focused on the following
6 areas in this presentation, linking where
possible to examples and research. We believe
that the internet is in the middle of a great
period of change with another billion users
joining the web, the growth of web 2.0 projects
and fears of a recession.
  • sell
  • knowledge
  • efficiency
  • social
  • advertising
  • security

4
SELL
5
e-commerce
E-commerce refers to the sale of goods or
products through a store online as opposed to a
real world bricks and mortar site. A huge and
growing area online shopping sales in the UK
hit a new high last year, hitting the 4bn per
month mark in July for the first time and over a
12 month period online sales were up a massive
36 (Brand Republic). Online stores are not
just about selling products. Many work on more
sophisticated functions such as flight or hotel
booking systems, comparison sites, online brokers
or affiliate marketing schemes. Its a big area
but still many companies operate in sectors where
this model of business isnt always appropriate
so looking more widely at the internet and
emerging technology is important in presenting a
presentation that is of use to each and every
person accessing it.
6
who uses the web
In the UK alone around 34 million people use the
internet (according to a survey released by the
BBC late last year.) The main way people access
online is through logging on at home with 61 in
the same survey using their home PC to access the
net. Out of these numbers around 65 of
internet users buy, with 67 of those feeling
confident to purchase using their credit card.
7
hidden depths
What you see at the front of a website is the
design . Like an iceberg, the design is only
the tip of what is actually going on. Beyond the
way the site looks are layers of code, databases,
servers and other technical functionality to
create the site you use on your screen. Looking
towards 2008 how is the e-commerce store
evolving?
8
evolving web
  • the social web
  • payments unleashed
  • pick up in-store
  • new competition

9
the social web
Looking at the social web in context of the
e-commerce / online store environment, there are
principally 3 examples of the e-commerce store
taking on a more social and connected kind of
attitude. These changes focus on people wanting
to see information on how other shoppers are
acting within the same shopping environment.
Using a supermarket analogy You see a big
crowd massing in one of the aisles, around a
particular product or range of products or
customers queuing up to complain all holding the
same product you would factor in this
information into any decision you might make as
to whether to purchase or not purchase. In much
the same way efforts online are shifting to give
consumers what they want. A more social and
interactive shopping experience where they can
compare products, see what others are buying,
hear about duff products before they buy them.
10
the social web - cont
  • Three specific examples of these changes in the
    e-commerce environment are
  • online reviews
  • comparison functionality
  • tag clouds
  • The following three slides show websites (click
    picture to link to site) adopting this kind of
    technology into their online presence.

11
online reviews
More and more customers are reviewing products
and accessing the reviews of other
customers. Research shows that consumers trust
retailers offering these functions over ones that
dont. Amazon has had this kind of
functionality for a long time.
12
comparison functionality
E-commerce stores are waking up to the need to
offer customers comparisons on like products
through their own websites. Simple checkboxes
like this one found on the Palm website allows
customers to limit results to a specific couple
of products with side by side comparison. This
kind of functionality offers customers more,
increasing store loyalty and reducing cart
abandonment as they go elsewhere to retrieve
information.
13
tag clouds
You may have noticed these strange boxes
appearing across the web like the one shown above
on the Yell.com website in the UK. They are a
simple graphic format that shows how other people
on the web are acting. In this case, the larger
words reveal the company searches most commonly
being carried out by other users. Cloud tags
originated from social book marking, a way of
storing your favourite online places and adding
tag references to store them for later use by you
or other web users. (see slide 54)
14
pay and pick up
  • payments unleashed
  • pick up in store

15
payments unleashed
Driven by growing fears about the security of
purchases online and the increasing number of
younger online customers, new pre-paid cards are
emerging onto the market. Many cards are
available to any user over the age of 13 without
any requirement for credit checks. These cards
act as normal Mastercard, Visa, Maestro or even
American Express cards enabling the user to make
purchases online Unlike a credit card, pre-paid
debit cards need to be pre-loaded with cash
similar to a pay as you go mobile phone. They
reduce the risk of online shopping by limiting
the risk of loss to the credit present on the
card.
16
pick up in store
There is an increasing trend towards online
stores offering an in-store pick up of products
ordered over the internet. For traditional
offline consumers they gain access to product
availability before travelling to the store, or
calling busy customer service staff. For online
users, the need for a quick fix buying
something and getting it immediately, without
postage costs, is driving this change.
  • avoid postage costs
  • check availability
  • immediacy of purchase

17
new competition
Listed among the Media Guardians Hit sites for
2008 is relative new company, and eBay/Amazon
competitor, Etsy.com. A cross between eBay,
Amazon and your grandmas basement according to
Wikipedia, the site provides a sales route for
for smaller craft based businesses and niche
product manufacturers Offering a cost effective
way to sell handmade goods online, this site
presents many cottage industries with an ideal
start to e-commerce business. From a consumer
perspective, a great place to shop for gifts with
functions to search by colour, event and much
more.
18
e-commerce statistics
  • 4bn per month in online sales
  • online sales up 29 last year
  • total UK web sales 103bn 2007
  • 65 of internet users buy online

