Announcing The Forrester Wave™: Mobile Commerce Solution Providers, Q4 2013

I am pleased to announce that the inaugural Forrester Wave evaluation of mobile commerce solution providers is now live!

Mobile commerce is hot – In fact for Pizza Hut, it’s so hot that approximately 50% of all digital orders come from mobile and tablet devices. Beyond impulse purchases like pizza and cinema tickets, mobile commerce is now firmly established as a significant source of revenue growth for almost all online retailers. Last year Forrester forecasted that 5% of total online revenues would occur through mobile devices in 2013, but by the close of the year, many online retailers such as HSN are reporting that mobile revenues have in-fact broken the 10% threshold and, furthermore, some retail clients have told us that revenues via mobile devices have already reached 20% of total online sales during peak days. 

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The convergence of commerce and content platforms gathers momentum

Many brands and corporations today suffer from “two site” syndrome. The ‘.com’ site (often owned by brand/corporate marketing) serves to offer up a glossy magazine experience — designed to romance the customer with brand and product stories, while the ‘store.’ is owned by the eBusiness team and is designed around structured product content to optimize conversion and revenue goals. The result is often fragmented and poorly integrated digital experiences that confuse the customer, introduce unnecessary complexity, and ultimately fail to deliver on the broader digital strategy of the brand.

In the age of the customer, brands today seek a unified experience between the four stages of the customer life cycle (discover, explore, buy, and engage). For eBusiness professionals, this means tighter collaboration with their corporate marketing and brand counterparts to find ways to embed commerce (the buy phase) into the heart of the .com experience rather than building segregated eCommerce sites. However, this is easier said than done. The problem is that many brand and manufacturing organizations leverage web content management (WCM) platforms to create, manage, and measure targeted, personalized, and interactive brand experiences. However, these WCM platforms lack the robust commerce capabilities that organizations need to manage large, complex product catalogs and develop sophisticated merchandising strategies to sell online.

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Selecting The Right Global Payment Service Provider For Your eBusiness Needs

This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals

Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. But accepting global online payments is VERY complicated. It includes the transmission of sensitive financial information, an array of diverse payment methods, a long list of players in the transaction stream and many regulatory considerations. Add to the equation the increasing importance of mobile and the seamless user experience the consumer is demanding, and it’s enough to make even the most seasoned eBusiness professional’s head spin. So what are we to do? eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. But the PSP vendor landscape is crowded and highly competitive, leaving eBusiness professionals unclear of which PSP will best serve their needs.

Together with payments analyst Denée Carrington and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global payments challenge. Here are a few key questions eBusiness professionals should consider before signing on with any PSP:

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RWD Is A Natural Evolution Of The Web — And It's Here To Stay

When I first looked at responsive web design (RWD) back in June 2012, only early adopters (mostly startups, agencies and media firms) had taken the plunge. Back then, developers and web designers alike were still getting to grips with the concepts required to build responsive sites. eBusiness leaders, although intrigued by the premise of a single site able to adapt across devices, were mostly playing a pragmatic wait-and-see game. Fast forward almost 18 months and much has changed. Although hype and confusion continue (not least due to a perplexing set of technology terms and marketing buzzwords), RWD has firmly cemented itself as a natural evolution of web, and it’s here to stay.

In our latest research on RWD, my colleague Mark Grannan and I spoke to over 20 digital agencies and end user clients that have adopted responsive design. We found that RWD sites are still far from ubiquitous; however, adoption is growing steadily. As web traffic on mobile phones and tablets is increasing to the point where firms must optimize for these touchpoints, RWD is taking center stage in many enterprise discussions.

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Announcing The Forrester Wave: B2B Commerce Suites, Q4 2013

Today, we released our inaugural Forrester Wave evaluation of B2B commerce suites.  In a sister blog post, my colleague Andy Hoar, with whom I coauthored this report, explains why client demand for this research has exploded over the past 12 months, with manufacturers and distributors grappling with how to better serve their sales channels through digital experiences. In writing this report, Andy and I have spent the past six months evaluating the B2B commerce capabilities of dozens of vendors. Despite casting the net wide, our research found that although it’s common for vendors to provide “B2B lite” functionality for their clients — such as supporting unique pricing for employees — only a subset of the broader commerce platform vendor community can truly cater for complex B2B business models with support for distributors, resellers, partner networks, employees, retail stores, and direct B2C all from a single platform. To differentiate the wannabes from the bona fide leaders, Forrester rejigged its established B2C commerce suite scoring criteria to emphasize:

  • B2B commerce features. We added all-new criteria to evaluate how these solutions solve unique B2B problems, such as quotes; complex pricing lists; eProcurement; product configuration and customization; guided selling; bulk order entry; dealer management; and account, contract, and budget management, to name a few.
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SAP Closes Its Acquisition Of Hybris - A Quick Update

Two months ago, SAP announced their intention to acquire Hybris and back then I blogged about the potential implications for Forrester’s clients. Today, SAP has formally completed the acquisition, which brings further clarity for the road ahead:

  • Hybris will operate as an independent business unit. Hybris will operate as an "SAP Company" rather than a "Product of SAP” and will retain its existing sales and development teams. This is a positive move for existing and future Hybris customers and ensures that the Hybris solution will continue to remain agnostic of other SAP products and technology. For now there will be no bundling of products, Hybris will not become part of the ERP or CRM suites or vice versa, however on the SAP side of the house there will be development in building lightweight ‘connector’ integrations for those customers that want to run Hybris alongside an existing SAP ERP or CRM infrastructure.   
     
