September 30, 2014

What the EBay and PayPal Breakup Means for E-Commerce

Earlier today, eBay announced that they are splitting the company into two companies - PayPal and the eBay marketplace.  Since the announcement, we have had an influx of customers asking for our thoughts on this big change in the world of e-commerce. In this post we look at the 'why' and the possible implications for online retailers from this change.  We focus on the marketplace side of the split as that's the focus of this blog.  

The split

There are tons of details on the arrangement and the management team being generated by the business press, so we won't spend time on that.  The biggest points of interest are:

  • John Donahoe and Bob Swan - current CEO and CFO -will not run either business following the split in the back half of 2015, but will be board members.  We've enjoyed working with John and Bob and wish them the best in their next endeavors.

  • Devin Wenig, President of eBay global marketplace, will be CEO of the eBay marketplace company.  Devin has been a great leader for the eBay marketplace since he joined in 2011 and spoke at ChannelAdvisor's Catalyst event earlier this year.  We’ve been impressed and look forward to his leadership of eBay.

  • A new CEO, Dan Shulman, from American Express, joins the company to run the PayPal part of the business.

Also, we're getting questions around 'what goes where.’  Our understanding/guess is:

  • PayPal - PayPal payments, Braintree, Bill Me Now.

  • eBay - The eBay Marketplace, eBay Enterprise (GSI, Magento, etc), Mercado Libre, Shopping.com, StubHub, etc.

There will, of course, be some kind of arrangement between the two that enables eBay sellers to continue taking PayPal.

Why split, why now?

In the last 3 months the e-commerce world has been extremely disrupted by the entrance of new 'titans.’ Previously we had 3 titans in the world of e-commerce fighting for consumer's mindshare (and dollars): Amazon, eBay and Google.  In the last three months, Facebook, Apple, Twitter and Alibaba have all unveiled new efforts in e-commerce (Facebook marketplace, Apple Pay, Twitter marketplace) or dramatically revealed their scale and global ambitions). Now, we have 7 titans of e-commerce!

As these new titans have entered the space, we see they are not working with PayPal or the eBay marketplace.  Why?  Because they are married together.

If I'm Facebook/Twitter and building a marketplace, I don't want eBay to see/know everything I am doing by working with PayPal for payments.  So I build my own and/or work with Stripe.  The natural reaction is PayPal buys Stripe, but that doesn't solve the problem because Facebook/Twitter would turn their Stripe integrations off because they compete with the eBay marketplace.

Another example from the other side of the fence: If I'm running the eBay mobile app business, I want to be a launch partner with Apple Pay for my iPhone app.   I propose this, it works up the food chain and is quashed by the PayPal side of the business that doesn't want me working with a competing mobile technology.

Thus by being under one roof, each company is losing out on very big opportunities caused by these new entrants in both marketplaces and payments.  

Conclusion: This is the right time to split, the reason is the tectonic shifts in our industry from Mobile, Cloud, Global, CBT and the entrance of four big, new players.

What does this mean for eBay MP?

In the short term, I think there may naturally be a period of distraction.  eBay and PayPal share financial teams, hosting, customer service, IR/PR teams, etc.  The list is big and will take a lot of work to successfully 'cleave.’  

In the middle term (2015), once the eBay team is through the distraction, I think this will be a net positive for eBay:

  • The management team can focus on their key initiatives.  These have previously been Mobile, CBT, BRIC - with the overarching goal of growing faster than e-commerce.

  • By having a separate, focused company, they will be under a bright spotlight and have to execute on their plans without PayPal impacting or benefiting growth or margins.

  • The spotlight will mean  a tight focus on adapting eBay for the fast-changing e-commerce landscape and will mean things are likely to dramatically accelerate from here.

In the long-term, I think,  this will be good for the eBay MP.  With a laser-focused team and the assets it needs to be successful, I think we'll see some bold moves that try to re-establish eBay’s leadership position.  This is a >$60b in GMV business that, while is only growing ~10%, has a lot of assets to bring to bear with an impressive new leader, so don't count them out yet.

What does this mean for online sellers/retailers?

