helping merchants boost cross-border e-commerce sales
DESCRIPTION
Thanks to the impressive development of e-commerce, recent years have proven successful for distance sellers, despite challenging economic conditions. In Europe, online sales have doubled since 2005. Growth rates in most European e-retail markets exceeded 20% in 2011, an d the majority of consumers are now buying online as internet sales nudge closer to the 10% of all retail sales mark. However, there are major differences across European countries; payment insecurity, privacy concerns, and lack of trust barriers still exist. Cross-border sales represent a small percentage of online transactions, where concerns about international shipping and the lack of cost transparency still hold back sales. In responding to customer needs and those of merchants and online sellers, the need for a competitively-priced, reliable European packet and parcel network, coupled with visibility of the actual landed cost of shipping has never been greater. Swiss Post will highlight various distribution options and customer-driven service features that are available to help Belgium-based merchants achieve greater online sales within and beyond Europe. In depth appreciation of the key trends driving cross-border e-commerce. Assessment of the barriers that still exist, and how merchants (SMEs and larger sellers) can benefit from an effective high-quality parcels network. Visitors will also be given an overview of the total landed cost model being developed by Swiss Post to help boost cross-border sales through transparent shipping costs and total visibility.TRANSCRIPT
Chris Stevens – Head of Industry Distance SellingSwiss Post International Management AGGlobal Sales Management (GSM)
growth
‘Staying At Home Is Not An Option’
Helping Merchants Boost Cross-Border e-Commerce Sales
eShop Expo, Brussels28 March 2012
>85% of the world’s online population has used the Internet to make a purchase.
AC Nielson Global Online Survey January 2009
Fact
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 2
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The Distance Selling Industry
Market Definitionthe distance selling industry
Online (e-shop)
Business to Consumer Business to Business
Domestic Cross Border
B2C Mail B2C Parcel
Integrates both channels and provides the most competitive delivery option depending on weight and/or value
Consumer’s perspective - any order made in an e-shop from a non domestic retailer.
DISTANCE SELLING
Mailings / Catalogues
T-Commerce Direct sellingMobile
e-Commerce
Page 4Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Sizing the Cross-Border Opportunity - Europe orders for physical goods
EU population 2010: ~ 501 Mio. 37% made at least one on-line purchase in
2010 4% shopped from a country outside the EU
Page 5Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Challenges - Europe cultural and legislative
◙ 27 countries in the European Union
◙ Own customs and tax authorities
◙ 23 official languages
◙ Plus Norway and Switzerland
◙ One single currency – the Euro – plus other currencies (GBP, SEK, NOK, CHF)
◙ A single EU customs territory with ‘no borders’, but…
◙ Separate tax rules and regulations
◙ Import VAT and Duty payable in state where goods enter the EU
◙ Exceptions: LVCR (Low Value Consignment Relief) for low value items
◙ Off-shore fiscal representation options exist
◙ How to offer a single, workable, cost-effective solution for Europe?
