© David Feinleib 2017

David Feinleib, Bricks to Clicks, 10.1007/978-1-4842-2805-0_8

8. The E-commerce Flywheel

David Feinleib

(1)San Francisco, California, USA

“Do not spend a dime on advertising until you have spent many dollars and hours building page content. I won’t even touch your ad money until then.”

—Amazon.com senior buyer

The year was 2009, and Raj Rao and Loran Gutt, two of the leaders tasked with running 3M’s eTransformation team, faced a serious problem. The 110-year-old company, historically the category captain in old-school brick-and-mortar departments such as office supplies, home improvement, and kitchen cleaning, had done little to digitize its products and get them ready for e-commerce. Now they faced a daunting task: how, with a small team, to prioritize and maximize their returns on e-commerce.

The first thing they did would turn out to be a very smart move indeed. They invested heavily in understanding Amazon’s model and flywheel, which centered around developing inventory and assortment. They knew 3M wasn’t going to be the one creating the digital shelf. Their job would be to maximize the real estate that was out there. Although 3M was coming from behind in e-commerce, the company had three things going for it: a well-recognized brand, a highly effective team that was solely focused on e-commerce, and excellent relationships with its retailers .

One of the first conversations Gutt had with the Amazon merchants was a lot like the co-op marketing conversations he had been having with brick-and-mortar retailers. That’s when the Amazon buyer told him, “I don’t want you to spend one dime trying to get people to pages where the customer can’t achieve their goal. I want you to spend many hours and many dollars improving your content and product detail page s.” Otherwise, both 3M and Amazon would be throwing good money away. People online make their decisions on the quality of the content. If Amazon and 3M spent millions of dollars driving shoppers to product pages that looked bad, those shoppers simply wouldn’t buy 3M’s products.

“Priming” the Flywheel

The Amazon flywheel, Gutt explained to me, begins with selection. You need to have the product available on the site in the first place in order for a shopper to find it, let alone buy it. Case in point: Amazon’s expansion from books to consumer electronics to home goods. Amazon combines category expansion with global selection.

In the Amazon flywheel, selection comes first. From there, it is about driving the consumer experience: quality product content to get your product story right coupled with a delivery promise, which is the speed promise.

Building on the Amazon model, Gutt and Rao developed a three-part strategy, which I have since coined the e-commerce flywheel. As shown in Figure 8-1, it consists of the following:

  • Product presence

  • Demand generation

  • Metrics and analytics

A440693_1_En_8_Fig1_HTML.jpg
Figure 8-1. The e-commerce flywheel

Although metrics and analytics is the third step, we often find that bricks-to-click s suppliers will implement some level of metrics and analytics first because they want to get a baseline measurement of how they’re doing.

That’s why when we first start working with bricks-to-clicks suppliers we often perform a baseline audit with Content Health , Is It Live (checking which items from the supplier are live on a retailer’s site), Share of Search /Shelf, and Out of Stock reports. This gives the supplier a clear sense of where they’re starting out.

In the rest of this chapter, we’ll take a detailed look at each step of the e-commerce flywheel components.

Step 1: Product Presence—Comprehensive Product Setup

The bricks-to-clicks suppliers we work with sell through multiple channels. By that we don’t just mean online and offline—they’re selling on Amazon, Walmart, a few retailers that are specific to their vertical (such as Best Buy and B&H Photo for electronics and Macys.com, Kohls.com, and JCPenney.com for apparel), and their own brand web site (for example, Samsung.com, Levi.com and so on) .

What does comprehensive product setup mean? It means more than filling in an “Item Setup” Excel spreadsheet and sending that to a retailer to get your item listed and available for sale. It means comprehensive product content of every form, on both your brand site (that is, your corporate site like Samsung.com) and on the web sites of your online retailers.

Comprehensive product content means the following:

  • Basic item setup for every product for sale on a retailer’s site

  • Robust product descriptions

  • Product descriptions with language that consumers search for

  • Ratings and reviews

  • Consumer questions answered

  • Product images

  • Product videos

  • Lifestyle images/videos

  • Product comparison tables

  • Related item descriptions

  • Nurture communities of consumers contributing content/building the brand online

  • A centralized location to store your content

  • An easy way to output content in the varying formats required by different retailers

Because we’ve covered content in detail in previous chapters, we’ll move directly to demand generation and analytics .