I think this is the first of many major moves we are going to be seeing from the new '7 titans of e-commerce' and it is fun to think through possible next steps:

  • What if eBay took AliPay as a payment option to appeal to Chinese consumers and partnered with Tmall?

  • What if Google introduces a marketplace to help with their mobile problem and takes PayPal?

  • Wall St. firms are speculating that Google/Facebook/Apple buys PayPal now and Alibaba buys eBay

  • Would Amazon take PayPal as a payment option now?

  • Will Apple allow PayPal as a 'source' in Apple Pay?

  • Should eBay buy Mercado Libre for access to Brazil/LATAM?

  • If PayPal acquires Stripe after the split, does that cause Facebook/Twitter concern?

  • What if Apple introduces a marketplace of products that are all Apple Pay enabled?

As you can see, the possibilities are virtually limitless and that's what makes this change plus the entrance of the new 4 titans into e-commerce a positive for sellers/retailers, not to mention consumers.  We now have many more companies and options available to us, which is a good thing.

What do you think?

It's like Game of Thrones in the real world - 7 kings fighting over a rapidly growing market.  What do you think the possible next mix-ups are? Sound off in comments.

 

This blog post was written by Scot Wingo, CEO, ChannelAdvisor

September 24, 2014

Autumn Release 2014: Social and Mobile Commerce. Enabled.

Twitter

Have a mini panic attack if you leave your cell phone at home? Check one of your social media accounts at least once per day? For many of us, the answer to both these questions is yes.

We’re living in an era where mobile devices and social media outlets are being used as primary interaction sources. These tools simplify our lives and lower communication barriers — streamlining our connection to the outside world.

In this way, consumers can bond with brands like never before. Mobile devices and social networks are great instruments for customer service, branding opportunities and, you guessed it, online shopping. This is where we come into play. ChannelAdvisor aims to stand beside retailers and guide you through this digital whirlwind. Our new support for mobile and social networks is detailed below.

Mobile Commerce

Yahoo Gemini, now supported by ChannelAdvisor, is the first and only unified marketplace for mobile search and native advertising. Yahoo recognized that consumer behavior is being affected by the surge of mobile traffic, and in turn, decided to build a better search engine. ChannelAdvisor Digital Marketing customers can now:

  • Create Yahoo Gemini search and native ads

  • More accurately target campaigns across channels and mobile devices

  • Access Yahoo Gemini keyword bid management and reporting tools

  • Sync with their Yahoo Ad Manager account

The ChannelAdvisor Mobile Bid Optimizer saves you loads of time when it comes to adjusting your mobile bids for Google Enhanced Campaigns. Save time and money on your Google text ads by letting the Mobile Bid Optimizer conduct your mobile campaign bidding automatically. It makes your mobile digital marketing strategies smarter and more cost effective with minimal effort by allowing your campaign-level bid adjustments based on your effective revenue share (ERS) goals.

Social Commerce

Social media sites such as Pinterest, Wanelo and Polyvore have become go-to spots for gathering ideas and sharing favorite or must-have products. As a retailer, how do you know which sites would work best for you? Once again, ChannelAdvisor to the rescue! Our Social Commerce suite allows you to test the waters by simply using a single feed that’s then transformed to meet the unique requirements and specifications of each social site.

Additionally, ChannelAdvisor’s Social Commerce allows you to:

  • Easily select the exact products to promote

  • Promote featured products, seasonal specials, sales, daily deals and new products to educate social followers and drive traffic back to your website

  • Build campaigns within the ChannelAdvisor platform to customize them with your brand’s colors and styles

  • Optimize social campaigns based on performance and conversation data at the product level 

Social-commerce-LP
Want more info on our Social Commerce suite? Download this overview ChannelAdvisor Social Commerce: Discover. Share. Inspire.

September 23, 2014

EBay Simplifies Delivery for UK Customers

Imagine a world where you don’t have to wait around at home for Mr. Postman to deliver your package before you venture on your merry way. You have the luxury of choosing a shipping destination and being notified when your package is safely delivered and ready for pickup at your destination of choice. As we mentioned a couple of weeks ago, eBay has solved this challenge for its UK shoppers. Its Click & Collect program allows buyers to select a location to send purchases to and then pick them up at their convenience.

