Winning on Global Ecommerce, Silicon Slopes Tech Summit 2020 Recap

Pattern Data Science

February 3, 2020

We had a blast last week as a Title Sponsor at the 2020 Silicon Slopes Tech Summit. We had 1,300+ booth visitors, spent 45 volunteer hours helping Slopes Serves make over 1M meals, and had nearly 3,500 views on our LinkedIn giveaways both days.

We even had a live graffiti artist come make us a custom mural during the event. Check out these progress photos.

End of day 1:

Pattern booth at Silicon Slopes Tech Summit 2020

End of day 2, finished:

Pattern booth at Silicon Slopes Tech Summit, Day 2

Our CEO Dave Wright gave a presentation on Thursday to over 2,000 people in attendance. Read on for a small summary of his presentation.

Dave Wright speaking at Silicon Slopes Tech Summit about global ecommerce for Pattern.

Evaluating the Global Ecommerce Landscape, Winning on Amazon Alibaba and Beyond 

Ecommerce is scooping up more and more of the global retail sales, with no signs of slowing down. Ecommerce currently represents 13% of total retail sales, and for every 1% increase in that number, around 8,500 retail stores will close. 

So how do you move the needle in the ecommerce field and stand out from the competition? Dave spoke to a full theater on Thursday afternoon about global ecommerce and what it takes to get ahead.

Ecommerce equation for success

The equation for ecommerce success is pretty simple: Revenue = traffic x conversion x basket size (price) / repeat for lifetime value of customer. 

equation for ecommerce success

Of course, all that’s easier said than done. Some brands really excel at the traffic part, others at the conversion part, and still others dominate on increasing basket size. 

For example, Dollar Shave Club gained 76,000 subscriptions from this viral video alone. Talk about increasing traffic. Then Purple mattresses went from making 3-5 million sales to 300 million in just a few years. At one time, their Goldilocks video was the highest converting video on YouTube. Then there’s Delta, who we all know are experts are increasing basket size by offering add-ons to your flight. 

Don’t miss out on China

Dave explained how brands in the U.S. focus almost entirely on Amazon. However, the truth is that the global opportunity is massive. For example, Amazon did $9 billion in sales on Cyber Monday last year, while Alibaba did $38 billion for Singles Day. 

China is lightyears ahead of the U.S. in terms of customer service and speedy shipping. For example, Dave said JD.com in China has 6-hour shipping across 99% of China. That gives a whole new perspective to Amazon's "speedy" 2-day shipping.

Marketplaces to watch for

There’s tons of competition for the brands out there, Dave explained. And right now, it’s true that many retail stores hold much of the weight. But will it always be that way? Consumers are looking for good prices, and they can usually find better prices online. 

Here are just a few of the domestic marketplaces Dave mentioned to watch out for and the advantage they have in the playing field:

  • eBay—Focused on price.

  • Walmart—Focused on grocery on ecommerce; has 2700 pickup locations; 90% of U.S. residents live within 10 miles of a Walmart.

  • Amazon—They’re going after everything fashion; they recently put out a patent for a virtual mirror to let you try on clothes.

  • Target—Seen as a high-end alternative to Walmart; has great brand equity with shoppers. 

  • Alibaba—Currently has 58% ecom share in China (which is much larger than Amazon’s share in the U.S.).

  • MercadoLibre—Currently winning ecommerce in Mexico; has the large advantage in all of South America; knows the local nuances of what appeals to Latin Americans.

  • Google Shopping—Has vast resources; they don’t want to become another Baidu; Google has a pretty well organized machine about where they’re going next with Google Shopping; 6 months ago they cleared their first billion in sales.

  • JD.com—Offers 6-hour delivery 99% of China.

Pattern employees talk to booth-goers about global ecommerce at the SSTS 2020.

The executive dilemma

As we’ve just explored, global ecommerce is massive. The opportunities for brands are there! However, brands run into a problem: they only have between 1 and 3 ecommerce people who are supposed to tackle not only a D2C site with 3PL, logistics, Google SEO and everything else, but also Amazon, eBay, AND start going international. 

Frankly, it’s too much for one or two or even three people. 

“When companies are huge, it doesn’t mean that they’re ecommerce help is any bigger,” Dave said.

Silicon Slopes, global ecommerce Pattern

Pretty soon you start seeing this dilemma. What the executive team is asking their small ecom teams to do is virtually impossible.

Enter Pattern. We don’t charge brands anything for our services because we buy product up front, generally at a higher margin than wholesale, and then sell it ourselves. 

So how do you know if it’s worth it to you? It all comes down to math, Dave said. Here’s the equation brands can use to figure it out: Priority multiplier = present value revenue / present value investment (percent confidence).

How to win on Amazon

Global ecommerce may be important, but that doesn't take away Amazon's importance in the U.S. Dave spoke how the same principles above apply—traffic and conversion drive sales. 

Here are a few quick tips Dave shared:

  • If you have a quality product, you can win.

  • Look for advertising bid adjacencies with advertising technology, like Pattern’s Predict software. (e.g. bids for “fish oil” are $11, but bids for “fish oil supplements” are just 22 cents.)

  • Use product destiny calculations. We use these to decide what the destiny of a product is based on math. Once you decide what that is, you can stop spending money on it. 

  • Get creative right, and it’s essentially giving you free money. Our brand partner, Emerald Labs, had a 78% increase in conversion after our content update.

  • Use bundles and Subscribe & Save to increase basket size at checkout.

  • Uphold MAP. Some brands care more about price than they do about all the rest. Upholding MAP is a solvable problem, you just have to invest time and money to getting it done.

  • Improve customer reviews. For example, in China, 80% of shoppers reach out to customer service before a purchase, and 50% reach out after a purchase. You’ve got to have a viable customer service team in place (and especially a local one in China if you’re selling there). 

To win on D2C or not to win?

Winning on a D2C site is pretty similar to winning on marketplaces, Dave said. Having high quality images, product descriptions, and quick delivery are all essential. However, Pattern recently did a D2C Analysis of the top 100 D2C sites to see how good they are at running D2C. Turns out, not many are even getting the basics right.

Here’s what we found:

  • Only 35% had high quality images.

  • Only 75% detailed product descriptions.

  • 29% had no delivery info on the listing.

  • Only 15% provided an exact delivery time at checkout (Amazon, on the other hand, gives customers the exact arrival time).

  • Customer service was either really good or terrible. 

  • Only 27% had free shipping, 60% had free shipping with a caveat. (Amazon and the marketplaces are dominating because of free shipping.)

global ecommerce at silicon slopes tech summit 2020

In summary, selling on Amazon is a linchpin in the U.S. Then you’ve got to nail the D2C, and start thinking about China. The future of ecommerce is yet to be set in stone, but you’ve got to know the global market to be a key player, and winning often comes down to doing the math to get it right for your brand.

Learn more about how Pattern helps brands excel on global ecommerce by reaching out to us at the form below.

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)