M-commerce. It is getting bigger.

Have you considered M-commerce?

M-commerce is getting more and more popular these days. According to TolunaQuick, the percentage of people using mobile phones for shopping has increased from 13% in 2011 to 25% in 2012. As the number of smartphones increases and the perceived safety of m-commerce improving, we can assume the figure to go up again in 2013.

The graph below segmented the age groups of 1000 respondents. We can see that younger people are more likely to shop with their mobile phones. So if your products are targeted at the younger age group, a well designed mobile site would probably be beneficial.

Graph from E-consultancy

The report also finds out that 43% of UK respondents have used their mobile to compare prices and look at product reviews. Maybe you can consider putting this function into your mobile site to boost traffic too?  

$21bn! So... what is so 'great' about Amazon?

Three days ago, The Guardian reported that Amazon was 'expected to reveal a cash pile of up to $9bn sales'. Three days later, we realise we are all fooled. Amazon 'unveiled record Christmas takings of $21bn', which is equivalent to £13bn.  This has resulted in a $12.4bn cash pile for the leading online retailer. 

Starting as an online bookstore, Amazon has worked hard to expand its trading product range, taking market shares from both bricks and clicks rivals over the years. Now you can basically find anything on their website. This makes us wonder - how does Amazon achieve its leading position in the market?


Amazon Stock. (adopted from CNN Money)



1. Stubborn on vision, flexible on details.
According to Jeff Bezos, the founder of Amazon, stressed on the importance of being both stubborn and flexible. I interpret the 'stubborn' as 'persistence' when you experiment, and 'flexible' as 'creative' when you have to come up with different solutions to a problem.  I guess this applies to every single successful entrepreneurs, such as Steve Jobs and Zuckerberg.

2. Expands by experimenting
Amazon leads the market by being innovative. They are the first few companies who offers free shipping, monthly shipping plans Prime, Kindle the reading tablet, etc. Of course there are failures too such as the auction function and the A9 search, which you may not even have heard of. However, trail and error is the only way to go through to reach success. Never be afraid to experiment, as Bezos said 'what is dangerous is not to evolve'.

3. Focus on customer experience
Bezos once said that their goal is 'to be the earth's most customer-centric company'. Amazon always focus on improving the online shopping experience. Look at every single details when you buy something from Amazon, then you can see how tailored everything is - from the layout of the webpage to the small fine prints at the bottom. This has completely changed the traditional way of online retailing which simply displays the product with a shopping cart. 

We cannot deny the success of Amazon's vision and business strategies. However, this still does not explain the $21bn? 

This particular paragraph on The Guardian may have explained it:

"Amazon has put this money out of reach of the tax authorities by managing its European operations from Luxembourg. Profits collected in the UK and other major markets are funnelled out via a network of subsidiaries, in the form of royalty payments for intangibles such as use of the brand or technology developed inhouse.

With politicians in recession-hit economies looking to balance the books, Amazon's savings could take a hit. The British prime minister David Cameron took to the stage at the Davos summit to call for companies to pay "proper taxes", and the French and American governments are pursuing Amazon directly."

Well, where are the moral principles?

Holy Grail of E-commerce Conversion Optimization

A checklist for anyone practicing e-commerce. There are 91 points to take in - a lot, but we are talking about conversion rate (real money) here! You may not agree with all these, but afterall it does not hurt to do some extra reading. 

Click to enlarge (save and zoom to read)

Image adopted from cueblocks.com

Royal Mail Fuel Surcharge

Ouch. Just saw this news on the Royal Mail website. It is understandable though - since the cost of fuel has been increasing these days. It is also a good way to cover other costs simply by using the term 'fuel surcharge', since it seems more acceptable than any other reason. In fact, many other couriers have added surcharge into their services already so it is only a matter of time that Royal Mail joins its competitors. As suggested by Tamebay, the fuel surcharge will 'simply bring them into line with other carriers'. 

The question is, would the fuel surcharge lead to a loss of customers? 

Royal Mail has good authority and is considered reliable. It is relatively cheap as well. However, it has a record of postal delays (for example after strikes), and that other couriers are offering something extra such as free collection service or free tracking. It would be a no-brainer for customers to switch to better options if Royal Mail matches the price of competitors by adding the surcharges. 

Looking at John Lewis...