In the UK, eBay partnered with popular retailer Argos (think UK version of Target) to add its widespread brick-and-mortar network of stores as delivery spots in the Click & Collect program. There are currently more than 650 Argos locations, each within 10 miles of most of the UK population — offering a convenient pickup destination for UK eBay-ers.

The offering proved to be so strong in beta tests last year that eBay estimates 65,000 people will enroll by the end of 2014 and 80,000 will enroll in 2015.

So when can we expect to see a similar offering in the US? EBay does offer Click & Collect in the US — known as In-Store Pickup — which ChannelAdvisor also supports. With In-Store Pickup, buyers make a purchase from a retailer and then pick up their item at the retailer’s own store. As a result, participating US retailers are required to have a wide brick-and-mortar presence to appeal to many buyers. For that reason, the program is currently invitation-only in the US.

When you compare the two programs, Argos Click & Collect offers clear value because retailers can leverage Argos’ high street presence without needing any brick-and-mortar stores of their own.

EBay is opening up a new world of e-commerce customer care. UK sellers can capitalize on this new feature, but will this be an industry-changing opportunity for online retail? Share your thoughts in the comments below.

 

Blog post by Jordan Nowlin, social media & blog manager, ChannelAdvisor


  Uk-op-argos-click-and-collect-img-2
To find out more about how ChannelAdvisor works with Argos Click & Collect, download this overview.

September 17, 2014

Autumn Release 2014: More Options on Marketplaces

Twitter

The launch of Monday’s 2014 Autumn Release will help you be more efficient and more competitive in the dynamic e-commerce space. “Work smarter, not harder” is our goal for retailers. Over the next few weeks on our blog, we’ll dive into various segments of this product release. Our Product Marketing team is also offering a comprehensive Autumn Release tutorial in tomorrow’s webinar, which you won’t want to miss.

Today, let’s focus on marketplaces.

Empowering E-Commerce

EBay Management. Enhanced.

With the Autumn Release, we let you work in the way that’s best for you. In addition to other eBay features, this release introduces new eBay templates — eBay QuickStart and eBay Custom.

  • EBay QuickStart reduces the configuration you need to launch on eBay. Begin selling fixed-price listings in a streamlined process by using a single group of settings. This will also include a new eBay Categorizer feature. If you want to get your listings up in timely fashion, then the eBay QuickStart template is perfect for you.

  • EBay Categorizer is great for quickly listing products when you don’t know the eBay category number. This means that for products that are net new to eBay and don’t have a defined eBay category number, the eBay Categorizer will ask eBay to suggest a category value.
  • EBay Custom gives you the most freedom and flexibility over your eBay listings. Set up different listing strategies for different groups of items — like using multiple HTML ad templates or auction-format listings. With eBay Custom, sellers can vary their strategy by item or groups of items, with different listing settings (including auction format listings), different ad templates, different schedules and more. If you vary your  eBay selling strategy depending on the product, then eBay Custom will likely be your preferred method.

  • EBay’s Click & Collect with Argos is a program eBay rolled out in the UK. The marketplace partnered with popular UK retailer Argos to add its widespread brick-and-mortar network of stores as delivery spots in the Click & Collect program. (Be on the lookout for an in-depth blog about the program coming next week!).

  • EBay’s Global Shipping Program (GSP) makes it easy for retailers to sell to international buyers. If your product sells to a buyer in an eligible country, simply ship the item to a US shipping center, and international shipping experts will manage logistics from there. ChannelAdvisor now supports GSP's recent expansion to the UK.

Everywhere Your Customers Are

Global Capabilities. Expanded.

Germany is expected to generate $48.4 billion euros from e-commerce in 2014 — that’s a 25% increase from 2013! To help give retailers access to this active market, we’ve added support (in addition to our existing support of eBay and Amazon in Germany) for popular German marketplaces Rakuten.de, MeinPaket and Zalando.