Step 2: Demand Generation

Once you’ve set up your products and the item pages for those products are complete (they have complete product descriptions, multiple high-resolution images, a few reviews, and rich content), it’s time to start driving shoppers to your item pages. Although retailers do their own search engine optimization , paid advertising (search engine marketing ), and other forms of promotions, as a supplier it is still incumbent on you to drive demand for your product. Demand generation comes in a number of forms.

  • Search engine marketing (SEM)

  • Search engine optimization (SEO)

  • E-mail marketing

  • Social media investment

  • Targeted banner advertising

  • Retailer online trade promotions

  • Retailer brand sites/brand showcases

  • Direct

How should you prioritize your investment across each of these channels? It depends on who you ask.

As of November 2016, according to the Custora E-Commerce Pulse, search advertising drove 19 percent of e-commerce purchases in 2016, organic (the results below the paid ads) drove 18 percent, and e-mail drove 25 percent.1 A report by Yotpo, a platform for user-generated e-commerce content, indicated that in 2015, 34 percent of visits came from search, 40 percent came from direct, and only 5 percent came from e-mail.2 So, the short answer is that you need to invest across all demand generation channels, not just one. Let’s explore each type of demand generation one at a time.

Search Engine Marketing

Search engine marketing refers to the advertisements that appear above the organic search results in search engines such as Google, Bing, and Yahoo. Almost anyone can buy these ads and use them to drive visits to their item pages—either on their own brand site or on a retailer’s site. But search advertising can be expensive, ranging from five cents per ad at the low end for infrequently searched for terms to tens of dollars on the high end .

In some ultra-competitive categories, such as insurance, loans, and mortgages, the cost per click (CPC)—that is, the amount an advertiser pays when a consumer clicks an ad—is as much as $54.91 per ad, according to online advertising firm WordStream.3 Fortunately, while search advertising for grocery items, toys, electronics, and apparel isn’t cheap, it’s nowhere near as expensive as advertising for some of the categories listed earlier.

In case you’re wondering whether suppliers advertise their own products in Google and other search engines, the answer is, yes, they do. As an example, in a search for “diapers” on Google in January 2017, the first two paid search results were from the sites diapers.com and honest.com, but the next two results were from Pampers.com (P&G) and Huggies.com (Kimberly-Clark). While you can’t buy diapers directly on the Pampers.com brand web site, you can get lots of helpful information and then click through from the brand web site to various online retailers to make the purchase .

Search Engine Optimization

Nearly 20 years after the invention of the online search engine, search engine optimization may still be one of the more underappreciated and more cost-effective forms of marketing around. The results that appear in search engines below paid ads are known as organic search results. That’s because they’re unpaid, in the sense that marketers don’t pay money to Google to get their pages listed in the organic search results the way they do with SEM. However, marketers do typically pay agencies to help them optimize their rankings so that their items are highly ranked in search results .

Over the years, the algorithms that determine which items rank high in Google search results have gotten a lot more sophisticated. They used to look primarily at how many other sites linked back to a given site and use that to determine the ranking of a page in the search results. The theory was that the more sites linked to a given site and the more reputable those sites were, the higher the authority of that site and therefore the higher it should appear in search results. But over time, as marketers have gotten smarter and as many have attempted to game the search results through link building, the search engine algorithms have also gotten more sophisticated.

Today’s algorithms take into a variety of factors when determining which pages to rank in organic search results. These factors include backlinks, but they also include the quality of content, content length, content freshness, content relevancy (how relevant is a particular page on a web site for a given search term), and uniqueness of content. Other factors relate to keywords—does the keyword for a given search appear in the title tag, in the description tag, and in the h1 tag for a page? A tag is an HTML term referring to the elements of a web page; a web page is constructed in HTML, and by creating the structure of a page a certain way and then populating the tags that make up the page properly, you can increase the likelihood that your items will rank high in search results.

In fact, Google uses some 200 different factors to determine how to rank a particular item in its search results.4 When it comes to organic search results, there are two places suppliers need to focus their efforts: their own brand site and the sites of the retailers through which they sell. For your own brand site, you control the structure, design, and all of the content. Therefore, you can fully optimize your site .

When it comes to a retailer’s site, you may not control the structure of the site, but you can provide the retailer with a great product title (that includes a popular keyword) and great product description content, resulting in the retailer’s pages being highly ranked in Google and other search engines. Moreover, by providing better content, you’re likely to produce more conversions once a shopper does arrive at your item page. We’ll talk about how to track your performance in search rankings when discussing step 3, metrics and analytics .