Page 6Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Source: Emota
% of individuals who have never used the internet, 2011
Business opportunityfuture growth potential
Page 7
Almost a quarter of persons aged 16-74 in the EU27 have never used the internet
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 8
Consumers: Cross-border shoppingcommon in the Nordic countries, developing across Europe
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
Barriers and Needs
Overviewthe e-commerce value chain
Customer data & Marketing
Online appear-
anceOrder
managementWarehousing &
Distribution
Warehousing & Distribution
New customer
s
Existingcustomers
Shop platform Warehouse Delivery Return
Mgmt
Customer Care
Customer Service
Order preparatio
n
Billing & payment
Data Mining Customer
segmen-tation
Loyalty pro-grams
Online Campaigns
offline Campaigns
Individual Shop platforms
SME platform
Delivery cost calculator (guarantee)
Pick & pack
labelling
Central stocking
Inventory management
Customs VAT Home
delivery
Pickup points
Quality check
Restocking transpor-
tation to retailer
Consumer support
Track & Trace
Country specific payments
Credit check
Payment guarantee
Online Campaigns
offline Campaigns
Data Mining Customer
segmen-tation
Social Media integration
Address-Management
Search Engine optimization
Third party Platform management
Online Campaigns
offline Campaigns
Data Mining Customer
segmen-tation
Social Media integration
Address-Management
Newsletter-Management
Loyalty pro-grams
Individual Shop platforms
SME platform
Delivery cost calculator (guarantee)
Pick & pack
labelling
Central stocking
Inventory management
Customs VAT Home
delivery
Pickup points
Quality check
Restocking transport
to retailer
Consumer support
Track & Trace
Country specific payments
Credit check
Payment guarantee
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 10
Drivers and barriersreasons for/against cross border shopping
Source: IPC Cross border e-commerce report 2010
Main drivers for cross-border on-line shopping
Main barriers for cross-border on-line shopping
1. Pricelower prices, compare prices, better price due to lower taxes and exchange rates
1.No needCan find everything I need in my own country
2. Exclusive productsNot sold in own country
2. Lack of trustQuality of goods, not confident in receiving goods, warranty
3. Wider range of products 3. Possible high delivery costs
4. ConvenienceAny time of the day
4. Complicated & long return processes
Page 11Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
product and/or price attractiveness
competitive end-to-end delivery cost
„total cost of order“ transparency and guarantee
Secure and trusted home delivery
Transparent return processes
Shop promotion
support
Choose the right product segments in the respective scenarios
Find best process model for each scenario to achieve competitive cost structure
Develop calculator application and feed it with relevant data of products and overall delivery cost
Find ways to provide convenient return processes for each scenario
Provide Search Engine or comparison site
Provide retailer with innovative online promotion tools
Localized payment and escrow service
Provide escrow service to bring additional safety for retailer and shopper
Use track& trace of higher valuable products
What cross-border e-Commerce needs…from a private consumer’s perspective
Page 12Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
product and/or price attractiveness
competitive end-to-end delivery cost
„total cost of order“ transparency and
guarantee
Secure and trusted home delivery
Transparent return processes
Shop promotion
support Choose the right product segments in
the respective scenarios
Find best process model for each scenario to achieve competitive cost structure
Develop calculator application and feed it with relevant data of products and overall delivery cost
Find ways to provide convenient return processes for each scenario
Provide Search Engine or comparison site
Provide retailer with innovative online/offline promotion tools
Localized payment and escrow service
Provide escrow service to bring additional safety for retailer and shopper
Use track& trace of higher valuable products
What cross-border e-Commerce needs…from a merchant’s perspective
Page 13Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
product and/or price attractiveness
competitive end-to-end delivery cost
„total cost of order“ transparency and guarantee
Secure and trusted home delivery
Transparent return processes
Shop promotion
support
Choose the right product segments in the respective scenarios
Find best process model for each scenario to achieve competitive cost structure
Develop calculator application and feed it with relevant data of products and overall delivery cost
Find ways to provide convenient return processes for each scenario
Provide Search Engine or comparison site
Provide retailer with innovative online promotion tools
Localized payment and escrow service
Provide escrow service to bring additional safety for retailer and shopper
Use track& trace of higher valuable products
What cross-border e-Commerce needs…from a postal organisation’s perspective
Page 14Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
What consumers requirecertainty, predictability and trust
Page 15Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 16
While e-substitution is the driver for the decline in physical mail,
e-commerce is driving theonly significant growth in postal
services. IPC executive Forum on e-commerce, Oct. 2010
Why are posts so interested in e-commerce? huge potential
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The positioning of B2C Parcelhelping merchants and SMEs go cross-border
November 2010
2011
2012
Page 18
The role of B2C Parceldesigned to facilitate cross-border e-commerce
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