Canadian sellers can now also tap into Newegg’s devoted follower base with Newegg Canada.

And what about business-to-business (B2B) consumers? We’ve got you covered there, too, with support for NeweggBusiness.

German Marketplaces

  • Rakuten.de has 7,200 retailers and more than 22 million products, making it a great option for retailers looking to expand into Germany. The Rakuten Group also has marketplaces in the US, UK, Japan and other regions, with a wide variety of products and a large consumer base. The German marketplace doesn’t sell directly to consumers, so it’s not competing with retailers. Plus, it doesn’t charge listing fees for products and instead charges only commissions based on actual sales.

  • Zalando is a multinational online marketplace specializing in trendy apparel for men, women and children. In Germany, it’s the largest purely online clothing and shoe retailer — accounting for a 10% share of the online fashion market in Germany. If you’re a fashion merchandiser, Zalando is where you need to be.

  • Meinpaket.de, launched in Germany in 2010, is the first online marketplace offered by global shipping provider DHL. Access to DHL’s expansive logistics network makes the shipping and payment processes convenient.

Newegg

  • Newegg Canada is similar to its US counterpart, featuring a variety of consumer electronics, as well as apparel, sporting goods, home decor, appliances,
    baby, jewelry and health and beauty. If your business is already set up in Canada, Newegg Canada is a great option for expansion.

  • NeweggBusiness is the B2B division of Newegg.com. It debuted in 2014 with more than 150,000 registered customers. Popular B2B payment methods, such as purchase orders and delayed billing, are available. A business-size buyer-protection policy is also guaranteed, giving buyers a reimbursement of up to $1,000 (per item) for any damaged or undelivered goods.


Webinar
Want an in-depth look into the 2014 Autumn Release? Join our Product Management team for a live webinar on tomorrow, September 18 at 11 a.m. EDT/8 a.m. PDT/4 p.m. BST, as they walk you through the updates.

 

September 15, 2014

2014 User Conference Follow-Up: Optimizing for EBay

This afternoon, at our 2014 User Conference East, senior product manager Jenny Hock and engineering manager Marshall Smith offered expert tips for optimizing your listings on eBay. See below for a recap!

Get Listed — Implement best practices for listing on eBay

  • Standard Schedule is a new type of schedule rolled out last month. It allows you to list as many items as you’d like without the split the schedule view. The 25K limit has been removed.

  • Auto Match takes a complicated set of posting templates and condenses them to a single posting template that you can use for all of your items. ChannelAdvisor’s system takes this information to fill in category-based item specifics for eBay, so that your items are be better found when buyers are searching.

  • EBay Business Policies take shipping, payment and returns information off the individual items as you send to eBay. For example, one class of your products has a 30 day return policy and another set has no return policy because item is sold as is. A different business policy can simply be applied to each product set.

Be Seen — Optimize for maximum exposure

It’s crucial that your listings are optimized for the mobile experience because 45% of eBay users connect with the marketplace via a mobile device. Hock recommends keeping mobile versions of your site simple — no distracting backgrounds or lengthy product descriptions.

  • Responsive Design Description Template includes code to detect the device screen size, which then adjusts for width in order to avoid horizontal scrolling.

  • Customized Specifics allow you to provide product definition and statistical information to help consumers make a satisfied buying decision. Additionally, this will minimize the actual product description.

  • Actionable Retail Insights enhance your listings based on recommendations from eBay. Pay attention to these insights as they represent opportunities for improvement. The order in which Hock recommends tackling your insights are:

  1. Item specifics

  2. eTRS Plus Badge

  3. Image recommendations

  4. Title recommendations

  5. Category recommendations

  6. UPC recommendations

  7. Global Shipping Program recommendations

  8. Price recommendations

Compete – Understand your competition and increase your conversions

Defect rates aren’t fun for anyone involved. Minimize your defect rate by evaluating your Detailed Seller Ratings (DSRs) on a monthly basis, or more.

