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The Trading Intelligence Quarterly: Issue 2

The Trading Intelligence Quarterly: Issue 2

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Published by Michael Ross

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Published by: Michael Ross on Nov 18, 2010
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11/21/2013

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The TradingIntelligenceQuarterly
Balancing theonline highwire:how to growand makemoney.
October 2010Issue 2
e
Commera
Welcome 03 Making money online 04-08 How are we measuring 09-14online protability?Google: priorities 15-17to maximise online protSpotlight on Amazon: 18-19Is Zappos broken? 
Contents
 
eCommera is a specialistretail-focused ecommerceproduct and servicesbusiness.We deliver robust andexible technology toenable you to trade online,combined with insight tohelp you focus on protableaction. It’s our blueprint foryour success.We call it trading intelligence. 
For further information –Email simon.niesler@ecommera.comor ben.mercer@ecommera.comCall us on +44(0)20 7291 5800Or visit www.ecommera.com
e
Commera
 
Welcome to the second editionof The Trading IntelligenceQuarterly
Online prots will become animportant aspect of a retailer’sperformance over the next fewyears.
Overall retail growth is predicted to slow, sogrowing online sales while optimising the protopportunity will become increasingly critical.So far all the hype around online retail, andcustomers’ growing appetite and sophisticationin purchasing online, has failed to materialise instrong prots. Indeed for many standalone onlineretailers prot remains an elusive target. While afew such as ASOS and Net-a-Porter have shownit can be done, most prot announcements are alow key event and something of a disappointment.Multichannel retailers rarely break out theironline prots but our experience indicates a reallack of condence in how to maximise prots.The industry is so new that there are few modelsof success to emulate and no real sense yet of bestpractice. We have seen three different types of retaileruncertainty:The protable who are not sure about how togrow and stay protable;The unprotable who do measure their prot,but are not sure how to turn it around; andThe large number of retailers who fail toproperly measure their online protability.It is this lack of awareness of protability thatis most worrying to future online growth andsuccess. To realise that goal of strong, protablegrowth online, retailers must enforce rigorous andsophisticated measurement of marketing, productsand customers.This edition of The Trading Intelligence Quarterlygives some answers to the crucial question
‘HowCan We Make Money Online?’
We offer thisadvice based on our experience of working withhundreds of online retailers. This is backed up byour recent survey ndings of over 100 ecommercedirectors which gives a fascinating look at whatmeasurements are being used… and, even moreimportantly, not used.We also assess the long term protability of Zappos, getting underneath its initial strongprots to question their long term strategy. Andwe are delighted to include insights on how tomake money from one of the great online successstories - Google.I hope you will nd it an invaluable guide toexploring how you can improve your onlineprotability. 
Andrew McGregor
  –
CEO and co-founder, eCommeraandrew.mcgregor@ecommera.com
03
www.ecommera.com

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