E-mail Marketing

There are multiple ways to use e-mail marketing to reach your customers. Although e-mail marketing is primarily used by retailers, it isn’t only for retailers. As a supplier, you can reach out to your customers directly to notify them about new product offerings, offer them coupons, and ask them to write reviews for your products, as you build up a larger and larger list of customers over time.

Studies have shown that the most important factor impacting the success of e-mail marketing campaigns is the subject line you use in the e-mail.5 You can test different subject lines to see which one produces the best results. Programs like Mailchimp will let you A/B test multiple subject lines to see which one produces the best results.

E-mail marketing is also great for marketplace sellers—contacting recent buyers of your product to ask if they’re happy with their purchase and offering help if they aren’t. Bricks-to-click s suppliers are using this approach successfully to reduce negative reviews. They’re able to contact customers and deal with any issues before the customer feels a need to write about a bad experience on the Web. Or if they do write about a bad experience, they’ll often include how a supplier resolved their issue (assuming that the supplier did resolve their issue), turning a potentially negative review into a success story.

Social Media

A lot of brands these days are focused on social media. Although social media seems to account for only 2 percent of shopper visits according to research firm Custora,6 it does play an important role in the path to purchase. That’s because visits to a product page get attributed to a certain channel only if that channel was the last step in the shopper’s path before coming to the retailer’s web site. Social media may be more of an “awareness-building vehicle” and less of a “purchase-driving tactic.”7 So, even though social media may not lead directly to purchases, you can’t afford to ignore how consumers are talking about your brand .

For most suppliers, that means having a brand ambassador who’s reading social media posts and responding to them. But it doesn’t stop there—it also means creating social content to promote awareness of your brand and sharing that content on Facebook, Pinterest, YouTube, Twitter, and your own site. It’s important to be part of the conversation.

Targeted Banner Advertising

In the mix of approaches to driving shoppers to your products, display remains an important channel. We see a few common themes among bricks-to-click s suppliers when it comes to display advertising.

  • They use display ads to showcase specific promotions such as free shipping or discounts, along with a call to action such as “Buy Now.”

  • They create targeted banners focused on specific niches of their shopper market—men, women, those looking for discounts, and so on .

  • They use dynamic content to include information updated in real time such as prices and availability.

  • They advertise both on relevant third-party sites (where shoppers are likely to be doing research) and on retailer sites.

  • They use retargeting to increase brand recognition and stay top of mind as the shopper continues through the research process and into purchase.

Retailer Online Trade Promotions

According to Acosta Sales & Marketing, a $1.8 billion retail sales and marketing company, trade promotion is a $100 billion industry and represents 10 percent to 25 percent of gross sales for the typical consumer packaged goods (CPG) company.8 As e-commerce continues to grow, bricks-to-click s suppliers are moving more of their trade promotion activities online.

Unlike their bricks counterparts, bricks-to-clicks suppliers have dedicated e-commerce trade promotion budgets and teams. They use a combination of digital coupons, rebates, and other activities to drive consumer demand and brand awareness. The very best suppliers combine online trade promotions with analytics. They make sure that when they run trade promotions, products are in stock, stay in stock, and have great content.

Retailer-Brand Showcases

Retailer brand sites/brand showcases are less well known to many except the largest suppliers. Brand showcases are focused on one brand and tell the brand’s story through imagery and videos. Multiproduct showcases include imagery, video, and a series of specific products for sale. Sophisticated retailers use a mix of static products (hand-selected) and dynamic product feeds that are based on pricing, availability, and other drivers to determine which products to list on the showcase pages.

Brand showcases are often focused around a specific event such as a holiday, a new product launch, a specific brand campaign, or a limited-time offering. Combined with other forms of demand generation, they can be an effective way to tell a brand’s story and drive product purchase behavior. They align the brand and the retailer and give the brand a unique opportunity to showcase their products on a retailer’s site with no competitive products/brands to distract from the experience .

Direct

Recent research indicates that Amazon.com is the starting point for 44 percent of all e-commerce searches.9 That’s not surprising when you consider that in the 12 months before May 2016, Amazon.com did $82.2 billion in revenue, according to eMarketer and Fortune, while Walmart did $12.5 billion in revenue, with other retailers in the single digits.10 As of June 2016, Amazon had an estimated 63 million Prime members (making up more than half of the online retailer’s customer base), so it makes sense that many of those shoppers go directly to Amazon’s web site to start their e-commerce searches (Figure 8-2).11

A440693_1_En_8_Fig2_HTML.jpg
Figure 8-2. E-commerce sales 12 months to May 2016

Regardless of which source of traffic makes up the most volume, it’s clear that a mix of approaches is required to drive demand for your products.