Remember, if a refund is issued for a returned item that didn’t go through the Hassle Free/Managed Returns, it results in a defect! Disputes are auto created for eBay refunds where:

  • Order has been marked as shipped

  • No pre-existing disputes

  • Refund amount is at least 100% of line item value

 

Additional questions or didn’t get a chance to talk with one of our experts today? Email info@channeladvisor.com. We hope everyone enjoyed today’s event! Be sure to tag your social posts and/or Instagram pics with our event hashtag #ECOMuser.


10-ebay-mistakes-LP
Looking for more actionable eBay tips? Check out out free eBook The 10 eBay Mistakes That Are Costing You Sales.

New Today: 2014 ChannelAdvisor Autumn Release

Twitter

Today marked the official debut of our most recent platform release! Below is a brief overview of the latest and greatest features added in the 2014 Autumn Release.

Empowering E-Commerce

E-commerce is an ever-changing space — constantly evolving with the progression of technology. We don’t want you to get left in the dust! These new features will help you adapt to e-commerce’s expanding landscape.

EBay

Want more control over how you manage your eBay listings? Now you’re able to use eBay QuickStart and eBay Custom setup in the ChannelAdvisor platform. The result is customized, optimized eBay data that can help you boost visibility, performance and conversion on the marketplace.

  • EBay QuickStart gives you the expanded ability to use the ChannelAdvisor Data Transformation Engine — which includes business rules and lookup lists — for eBay. Begin selling fixed-price listings using a single group of settings. EBay QuickStart also includes the new eBay Categorizer feature, which suggests eBay categories — allowing you to list faster and with less manual effort.

  • EBay Custom gives you the freedom to set up different listing strategies for different groups of items — including capabilities like using multiple HTML ad templates or auction-format listings.

Pricing Insights

To help you capture Amazon’s Buy Box, we’ve included additional insights into repricing with Fulfilment by Amazon (FBA). Deeper analytics will also help you be more responsive and informed.

Bundles

Group similar or complementary products as a single item for purchase — which will help differentiate you from your competition. ChannelAdvisor Bundles will keep your quantities in sync across bundles, individual SKUs and channels.

Report Center

A new Report Center is equipped with Customizable Reports as well as template-based reports. Get the data you need to move your business forward.

Everywhere Your Customers Are

Consumers’ media consumption and shopping habits are being altered by technology advancements. And these changes should be influencing the way you do business. Expanding to new geographies, channels, devices or categories to keep up with your customers is made easier with the Autumn Release.

Global Commerce

Germany is a powerhouse in the e-commerce space. In fact, it’s expected to generate 48.4 billion euros from e-commerce in 2014 — that’s a 25% increase from 2013! To help you access this e-commerce hot spot, we now support German marketplaces Rakuten.de, MeinPaket and Zalando, in addition to eBay and Amazon in Germany.

Plus, you can now reach Newegg’s devoted follower base in the Great White North through Newegg Canada — as well as expand to NeweggBusiness, Newegg’s business-to-business (B2B) marketplace.

Mobile Commerce

Yahoo recently introduced Gemini, a search engine specifically designed for the mobile experience. The ads within the search engine are native, meaning non-intrusive. With the Autumn Release, you can now take advantage of this promising new channel by creating Gemini ads.  

Social Commerce

ChannelAdvisor’s new Social Commerce Suite allows you to send your product information to social sites from one easy-to-use command center. We currently support Pinterest, Wanelo and Polyvore.


Webinar
Eager to learn more about what the Autumn Release holds? Join our product management team for a live webinar on Thursday, September 18 at 11 a.m. EDT/8 a.m. PDT/4 p.m. BST, as they walk you through the updates.

September 10, 2014

August 2014 ChannelAdvisor Same Store Sales (SSS) for eBay, Amazon, Search, CSE and other e-commerce channels

Note: This is a monthly feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2014 schedule can be found in this post.  

Today we are releasing August 2014 SSS data for eBay, Amazon,Google Search and Google Shopping/PLA.  ComScore recently reported that US e-commerce grew at 11.8% y/y for the desktop which translates to 13.1% y/y with mobile included so that is the baseline for 2014 growth.  

