SHOPIFY CASE STUDY ID Systems Thinking INDS 3008-003 Zoe Worsnip, Benji Laflamme, Houston Keil-Vine, Melody Gamble
TABLE OF CONTENTS
WHO WE ARE
PAGE // 4
OUR METHODOLOGY
PAGE // 5
PART I : RESEARCH
PAGE // 6-22
PART II: OPPORTUNITY
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NOWABLE
PAGE // 25
SHORT-TERM
PAGE // 26
LONG-TERM
PAGE // 27
WIREFRAMES AND SCENARIOS
PAGE // 28-55
PROCESS DOCUMENT
PAGE // 56-75
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WHO WE ARE
OUR METHODOLOGY
It is imperative that we recognize the value of understanding
a conversation that becomes the strategic subtext to the way
The role of a consultation from our design strategy firm is to
Our method follows the Define - Explore - Present - Refine
the context of the world we live in, thereby allowing us
we perceive life.
present our clients with end to end solutions that allow them
flow. This framework allows us to develop a knowledge of the
to refocus their future products and anticipate future changes
marketplace and trends that signal opportunities, combine
and growth opportunities in their market.
them with customer and business insights in order to adapt
to identify potential and define informed futures. These environments are comprised of variables in their respective
Our desire as Designers, is to facilitate the connection and
moments of evolution, coming into contact with revolutions
benefit of these elements coming together to positively assist
and technologies. Distinguishing context in momentum crafts
people in maximizing their potential futures.
technologies and optimize them future experiences. EXPLORE
PRESENT
DEFINE
REFINE
// 01 DEFIINE
We work to map current trends in the industry and and identify unique signals to explore. By combining
// 02 EXPLORE
We critically evaluate the current products of competitors in the marketplace and examine their com-
// 03 PRESENT
These products are then rapidly prototyped and presented to the client, allowing them to consider
this knowledge with the vision statement of the client, we can develop areas to create relevant growth platforms.
pany visions to predict future areas they will work towards. This allows the grading of growth platforms and development of products with excellent future market fit.
alternate futures for the company and evaluate critical strategies to implement these products. These products are positioned in the form of an on-going strategy map, allowing the client to visualize their progression towards these future products.
// 04 REFINE
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By broadening the horizon of the client, we then work to redefine their mission statement and implement a set of tools that will allow them to anticipate and activate the products that Protograph has designed for them.
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INTRODUCTION As Shopify has positioned themselves to be a leading brand in omnichannel commerce, they must create the foundation to understand the potential opportunities and designated responsibilities that accompany their vision.
PART I: RESEARCH
In order to fully understand who Shopify is, we have conducted multiple methods of research to richly define the parameters of their offerings and potential markets. We will look to signals and trends to determine the environments of their field and the platforms, technologies and partnerships that can best exploit Shopify’s future.
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TREND MAPPING Looking at trends that can potentially impact Shopify’s ecosystem allows us to understand their diverse opportunity for partnerships. We chose to focus on Shopify’s overarching relationships with retail to determine the connections that could be made with their existing ecommerce services. In doing this, we acknowledge the ever growing momentum towards using technology as a platform and viewing things within a narrative format, allowing for more accessible customer association.
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JOURNEY MAPPING
Shopify offers its platform to over 200,000
any business owner’s daily cycle that are either
businesses, which identifies each of those
inefficient or unsustainable. Instances of
businesses as a stakeholder. For this reason, we Shopify’s interaction are noted, as well as those have created a journey map that exemplifies
of the effects on the consumer, rounding out
a day in the life of one of Shopify’s many
a three part perspective of potential areas for
businesses. Its application is broad, and
growth and improvement.
