We work on the large Omnichannel and eCommerce projects in Europe. Therefore, we can see from the inside how many companies approach this topic. Comparing it with the obtained results, we can determine positive and negative factors influencing success with great certainty. In this presentation we share stories of companies that are not mentioned in our case studies. These are the stories of bad choices, leading to failure.

1. Surprising failure factors when
implementing eCommerce
and Omnichannel eBusiness
Tomasz Karwatka / Divante.co

2. WHY IS IT WORTH READING?
2
Therefore, we can see from the inside how many companies approach this
topic. Comparing it with the obtained results, we can determine positive and
negative factors influencing success with great certainty. In this presentation
we share stories of companies that are not mentioned in our case studies.
These are the stories of bad choices, leading to failure.
If you think about Omnichannel / eCommerce and were about to do
something that we write about below - just contact and consult us :)
We work on the large Omnichannel
and eCommerce projects in Europe.

3. Who has to deal with Omni?

4. IN WHICH CATEGORIES THE INFULENCE OF THE INTERNET ON SALES IS THE BIGGEST?
4
We’ve compared the impact of the Internet on purchasing process in individual categories in 2016.
Building Omnichannel in these
industries can give you
competitive advantage.
Ar you in this industry? You need to quickly
build great Omnichannel Experience.
Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/
Diagram shows the breakdown by category of the percentage of buyers declaring the use of the Internet during their shopping process
If your industry is below, you need to have a
good e Commerce - otherwise you wouldn’t be
here:)
• Credit or cash bank loan
• Car accessories
• Cosmetics or care
products
• Medicine or medical
articles
• Furniture and home
furnishing items
• Electronic devices – e.g.
TV, radio, Hi-Fi audio
• Clothing accessories
• Car parts
• Clothing / Footwear
• Small household
appliances
• TPL / AC insurance
• Sports or tourist
equipment
• Books, toys
• DVD or Blu-Ray movies
• Mobile phones and
subscription.
• Large household
appliances
• Cameras and digital
cameras
<10% 11-20% 21-30%
• Tickets to the cinema or
other events
• Computer components
or accessories
• Music on CDs or mp3
• Booking a hotel room
• Airline or railway tickets
• Holiday or a trip abroad
• Software or computer
games
31-40% >40%

5. OVERALL IMPACT OF THE INTERNET ON SALES – 2016 VS. 2011
5
The overall impact of the Internet is the percentage of transactions in which the online channel was included as a source of information and /or place of purchase. The percentages
rounded to the full value; the ranking is based on the values to two decimal places. Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/
Booking a hotel room
Category Influence in
2016
Airline or railway tickets
Holiday or a trip abroad
Software or computer games
Tickets to the cinema or other events
Computer components or accessories
Music on CDs or mp3
68%
Sports or tourist equipment
Books
Change of influence
compared to 2016
Place
2016
Change of place
compared to 2016
50%
45%
43%
34%
33%
33%
29%
24%
17%
20%
8%
8%
4%
3%
9%
7%
6%
1
2
3
4
5
6
7
8
9
b.z.
+4
-1
-1
b.z.
-2
+1
+1
+1

6. OVERALL IMPACT OF THE INTERNET ON SALES – 2016 VS. 2011
6
The overall impact of the Internet is the percentage of transactions in which the online channel was included as a source of information and /or place of purchase. The percentages
rounded to the full value; the ranking is based on the values to two decimal places. Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/
Toys
Category Influence in
2016
DVD or Blu-Ray movies
Mobile phones and subscription.
Large household appliances
Cameras and digital cameras
Furniture and home furnishing items
Audio/video devices
23%
Clothing accessories
Car parts
Change of influence
compared to 2016
Place
2016
Change of place
compared to 2016
23%
22%
22%
22%
19%
18%
18%
17%
14%
5%
7%
11%
-3%
6%
5%
9%
1%
10
11
12
13
14
15
16
17
18
+7
b.z.
-1
+3
-7
b.z.
-2
+1
-6

7. OVERALL IMPACT OF THE INTERNET ON SALES – 2016 VS. 2011
7
The overall impact of the Internet is the percentage of transactions in which the online channel was included as a source of information and /or place of purchase. The percentages
rounded to the full value; the ranking is based on the values to two decimal places. Full report: http://go.divante.co/ropo-sopo-zwyczaje-zakupowe-polakow-raport-2016/
Clothing/Footwear
Category Influence in
2016
Small household appliances
TPL/AC insurance
Credit or cash bank loan
Car accessories
Cosmetics or care products
Medicine or medical articles
16%
Change of influence
compared to 2016
Place
2016
Change of place
compared to 2016
11%
11%
9%
8%
6%
3%
10%
35%
5%
6%
1%
2%
1%
19
20
21
22
23
24
25
+1
_1
+1
+3
-2
-1
-1

8. Mistakes of
the Board Source: www.viralnova.com

9. CAREFUL, THE DISTRIBUTORS WILL NOT LIKE IT!
9
• Hiding prices
• Raising prices
• Forcing registration
Sabotaging your own
eCommerce
• Self Service builds premium brands
• Added services
• Full „Where to buy” offer
• Images and descriptions
Ideas
Source: www.pinterest.com

10. DEPARTMENT X WILL CREATE ECOMMERCE ON THEIR OWN
10
• IT – choosing the "known" technology, too little emphasis on
business and client aspects
• Marketing – treating eCommerce as advertising brochure
• Sales – fear of channel conflicts and „hiding” eCommerce
• Dedicated eCommerce position for the
period of transformation
Solution
Source: www.pinterest.com