 Here are the y/y SSS results for August 2014, the middle month of Q3 and the critical 'back to school' period:

August 2014 SSS Results 

  • Amazon - Amazon's August SSS came in at 45.1%, an increase compared to July's 40.4% .  Amazon has increased its y/y growth rate every month so far in 2014 - a very impressive performance and August kept that trend alive.  We have Amazon details further in the report.
  • eBay -  eBay's August came in at 5.9% down from July's 9.7% and well below the e-commerce growth rate. This is the lowest SSS result for eBay since Feb 2011.  Further in the report, we have details of the eBay internals.
  • Other 3PM -3PM continued strong growth in August coming in at 24.2%.  While this is a decrease from the 39% recorded in July, these channels are a bit more volatile in m/m performance than larger more established channels.  @24.2%, they are growing 10% greater than e-commerce which is quite impressive.
  • CSE - Comparison Shopping Engines came in at 21.1% for August up from July’s 9.5%.  This was largely driven by strength in Google Shopping / PLA (details later).
  • Search - Search came in at 13.6% for August an increase from July’s 7% y/y growth.  Later in the report we have more search details.

 

 SSS Chart 

The following chart details the SSS data for August 2013 through August 2014: (click to enlarge)

Aug_14_sss_main


eBay Details

eBay's SSS for August was 5.9%.  To get a feel for what is driving the marketplace's performance, here are the interior data points for the month:

  • eBay auctions - Down 11% y/y. 
  • eBay fixed-price - Up 6.9% y/y - a decrease from July’s 12.8%, which puts this key part of eBay growing about half the pace of e-commerce.
  • eBay Motors  (parts and accessories) - P+A  was up slightly  in August coming in at 8.4% compared to July’s 8.0%.  This brings P+A's growth rate below e-commerce and is the slowest SSS we have recorded since February 2013's 6.8%.

Looking at the data, we saw weakness in the golf category (details later) and also the electronics category.  Digging into this, what we are seeing is big y/y declines in those categories for sellers with used items.  As we've covered in detail on this blog, the new eBay Defect Rate (eDR) is now active.  It seems a consequence of this new system is that sellers of used/refurbished items are having to significantly reduce their inventory and it has created a headwind on SSS for August.  Note that our customer base most likely over-indexes for this category of sellers.

Interestingly, Amazon has added several features to embrace the used/refurb category and we are seeing a clear share move from eBay to Amazon in this category.

 Here are the TTM (trailing twelve month) trends on these eBay internals.  (click to enlarge)

     
Aug_14_sss_ebay_details

Amazon Details

Aug_14_sss_amazon_details

In June 2014, we released two new data points around FBA:

  • Percent FBA - This measures the % of Amazon GMV through the ChannelAdvisor system that was fulfilled through FBA and tracks it on a y/y basis.  For August 2014, 35.4% of Amazon GMV was FBA.  That was up from August 2013 where 31.5% of the GMV was FBA.  That's a 12.2% increase y/y in FBA as a % of GMV.  
  • %FBA non Amazon - Here we look at the total bucket of FBA-driven GMV and look at the % that was not fulfilled for Amazon sales (website, other 3PMs, Search, CSE, etc.).  In August 2013, 1.4% was non-Amazon fulfilled.  Then in August 2014, we saw this grow 36% to 1.9%.

It will be interesting to track how these FBA related metrics change as we head into the ever-critical holiday period.

Supplemental data for Search

Here are the August Search internals: (click to enlarge)


Aug_14_sss_search_details


Note: these are all y/y SSS comparisons (August 2014 vs. August 2013).

Search SSS increased 13.6% for August.  The search increase from July to August was driven by  increases in AOV which was up to $146.50, a 7% y/y increase and Conversion Rate (CR) improved 11% to 3.08%.   CPC was down 6% due to the headwind of mobile traffic.  Total cost was down 22% because of the decrease in CPC but also because clicks were  down 18%.  In summary, our customers bought fewer clicks, paid less, but they were higher performing clicks because they resulted in y/y 13.6% growth in sales because of the CR and AOV improvements.