therefore illuminates the common steps in
Shopify phase
interaction
step
design opportunity
Receives Customer Email
Declined
Process Credit Card
Shopify Store Journey Cycle
Notification
Accepted
Export Data Credit Reprocess
Accountant
Notification “ What are business taxes”
Business
“ Facebook for my business? I don’t even have one for personal”
Adwords Social Media Interview & Blogging Physical Marketing Artifacts
Check email Listen to Voicemail
Create / write
Notification
Read Review
Locates Good
Add to Cart
Checkout
Customer
Product Exploration
Product Search
Voicemail
Business Customer Follow-up
Notification Print Shipping
Responds
Account Info
Credit Info
Shipping
Coupon Attempt
Billing
Confirmation
Shipping Selection
Tracking / Shipping
Packaging
Pick-up Drop off
Tracking
Product Issue
Receives Response
Phone Question
Discover “ Are they shipping from Pluto? ”
Marketing
Communication
End of Day
“ I don’t do returns”
Product Drop
Potential Purchase
Purchase Delivery
Taxes
Product Addition
Store Maintenance
Product Checkout
Store maintenance takes place on the Shopify
Once a customer has decided to purchase an
End of week tasks include a physically counted
When a consumer asks for a refund, there is
The taxes and accounting must be entirely
New stock will be added or dropped by the
marketing tactics: social media, blog outreach,
email and phone. Occasionally, emails will be
dashboard at the beginning or end of the day.
item, they are guided through the checkout
confirmation of product inventory, a review of
confusion in regards to determining which
managed at the business owner's discretion.
business owner, generating a new cycle of
production of marketing material, and using
sent to Shopify instead of the business owner
This can include adding more content to an
process. This involves filling in their personal
payments and accounting, a more in depth
service to ask- the business, or Shopify itself?
The owner will submit a request for their tax
interactions and maintenance. This will also
Google adwords.
- in this instance they are rerouted to the
existing product page such as new pictures, a
information, including shipping and billing
cycle of daily maintenance tasks, and
This results in Shopify fielding thousands of
form from Shopify, which will be automatically
generate new interactions with consumer
business Email.
more in depth product description, or reading
address. Information is also input by the
refund/return processing.
refund requests that they are not in a position
delivered to them. They would then file their
bases and social media platforms.
customer reviews on past orders.
customer at the shipping and coupon code
to fulfill. However, when the business owner is
own taxes or take the form to their accountant to be filed for them.
Facebook, Instagram and Pinterest to promote
Email correspondence follows the pattern of:
stages. After the order is confirmed, Shopify
Breakpoints: Not understanding how to
contacted for a refund, the item is shipped
their products and services. Additionally, in
retrieve, sort by importance, carefully read,
This daily maintenance would also include a
processes the credit card. If successfully
properly build the aesthetics and groundwork
back to the seller and a payment return
subscribing to relevant accounts en masse,
respond and act on the result.
review of data analytics such as conversion
submitted, a confirmation email is sent to the
for a specialized business. Business owner
request is sent to the automated shopify
Breakpoints: Many steps are required in this
the appropriate details of the product, and
rates, site traffic, average order values, repeat
customer while also issuing a new order alert
doesn’t have the time, or won’t make the time
system- reorienting the payment back to the
process. Finding an accountant can be
have the ability to misrepresent the business.
challenging, while also being expensive.
Spam is sent out to advertise new product.
Breakpoints: Product is discontinued and requires update. Poor photos do not convey
conversations, businesses can acquire new
Phone calls typically result in a series of
customer orders, abandoned cart and
message to the business. The business then
for weekly tasks. Making decisions about
customer. In the case of items being replaced,
audiences and potential customers. Social
missed calls and voicemails. Often, business
recovery rate, and fraud analysis. The final step
packages the product and hands it off to the
product taxes can be tedious.
a new tracking number will be issued and
Prices need to be determined and issued.
media can also be used to research new trends
owners will need to dedicate a period of time
would be to review daily orders and daily
postal service. Finally, the business inputs the
forwarded to the customer.
Products are damaged when received by the
and identify new product opportunities.
each day to respond to these issues.
revenue to make sure that orders are
tracking information, and the customer is
processed expeditiously.
notified that the item has shipped.
Blog outreach: being featured on a blog top
Breakpoints: forgetting to respond to email is
ten list or being interviewed for a story can
common. Spelling and grammar are elements
Breakpoints: Data and analytics are hard to
Breakpoints: Shipping is too expensive.
lead to an increase in new customers for a new
that are necessary, yet not always in every
understand, and can require time and patience
Specific credit cards are often not supported.
business.
person’s line of capabilities. Oftentimes,
to learn and maintain in a way that is most
Email’s are either not delivered, or received.
messages and emails will be rerouted into
effective for a business. Business maintenance
Packing materials are difficult to store and
Breakpoints: creating a following in social
spam folders. Phone calls require patience and
becomes exponentially more difficult to deal
keep in stock. Tracking numbers will often not
media sites can be a daunting task - not
finesse, since customers will require a variety
with, the longer it is put off.
respond. Coupon codes expire and become
knowing what to post, when to post it, or what
of services.
site it is most appropriate for.