Step 3: Metrics and Analytics

As you continue to invest in step 2, you’ll want to understand what’s working the best and reinvest in profitable tactics. Here we’ll explore the various types of analytics you need to get in place to understand how your business is performing—and where the opportunities are to improve.

  • Web site analytics

  • SEO analytics

  • Retailer-specific analysis (how are we doing on a specific retailer?)

  • Cross-retailer analysis (why is this retailer doing better than that one?)

  • Competitive analysis (how are we doing relative to other brands?)

  • Ongoing product presence and demand generation adjustment

Web Site Analytics

Bricks-to-click s retailers use web site analytics to understand the shopper path to purchase on their web site. Suppliers use web site analytics on their brand web site to understand shopper visits as well—which products and information pages are shoppers looking at. The two most common applications we’ve seen used for web site analytics are Adobe Analytics (formerly known as Omniture; Adobe acquired Omniture in 2009) and Google Analytics. Both products provide insight into how many visits each page on a web site is receiving .

Such analytics programs can also help you segment your pages into different groups: high-traffic, low-conversion pages; most visited pages; least visited pages; and so on. The Content Analytics platform can import visit data or lists of pages that have already been placed into groups. Based on the visits information or groups, we can then run content health and SEO audits to understand the specific actions that retailers and suppliers can take to drive more traffic to their sites and increase conversion rate s.

SEO Analytics

When it comes to SEO, several well-known SEO platforms are available. These products provide insight into search engine rankings. Customers have told us, however, that such products tend to provide an overwhelming amount of data—many reports but too few specific actionable insights.

That’s why, in addition to our built-in content health reporting, Content Analytics includes an SEO view of content health. By integrating content health and SEO reporting, we make it easy to know which of your item pages have the most room for improvement—specifically as it relates to SEO (see Figure 8-3).

A440693_1_En_8_Fig3_HTML.jpg
Figure 8-3. Combined content health and SEO reporting

Rather than asking our customers to tell us which keywords to check their rankings for, we automatically figure out which keywords your products are doing well for—and which ones you might want to optimize for to drive more traffic. Google and other search engines emphasize unique, high-quality content. Content Analytics evaluates your item page content health and your SEO rankings and ties the two together so you know exactly what to do to improve. The result is more traffic to your pages through better SEO and higher conversion rate s through higher-quality content on those pages.

Retailer-Specific Analysis

Retailer-specific analysis gives you insight into how you’re doing on a specific retailer and what you can do to improve. As I’ve mentioned in previous chapters, we focus on a core set of metrics, including content quality, share of search , share of shelf , ratings and reviews, and assortment/inventory.

We typically help bricks-to-click s clients with retailer-specific analysis when we’re working with a specific retailer team. For example, we’ll start out working with the Walmart or Amazon team at a particular supplier, providing them with a comprehensive set of capabilities such as e-commerce Dashboard s, item setup, and content updates.

After perfecting what we’re doing with one team, we’ll then expand across the organization to other retailer teams, to a global e-commerce function, or both. The benefit of this approach is that our knowledge of the supplier’s business goes extremely deep when we initially focus on working with them on a specific retailer.

Cross-Retailer Analysis

At other suppliers, we start by immediately providing analytics across multiple retailers. The benefit of this approach is that the supplier can monitor their performance on one retailer versus another. Right away we can pinpoint opportunities to improve content, run review outreach programs, and optimize pricing and availability.

We typically see cross-retailer analysis used in three ways.

  • To understand performance and opportunities for improvement across e-commerce channels

  • To ensure brand integrity (product naming, imagery, and videos) across channels

  • To provide an early-warning system when there might be an issue at a specific retailer that the supplier otherwise wouldn’t know about until too late, such as products going out of stock

Individual supplier or brand teams within a larger organization can use the same analytics system across the organization, with each team focusing on their own area. Regional managers and global e-commerce directors can then use the same platform to understand performance across the entire business.