19
KNOWLEDGE
20
knowledge
OK so we can see the changes when trying to sell
products or services online, but, what changes
can we utilize in businesses where there is no
product or service to be bundled up, presented
and sold online? How can those businesses not
selling online make the most out of the internet?
Below are 5 words that may or may not be
familiar to you however, I am sure you would
have heard them mentioned in conversation more
and more frequently during 2007. The following
slides give a short overview on each. To read a
detailed article on each click the title to be
forwarded to its page on Wikipedia.
  • podcasting
  • rss
  • wikis
  • blogs
  • widgets / dashboards

21
wikis
  • allows users to create, edit, and link web pages
    (read/write web)
  • used to create collaborative websites
  • biggest example wikipedia

22
wikis - example
Wikipedia came under some attack in the media
during 2007 for inaccuracies however, in
comparison with trusted sources such as The
Encylodpedia Britannica it was found to contain
comparative levels of accuracy throughout.
Wikis are being tested across a variety of
scenarios, from marketing to education and will
continue to grow in 2008. The publication of
books such as Wikinomics are highlighting how
these new methods of operating are helping
businesses in all sectors find new ways of
working, improving growth, profits and
efficiencies through collaboration. As a
business tool they offer access to up to date
information on a range of diverse subjects that
otherwise may have required detailed research.
23
blogs
  • offer commentary or news on a particular subject
  • can be a form of online personal / corporate
    diary
  • loads of free expertise, advice and knowledge
    available

24
blogs - example
Here is an example of one of the many CEO blogs
out there on the web in this case Justin Kitch,
CEO and Founder of Homestead.com
25
podcasts
  • an audio clip or file
  • downloaded for playback on PC or media device
  • news, commentary, training etc
  • keep informed of important changes

26
podcasts - example
Here is an example of just one of the many out
there ready to download. In this case this is the
Financial Times producing a variety of business
news items.
27
rss
  • makes it easy to keep up to date with changing
    content
  • showcases a snippet of information with a link to
    full info
  • can be added to a company website
  • you choose what you see

28
rss My World
My World is part of the Flock Browser. It can be
accessed by pressing a small button built into
the browser. The custom page displayed shows
any RSS feeds subscribed to, as well as your most
commonly visited sites. The screen shot above was
taken off one of our screens here at uknetweb in
preparing this presentation.
29
widgets / dashboards
  • specific desktop application
  • serves a specific function
  • dashboards iGoogle, MyWorld
  • see the information you need or require

30
vista gadgets
The screen grab on the left shows some of the
gadgets shown on my desktop as part of the
Windows Vista Operating System. Other systems
offer similar functionality, Apple Mac users are
able to have widgets as are users of the Yahoo
service.
31
dashboard - iGoogle
iGoogle a kind of personalised window on the
net presented on your own customisable homepage.
iGoogle a kind of personalised window on the
net presented on your own customisable homepage.
32
EFFICIENCY
33
efficiency
  • Skype
  • wifi hotspots
  • BlackBerrys
  • Webex
  • green IT
  • social lending

34
skype
  • VOIP
  • free to use
  • can advertise business
  • great for outsource teams to stay connected

35
wifi / mobile
  • number of hotspots
  • provides access to the web out of the office or
    home
  • increases business efficiency
  • mobile data only packages through most major
    networks

36
Webex
  • online service
  • removes need to travel for meetings
  • great for training and consultancy
  • assists businesses in attracting work out of area

37
BlackBerry
  • a handheld device
  • cross between a phone and personal organiser
  • improves business efficiency
  • provides access to diaries, task lists and email
    on the move

38
green IT
  • reduce waste
  • reduce emissions
  • use of emerging technologies
  • adopt sustainable practices

39
social lending
  • a relatively new trend
  • exciting prospect for small businesses
  • new financial model
  • expect major growth in 2008
  • Wikinomics at work