Delete Spam “Just please leave me alone”
Check Email
Customers frequently contact businesses by
and injecting themselves into public
New Product
Notification Email
Email or Review
There are four categories of common
Social media: businesses typically use Twitter,
Product Restock
Feedback
Receive New Product
Product Issue
Decision Read
New Tracking Slip
Shipping
Mark Shipped
Dislike See
Taxes
“ Wait, what is Helvetica? ”
Abandon Cart
Phones Back
“ I’ll just all delete the voicemails ”
Post
End of Day
Upload New Images
customer. Product are of low quality, and can’t Breakpoints: It is a hassle to ship an item back
be sustained. Shipments can get lost, and
to the seller, once deciding on a return.
reimbursements become necessary.
Is the cost of a return worth the effort?
useless. Expired credit cards won’t allow for purchase to process.
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2
3 Customer Business
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Shopify
OPPORTUNITY AREAS
COMPETITION
Within the Journey map, we identified two
Looking at Shopify’s competitors allows us
major areas of opportunity: the hassle of
to analyze where their biggest expansion
the entire shipping process creates regular
opportunity areas live. Like Shopify, their
anxiety for a business owner, especially as
main rivals in the ecommerce market focus
it requires routine and prompt attention.
on payment processing as a main source
Shopify currently leaves this entire
of revenue through digital retail platforms,
process to the business owner, without
leaving room for growth within physical
any management or processing support.
retail markets. Additionally, by insinuating
The product returns cycle from both the
themselves as an active member in the
business and consumer end require more
realm of corporate morality, shopify
support than Shopify currently directly
has the ability to affect and produce
offers, leaving room for expanded service
prosumerism by aligning themselves with
offerings.
a new generation of conscious millennial Benji Laflamme Houston Keil- Vine Melody Gamble Zoe Worsnip
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consumers.
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FUTURE COMMERCE OPPORTUNITIES
FUTURE COMMERCE OPPORTUNITIES
Returns
Product Discovery
Delivery
Asset Sharing
About 3.5% of all holiday returns will be
When asked to name the top reasons to shop
50% of respondents have abandoned a
Only 2% of the retail industry is currently
fraudulent this year, according to research from
or visit a pop-up store, seasonal products top
purchase online due to unsatisfactory delivery
involved in a sharing economy framework.
the NRF. That’s up slightly from 3% in 2014.
the list, cited by 61% of respondents to our
options.
poll. Ranked next were “finding new or unique
Funding in the sharing economy is accelerating
NRF estimates that return fraud will
services/products” (39%), “shop locally” (36%),
Product shipping accounts for 11 Billion gallons
year over year from 0.3 billion in 2010 to 6
cost retailers $2.2 billion in 2015, up from
“great prices” (34%), “convenience” (33%) and
of fuel usage and 1 billion metric tons of carbon
billion in 2014.
approximately $1.9 billion last year.
have “a fun experience” (30%)
dioxide production. Each business could rely on the accumulative
Inconvenient return policies deter 80% of
Now consumers have heightened shopping
coverage of Shopify’s business network to
customers
expectations, with 71% expecting to view
combat fraudulent product returns, as well as
in-store inventory online, and 50% expecting
simplifying general product return processes.
65% of returns are not the shoppers fault but
the ability to buy online and pick-up in-store.
are a result of damaged goods, wrong item
Opportunity : Asset Sharing
being shipped, or a difference in products appearance.