Supplemental data for Google Shopping

In September 2012, we introduced a new set of data around Google Shopping.  Here is the August Google Shopping/Product Listing Ad supplemental data:

Aug_14_sss_pla_details

 

Overall, Google Shopping came in at 54.3% y/y increase, an increase from July's 40.8%.   The Conversion rate was down 2.6% to 2.29%, but AOV offset the CR headwind with a strong 24.5% y/y increase coming in at $118.26.  Looking at the data, it appears that PLAs are now also feeling the mobile conversion rate headwinds from mobile traffic and Google is counteracting that by showing higher priced items.

 Golf update

In May we provided a look into the golf category that has been quite popular with our golf customers.  In August, we saw eBay decline to 5.8% y/y SSS compared to July's 7.9%.  Conversely Amazon accelerated to 63.1% in August, up from July's 42.8%.  The used/refurb product is a 25-33% chunk of the golf category and the trends we mentioned in the eBay details section (eBay pushing away used/refurb, Amazon embracing) were reflected in the golf data as well.

Aug_14_golf_category_tracker

Conclusion 

August was a mixed bag for the channels we track. While Amazon, Google Shopping/CSE, Search and other 3PMs grew in-line / faster than the e-commerce baseline, eBay's 5.9% SSS y/y growth was less than half the rate of e-commerce. Back to School continues into September, so stay tuned!

This blog post was written by Scot Wingo, CEO, ChannelAdvisor.

September 03, 2014

Webinar: 5 Marketplaces You Need to Be Selling On Right Now

Wednesday, September 10 at 2 p.m. EDT/11a.m. PDT

As a retailer, do you ever feel overwhelmed by the opportunities available on online marketplaces? How do you even know which one is the right fit for your business? Webinar

The array of online marketplaces is growing as online shopping becomes more popular. Amazon and eBay may make up some of the largest slices of the marketplace pie, but remember — good things come in small packages. Those smaller pie pieces represent lesser-known online marketplaces that can be just as satisfying as the big guys. Not to mention, each usually comes with less competition and is equipped with a loyal customer base, an established infrastructure and a safe and quick opportunity to expand to new markets.

Next Wednesday, we’re teaming up with Multichannel Merchant to bring you a free webinar focused on five online marketplaces, other than Amazon and eBay, that should be on your radar. Representatives from Sears, Newegg and Rakuten.com Shopping will unveil unique seller opportunities that these lesser-known marketplaces hold.

During this webinar, you’ll learn:

  • How to decide which marketplaces are best for your business

  • Tips and best practices for selling on a new marketplace

  • The international opportunities that marketplaces offer

Sign up today to claim your spot! You don’t want to miss these tips.

August 14, 2014

Updated SSS golf data

Yesterday we published our regular SSS report and some hawk-eyed readers noticed that in the golf category update we ommitted the June data.  The reason was timing related (we wanted to get the overall report out before the data was available from our internal team) and now we're able to fix that and update the data now with a complete view of 2014, including June:

 

Golf_data_update_08_14_14

 

Hopefully this helps you benchmark how your Summer months have trended vs. your peers.

 

 

August 13, 2014

July 2014 ChannelAdvisor Same Store Sales (SSS) for eBay, Amazon, Search, CSE and other e-commerce channels

Note: This is a monthly feature published by ChannelAdvisor highlighting the Same Store Sales (SSS) across our wide range of thousands of retailers and billions in GMV.  Details on the SSS including background, methodology, disclaimers and the 2014 schedule can be found in this post.  

Today we are releasing July 2014 SSS data for eBay, Amazon,Google Search and Google Shopping/PLA.  ComScore recently reported that US e-commerce grew at 11.8% y/y for the desktop which translates to 13.1% y/y with mobile included so that is the baseline for 2014 growth.  

