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Unprepared Ep 17 - Shopify Trends During Quarantine with Sam Mundell

Timestamps:

  • [00:00] - Intro
  • [01:00] - Brick and mortar stores going online
  • [01:32] - Real-life examples of stores migrating online
  • [02:32] - Merchant customer base is growing
  • [03:05] - New customer acquisition is getting cheaper
  • [03:31] - Brand loyalty increases; marketing efforts doubled
  • [03:56] - Increasing customer connection ups repeat orders
  • [04:20] - The merchant community is prospering
  • [04:57] - Use Shopify email for retargeting campaigns
  • [05:31] - Free Google Shopping listings for US merchants
  • [05:56] - Kayak accessories & dining tables trending on Shopify
  • [07:21] - Skin care and fitness products also trending
  • [08:11] - Double down on marketing and learning

Resources:

  • Sam Mundell's LinkedIn: https://ca.linkedin.com/in/samanthamundell
  • Website: https://www.shopify.com

Key Points:

  • More brick and mortar stores are moving online. 
  • Shopify online store creation has been up 75% comparing the week of March 2nd to the week of April 12th.
  • In some states including Ohio, liquor can be sold with takeout and food delivery. Chase was helping his restaurant owner friend in setting up their online store for that, but realized after they’re done that the online store needs a different payment provider.
  • The margins that restaurants/bars will have from online orders and liquor sales can be enough to keep them from shutting down.
  • Merchant customer base is also growing. Store owners are also reaching customers who have never shopped before. There was a 78% increase in unique customers (customers who have never shopped online before).
  • New customer acquisition is going really well. EE’s clients have successful marketing acquisition
  • Brand loyalty is also growing. Merchants are doubling down on their efforts in social media and advertising.
  • Brands doing the effort of increasing loyalty are reaping the benefits. 28% increase in repeat orders.
  • Community is being fostered well in these times. Merchants are supporting each other.
  • If you don’t have a platform for email marketing yet, Shopify just recently launched Shopify Email.
  • Google announced that you can now put your products on Google Shopping for free (US only for now). Perfect opportunity for merchants to figure out how Merchant Center works.
  • Shopify product categories that are trending: Kayak accessories and kitchen/dining room tables.
  • Skin care products (masks, peels, etc.) and fitness products are also trending on Shopify.
  • Self-care products are probably going to be trending until the foreseeable future.
  • Double down on your marketing efforts through social media and take this opportunity to learn more as a merchant.

Transcript:

Chase Clymer  

Alright everybody, and welcome back to another episode of Unprepared. Today we are talking with Sam. She is our old partner rep and current rep, maybe, I don't know at Shopify. I've...three times now I've had you on different things and I still don't remember how we work together. 

But all I know is that she's amazing. And we're going to hear a lot of awesome insights about what's going on in the world from Shopify's perspective on today's show. So, welcome to the show.

Sam Mundell  

Thanks for having me, Chase. I'm really excited to be here. And I work on our partnerships team as a strategic partner manager. So work with a few of our top agencies like yourself.

Chase Clymer  

Hey, hear that people? We know we're doing.

Sam Mundell  

(Laughs)

Chase Clymer  

Awesome. So, we spoke last week and you said that you got some data delivered to you that you wanted to share today. So let's jump into it. We got 10 minutes here.

Sam Mundell  

Yeah, yeah. So I know we talked last week and I just had some numbers. I could actually share behind what we were talking about. So we chatted about how one of the really big trends we're seeing, which I'm sure is no surprise to anybody, is people moving their brick and mortar stores online.

So one thing we're seeing is that our online store creation is actually up 75% when we compare the week of March back to the week of April 12. So that is a massive jump and probably, most likely due to mostly brick and mortar shops moving online.

Chase Clymer  

Yeah. A friend of mine is a restaurant manager, a local restaurant, a bar and grill. And in Ohio, at least, you are now allowed to sell alcohol with food purchases to go.

Sam Mundell  

Yeah. 

Chase Clymer  

So I had...I was walking him through that this weekend. And, you know, we got done and then I realized it was like, you need a different payment provider. (Laughs)

Sam Mundell  

Yeah, that's a complication to it, I guess. But it seems like a lot of cities are starting to allow that. I know that in Ottawa, where of course Shopify's headquarters is based. They're allowing restaurants to do that, which is great because I know alcohol sales are generally a pretty large portion of the money coming in. So being able to do that, I think is a huge increase for those merchants.

Chase Clymer  

I mean, it's...the margin in bars in restaurants, the margins on the liquor drinks, and the food is there to keep people around longer.

Sam Mundell  

Yeah, absolutely. And then another really interesting thing that we're seeing is that merchants' customer base is actually growing. So they're reaching more people who'd actually never shopped before, which I think is just, of course, an increase due to the only option being to shop online for a lot of places. 

So we've actually seen a 78% increase in the last three weeks of merchants that have never shopped before, purchasing from Shopify merchants.