  • Customers will be able to buy from SAP or Hybris. In the near future, the on-premise edition of Hybris will become available on the SAP price list. For existing SAP customers looking at Hybris, this will give them the flexibility to contract directly with SAP and leverage their existing master service agreement. Given that Hybris will be available through both the SAP and Hybris sales channel, customers should expect price parity - it is unlikely that SAP reps will have much leeway to apply deep corporate discounting when selling Hybris.
     
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Commerce Technology Continues Its Bull Run

With growth comes investment, so given that eBusinesses across the globe continue to experience double-digit compound annual online sales growth, it should come as little surprise that 66% of these same firms are planning to increase their investment in commerce technology in 2014. In my latest research report “Commerce Technology Investment And Platform Trends — 2013”, Forrester polled 49 eBusiness leaders to understand their investment and technology implementation plans for the next 12 months. Here’s what the top of the investment priority list looks like:

  • Omnichannel Execution. Omnichannel initiatives have become a major focus for every retailer and brand with a physical brick-and-mortar presence. eBusiness teams (and their counterparts in store operations) are rushing to implement the following programs among others: pickup-in/ship-to store, store inventory visibility, ship from store, and associate enablement.
     
  • eCommerce Replatforming. eCommerce platforms are the backbone of any digital channel, and replacing legacy home-grown systems or outdated (and often unsupported) platforms remains a top priority. With these platforms now supporting omnichannel programs such as “buy-online, pick-up in-store”, having a scalable and flexible platform that can support future growth is an imperative.
     
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Forrester Needs You - We're Hiring For An eCommerce Technology Analyst

Our clients continue to realize sustained online revenue growth which means many eBusiness leaders have both the funds and backing to continue to invest heavily in commerce technology. Across the board, retailers, consumer brands, and industrial suppliers alike are significantly bolstering their capital investment programs to ensure they stay at the forefront of digital innovation while ensuring that their online, fulfillment, and back-office systems are ready to scale for anticipated growth over the next five years. Subsequently Forrester is hiring for a Principal/Senior Analyst to help us expand our coverage of this incredibly dynamic area. 

Here’s a quick snapshot from the job description:
 

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Canadian Online Retail Shifts up a Gear, eh?

This week Forrester published our inaugural online retail forecast for Canada. While still lagging behind the US market, online sales in Canada show encouraging signs of growth over the next 5 years. In fact, online sales in Canada have grown from C$15.3 billion in 2010 to C$20.6 billion in 2013 and are expected to reach C$33.8 billion by 2018. A few highlights of note from the forecast:
 
  • Online sales now account for 7% of total retail spend. Forrester forecasts a compound annual growth rate (CAGR) of 10% over the next five years for online sales, however retail total growth (online & offline) in Canada will linger at only 2.8% over the same period. Consequently online sales will account for 10% of total retail spend by 2018, up from 7% today. 
  • Just five categories account for half of the dollars spent online in Canada. Apparel and accessories alone are a C$3.5b plus sector, followed closely by PC;s, consumer electronics, event tickets and groceries. Perhaps this should come as no surprise given these same categories that are also some of the most commonly researched online in Canada. 
  • Average online spend is set to increase 37% by 2018. Today the average Canadian spends C$1,130 a year online which is considerably less than our neighbors in the US (who spend US$1,481), but on the bright side, Forrester forecasts that Canadian online spending will hit $1,552 by 2018. The majority of this growth in online spend will be driven by broader access to products and services that today are only available directly at brick-and-mortar stores or via cross-border delivery from US domiciled retailers.
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GSI Commerce Becomes eBay Enterprise – Why This Is More Than Just A Re-Branding Exercise

It’s been more than two years since eBay’s $2.4B acquisition of GSI Commerce and behind the scenes a lot has been happening. Gone is GSI’s entrepreneurial founder Michael Rubin and in his place sits a new executive team that is now strategically aligned with eBay’s senior management and corporate strategy group. Historically, eBay has been a C2C company, but yesterday’s re-branding of GSI signifies that eBay is now deadly serious about providing a holistic suite of enterprise technology and services to leading retailers and brands beyond their core Marketplace and PayPal payment services.

On paper, the new eBay Enterprise is a "jack of all trades." For retailers and brands, eBay Enterprise represents a one-stop shop for enterprise commerce technology, commerce services, marketing services and outsourced fulfillment and customer care. Let’s take a closer look at these offerings and what they mean to eBusiness professionals:

  • Commerce technology. With eBay Enterprise, eBay is stepping up to compete with industry heavyweights in the enterprise commerce technology market. On offer are three core product lines:
  1. Magento, the ever popular open source eCommerce platform purchased by eBay in 2010.
  2. ECP (Enterprise Commerce Platform), GSI’s new platform (formally known as v11) which after almost four years of development is now finally operational and running live client sites.
  3. A home-grown order management solution supporting omnichannel retailers managing order fulfillment and distribution across channels.
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