Although suppliers may be able to check a few best-selling products on a handful of web sites, they rarely have the time and resources required to check all their products across dozens of web sites every day. Automated, cross-retailer analytics like the Content Analytics platform can both provide that level of insight and provide exception alerting so suppliers are quickly notified of any items requiring their attention. Overall this means that suppliers get a lot more leverage across their entire business with the same time and human capital investment that they already have.

Competitive Analysis

Competitive analysis provides bricks-to-click s suppliers with insight into their products in the context of their competitors—on one channel or many. Some bricks-to-clicks suppliers have teams dedicated solely to competitive reporting, typically focused on market-share metrics and new product development. Competitive insights in the context of e-commerce analysis adds another layer to this kind of reporting (see Figure 8-4). Now suppliers can understand how they stack up on a number of images and videos, length of product descriptions, ratings and reviews, assortment, in-stock rates, and pricing relative to the competition.

A440693_1_En_8_Fig4_HTML.jpg
Figure 8-4. Competitive insights

Making Adjustments

E-commerce is never a one-and-done area. Unlike in-store where you produce product packaging and set up a planogram only a few times a year, e-commerce is constantly changing. Retailers rapidly bring new shelves online and add challenger brands to the mix. Competitors are constantly evolving their product presence.

Bricks-to-click s suppliers implement a proactive approach, with ongoing adjustment. They’re continuously updating images to be consistent with the latest brand imagery (which reduces return rates—the products that shoppers receive match the product images they saw when ordering). They’re adding rich content. And they’re making sure they capture as much of the digital shelf as possible and that their products stay in stock. All this is possible only with a comprehensive technology platform like Content Analytics to support them. Without technology, keeping up in e-commerce is a fool’s errand.

The E-commerce Flywheel in Action

While Gutt was at 3M, they grew the business from almost nonexistent to an eight-figure business over four years. “The basis for that,” said Gutt, “was leaning into the flywheel of product selection and presence.” After doing that to satisfaction, the next step was investing intelligently to drive traffic to products that were getting early traction through on-site and off-site demand generation. Then it was a rinse-and-repeat cycle of analyzing all of that and looking for the next opportunities to leverage product presence and demand generation and dollars.

The early work that is done to create product presence and demand generation will bring new sales, pretty much under the radar. You can drive more revenue simply by broadening your distribution. But once a channel becomes material in size, there’s a tension between internal forces and external retailers related to that growth. After seeing 3M’s presence on Amazon.com, for example, 3M’s more traditional retailers started asking the company to match the same product presence they had on Amazon on the other retailers.

Online, retailers can iterate the consumer experience quickly. In contrast, resetting a planogram in a thousand stores is very challenging. Therefore, the ability to be digitally nimble as a brand and a retailer is one of the key characteristics of bricks-to-click s suppliers and retailers.

  • They challenge the way things have always been done with their brand.

  • They are open to experimenting with the business model and branding/positioning.

The other big takeaway from working with Amazon? The company is obsessed with putting the customer at the center of the discussion. Sometimes meeting attendees would even leave a chair open as the customer’s seat at the table.

The Omnichannel Challenge

Returning to the genesis of the e-commerce flywheel, I asked Gutt how omnichannel retailers can compete in an e-commerce world. His answer: if they can truly streamline the omnichannel experience, omnichannel retailers have an incredible opportunity to take market leadership positions in consumables, grocery, and many other areas.

There is a split between any purely digital retailer like Jet and Amazon and omnichannel retailers. The ones who live and die by the online channel also live and die by the quality of the product content they use to drive the right shopper experience. That’s because product content is the only way they have to provide a shopper with information about a product—other than shipping the product to the shopper.

In contrast, an omnichannel retailer can supplement poor investment in the digital area with investment in the brick-and-mortar area, at least in the short term. The omnichannel retailers have started figuring out how to leverage their in-store and online combined presence .

What’s more, suppliers have an increasing concern with having all their digital eggs in the Amazon basket and too much of their e-commerce business flowing through one retailer. There are opportunities for suppliers to test product presence and demand generation strategies with other retailers online. Suppliers can diversify their go-to market, so Amazon doesn’t monopolize their fastest-growing channel.

From Store Shelf to Digital Shelf

For many traditional CPG companies and brick-and-mortar brands, the idea of the “infinite shelf” is still a new concept. As an example, French’s Mustard makes mustard in many variations. But in a traditional brick-and-mortar environment, French’s can take the real estate for only a few of those many varieties.

