Retail Global – Day One Wrap Up

Are you interested in understanding today’s online shopper? If so, you would have loved the first day of Retail Global on the Gold Coast.

It was jam-packed full of insights around today’s online shopper. But if you weren’t able to make it, never fear. I’m going to share some of them with you now.

Convenience and growing the market

Did you know that eCommerce now accounts for 10% of all retail trade? That’s $27.5 billion according to Australia Post’s latest eCommerce insights report. It wasn’t expected to hit double digits so soon. Yet the convenience of online shopping is clear. Australia Post’s, Paul Hersbach, shared a brilliant reflection on how we use technology today. How we expect things to simply work. And how that relates to a culture of convenience.

Reflecting on recent use of Uber Eats. He described a situation we may all be somewhat familiar with. That of delivery in five minutes… no, wait… eight minutes…. Nope. 12 minutes away now. The frustration is real! What about when you go to use Netflix and then it doesn’t work and you get an error? Infuriating almost, right?

As technology has grown deeper into our lives, so has our expectation that things work how we want them to.

So how does this translate to eCommerce?

Well… retailers are going to need to consider how they make online shopping more convenient. That is if they want to grow the online shopping market. Australia is still behind the US (14%), UK (17%), and China (24%) in eCommerce adoption rates. But there are clear strategies that can grow that percentage.

Paul went on to describe how using dispersed networks of warehouses can achieve greater delivery convenience with consistency and quality. Interestingly, James Dutton also referred to this later in the day. Referring to distributed inventory as having a better effect on the environment.

Paul further went on to describe the various types of delivery services used today. Including as cross-town, inter-city, and regional. And revealing expectations of the market shifting in years to come. Placing greater weight on cross-town deliveries such as same-day.

The outtake… consider whether a distributed inventory model will work for your business. Especially if you’re looking to grow your share of the eCommerce market. A simple framework to use is looking at four factors.

  • What is the cost to your business
  • How much choice does it provide your customers
  • How convenient does it make it for your customers and your business
  • How complex is it as a solution

Instagram and the buyer Journey

When it comes to connecting with customers today, Instagram wants to bring you closer to the customers who love you. And with 80% of people on Instagram following a business or brand, it seems they’re doing something right.

Have you had an experience recently with a brand on Instagram? Was it finding a new product? Perhaps you purchased something.

Alexander De Leon from Instagram described his recent buying journey. And revealed a direct correlation from his experience to Australians surveyed in a study. The survey of Australian Instagram users showed how the platform plays a big part of the buyer journey. 81% of people said they used it to discover new products and services. 81% said they use it to research products and services. And 80% of people using the platform to decide whether to buy or not.

Its certain Instagram is here to stay. And if you want to make the most of it. Here are there three things you need to do.

Build your base using organic methods. This means maximising features of Instagram such as your profile, feed, stories, IGTV and shopping ads.

Expand your reach through ads, incorporating a range of formats. Alexander also mentioned a brand-new feature only recently announced. It’s called Branded Content Ads, which allow you to promote influencer content.

And using machine learning. That is, utilising dynamic ads for broad audiences so your product is seen by people interested. As well as using ‘Automatic Placements’ to access Facebook’s family of ads. Spreading your marketing completely across its assets to the achieve result you want.

The outtake… Instagram is a big part of today’s online shopper’s journey. If you want to influence their buying behaviour, you need to utilise all the features you can.

Do good. It’s what modern business should.

Well they saved the best to last. James Dutton is a shining example of entrepreneurship and authenticity. Discovering a problem in the world and working hard to solve it. Not only for his son, but for the 25% of people in the world who experience the same problem. Bandaids that cause skin irritations and more.

For those that don’t know him. James is the Founder of PATCH, a natural bamboo adhesive bandage that’s also biodegradable. And like many successful business before him, he started out of a garage. Growing from 600 orders to more than 10,000 in 18 months. James described his success as being from many things, including the company culture. Finding a tribe. And making his products cool.

He also admitted to conducting a lot of research with customers – and school classrooms, and being open to hearing their feedback. Developing and enhancing the product as he grew.

Along the way, he wasn’t without challenge. There were limited funds – he still doesn’t take a salary… Expectations from retailers. Concerns about managing his brand during expansion. And questions about how to resource materials as you grow.

It was clear though that James is focused on doing good in the world. And that’s really what drives him and his success. From the many charities he supports through to sourcing biodegradable packaging. And finding ways to do better in the environment. He appears to always be looking for positive ways to make an impact on the world.

The outtake… authenticity is your greatest asset. If you want to do good. Let people know what it is you’re doing in an authentic way and build your tribe.

Day one has shaped up to be a great start to Retail Global 2019. 

 

Want to read more about the latest news in eCommerce? Check out our other recent blog posts.