 

Here are the y/y SSS results for July 2014, the first month of Q2:

July 2014 SSS Results 

  • Amazon - Amazon's July SSS came in at 40.4%, an increase compared to June’s 34.4% .  Amazon has increased its y/y growth rate every month so far in 2014 - a very impressive performance. We have Amazon details further in the report.
  • eBay -  eBay's July came in at 9.7% down from June’s 12.3% and below the e-commerce growth rate, indicating that eBay continues to face headwinds from the Panda action and breach episode. Further in the report, we have details of the eBay internals.
  • Other 3PM -3PM continued strong growth in July coming in at 39%.  While this is a decrease fromthe 47.8% recorded in June, these channels are a bit more volatile in m/m performance than larger more established channels.  @39%, they are growing 3X e-commerce which is quite impressive .
  • CSE - Comparison Shopping Engines came in at 9.5% for July up from June’s 6.7%.
  • Search - Search came in at 7% for July a decrease from June’s 20.4% y/y growth.  Later in the report we have more search details.

 

 SSS Chart 

The following chart details the SSS data for July 2013 through July 2014: (click to enlarge)

July_14_sss_overall


eBay Details

eBay's SSS for July was 9.7%.  To get a feel for what is driving the marketplace's performance, here are the interior data points for the month:

  • eBay auctions - Down 8.2% y/y. 
  • eBay fixed-price - Up 12.8% y/y - a decrease from June’s 18.4%, which puts this key part of eBay growing in-line with e-commerce.
  • eBay Motors  (parts and accessories) - P+A  was down again in July coming in at 8% compared to June’s 10.5%.  This brings P+A's growth rate below e-commerce and is the slowest SSS we have recorded since February 2013's 6.8%.

 Here are the TTM (trailing twelve month) trends on these eBay internals.  (click to enlarge)

     July_14_sss_ebay_details

Amazon Details

July_14_sss_amzn_details

Last month we released two new data points around FBA:

  • Percent FBA - This measures the % of Amazon GMV through the ChannelAdvisor system that was fulfilled through FBA and tracks it on a y/y basis.  For July 2014, 38.2% of Amazon GMV was FBA (therefore 62.8% was NOT shipped via FBA).  That was up from July 2013 where 29.8% of the GMV was FBA.  That's a 8.4% increase y/y in FBA as a % of GMV.  As we head into the holiday, it will be interesting to see the trends in this data point.
  • %FBA non Amazon - Here we look at the total bucket of FBA-driven GMV and look at the % that was not fulfilled for Amazon sales (website, other 3PMs, search, cse, etc.).  In July 2013, 1.3% was non-Amazon fulfilled.  Then in July 2014, we saw this grow 47.7% to 2%.

 

It will be interesting to track how these FBA related metrics change as we head into the ever-critical holiday period.

Supplemental data for Search

Here are the July Search internals: (click to enlarge)

July_14_sss_search_details


Note: these are all y/y SSS comparisons (July 2014 vs. July 2013).

Search SSS increased 7% for July.  Search was a mixed bag this month.  AOV was up to $157.35, a 6% y/y increase. Conversion Rate (CR) improved 8% to 3.25% but CPC was down 7% due to the headwind of mobile traffic.  Total cost was up 1%.  While clicks were slow at 3%, the conversion rate increase led to an increase of 18% in orders.

Supplemental data for Google Shopping

In September 2012, we introduced a new set of data around Google Shopping.  Here is the July Google Shopping/Product Listing Ad supplemental data:

July_14_gs_details
 

Overall, Google Shopping came in at 40.8% y/y increase, a decrease from June’s 47.8%%.   The Conversion rate was down 9.5%, but AOV offset the CR headwind with a 8.9% y/y increase coming in at $107.83.  Looking at the data, it appears that PLAs are now also feeling the mobile conversion rate headwinds from mobile traffic and Google is counteracting that by showing higher priced items.

 Golf update

In May we provided a look into the golf category and due to timing were not able to provide an update in June.  Here is an update on the golf category including the June and July data.  As you can see, overall at least for eBay and Amazon the golf category had a turn around in July. Amazon was particularly robust growing 42.8% y/y.

July_14_sss_golf

Conclusion 

July started Q3 with strong results for most of the channels we track.  As we get into Back to School Season in August/September we will have our first view on how Holiday 14 is setting up.  This year we have another compressed holiday so we should also expect to see promotions start early this year.  Stay tuned!

This blog post was written by Scot Wingo, CEO, ChannelAdvisor.