But in the online channel, French’s can find and reach a much broader community of buyers. It can tell its story and attract customers to products that might not be mass market. As Gutt pointed out, online, because of the infinite shelf, suppliers can really go after many different niches .

What’s more, in e-commerce, growth in a category isn’t a zero-sum game. There are many shelves, and they are infinitely long. In contrast, in a store, a retailer must trade real estate between product X and product Y. An online retailer can maximize traffic for product X and product Y.

But a retailer can create this traffic maximization only with the participation of the brand. Both in-store and online, retailers tend to focus on the category, and then they invest with the brands that invest with them. But online, retailers are more willing to invest with challenger brands that are willing to put the investment forward. Supporting challenger brands helps retailers create margin.

The Evolving Shopping Model

Looking back over the past 25 years, how has shopping evolved? The number of stock keeping units (SKUs) has exploded, and at the same time, people’s attention has fragmented.

New suppliers and global suppliers have greatly increased the number of SKUs in the market. That explosion around SKUs is happening at the same time that people’s attention is fragmenting. As Gutt puts it, 25 years ago you could go to Northwestern, they would teach you how to run a media mix model, you could take out a few Superbowl ads and a few end caps, and you would absolutely make money. You were good to go.

But now, increasingly every year, less and less of that is true. Now it’s a ­question of how well you are telling your brand story in an authentic way and making your products discoverable by regular consumers, who are not swayed by the last Superbowl ad. Consumers want information, both from the manufacturer in the form of online content and from people like themselves through word of mouth and online ratings and recommendations.

Today, consumers expect that the manufacturer will provide the information they need to make an informed decision about a product. That means more than a basic title and a few bullet points.

Consumers have seen some brands do a great job with multiple images, videos, Q&A, and ratings and reviews. So, they know it can be done.

Those brands that choose not to invest in a comprehensive online product presence are looked on with distrust by today’s shoppers. There’s a general consumer perception that those suppliers are not providing sufficient information to evaluate products from the manufacturer, so perhaps they have something to hide .

Delivering best-in-class product presence online is a way of building trust with the consumer. There is this idea now that those suppliers that invest in great content have nothing to hide—eight product shots for a product are better than one.

The Smaller Brand Advantage

The advantage for the smaller brand is much greater in digital than it was ever going to be in brick-and-mortar. Unless a small startup brand got lucky, historically it was hard to get traction with retailers unless you were a big brand or a brand-holding company.

One example Gutt pointed to is Alexia Foods, a maker of frozen potatoes. They compete against much larger brands like Ore-Ida (Kraft). They have a legitimate story to tell around ingredients and products that is much easier to bring to life in a digital environment than in a store. In the digital arena, starting with the most basic content available, digital is a new place for the company to tell its story and for the consumer to encounter that brand. Since online shelf space can be reconfigured all the time, retailers such as Amazon and Walmart are eager to bring challenger brands to their shoppers.

On the flip side, smaller (or challenger) brands bear the burden of proof to show that their product is better than the established name brand. For the consumer to choose to buy from a challenger brand, the challenger has to overcome the inertia of what a consumer has been buying for years if not generations. Delivering high-quality content presence and finding that niche of consumers who resonate with their product is a lot more possible online than it ever was in-store .

Summary

Imagine shopping for a new television online. You search and research, arriving at the product page for an item you’re potentially interested in, only to find that it has a very small image (and only one of them), no reviews, several unanswered questions about the tech specs of the product, and no comparisons showing how this product relates to other, similar products from the same manufacturer.

Yet if you remember right, you got to this item by clicking an advertisement you saw on Facebook. That’s odd, you think. Why would a manufacturer spend money on ads only to send you to a product page that doesn’t showcase their product in a compelling way? Did they make a mistake? Are they trying to hide something?

Yet that is exactly what bricks suppliers are doing. In trying to make the jump from bricks-to-click s, they’re spending immense amounts of money on advertising, only to send their potential shoppers to pages that not only don’t perform well but have the opposite effect. Bad pages dilute their brand value.

In contrast, bricks-to-clicks suppliers have implemented the e-commerce ­flywheel, a virtuous cycle of optimizing product presence, demand generation, and analytics and insights.

In the previous chapters, we’ve presented the best practices and tools ­necessary to implement the e-commerce flywheel. In this chapter, we’ve seen how all those discrete elements work together to form a comprehensive e-commerce strategy. In our next and last chapter we’ll look at what the future holds for e-commerce locally, nationally, and globally .

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