11. BUT WE ALREADY HAVE A WAREHOUSE
11
• 24/7
• Two-way – up to 30-40% returns
• C&c and other
• Lower AoV
eCommerce logistics is
different
• External service at the beginning
Solution
Source: witzshared.com

12. WE HAVE INTEGRATED SYSTEMS FOR AGES, IT’S NOT A PROBLEM
12
• Systems adapted to a traditional business
• Customers may receive a data package (prices, product
catalog and availability) made specifically for them
• Orders get lost when the ERP system slows down or
crashes.
• Omnichannel data bus
Solution
Source: witzshared.com

13. WE ALREADY HAVE IMAGES AND DESCRIPTIONS
13
• Images and descriptions aren’t just a complement
anymore - it’s the only thing the user sees
• Systemic and quick adding images
• Duplicate content in Google
• Translation
• Proofreading
• Process
• PIM software
Solution
Source: www.amusingtime.com

14. OUR OWN HOSTING IS ROCK-SOLID
14
• High online traffic
• Large traffic spikes (x10 is common)
• A lot of excess equipment required
• IT loooooves our servers, cables and wires
• Private Cloud, CDN
Solution
Source: www.pinterest.com

15. Managers’
mistakes
Source: www.viralnova.com

16. COLLECT YOUR BUSINESS NEEDS
16
• Gathering business needs from all departments
of the company
• But... 40% briefs results in contradictory,
mutually exclusive requirements.
• What the customers already have and
use
• Implementation, then designing
Solution
Source: http://www.2dayfm.com.au/

17. COLLECT CUSTOMER NEEDS
17
• Ask your customers what they want
• Very diverse groups
• Mutually exclusive opinions and needs
• There is no golden mean
• Lack of prioritization
• Implementation, then designing
• Feedback: livechat, a/b testing, ..
Solution
Source: http://www.2dayfm.com.au/

18. OUTSOURCE IT
18
• Businesses would like to have a project where
someone tells them what, how much and when
• This unfortunately leads to a lack of strategic IT
planning
• No control over the product in the long term
• Building a virtual team
• Open Source
Solution

19. BUY CHEAP
19
• Comparing offers and choosing the cheapest
• In eCommerce usually Development cost >>
Deployment cost
• Work out a coherent vision of
development with all vendors
• Magento is popular because developing
in PHP is cheap
Solution

20. THIS PLATFORM BEST MEETS OUR REQUIREMENTS
20
• Let's choose a platform which feature list
agrees with our feature list
• But ... 50% of the requirements is collected
badly
• Flexible platform – framework
• Select 20% key functions for the
deployment
• Development instead of pre-planning
Solution

21. Why do eCommerces
go bankrupt?

22. MEASURE YOUR ROI
22
• Measuring ROI of each action shows that you treat your
business seriously
• But ... one of the stores consistently eliminated all
unprofitable (in the short term) sources of acquiring new
customers.
• Lack of a strategic vision for customer acquisition.
• Customer base gradually decreased.
• Measuring long term ROI
• Loyalty
Solution

23. IF IT WORKS – DON’T TOUCH IT!
23
• If it works, let’s not change it
• But ... as time goes on, it becomes more and more difficult
to: add, maintain security, update
• Magento 1.x - – end of support in 2 years
• Basecamp creators – the application is rewritten every 4
years
• Plan development and migration strategically
• IT architect in your team
Solution

24. INTENSIVE ACQUISITION OF NEW CUSTOMERS
24
• Intense acquisition of new customers
• New customer = loss
• "We have no loyalty in our strategy„
• In on-line sales it’s unfortunately a lot easier to "move away
from cash„
• Acquiring customers without loyalizing them in eCommerce
leads straight to bankruptcy.
• Monitor loyalty
• Create a loyalty program – even if only for the
on-line channel.
Solution

25. 25
Would you like to get
ROPO/SOPO 2011-2016 report?
Tomasz Karwatka
CEO
tkarwatka@divante.pl
WE LOOK FORWARD TO COOPERATING WITH YOU

26. About Divante
Team, experience and clients

27. 27

28. 28
eBusiness Software House
• We deal with eCommerce technology and
Omnichannel design solutions,
• We have operated since 2008,
• More than 150 professionals in Wroclaw
• Clients from Europe and the USA,
• We include Clients to our teams and work in
SCRUM methodology,
• We are a reliable partner, Divante belongs to
OEX SA group,
• Offices in Wroclaw and Rotterdam.

29. 29
We employ more than 150 professionals:
• 60 PHP Developers (Magento, Zend, Symfony),
.NET, Java, iOS, Android),
• 11 certified Magento Plus Developers,
• 5 certified Magento 2.0 Developers,
• 9 Front-end Developers,
• 12 Testers, 4 Analysts (business, system),
• 10 Project Managers,
• 12 UI/UX Designers,
• 8 Marketing Technology & Big Data Specialists.

30. Divante UK
286C Chase Road
London, N14 6HF
United Kingdom
(+44) 20 30115154
mblum@divante.co
Divante Sweden
Divante HQ
Divante NL
Divante UK
Divante HQ
14 Kosciuszki Street
50-038 Wroclaw
Poland
(+48) 733 355 596
sales@divante.pl
Divante Holland
Rivium Quadrant
141-181, 2909 LC
Capelle aan den IJssel
The Netherlands
(+31) 657 625 006
mpolak@divante.co
Divante Sweden
Erik Dahlbergsallén 15
115 20 Stockholm
Sweden
kpodeszwa@divante.co