Due to economic downturn, large retailers
Only 2% of the retail industry is currently involved in ahave sharing economy market loss and heightened suffered framework.
production expenses. Canadian domestic retail Funding in the sharing economy is accelerating year over year from market shows new production opportunities 0.3 billion in 2010 to 6 billion in 2014.
through more consistent and manageable small-scale processes.
https://www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-sharing-economy.pdf https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/consumer-business/ch-cb-shared-economy-share-and-make-money.pdf
http://www.trueship.com/articles/ecommerce-returns-statistics-key-facts-you-need-to-know/ http://www.fool.com/investing/general/2015/12/27/how-much-will-returns-cost-retailers-after-the-hol.aspx http://independentretailer.com/2015/01/12/whats-in-store-for-the-pop-up-industry-in-2015/
https://econsultancy.com/reports/the-multichannel-retail-survey
https://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02855.html
https://www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-sharing-economy.pdf
http://www.forbes.com/sites/jeremybogaisky/2014/02/12/retail-in-crisis-these-are-the-changes-brick-and-mortar-stores-must-make/#52e5e03e1127
https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/consumer-business/ch cb-shared-economy-share-and-make-money.pdf
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MARKET RESEARCH
MARKET RESEARCH
How do businesses feel about their Shopify experience?
What works? What doesn’t work? What are consumers asking for? What other offerings should be added?
Two main areas of focus
Product Returns Main Areas of Focus
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MARKET RESEARCH
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MARKET RESEARCH
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MARKET RESEARCH
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MARKET RESEARCH
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VISION STATEMENT Looking at Shopify’s competitors allows us to analyze where their biggest expansion opportunity areas live. Like Shopify, their main rivals in the ecommerce market focus on payment processing as a main source of revenue through digital retail platforms, leaving room for growth within physical and internal markets. Additionally, by insinuating themselves as an active member in the realm of corporate morality, Shopify
PART II: OPPORTUNITIES
has the ability to affect and produce prosumerism by aligning themselves with a new generation of conscious millennial consumers.
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INTRODUCTION
NOWABLE
The framework of Shopify’s opportunities
Unified Data
are explained within the structure of
A unified data collection system that spans
an implementation timeline: Nowable,
across both business and consumer-facing
Short-term, and Long-term
platforms would offer a mutually beneficial relationship for the parties involved. While
Unified Data is seen as Shopify’s
businesses benefit from a data-wealthy
first step in creating a foundation that
system that compiles consumer shopping
differentiates them within the ecommerce
habits and shipping preferences across several
market.
stores, consumers could take advantage of one-click shipping, while also opting into the
Digital Currency is the internal value
convenience of personally curated product
system that creates a more seamless
recommendations.
platform for their businesses, as well as motivating internal loyalty. Partnerships are formed as the result of increased value through the foundation
of
Unified Data and Digital Currency. This system incentivizes a Circular Economy, enabling businesses to take collective responsibility for their impacts on the sustainability of the future.
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SHORT-TERM
LONG-TERM
Digital Currency
Circular Economy
Creating a credit system for Shopify’s internal
With the European Commission taking
platform would rule out internal payment
concrete steps towards a sustainable growth
processing fees, incentivizing business to
through the Circular Economy Package,
business interactions. This would increase the
paired with the current global climate crisis,
value and activity levels within the Shopify
we can foresee stricter waste and energy
ecosystem. Shopify credits could initially be
usage regulations on the horizon. Shopify is in
implemented to motivate a returns everywhere
the unique position to strengthen individual
concept, and follow on to simulate a P2P
businesses, by leveraging their networks to
sharing model across Shopify stores.
inform, cultivate and grow solutions towards a circular economy.
Partnerships Leveraging analytics to pair complementary products strengthens beneficial relationships between businesses, while providing customers with the curated collections they want. These partnership opportunities are scalable, beginning with product discovery boxes and expanding to joint popup events. Businesses mutually benefit each other by offering exposure to a larger audience with similar tastes.
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GROUP MATERIAL PURCHASING For years Muttonhead has worked to refine its product line and offers its customers a variety of well made goods that fit their lifestyles. Recently market research has suggested that other stores are successfully selling leather wallets to customers purchasing Muttonhead’s new line of five panel hats. Muttonhead’s head designer decides that it would be worth exploring this potential new revenue source, and begins to research materials that would live up to Muttonhead’s brand quality. She uses Shopify’s Group Buying System in order to buy a small set of hides that will allow for prototyping and an initial small run of products. Reducing the amount of material inventory allows Muttonhead to explore new product lines without being concerned over initial investments.
