WEBINAR The Top 10 eCommerce Predictions For 2016 Sucharita Mulpuru, Vice President, Principal Analyst Andy Hoar, Principal Analyst January 25, 2016. Call in at 12:55 p.m. Eastern time

Growth Linear Time

Exponential Growth Time

Exponential Growth Time

Andy Hoar Principal Analyst Serving eBusiness & Channel Strategy Professionals - Author of the “B2B eCommerce Playbook” - 4.5 years at Forrester - 11 years in Silicon Valley (started software company in the B2C eCommerce space) - 5 years as research analyst in econ consulting - Holds master’s degrees from Harvard University and Northwestern University ahoar@forrester.com @andyhoar1

Sucharita Mulpuru Vice President and Principal Analyst Serving eBusiness & Channel Strategy Professionals - Author of the “The State Of Retailing Online,” a Shop.org study conducted by Forrester - eBusiness analyst for over 10 years - Focuses on retail and stores - Previous experience in the retail industry (big box, department stores) - Serves on the Shop.org Board of Directors smulpuru@forrester.com @smulpuru

Agenda B2C eCommerce predictions B2B eCommerce predictions Myth busting

B2C eCommerce Keep one eye on Amazon; keep the other eye on mobile.

Prediction No. 1: Amazon keeps gaining share Breakdown of 2014 revenue ($US billions) Over 40% of Amazon units are sold by 2M+ global third-party sellers. Customers ordered more than two billion units from sellers in 2014. Average referral rate = 15% Source: U.S. Securities and Exchange Commission (http://www.sec.gov/)

Prediction No. 1: Amazon keeps gaining share (cont.)

Prediction No. 2: Mobile becomes the primary computing device for many

Prediction No. 3: Digital assistants make a splash

B2B eCommerce Operationalize a spectrum of buying models . . . from self-serve to full-serve.

Prediction No. 4: Self-service B2B eCommerce rivals full-service B2B commerce in importance Base: 224 B2B online buyers Source: Forrester/Internet Retailer Q1 2015 US B2B Buyer Channel Preferences Online Survey

The rise of the digitally enabled b2b selling model

Investment levels by sellers mirror this trend “Please rate the estimated 2015 investment priorities for the following channels on a scale of 1 (very low) to 5 (very high).” Low Base: 110 B2B online sellers Source: Forrester/Internet Retailer Q2/Q3 2015 Global B2B Sell-Side Online Survey

Prediction No. 5: Inside sales and customer service fill gaps created by internal B2B channel conflict

More self-serve B2B buying experiences Inside sales & CSRs

Prediction No. 6: B2B software vendors reposition eCommerce as “customer engagement”

Exist in a real-time operating environment

Platforms that offer depth and breadth Source: “Accelerate Digital Business With A BT Agenda” Forrester report

Myth busting

Prediction No. 7: Stores still are not displaced

Prediction No. 8: Buy buttons are too early to be transformational

Prediction No. 9: The startup bubble doesn’t burst

Prediction No. 10: B2B marketplaces take hold but don’t break out Image source: Amazon.com (http://www.amazon.com/)

Prediction No. 11: B2B leaders still fail to accurately measure their omnichannel progress

“Don’t know” What is your average customer service cost per B2B online order? No. 1 answer: 33% “Don’t know” What is your current B2B website shopping cart abandonment rate? No. 1 answer: 28% “Don’t know” Please compare the performance of the following metrics in 2015 to 2014: Average net promoter score. Source: Forrester/Internet Retailer B2B Sell-Side Online Survey

Questions?

Andy Hoar ahoar@forrester.com Twitter: @andyhoar1 Sucharita Mulpuru-Kodali smulpuru@forrester.com Twitter: @smulpuru

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