Behavioural psychology > Cosmetic changes

Behavioural psychology > Cosmetic changes…that’s what a new report on Ecommerce by Qubit claims. Now, the company it has to be said has somewhat of a play here selling behavioural technology. According to the company, “Qubit’s technology prioritizes the biggest opportunities for revenue generation so you can deliver personalization that makes an impact”. Yeah.

Regardless of this, the report itself is well worth your time. *Spoiler Alert*…these were the key findings in order of importance:

  1. Scarcity
  2. Social proof
  3. Abandonment recovery
  4. Product recommendations
This figures; some of the most successful ecommerce stores are classic examples of these e.g. Amazon’s product recommendations. Perhaps but not totally unsurprising is scarcity – this very concept is winning offline (Zara, HM etc). What’s worked for your ecommerce store? Let us know in the comments.

AMZN Crushing Mobile

As BI reports, Amazon is dominating the mobile commerce space. Oppenheimer highlighted by just how much saying …“At the end of 2014, Amazon had roughly the same number of mobile unique visitors as Walmart and eBay, in the US. As of December 2016, Amazon has more unique visitors than the apps of those two companies’ combined,”.

And outside of Walmart and Ebay, the rest of the entire retail industry is way behind to the point you could be forgiven for writing them off entirely in the future of mobile commerce:

amzn-mob

So we have an Amazon dominated mobile commerce landscape in the near future. But long-term, perhaps as has always happened, the Internet will throw something new at us.

Ecommerce Platform Update

Engadget of all things has a nice update on the current status of Ecommerce Platform marketshare:

1

I think it’s surprisingly vibrant in an era when so much of technology is in the hands of so few. This is especially true with infrastructure and middleware (looking at you AWS) controlled by just a handful of companies such as IBM, Google, Amazon, Oracle, Microsoft etc.

Application developers are embracing both open source and creating closed source ecommerce solutions and this is good news for merchants going forward. The perennial question for merchants is however, which one do I choose? There’s no easy answer but at least there’s lots of options.

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Yup, Ecommerce is Hard

WSJ reports Walmart is in talks with Jet.com, the barely one year old ecommerce startup:

For Jet, a takeover by an old-line retailer would demonstrate the challenges of attempting to go it alone in the hypercompetitive e-commerce market.

This business is capital intensive, heavily reliant on brand and a massive slice of luck..

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Hosted vs Self-Hosted

I was browsing through some of my old bookmarks today and found an excellent article by EcommerceFuel’s Andrew Youderian. In the article, “Migrating to Shopify from Magento: The Results of our $50,000 Redesign”,  Andrew discusses moving his ecommerce store from Magento to Shopify.

This is well worth a read if you’re considering moving your site in general but more importantly, discusses the age old question in ecommerce; hosted or self-hosted?

Andrew sums up the argument:

I gave up having micro-level insights in order to more efficiently transform the website and brand into what I wanted it to be.

This is exactly why smaller stores and ecommerce newcomers should go with hosted aka less technology, more commerce. As you scale in terms of SKU’s, required functionality etc it makes more sense to go self-hosted (or proprietary for that matter).

What’s your thoughts on hosted vs self-hosted? your technology preferences?

Chinese E-Commerce Giant Alibaba’s Shopping Festival Breaks Online Sales Record.

Chinese E-Commerce Marketplace Alibaba Records $5.78 Billion in Sales, Topping Last Year’s Sales in Half a Day.

The country’s biggest online shopping day of the year, also the biggest on the planet, have set another record.

After only about half a day, Alibaba Group Holding Ltd. said sales on its online shopping sites had topped $3.1 billion – last year’s total for the one day 11.11 Shopping Festival.

The company recorded 35.19 billion yuan ($5.78 billion) in transactions by the end of the day. Chinese online shoppers spent more in 24 hours than the $2.5 billion that Americans spent online on Black Friday and Cyber Monday combined. This is a strong reminder of how lucrative the e-commerce market in China is, surpassing the US in terms of consumer numbers and total spending. In the first six minutes of the 11.11 shopping festival transactions exceeded an incredible one billion Yuan.

The Alibaba Nov. 11 sale is a tradition which started in 2009, when 27 merchants on the company’s Tmall site offered discounts to increase sales during a usually slow period. The concept was then subsequently developed and intelligently marketed alongside China’s ‘singles day’, a celebration of independence, now defined (in part) through one’s purchases at discounted prices.

This year’s sales record demonstrates the rising power of the Chinese consumer and the increasing presence of e-commerce in a country where the physical, retail infrastructure isn’t as well-developed as it is in the U.S. It also shows the rising power of Chinese brands, with smartphone maker Xiaomi Inc. and electronics and appliances supplier Haier Electronics Group Co among the top sellers.

In the opening three minutes, Xiaomi said it sold 110,000 of its new Mi 3 phone and another 110,000 of its Hongmi phone, totaling 178 million yuan in transactions. After half an hour, the company’s Tmall store had 300 million yuan in transactions. Chinese brands such as Xiaomi are flexing their muscles with sales figures such as this. This also demonstrates that China is no longer simply a factory for the rest of the world but a rapidly developing country that is modernizing at a head spinning pace. This whole venture was engineered and executed by a Chinese e-commerce firm with domestic, Chinese technology brands thriving.

As a direct result of such Chinese sales figures the number of expats and business people learning Mandarin is also dramatically increasing, an understanding of the language has become a pre-requisite to succeed in E-commerce here. Language specialists ‘Tailor Made Chinese’ have stressed that it is ‘vital for expats to learn and speak Chinese to succeed in business’.

Examples such as this reflect the vast potential for Western brands in China, for more information on marketing and expanding your business into China see Benji Lamb’s marketing website and blog.

Open Source Ecommerce

Interesting news today from Automattic – the people behind the most popular website cms ‘WordPress’ – that they’ve acquired WooCommerce. The release:

Since late last year we’ve been talking with Matt Mullenweg, CEO of Automattic and co-founder of WordPress, and his bridge team about what we could build together. Our plan is to leverage our combined wealth of knowledge, skills, vibrant community and joint infrastructure platform to reach new eCommerce heights.

So, the goal with WordPress + WooCommerce is to create the most open and easy way to sell on the Internet. You would imagine that this is quite plausible given the scale of WordPress. Today, WooCommerce is the second most popular ecommerce software behind Magento as detailed below:

ecom

Magento owned by Ebay appears to be in relative stagnation but it still represents 20% of total ecommerce solutions (both hosted and  open source). Nevertheless, I do think we need a alternative solution for people that have outgrown a hosted platform like Shopify or BigCommerce.

Time will tell whether the new WordPress-WooCommerce acquisition fills this void but it’s exciting news for online merchants and developers.