GROUP MATERIAL PURCHASING Through a co-purchasing platform, business have the opportunity to maximize their restocking efficiency without the minimum and maximum unit requirements, by paying bulk order prices with small order quantities. 28
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ECO-EFFICIENCY Zoe’s Honey, is a small Toronto based brand that is passionate about delivering a quality product to her customers, well extolling the virtues of urban bee farming. Zoe has a fantastic product, produced with an environmentally sustainable agricultural method but currently her packaging isn’t able to compete with glass packaging offered by many larger producers. By co-purchasing standardized bottles with other local businesses, Zoe can make a more environmentally conscious business decision and be able to more effectively promote her growing brand. Shopify’s Eco Efficiency rating system makes it easy to track which ways she can continue to improve the environmental impact of her business.
RESOURCE EFFICIENCY Shopify’s network provides ample opportunities for the creation of closed loop systems. By providing the tools for companies to identify and divert waste streams, Shopify acts as a keystone to nurturing sustainable business models. 30
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SERVICE MARKET As Muttonhead prepares to open its second retail location and introduce new products lines, it could become more difficult for them to stay in touch with their core market of enthusiastic customers. With the help of Shopify Services Muttonhead can receive preferential rates that allow them access to new marketing strategies. With the help of Talin they are able to prepare a campaign that will help make their opening day a great success.
SERVICE MARKET Small businesses can use their collective power to access services that would not be available on an individual level, achieving a higher level of quality than similarly sized businesses.
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PRODUCT DISCOVERY Muttonhead offers its customers a wide range of accessories to compliment their lives. One of their most interesting products is a wide mouth mug that is perfect for drinking coffee next to a crackling fire. Following advice from their marketing team, Muttonhead leverages Shopify’s Product Partnership service to find other local vendors whose products would compliment this unique mug. Analytics suggest that a local coffee shop selling cemex coffee equipment, and an online coffee seller, Blue Bottle Coffee, would make excellent partners in creating a discovery box to sell to new customers. Within seconds Muttonhead’s marketing team can contact Blue Bottle Coffee and being discussing the mutual benefits of this partnership.
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PRODUCT DISCOVERY Shopify features a collaboration of different businesses through curated subscription boxes and shared shelf and retail spaces. Increased business exposure and partnership exploration would incentivize consumer interaction. 36
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SPACE RENTAL Muttonhead has decided to open another brick and mortar location to sell their made in Toronto clothing line. In order to find their ideal market they have rented shelf space in a variety of other Shopify stores. First up they contact Blue Barn to display their new line of five panel hats. With the information gained from their trial they are able to make an informed decision for their future retail location. Now that they have found a location they are able to bring in other shopify businesses to display in their store. The other businesses buying into the location are cash poor but rich in resources and have been able to amass a decent amount of Shopify Currency through services rendered to other businesses. The businesses buying space in Muttonhead’s new location are paying them in Shopify points allowing them to participate in a way previously inaccessible to them. Muttonhead is also then able to use the Shopify Points to offset some of their own costs in whatever area they need.
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SPACE RENTAL Allows businesses to experiment with product placement in alternative spaces, providing feedback for further marketing strategies.
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UNIFIED PROFILE Nate regularly buys locally made clothing, that appeals to his outdoor meets urban lifestyle. On his first visit, Nate created a profile which contained his billing and shipping information and connected his instagram account to collect his fashion inspirations. Upon checking out of another online store, Park & Province, Nate was prompted to connect with his Shopify login. Surprised, Nate entered his password, turning the checkout process into a one-step click. When Shopify launched its ??! app, Nate was one of the first to download it and explore his local neighbourhood. He was delighted to find that a local store, Blue Barn had just begun carrying a new line of his favourite 5-Panel hats! Later that week Nate was delighted to receive an email from Shopify with a collection of curated top picks that appealed to both his aesthetic and lifestyle. UNIFIED PROFILE Creating a consumer-facing login across all Shopify-powered stores would provide a seamless shopping experience for the user, while building a richly defined database that can be progressively accessed based on level of Shopify plans. 42
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WHAT WHERE WHEN While searching for a last minute birthday gift, Nate searched his local area for a pair of shoes. He opened up Shopify’s ??! app, and was greeted by a list of new releases from his favorite local retailers. He searched for ‘shoes nearby’ and was presented with a long list of options. Selecting his favorite, he was able to simply order a pair and pick it up at a shop just minutes away from work. Mission accomplished with time to spare!
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LOCAL PRODUCT SEARCH TOOL
Shopify’s 200,000 individual stores could act as a network that would provide customers with what they want, when they want it, on a local scale.