My boss is a big fan of John Lewis. When he wants to bring up an example of a successful company, he always mentions John Lewis. Indeed, it has done such a good job to evolve with the market, achieving its leading position in the retail industry. John Lewis boosts their high standard of customer services - a recent survey even states that 75% of British people trust John Lewis as if it was a bank. The company's success is not limited to just the high street. This year, John Lewis has experienced a whopping 44% increase in online sales. 

So what have they done? Today we will have a look at their online store.  

1. Design
Never underestimate the power of a well presented product page! First of all, it has detailed description for the product. Ratings are also displayed so shoppers can research on the product on just on one single page. This can also give them a 'peace of mind' on both the product itself and the retailer. Secondly, just like Amazon, there are recommendations displayed, which can encourage cross-selling. 

Extremely long product description on the left. Reviews on top right, and recommendations bottom right.

2. Easy site navigation
Again this is for convenience. It is easy to understand, and it is consistent on all pages. There is a search bar available. Pretty simple stuff but essential. Even if you are selling on Ebay or Amazon, make sure products are categorised clearly so they can be found easily, and are search bar friendly. For effective and professional webstore design and listing services, consider outsourcing to 3P Logistics. 

3. Delivery options
I cannot stress how important a quality delivery service is. This is the key to impress your customers because people usually pay the most attention when or after money is involved. They would be eagerly waiting for their products after they spent. John Lewis has a wide range of delivery options such as next day, named day, collection etc., and it is free with you spend £50. 

List of delivery options. Lots of options, and clearly explained. 

4. Early Christmas Sale
A pretty obvious reason to buy from John Lewis. 'Next Sale' was the top search term on Christmas days. Please ensure you put this keywords into your listing/ webpages for SEO purposes!

Of course there are much more factors that result in John Lewis's success. If you want some guidance, or simply want to discuss your business with us, please feel free to contact 3P Logistics.

PayPal: 'Aggressive changes' to relax frozen funds policy.

I am sure most of you are familiar with the name PayPal - an online payment processor owned by Ebay. It is a convenient service since you only need to log in and click a few buttons to pay, and it works on mobile platform as well. As a consumer we love it, but there are mixed reviews from retailers. 

There are a variety of reasons that can result in negative attitude towards the company, but the most common one has to do with 'frozen funds'. Of course, when the problem involves money, people can go a bit crazy. PayPal's fraud filters have frustrated customers for years, since the process of proving you are no scam can involve a lot of paperwork and time. The typical routine freezes your fund for 21 days if fraud risk is suspected, not to mention that PayPal has the right to extend the freeze to up to 180 days. You will then have to provide the requested documentations (for example months of sales record) for investigation. This means people's money can be held for quite a while, which can directly make an impact onto their businesses. 

'Aggressive changes' were the words used by Anuj Nayar, the senior director of communications in PayPal, to describe their next action. Promises have been made to improve this fraud filter system within the next several months. However, details are still insufficient at the moment. PayPal states that transparency will be the key and that they want to ‘be clear about how people can get out of the situation’.

Despite losing some customers over this problem, PayPal is still the giant in online payment industry. What are your thoughts? Is it too late for the company to change? Will you still use their services for your online businesses? 

Infographics: Order Fulfilment

Why Blockbuster becomes the latest casualty.

After the collapse of HMV and Jessops, Blockbuster has become the latest retailer to admit that it is struggling. According to Guardian, the store will remain open but the administrator will be looking for buyers. It is estimated that 528 out of the 1,400 shops will be closed.

So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers.’

So what is causing all these tragedies? According to analyst Glyn Mummery, ‘Online retailing has caused a bloodbath in the electronics and entertainment markets for old-school retailers..’ 

Indeed, Blockbuster fails to evolve with the market effectively. Let alone all those downloading activities, its rivals such as Lovefilm and Netflix are branding and promoting their online rental services vigorously, yet the Blockbuster’s image remains as bricks-and-mortars stores only,  which you have to  drive all the way there in a cold winter night to grab a DVD.

The key is to achieve a balance between bricks and clicks. For example, John Lewis has worked hard developing their online retailing sectors as well as maintaining their high standards in their bricks and mortar stores. They have seen a 44% increase in online sales this year, accounting 25%of their total Christmas sales. 

“We call it a “bricks and clicks” story,” says Mr Street, managing director of John Lewis. “People may place orders online, but they still want to come to see and touch things and have a social experience.”

Well presented, clear and consistent site navigation (John Lewis online store).

But the big question is - how many more retailers are struggling out there? One thing we can be certain of is that there are big business opportunities in the online world. If you are looking to start or even expand your online businesses, 3PL will be more than happy to give professional advice.

