Ecommerce

This is a cornerstone post for everything Ecommere that I want to write about.

My partner Desmond and I run an ecommerce store using Shopify, called Statement. We sell Singaporean-themed t-shirts. You can read about our story here.

Curiosities

These are questions that I’d like to have answered.

  • What does the ecommerce landscape look like?
    • B2b: marketing, finance, CRM, CPC, Megastores, subscription models… Should eat24 be considered ecommerce? What about artists selling music online? What about offline stores and merchants promoting their stuff online? What about offline stores that benefit from online support that they did not solicit? This is how software is eating the world. Facebook and Twitter aren’t distinct from offline reality, they are a layer over it.
  • How did amazon get so big? How did Ebay get so big? Zappos? Goldieblox?
  • How many small/new stores make it “big”- rapid growth? Black Milk Ecommerce as a store that doesn’t hehe retail outlet? Best ecommerce products (quantity sold? Customer loyalty? Profit margins?) Best ecommerce practices? Quotes from successful ecommerce entrepreneurs, split into category. (Product, customer acquisition, etc. Everything ecommerce owners need to know about Amazon/Alibaba giants. Best ecommerce social media practices. Best ecommerce blogs (the stores, not general one) Ecommerce stories- how did the biggest/best companies start? Challenges faced by ecommerce agents. Which ecommerce companies have received the most funding, from whom, how many staff do they have, who’s the founder, how old are the companies, what are they’re plans/projections for the future? Billion-dollar-o-gram about ecommerce vs regular commerce? How much is international commerce worth? How much is ecommerce worth? B2b vs b2c? How much is Amazon’s stake? How much is China? Where are all the major ecommerce players located? (Blackmilk is in Australia, for example.) What would a map of that look like? Flipkart is in India- where in India?

“Mapping out the ecommerce landscape”

  • This has been something that’s been bugging me for a while. The ecommerce landscape, and in parallel, the marketing landscape.
  • What is ecommerce exactly? According to Wikipedia, ecommerce is “a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.” That sounds simple but it really isn’t. Consider how complex and pervasive the Internet has become. Where does an electronic system end and a natural system begin? Is it only ecommerce if the transaction takes place online? What if I make the purchase online, but pay the delivery guy in cash-on-delivery? What about a brick and mortar store which manages its inventory, etc online? That probably doesn’t count, it’s just magic that happens in the mythical back end. What if I get interested in a product online, investigate it online, read all the reviews, then go and buy it at a store down the street?
  • So okay, we’ll assume that it’s complex. Let’s simplify as we move forward. Let’s just assume that we’re talking about stores “selling stuff online”, in that blunt, colloquial sense. “Selling stuff online” is a trillion dollar industry. What we spend “buying stuff online” in a year is more than double NASA’s entire budget in it’s entire history! [source]
  • Type of goods sold.
  • Zappos started selling shoes (it started out as ShoeShop. Zappos is a variant of Zapatos, which is Spanish for shoes.)
  • Groupon’s first deal was a half-price offer for pizzas for the restaurant on the first floor of its building in Chicago.
  • So it’s definitely worth making sense of. The ecommerce landscape contains everything from the little guy selling stuff he made at home to titans like Amazon. And that’s just the stuff that faces consumers, eg B2C. There’s also B2B,
  • Intel selling microprocessors to Dell
  • Heinz selling ketchup to McDonalds
  • According to Sartaj, 80% of ecommerce is b2b. Here at ReferralCandy, we sell software to ecommerce agents, so we’re technically B2B. Online marketing agencies are B2B.
  • C2C- buying stuff on eBay. Marketplaces. Etsy? The long tail empowerment effect of
  • b2g- public procurement, licensing procedures. tax?
  • Some people say that “m-commerce” is a thing, mobile.
  • ===
  • Ecommerce is a very big space. As long as you’re selling something online, it’s ecommerce.
  • This isn’t very helpful, because it means we’re looking at a vast landscape. It’s very possible to drown in a river that’s “3 feet deep on average”, because it could be 8 feet deep at some points and 1 foot deep at others.
  • So when we talk about ecommerce, it’s important to figure out what sort of scale we’re talking about.
  • I’m personally acquainted with the smallest scale- the hobbyist selling a homemade or almost-homemade product by himself online. I’ve done this.
  • At the highest end, we have mega-retailers like Amazon, Sears, Walmart. These are retailers that sell everyday products and compete on convenience, massive economies of scale.
  • Amazon
  • http://tokokoo.com/2011/10/7-most-common-ecommerce-problems/
  • http://247wallst.com/retail/2013/12/29/amazon-could-reach-100-billion-revenue-in-2014/
  • http://aws.amazon.com/resources/analyst-reports/
  • Ecommerce is not a homogenous monolith. Neither is marketing. Both are vast landscapes with incredible variation. Considering that ecommerce is less limited by time and space than “regular” commerce (quotes because the distinction is quickly becoming irrelevant), it seems fair to say that economic is subject to greater variation than “regular” commerce. Consider how weird online communities can get. The Internet allows for long tails that the analog world doesn’t.
  • This introduces staggering complexity. Giving general advice on how to run an ecommerce store is like giving general advice on how to run a website- it rarely accounts for the huge spread, vast variations in the landscape. Any advice or perspective that applies to everything is likely to be so vague and general that it’s unlikely to be useful.
  • When we talk about top online retailers, we see that the big guns dominate: amazon. Amazon started out selling books but now sells everything. They don’t technically sell a product, they sell a service. Consider AWS.  If anything sold online is ecommerce,  though, is AWS ecommerce? Technically. It’s also ecommerce if I sell my band’s crappy songs online,  it’s ecommerce.
  • http://247wallst.com/retail/2013/12/29/amazon-could-reach-100-billion-revenue-in-2014/

On luck:

Luck is significant, but I believe you get momentum from preparation + hustling. It’s kind of like building a large sail for a boat, and maneuvering it such that it catches the wind. If you’re lucky, you’ll get a good breeze, but the sail and the sailing are all you.

List of ecommerce stores

  • 1800flowers
  • Amazon
  • ASOS
  • eBay
  • egghead.com software?
  • bonobos
  • yoox (10k g+-  best Italian and international designers… the group powers a whole bunch of stores, including zegna (http://www.yooxgroup.com/en/company_profile/the_group.asp)
  • http://www.telegraph.co.uk/luxury/mens-style/28151/how-yoox-became-the-amazon-of-the-fashion-world.html
  • backed by balderton capital (initially offshoot of benchmark, which invested in ebay)
  • shoescribe, thecorner
  • zulily (4k g+) shopping destination for moms, launched in 2010

Ecommerce

  • Rent The Runway: http://www.entrepreneur.com/article/234859
  • Crowdemand: http://www.entrepreneur.com/article/233414
  • Blucarat- social ecommerce: http://www.entrepreneur.com/article/232960
  • ‘ecommerce’ post
    • Good reads: UI
    • Paul Graham essays/quotes relevant to ecommerce/marketing
    • Founder/market fit, assets not ideas, product/market fit
    • Different kinds of ecommerce
    • The amazon story

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