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ECO RATING It can be hard to find ethical, eco-friendly products in a city as large as Toronto. Nate is already familiar with the local clothing companies he likes to support, but when it comes to new products it can be hard to differentiate between all of the different options. With Shopify’s new Eco Rate system, Nate can effectively weigh the pros and cons of any purchase or product without any additional research. By condensing all the information in one place, he can even save energy and shipping expenses by supporting local businesses that carry his favorite new product lines.
ECO-RATING
For many consumers, ethical
not only contribute to trending moral
purchasing is at the forefront of
consumerism, but also incentivize
their buying behaviours. Facilitating
all businesses to elevate their own
a network that could filter through
standards.
various ecological standards would
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RETURNS : CUSTOMERS A customer orders and receives a new shirt from Muttonhead and unfortunately it’s a size smaller than they expected. Using the Shopify app, they report the issue with their order and request a refund. Muttonhead responds and asks them to return the item to Old Faithful Shop, a store that is a one minute walk from their home. The customer is then able to drop the item off during regular business hours and the item can be inspected, bundled, while the refund can be processed immediately.
RETURNS: CUSTOMER Solving one of the largest pain points of risk of losing money. Offering flexible the ecommerce industry by networking return opportunities would build the Shopify’s community would give
trust that is inherently found with brick
consumers the assurance they need
and mortar retailers.
to make online purchases without the
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RETURNS : BUSINESS A new customer walks into Old Faithful, carrying a Muttonhead hat. They walk up to the counter and presents the item for return. The Old Faithful staff scans the item, using their Shopify POS scanner and a delivery profile for the item opens. Following the instructions on screen the clerk confirms the condition of the item and confirms its status. The item is added to the next days shipping cue, and the clerk introduces their new customer to the Old Faithful Shop. Shopify Returns generates a commision cost for Old Faithful to process this return and Muttonhead automatically transfers them Shopify Currency when the item arrives.
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EVERYWHERE RETURNS Shopify’s connected platform would allow businesses to offer their customers multi-platform returns with Shopify credits, enabling continued consumer foot traffic while simplifying individual business involvement.
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BRIEF PROPOSAL MAP
PART III: PROCESS DOCUMENT
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OUR STRATEGY IN THE MARKET
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TUCKER FIRST INTERVIEW Shopify first interview with Tucker Overall project goal:
Therefore the design task for Shopify is to design an interface that allows a customer to approach
To provide a user with a clear and comprehensible experience that results in them locally finding the
200,000 different stores to search for a product they desire without completing 200,000 searches
product they desire, without the searching, phoning, or travel that users have identified as pain points
or phone calls or visits.
in the traditional boutique retail model.
One product, One search, One confirmation, One pickup / delivery
Connection to Shopify:
Goals of the project:
Shopify is a Canadian multichannel commerce platform whose goal is to provide “a better commerce experience for everyone”. Traditionally they have acted as the backend for stores and provided POS
Provide customers access to products they want when they want them
and credit card processing services.
Find physical homes for online retailers
Increase the number of credit card transactions for Shopify to process
We have identified them as an ideal fixpert because they are experiencing increasing competition
Decentralized product search tool will act as a customer acquisition channel
from competitors (such as Amazon payments) and they have a culture that adapts well to experimentation and rapid prototyping.
Tucker Schreiber was interviewed as part of our process, *having recently attended the TODO symposium with him* we asked about some of shopify’s competitors and identified omni-channel distribution services as a key concern.
System level solution for Shopify: If we consider Amazon to be a distribution network of services connected through a single web interface then we can consider it to be a giant net covering a huge client base dedicated to delivering products to their door.
For Shopify, whose scale will never (and should never be as large) we suggest levering their 200,000 individual stores to act as connected patchwork of nets that covers an equally large area, well operating with the individual attention as only a boutique retailer can. Delivering products by both delivery and in-store. 60
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TUCKER ON OTHER COMPANIES
TUCKER ON OTHER COMPANIES
Product returns
Any time an item is returned to a store, the store owner can adjust the product inventory inventory
No matter where you business is, you’ll deal with returns eventually. Whether its from an online order,
count through our inventory management tool to show that it’s back in stock. They also have the
or in store – returns are a part of every business owners headaches.
ability to say it was ‘returned” on the original order page.
