On the history of

eCommerce & how

eCommerce got its groove
back
2012-04-10
 HISTORICAL DYNAMICS

Over the last 10+ years eCommerce has gone

from boom to bust to diffusion to adoption and
over the last few years coming out of its nascent
stages.

On the history of e-commerce/ 2012-04-10

 SHORT HISTORY OF E-COMMERCE

1960 EDI - Electronic Data Interchange

”the computer-to-computer interchange of strictly formatted messages that represent documents other
than monetary instruments.”

1990 First web-browser was created by Tim Berners-Lee

(WorldWideWeb)

1991 NSF lifted the ban on commercial business over the

internet.

1994 First online bank launches. Third party payment

services for processing credit cards emerge.

On the history of e-commerce/ 2012-04-10

 SHORT HISTORY OF E-COMMERCE

1995 Amazon launches. AuctionWeb (later renamed Ebay) launches.

1998 Paypal launches, Google debuts on eCommerce. Yahoo launches Yahoo

Stores.

1999 Zappos launches web-only shoe store. Victoria Secret debuts site.

On the history of e-commerce/ 2012-04-10

 SHORT HISTORY OF E-COMMERCE

2000 dot.com bust! ASOS,

YOOX & Net-a-porter
founded.

Boo.com, launched in autumn of 1999, burned

through $135 million in venture capital in just
18 months and was liquidated in 2000.

On the history of e-commerce/ 2012-04-10

 SHORT HISTORY OF E-COMMERCE

2002 Paypal aquired by Ebay for $1.5 billion. Niche retail companies Wayfair
and NetShops are founded with the concept of selling products through several
targeted domains, rather than a central portal.

2003 launch of iTunes store. First full year of profits for Amazon! Nelly.com
was founded.

2004 PCI-data security standard is introduced. Shopify founded.

2006 Google checkout launched.

On the history of e-commerce/ 2012-04-10

 SHORT HISTORY OF E-COMMERCE

2007 iPhone launched advancing mCommerce.

2008 Magento was founded. Campadre was established.
2009 Zappos.com acquired by Amazon.com for $928 million. Retail
Convergence, operator of private sale website RueLaLa.com, acquired by GSI
Commerce for $180 million, plus up to $170 million in earn-out payments based
on performance through 2012.

2010 Groupon reportedly rejects a $6 billion offer from Google. Instead, the
group went public in 2011 on a $13 billion valuation!

2011 Tictail was founded (longtail eCommerce). CDON buys tretti.se for
364MSEK. Ebay buy’s magento and launches X.Commerce. Customers can buy
groceries in the subway using QR codes in South Korea. Klarna gets a 1billion SEK
capital infusion etc. etc...

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

The eCommerce sector have historically faced a

number of great challenges that held back the
development of the sector.

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

TASTE AVERSION

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

TASTE AVERSION CAPITAL INTENSIVE

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

TASTE AVERSION CAPITAL INTENSIVE

LACK OF DEFENSIABILITY

On the history of e-commerce/ 2012-04-10

 HISTORICAL CHALLENGES

TASTE AVERSION CAPITAL INTENSIVE

LACK OF DEFENSIABILITY
MARKET DYNAMICS

On the history of e-commerce/ 2012-04-10

 WHY NOW?

Previously it was about IF people would buy

online. Now, it’s more about HOW people will
buy online.

On the history of e-commerce/ 2012-04-10

 WHY NOW?

eCommerce is once again an interesting

sector, how did that happen?

Private sales sites reinvigorated eCommerce

Current landscape
New channels

On the history of e-commerce/ 2012-04-10

 WHY NOW?

Private sales sites reinvigorated eCommerce

fab.com, Vente-privee,
campadre.com,RueLaLa,One Kings Lane, Guilt
Group etc..

Key Innovations:
Moving inventory quickly thus less inventory risk
Higher sell-through because better use of customer data
Massive consumer adoption fast through referrals/social
media

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE!

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE!

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE!

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

CONSUMER
PSYCHOLOGY

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

CONSUMER
PSYCHOLOGY
• Social acceptance
• Deal hunting mentality
• Design/UX

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

CONSUMER DATA ACCESS

PSYCHOLOGY & COLLECTION
• Social acceptance
• Deal hunting mentality
• Design/UX

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

CONSUMER DATA ACCESS DISCOVERY

PSYCHOLOGY & COLLECTION
• Social acceptance
• Deal hunting mentality
• Design/UX

On the history of e-commerce/ 2012-04-10

 WHY NOW? CURRENT LANDSCAPE

HYPE! • Market size

• Economy

CONSUMER DATA ACCESS DISCOVERY

PSYCHOLOGY & COLLECTION
• Social acceptance • Curation
• Deal hunting mentality • Social
• Design/UX • Influence

On the history of e-commerce/ 2012-04-10

 WHY NOW?

New channels

Mobile Facebook Multi/

mCommerce fCommerce omnichannel
xCommerce

On the history of e-commerce/ 2012-04-10

Read more at www.beyondretail.se

Niclas Winroth +46 (0) 733 80 98 98

CEO & Co-Founder niclas@beyondretail.se