The Jason and Scot Show: The Shop.org Edition

The Jason and Scot Show

Scot Wingo
Execu5ve Chairman and Co-Founder
Channel Advisor Corpora5on
Presented: September 27, 2016 at Retail’s Digital Summit
Jason Goldberg
SVP, Commerce and Content
Razorﬁsh

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Jason and Scot Debate
Retail’s Biggest Challenges
Jason ‘Retailgeek’ Goldberg – SVP Commerce, Razorfish
Scot Wingo – Co-founder and Executive Chairman, ChannelAdvisor
Shop.org Edition

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Shop.org Edition
Jason and Scot Debate
Retail’s Biggest Challenges
Jason ‘Retailgeek’ Goldberg – SVP Commerce, Razorfish
Scot Wingo – Co-founder and Executive Chairman, ChannelAdvisor

Introducing Jason and Scot…
The Forrester Wave™:
B2C Global Commerce Service Providers, Q1 2015
Gartner Magic Quadrant™:
Global Digital Marketing Agencies, March 2016

Introducing Jason and Scot…
©Copyright ChannelAdvisor 2016

Jason and Scot Show
•  Weekly E-commerce/digital
retail podcast
•  Started 11/12/15
•  Jasonandscot.com
•  iTunes, soundcloud,
•  Facebook
•  45 Episodes and coun5ng!

Retail’s Biggest
Challenge 1:
©Copyright ChannelAdvisor 2016 9

•  #1 Online retailer ($107b in 2015, growing 26% y/y)
•  #2 OVERALL retailer for 2015 (2nd only to Walmart)
•  310m ac5ve buyers (growing 13% y/y)
•  60% US, 40% Intl
•  Media: 9%, Electronics and General Merchandise (EGM):
80% (Other is 11%)
What do we KNOW about Amazon?

Amazon, Retail Sales, E-Commerce
Source: comScore and Amazon public data
9

Amazon – FC Footprint – 104FCs -> 75m sq-ft

Amazon – Europe – 34, 25m sq-ft

Amazon – APAC- 35, 25m sq-ft
That’s 104+69=173 FCs, > 100m sq-i

Putting it All Together
ProductVolume
LOW
Low
HIGH
High Amazon Sales Rank
Amazon
1P
Amazon
3P+FBA
Amazon
3P
Total Inventory: 288m items
Prime Eligible: 32m (13%)
1P: 2.8m / 3P: 285mHead: 2.8m
items
Torso: 29m
items
Long Tail:
256m items
19

Can you survive in an Amazon-dominated World?
•  Scot: Game over…If you can’t beat ‘em, join ’em
•  Jason: Not so fast....
Amazon Debate: Scot vs. Jason

Amazon – Dominating E-commerce ALL RETAIL
“Amazon captured more than 51% of all applicable retail growth
dollars in the U.S. during Q4 [and] 42% of all applicable retail
growth dollars in 2015, nearly double the 22% it captured in 2014.”
- Wells Fargo Equity Research

Amazon Debate: Jason
44%
Within 20 miles

44%
Within 20 miles Within 15 miles
90%

Best Buy Get’s Faster Than Amazon

Retail’s Biggest
Challenge 2:
Mobile Conversion
9

Mobile Traffic Last Month
68% 50% 55%52%
Source: Comscore Mobile Metrix February 2016

Time on retail properties
65%
5me on all retail
websites is on
mobile or tablet

Mobile Gap: Conversion Rates
4.43% 3.75%
1.53%
Source: Monetate Ecommerce Quarterly Q4 2015

0
0.5
1
1.5
2
2.5
3
3.5
4
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Mobile Gap
Mobile Gap Over Time

Will Mobile Conversion Rates Improve to Desktop Levels?
•  Jason: Yes, Digital Wallets, Op5mized Mobile
Experiences, and Chatbots to the rescue
•  Scot: No, unless you are Amazon, eBay and Walmart.
Mobile Debate: Jason vs. Scot

Mobile Debate: Jason
-7% +47%
Retail Traﬃc Growth

Checkout
Fric5on

22 INPUTS 8 INPUTS 4 INPUTS

Avg Checkout 23 Fields

Use as billing address
FULL NAME (FIRST NAME LAST NAME)
SHIPPING ADDRESS APT/BLDG. (OPTIONAL)
EMAIL ADDRESS
PHONE
CREDIT CARD DETAILS EXP DATE | CVV
5 Fields

The Mobile Debate: Scot
Source: Amazon public data
56

Retail’s Biggest
Challenge 3:
Brands Going Direct

Brands Background
61

Brands Background
62

Brands Background
63

Does Brands Going Direct Mean the End of Retail?
•  Jason: No!
•  Scot: Probably….
Brand Debate: Jason vs. Scot

Brand Debate: Jason
Retailers Brands
Today

Brand Debate: Jason
Retailers Brands
Tommorrow

Brand Debate: Jason
Brands sBll the worst place
to buy their own products
•  Price / MAP Compliance
•  Assortment
•  Delivery

Does Brands Going Direct Mean the End of Retail?
Brand Debate: Scot

Retail’s Biggest
Challenge 4:
(BONUS!)
THE FUTURE…

The Only Constant: Change^2

What is the Future of Retail?
•  Jason: Distributed Commerce and Cogni5ve Compu5ng
•  Scot: AR and Drones
Future Debate: Jason vs. Scot

Future Debate: Distributed
In store
Lockers
Instant delivery
Store
finders
VR
Voice
ordering
Mobile pos
At home
Auto
replenishment
At work
Watch
Dash button
Clientelling
Dash
Social
buy button
Outdoor
advertising
Google
buy button
In store
On the go
Commute

Amazon Fireﬂy
Future Debate: Visual Search

Hololens
Future Debate: Scot AR

Magic Leap

Future Debate: Scot Drones

THANK YOU!
scot@channeladvisor.com

Twirer: @scotwingo
Blog: channeladvisor.com/blog
LinkedIn: /in/thescotwingo
jason.goldberg@razorﬁsh.com

Twirer: @retailgeek
Blog: retailgeek.com
LinkedIn: /in/jasongoldberg

The Jason and Scot Show: The Shop.org Edition

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The Jason and Scot Show: The Shop.org Edition