Globally, returns account for a cost of more than $600b every year, and it isn’t an easy problem for retailers to solve. Some of the most common reasons for product returns are: sizing, color not
Product returns summary
matching product description, faulty item, gift.
Make returns easier from a consumer standpoint by including a return policy in every order
Part of the problem for retailers stems in the fact that they don’t have an accurate return policy
confirmation email
(if any at all) so consumers are able to take advantage of the fact that they can return a product
Build a return item flow based on unique product ID in Shopify POS
whenever they please, however they please. On top of that, major credit card companies often side
Flesh out and update the general return/refund policy generator
with the purchaser of a product than the business (depending on the credit card company).
Help educate business owners on the impact returns have on their business, and how to handle them
With all of that said, there is plenty of opportunity for storeowners to have a better “product return”
properly or avoid them all together
experience – inside, or outside of the Shopify ecosystem. First, they can create a solid return policy. In an ideal world, Shopify (or an equivalent) would be able
How one storeowner deals with returns/exchanges
to create a return policy for every business it hosts – but every product, business, and business owner
I use zendesk and had my sister doing support part time (she moved into product design and samples)
is different making it a more complex scenario. There are, however, some things any business owner
and I got super lucky hiring a local lady that is AMAZING at support. She bring things to my attention
can include in a return policy that helps with that. For instance, make sure all sales are NOT final (stand
in ways to improve the overall biz (she hears from the customers). She works from home her own
behind your products quality), prevent returns (by having accurate product descriptions and photos),
hours. It’s amazing.
use plain english in your return policy (legal wording sucks), don’t hide return costs or reshelving costs (wtf does that mean anyways?), make a time limit on it (30 days is pretty common), state whether or
From a Shopify employee on our support forum
not its a return for cash, exchange, or credit (depends on the business).
I would highly recommend trying out the Returns Management app to set up automated returns
In terms of like, Shopify as a PRODUCT – there’s not much we can do outside of what we already do.
where you can have customers log in and get a pre-paid return label right on your site! It allows you to
I think it would be interesting to see what the actual return process looks like? Maybe if we had an
set up rules about when and how this would be available so it’s very flexible to match up your return
actual “return” flow within Shopify POS it would be helpful. For instance, hit a “return” button, use the
policy to it :)
barcode scanner to find that items SKU/product ID and find what order it was associated with, pull up the order date, time, name, etc…..and then return with just a few clicks.
I would also check this out http://boldcommerce.com/bold-shopify-apps/returns-manager/re-
We have a return/refund policy generator that kicks out a standardized very vague return/refund
turns-manager-shopify-app
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OPPORTUNITY RESEARCH Research what works in the market?
Timbuk2 donation program: When customers are finished with a product made by timbuk2 they are
how can we make it on brand / in their ecosystem
encouraged to return it to the company, who then repairs, refreshes, and then donates it to a local school child who is need. The customer then receives a 20% off coupon and free shipping on their
Interview Companies
next purchase. This along with Timbuk2s lifetime warranty ensures that bags are being used to their
Whats not working?
fullest extent
What are people asking for? What else?
Supplements plus: is a small chain of health supplement stores that offer 2hr delivery provided by a local bike messenger delivery company.
Other company opportunities: Ace hardware local delivery: When a customer places a special order with Ace hardware, they deal Caspar return policy: Caspar offers the unique promise that you will love their bed or you can return it
with 1 customer service rep the entire time. Including that rep walking or driving the product to their
for free. In the rare instance that a customer wishes to return their bed, Caspar will first offer them a
home when it arrives and answering any questions about it.
free pillow topper for their mattress, and in the event that they are still not completely satisfied they will donate the mattress to local charity rather than shipping it back to the company.
Piggyback local delivery: Piggyback is company operating in san francisco that is hoping to leverage community connections and non-monetary reward systems to help communities organize picks and
Costco white gloves return policy: When purchasing a large appliance costco, will not only deliver and
drop offs from local retailers that are part of customers everyday journeys. Unlike uber this service
install the product for free, but in the event that you are dissatisfied they will come and retrieve it
is not designed for profit, but to allow local communities to save time and energy by moving goods
without any hassle on the part of the customer.
as part of their daily commutes.