40
social lending example 1
US social lender Prosper.com Backed by Accel
Partners, Benchmark Capital, DAG Ventures,
Fidelity Ventures, Meritech Capital Partners, and
Omidyar Network. Prosper has raised 40 million
and its platform is patent pending.
41
social lending example 2
UK Social Lender - ZOPA In just over two years,
it has attracted more then 170,000 members with
around 5,000 more signing up each month
42
SOCIAL
43
social
If you got through last year without hearing
about Facebook, MySpace or any of the other
Social networking sites we would be very
surprised. Many might write them off as a waste
of time, or a fad however, evidence both in the
UK and the US shows major adoption of these sites
both by the expected younger audience and beyond.
Estimates put membership of Facebook at 50
million and site valuations are currently around
7.5bn. These sites work on creating niche
groups of likeminded individuals who set up
personalised profiles on the web keeping
friends, colleagues or others updated.
Similarly for businesses they offer a free
route to display company or team information to
an audience and track the way in which they
interact with these communications.
44
facebook for business - 1
This an example of a Facebook company page.
These pages allow companies to display
corporate information on a company profile page
created by a member. It allows for different
types of information to be uploaded and
automatically sent to those fans registered to
receive it.
45
facebook for business - 2
Functions behind the page perform as a page
manager enabling the business to track hits and
click through rates in much the same way as
conventional websites. We wouldnt recommend
this as your only presence on the web, but as a
free addition to the information you present
online it can help reach difficult parts of the
market where suitable.
46
ADVERTISING
47
advertising
Advertising in the new web environment is a
complex task however, statistics show that year
on year growth in online ad spend is at 40.1
with online advertising making up 14.7 of the
total UK ad spend. With the marketplace
changing at an ever faster pace marketers are
finding it hard to plan the best routes and gain
maximum return on investment for their companies.
Where possible companies should look to bring
in specific and recognised Search Engine
Optimisation (SEO), specialists. These
consultants can help companies read statistics
and plan online advertising spend appropriately.
Facebook and other sites now also offer highly
targeted advertising for relevant businesses with
advertising directed at very specific target
groups by area, location, hobbies and much, much
more. Advertising through social networks is set
to go from 920 million dollars in 2007 to 1.6bn
dollars in 2008.
48
advertising
  • 2bn UK online ad spend
  • Online accounts for nearly 15 of total
    advertising in UK
  • 40 year on year growth
  • US to spend 1.6bn dollars on social networking
    sites

49
Google adwords
There is a wealth of information out there for
those who know how to read it and make informed
decisions. This slide shows the numbers of people
searching for key phrases on the internet during
various times of the year. These phrases relate
to those found within the uknetweb website and
the number of internet users searching for each
of those phrases.
50
Google trends
Generated by GoogleTrends, this screenshot shows
how interest in the environment over the past few
years has driven search engine searches for a
word such as eco since early 2006 and
increasing steadily during 2007 leading into
2008. Interestingly the word green remained
almost static in comparison. Understanding these
factors can be massively important when planning
your online marketing activity.
51
social bookmarking
These sites allow individual users to store, tag
and share links across the internet. Users can
share these links both with friends and people
with similar interests. They can access links
from any computer they happen to be using. All
of these sites are free to use but do require you
to register. Once registered you can begin
bookmarking. Each of the sites works slightly
differently but all perform pretty much the same
function. The more tags a website gets the more
it may be found by likeminded users in the
future. As such achieving social tags may be
important in getting future rankings for a
site. The next slide shows the various social
bookmarking logos you will see.
52
social bookmarking logos
53
SECURITY
54
security
  • data protection
  • identity theft
  • rogue websites
  • hacking
  • viruses

55
CONCLUSION
56
conclusion - 1
In 2008 and beyond, e-commerce and internet
technologies are unlocking new possibilities for
all businesses. SELL Sales continue to grow on
the internet and online stores are likely to
achieve higher and higher profits. Look out for
comparisons, rankings, new payment options and
pick up in stores. KNOWLEDGE Use the knowledge
that is out there. Tap into what consumers and
competitors' are saying. Keep up to date with
information and manage what information you
receive through widgets, dashboards and RSS
feeds. EFFIENCY See how you could make your
business more efficient or environmentally
friendly. Research new ways of working,
collaborating and staying in touch through Skype,
webex, blackberrys and wifi.
57
conclusion - 2
SOCIAL Create new contacts through extended
contact spheres. Utilise new web technologies to
network outside your normal area. ADVERTISING
Market your business offline and online. Remember
how Nike and Coke increased advertising and
marketing spend during the recession years and
reaped the rewards, Look towards some of the cost
effective or free routes coming online.
SECURITY Ensure your business is protected.
Make sure your security and your customers
security is up to date. Why not try your hand
at just some of the areas suggested? 2008 is a
great year to get your business moving online.
Best Wishes, uknetweb.
58
other interesting links
  • IAB Considerations for Marketers in 2008
  • Dave Chaffey.com Global / worldwide Internet
    statistics sources
  • Lifehacker's 2007 Guide to Free Software and
    Webapps
  • Viaspire Predictions Buffet for 2008 - Take
    Your Pick
  • Trendspotting.com Spotting the trends of
    influencers
  • Ed Tech Hacks Best of 2007 Predictions for
    2008 Roundup
  • TechCrunch 2008 Web 2.0 Companies I couldnt
    live without
  • Consumer Lab The Top Ten Marketing Trends for
    2008
  • Darren HermanTHE Digital Media Internet Uber
    2008 Prediction List
  • Ecommerce Times Predictions 2008 Fighting Back
    a Recession and Increasing Trust

59
ENJOY 2008
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