3P Logistics centres upon a simple belief that  “every business irrespective of its profile should have access to a quality and affordable supply chain service provider”. Since initial go-live in 2006 we are now firmly established itself as one of the UK`s leading providers of ecommerce and order fulfilment services to online retailers trading via the various channels 

Online retailers: Delivery Optimisation

3P Logistics centres upon a simple belief that “every business irrespective of its profile should have access to a quality and affordable supply chain service provider”. Since initial go-live in 2006 we are now firmly established itself as one of the UK`s leading providers of  ecommerce and order fulfilment services to online retailers trading via the various channels. 

Online delivery scandal - how to improve it?

Picture adopted from The Independent

Everyone knows Christmas is usually the most chaotic season for online delivery. However, this should not be an excuse to the deteriorating service level as seen this Christmas.  According to The Independent, ‘hundreds of thousands of people were left frustrated by disastrous service’. During December, at least 225,000 parcels failed to arrive on time EVERY DAY.

‘Did your Christmas gift orders arrive when retailers said they would?’ [E-consultancy, 2012]

E-retailers should be alerted, since this can create a significant impact on your company’s image. The E-consultancy survey stated that 59% of consumers would not shop with a retailer again if they failed to deliver on time. So this leaves us the question – how should we manage our delivery service?

Clarity and Accuracy

Obviously, this is the key to perfect delivery. If you cannot do it right, consider outsourcing quality fulfilment services such as 3P Logistics, which boosts its 99.6% success delivery rate. Room for improvement? Integrate online tracking system so consumers know what is happening. Some companies even offer SMS notifications to consumers for a more tailored approach.

Great Communication

Of course there will always be a chance of having delivery problems. The key is to communicate with consumers efficiently. This can be achieved by a dedicated customer service team. If you do not have the time, consider outsourcing to 3PL.

Support from retailers

Do understand that consumers will blame you when delivery problems happen even if it is the couriers’ fault. Be-proactive when following up the problems – contact your customers before they contact you, and of course, before they make a complaint.

Make things easier

Other than the obvious get the accurate address, consider giving consumers an option to select a place for courier to leave the parcel.

Delivery options by Naked Wines, picture adopted from E-consultancy

At the end of the day, it is all about making sure that your delivery information is 100% achievable and accurate. Also make sure that after sale service is available at a high standard to complete the shopping experience. If error happens, be proactive and inform your customer as soon as possible.

  

The fall of giant? The Google monopoly

Google - the search engine monopoly has always been influencing various industries (and even give birth to the SEO industry) by controlling each and every webpages’ rankings and positions.

However, even giant can fall. Yes, it is all over the news that Google is currently facing the threat of 'regulatory sanctions’ in EU. According to ITProPortal, Google will be forced to change the way its search results are presented soon, since it is suspected that Google has been using its power to divert traffic to its own services such as Analytics, Advisor, Local, etc. In another word, it has been providing users’ choice via their own Google products, instead of natural SERPs. This forces competitions out of the market by eliminating their competitiveness in terms of organic search rankings. This behaviour should definitely not be encouraged.

In fact, this is not the first time that Google has been charged by the EU. Just three months ago Google was accused of gathering user’s personal information in an inappropriate way. As a daily user of Google yourself, what are your thoughts on it? Are all those efforts of SEO worth it? Are we too reliant on the giant? 

The Busiest Day for Online Retailer

As you may have already known, Christmas is the busiest season for retailers. Everyone is buying gifts for each other and celebrating these special days with their families and loved ones. This means people are spending – and online retailers are certainly benefiting from this festive atmosphere as well. Statistics from Experian Hitwise show that, this Boxing Day has been the busiest day ever in the e-commerce history. Consumers were making 107million visits to retail website on Christmas Day. Compared to last year, an increase of 71% could be seen. The winner was... unsurprisingly, Amazon, which topped over eBay to become the most visited site on Christmas Day, accounting 12% of all online visits.

However, retail therapy for the UK population did not stop after Christmas Day. Instead, there were a whopping 113million visits to retail website on Boxing Day. This can be due to the early kick off of January sales and discount. Indeed, Experian Hitwise has confirmed this by stating that on Boxing Day, 1 in every 125 searches conducted in the UK included the word ‘sale’ or ‘sales’.

As a e-retailer, make sure you are well prepared for next Christmas to have a share of the cake. For professional advice on e-commerce strategies, 3P Logistics can certainly guide you with their expertise and experience built over the years.