Costco in store returns: If a customer is dissatisfied with a product they can return if for a full refund at anytime as long as the 60% of the product is returned to the store. No packaging or recept is
This week with the help of Shopify we contacted 10 different retailers who all use shopify’s
required.
platform. We asked them about their most frequent difficulties with the platform and compared this information with the pain points that we identified in the system map last week. With these
Liveoutthere.com return policy: Free shipping and returns are included with every purchase, included
interviews we focused on touch point issues between the retailer and their customers, with a
in every package is a new return shipping label and a length of tape so the customer can reseal the
specific focus on issues that would be on brand for Shopify to assist with.
packaging. Additionally liveoutthere encourages customers to order multiple sizes of a product so they can replicate the process of trying on clothing in a store. In this way liveoutthere has attempted
Here is a selection of take aways from the interviews:
to eliminate as many barriers as possible to a customer returning a product they are dissatisfied with. 64
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Retailer: Muttonhead Issue type: in store product pickup
Retailer: Live Stock Issue type: Return stock location
Pull-quote: When a customer wants to pickup an item in store, all parties involved have to jump with a series of hoops to make it happen. First the customer is charged for shipping, then they have to email
Pull-quote: Many of our customers who are shopping on our online platform have trouble knowing
or phone us. We then have to manually pull the order from our automated shipping system and notify
if clothing items and shoes are going to fit them the right way. This means we have a higher than
Shopify that we need to make a partial refund on the order. Then we send an email to the customer
average number of returns and frequently customers would like to return items they purchased
that says the product has “shipped” so that they know they can come and pick it up. At the end of the
online to the retail location so that they can try on another size. For us this is a huge problem because
day it’s twice as much work to not ship an order out.
it means that we have loose inventory floating between our in store POS system and our online inventory count. We have to manually account for these additional transactions and remember to
Shopify response: Currently Shopify isn’t responsible for how products are shipped, that is handled by
update the inventory systems at the end of each business day. I can’t imagine what would happen if
third party services, however with the introduction of Uber Rush we need to consider modifying our
we opened multiple retail locations or had a distributed online distribution system.
portion of the issue to respond to our customers requests. Shopify response: Tracking stock between in-store inventory and online availability can be tricky for Retailer: Province of Canada
shop owners, in the past Shopify has considered expanding into being a third party logistic service to
Issue type: temporary sku items and price changes
combat some of these issues, currently we may consider partnering with another service provide so that we can offer this service to our shop owners.
Pull-quote: Last week he had our end of the season sample sale, it has a huge success but we discovered a few issues with our Shopify POS system. Firstly when having a temporary sale on every
Retailer: Holly eyewear
item in the store we had to manually adjust the price of each item at the checkout because if we had
Issue type: Reshipping return items
changed it in our inventory system then the online price of items would have dropped too. This meant that it took about twice as long to cash out a customer. The a similar issue cropped up when we had
Pull-quote: If we ship out eyewear to our customers and they have a problem with either the
items that were samples rather than regular stock, we had to manually mark each sale as final sale and
prescription or they dislike the frame style once they see it, we have a problem. Each of our items is
assign it a sample tag in the inventory system.
unique to the customer and it can be very inconvenient for them to ship the product back, wait for us to readjust or rebuild and then re-ship it to the customer
Shopify Response: This was a retail context that we never considered. The vast majority of our customers don’t have sample sale events and it wouldn’t be cost effect for us to roll out a new feature
Shopify response: Though using a third party extension like ShipStation can help stores quickly and
just to address this one issue.
easily manage shipping and returns, it still take significantly longer than competitors like Amazon to
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PHASE 1: RETAILER EXPERIENCE
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Visiting Customer Experience Image Sourcing Platform GOAL: create a seamless interaction for unfamiliar users between online product identification, and local retail purchase
Out-of-town Customer
Decentralized Product Browsing
Identified Product Image Unidentified Brand
Reverse Image Search On Shopify Platform
?
Manual Retail Search
Happy New Customer
Ask Locals
New Customer Makes Physical Purchase
Product Identified
Shopify Directs Customer To Nearest Connected Retailer
Melody Gamble - Fixperts Sketches - February 1
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SHOPIFY IMPACT MAP
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SHOPIFY CASE STUDY
MAPPING THE FUTURE
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OPPORTUNITY FLOW MAP
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