The Future of eCommerce: In Conversation with Michael Klein

Have you ever thought about the future of eCommerce?

Over the years, the industry has transformed rapidly and changed the world. Now, with so many new technologies, trends, and platforms, it is tough for business owners to choose what they should follow to stand out in the market.

To help you with the same, we have created this Expert Q&A series. Let’s talk to today’s Expert and learn what’s cooking in the online commerce industry. Let’s get started.

So, let’s get started.

Q1: Can you tell us a little about your background and experience in the eCommerce industry?

My experience in eCommerce started back in 1997 when I was responsible for merchandising the Harry & David website along with their direct-to-consumer catalog. For the next decade, I worked on various eCommerce initiatives for a variety of specialty retail brands, including eLuxury.com (LVMH), Dean & DeLuca, wine.com, and Discovery Channel Stores.

In 2008 I moved over to the technology provider side of eCommerce, working with enterprise retailers to help them optimize their digital properties and improve their eCommerce KPIs. I’ve had the pleasure to work with some of the world’s largest retailers, including Home Depot, Marks & Spencer, Harrod’s, Carrefour, Express, Ralph Lauren, and many more.

Q2: Can you describe a particularly successful project or campaign that you have worked on in the eCommerce space?

While at Discovery Channel, I led a project to implement CommerceHub, which allowed us to significantly expand our merchandise assortment far beyond the four walls of our physical stores and the distribution centers. We were early to the game of ‘endless aisle,’ expanding our assortment by 500 SKUs, resulting in a 40% increase in comparable store sales in 2006.

Q3: Can you tell us about a current trend or development in eCommerce that you find particularly exciting or noteworthy?

I’m particularly excited about the developments around data, machine learning, and artificial intelligence to help deliver better customer experiences and operational efficiencies. eCommerce is too dynamic to rely solely on human beings, merchandisers, and marketers to develop merchandising and promotional campaigns.

Retailers must depend on data and machine learning to be able to adjust digital experiences in real time. However, this is a complex task with so many sources of data and disparities in the integrity of the data. It can be daunting for brands to “clean up” their data practices to understand their customers truly. The good news is that there are more tools than ever before to help with this. However, choosing the right tools for a particular brand is another daunting task.

I’m also excited about the future of content creation and how brands can better communicate their product values and details through mixed media, including video, photography, and computer-generated images (CGI).

Q4: How do you see eCommerce evolving in the next 5-10 years?

Wow, I wish I had a crystal ball to see that far into the future. Nonetheless, the concept of Hybrid retail will continue to evolve. I’ve always been a believer that physical retail will never disappear, as some had forecasted before and during the pandemic. Humans will always want to engage in physical retail. Therefore, eCommerce will continue to evolve to facilitate a seamless experience between the online and offline space.

Services such as ‘buy online pick up in store’ (BOPIS) are becoming ubiquitous, and other cross-channel services will follow suit, such as returns, inventory availability, and product information. Speed of delivery will also evolve as consumers come to expect instant gratification just as they would by visiting a physical store location. Last but not least, eCommerce will continue to push into the physical space allowing for more self-service and convenience in the shopping experience.

Q5: What advice would you give to someone just starting out in eCommerce or looking to break into the industry?

Determine your unique value proposition, be authentic, and deliver on that brand promise. I would caution those where the price is their unique value proposition; there’s always someone else out there willing to make less revenue or even lose revenue/margin to acquire a customer. And then, of course, there’s Amazon. So make sure you have a compelling value proposition for your eCommerce business that goes beyond price.

Wrapping Up

So, that was all about today’s session. We thank Michael Klein for talking to us and sharing essential insights about the industry. We hope you find this session insightful! For critical discussions and insights, subscribe to our content and stay updated with what’s new in eCommerce and Magento.