Chase Clymer  

Yeah, we can even, I can say that's true on our side. New customer acquisition for a lot of our marketing campaigns is just going really great right now. Some of our clients are having some just some awesome growth periods right now.

Sam Mundell  

Yeah. 

Chase Clymer  

And that goes hand in hand with the last episode where we talked about the numbers behind this all. It's very cheap to get in right now and start marketing.

Sam Mundell  

Yeah, absolutely. And we're seeing brand loyalty actually growing as well. So I think that we're seeing merchants are really doubling down on efforts through social media and advertising, particularly social media with Instagram, Insta Stories, and really building that transparency and trust with their client base. 

We're actually seeing a 28% increase in repeat orders from previous customers. So a good indication that those efforts from merchants to increase that connection with their existing customers is really working.

Chase Clymer  

Mm-hmm. Absolutely. I mean, it's so much easier to sell to someone that you already have a relationship with.

Sam Mundell  

Yeah, absolutely. And I think that another thing I've been seeing is just a great community connection as well. And so merchants are really working together and supporting each other, doing things exactly like this, where they're getting on social together, talking about how they're reaching different audiences, [and] promoting each other's products. So I think that's a really great thing that I've seen come out of this too, is just that community aspect of things.

Chase Clymer  

Yeah. And I've been doing this now for about a week and a half and it is now so easy to do. You know, I've got the system pretty well down. So if I can do it, anyone can do it.

Sam Mundell  

Yeah. And then the other thing too is as you know, we've recently launched Shopify Email. So everyone should be...if you don't have an email campaign in place, you should definitely be taking advantage of that. 

And putting together a retargeting campaign. I know you've done a lot of talks with Chase about how to set that up. And so I'm sure you have lots of great sources you can share on that.

Chase Clymer  

Yeah, I mean, if you're not retargeting your customers, you're leaving so much money on the table. And then just beyond that to yesterday, Google announced you can put your products on Google Shopping for free.

Sam Mundell  

Amazing.

Chase Clymer  

Which will be very awesome lead gen for the top of the funnel for the merchants that want to figure out how merchant center works, which is kind of a pain in the butt. But if you figure out that integration, it will definitely help your business.

Sam Mundell  

Yeah. Yeah, no, it's pretty cool. And then also some trending product categories that I wanted to share some insights on. So we're actually seeing some really interesting, at least I think, it's kind of surprising categories that are trending. We're seeing kayak accessories actually trending, one of the highest over the last 30 days. 

And so I guess people looking to get outdoors more often and explore where they live. I know at least for me where I am, I can only go within a half-mile radius of my house. So trying to find creative ways to actually explore that half-mile radius. And then the other one we're seeing is kitchen and dining room tables, too, which I think has a pretty good link to people just being...working from their kitchen tables [and] having to eat in all the time. So that was a really interesting trending product category as well.

Chase Clymer  

That is very funny. When I am not recording videos like this, I am usually working from my kitchen table.

Sam Mundell  

Yes, I am actually working on my kitchen table right now. So a surprising one, but I certainly understand it because I'm ready to change up my kitchen table after staring at it for the last couple of weeks.

Chase Clymer  

Oh, yeah, I mean, we just moved in the first thing I bought when we moved in, we have a huge entertainment area. And I was just like, I need the biggest table of it.

Sam Mundell  

Yeah, and then the other one too, that we're seeing, which is probably a little bit less surprising, but skincare, masks, peels, things like that and also fitness products. So people setting up home gyms, things like that. 

And so if you're a merchant in one of those categories, just keep that in mind that there...it is a trending category. So reaching out to audiences that you may not normally be targeting, extending your ad campaigns, may actually be a really positive move.

Chase Clymer  

Yeah. Yeah, self-care is going to be a hot topic probably until things get back to whatever the new normal is. So from my perspective on that, I don't know when that's going to be.

Sam Mundell  

Yeah, who knows. Hopefully soon, but it could be a little while. So yeah, so those are just some of the stats that we've been seeing on our end that we're able to share right now. And so I'm to pass those along to your audience.

I think a big focus, at least in my opinion, should be really doubling down on those efforts through social to reach your audience when you're not able to see them in person, especially for brick-and-mortar shops. So Instagram TV, and videos, just trying to really stay on top of that. 

And then also doubling down on learning on your end as a merchant. So I'm checking out the different courses available. Shopify has a lot and Chase has done some great webinars for us. So taking a look at those options available as well.

Chase Clymer  

Awesome. Sam, thank you so much for coming on and sharing all that.

Sam Mundell  

Yeah, thank you, Chase. Take care.

Chase Clymer  

You too. 

Sam Mundell  

Bye.

 

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A few weeks ago the world changed forever. Every business, every entrepreneur, every single person was unprepared for the sudden change we'd all experience. I'm going to use this time to create content focused on what you can do right now to help your business grow. We're all in this together, we're all unprepared.