B2C Parcelproviding merchants with quality and reliability
100g to 30kg 26 countries Best-in-class postal partners Home delivery standard Track & Trace: cross-border parcel
tracking in ONE system Insurance 50 EUR per parcel or EUR
10 / kg (>5kg) Single point of contact Professional advice by your
personal Swiss Post customer advisor Local prepaid return solution Web-based customer interface Additional services (e.g. PickPoint)
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 19
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The positioning of goCommerce©
helping Swiss companies develop an online presence
www.post.ch/gocommerce
the online shop platform is the control centre of the entire value chain, because this process step influences practically all of the downstream, but also the upstream process steps
Shop platform seen as central control unit for the entire value chain
Successive modules are influenced by this control unit
Providing a shop platform means helping merchants grow
The importance of the shop platformbasis for international expansion
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 21
Text
Onlineshop
Integrated distribution interface
„Ready to use“ payment processing
◙ Boost revenue with new online sales channel – minimal upfront investment
◙ Exploit potential of domestic and cross-border e-commerce
◙ Save time and money with the integrated distribution interface
◙ Eliminate need for evaluating and programming shop software
goCommerce©
one contract – one partner – one turnkey solution
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 22
AW ShopPremium Design©
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 23
Integrated online payment via SwissPostproviding the best known online payment methods
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 24
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The positioning of POWAan international partnership designed for a rapid cross-border footprint
POWA (and VENDA)a stunning customer base
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 26
Creating International Siteslow risk, transaction-based model
• Traditionally companies try to layer multi-lingual, multicurrency into their main e-Commerce site
• Brands are turning to new secure ‘private cloud’ technology to deploy International sites using ‘cloning’
• Low-risk, fast deployment
• Dozens of sites in a few weeks
• Complementary to existing e-Commerce footprint
• PCI DSS Level 1 compliant – critical for foreign sites as some countries have PCI compliance embedded into criminal law
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 27
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The positioning of TLCSan essential building block to facilitate cross-border transparency
Page 29
Transparency:knowledge about total landed cost before closing the online deal generates security for the shopper
Trust:A guarantee that there will be no additional costs arising, offered by a trustworthy company (e.g. Swiss Post) generates trust
Cross border shoppingwhy are consumers reluctant?
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Simple Shipping
We provide shipping label, necessary forms and indicia
Simple Pricing/Billing
Regionalized pricing by zones Insurance, end-to-end tracking and address cleansing/correction at no additional charge Accurate pricing based on actual weight, detailed billing of each package shipped No more guessing.
Simple Tracking
End to end tracking across multiple carriers
Our Total Landed Cost Calculator Modela robust gateway for e-Commerce built upon 3 key principles
Page 30Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
Swiss Post creating the infrastructure for innovative cross-border e-Commerce
Swiss PostExcellence delivered
Idea
Originality
Vocation
Promise
Corporate culture
Excellence delivered.
We see ourselves as your partner. We make you
successful.
We are already working today on your success tomorrow. We deliver Swiss quality
worldwide.
We always producesomething extraordinary.
Page 32Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post
The positioning in BelgiumAssisting e-merchants to go cross border
Services available from Swiss Post Belgium as from today
Customer data & Marketing
Online appear-
anceOrder
managementWarehousing &
Distribution
Warehousing & Distribution
New customer
s
Existingcustomers
Shop platform Warehouse Delivery Return
Mgmt
Customer Care
Customer Service
Order preparatio
n
Billing & payment
Data Mining Customer
segmen-tation
Loyalty pro-grams
Online Campaigns
offline Campaigns
Individual Shop platforms
SME platform
Delivery cost calculator (guarantee)
Pick & pack
labelling
Central stocking
Inventory management
Customs VAT Home
delivery
Pickup points
Quality check
Restocking transpor-
tation to retailer
Consumer support
Track & Trace
Country specific payments
Credit check
Payment guarantee
Online Campaigns
offline Campaigns
Data Mining Customer
segmen-tation
Social Media integration
Address-Management
Search Engine optimization
Third party Platform management
Online Campaigns
offline Campaigns
Data Mining Customer
segmen-tation
Social Media integration
Address-Management
Newsletter-Management
Loyalty pro-grams
Individual Shop platforms
SME platform
Delivery cost calculator (guarantee)
Pick & pack
labelling
Central stocking
Inventory management
Customs VAT Home
delivery
Pickup points
Quality check
Restocking transport
to retailer
Consumer support
Track & Trace
Country specific payments
Credit check
Payment guarantee
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 34
International distribution servicesavailable out of Belgium
• Worldwide : B2C International / B2C Professionalup till 2 kgspostal channellow cost - no track & trace
• Worldwide : B2C Parcel up till 30 kgsB2C delivery servicevalue for money – track & trace
• Switzerland : B2C into Switzerlandduty free import solutions for consumers
• Norway: B2C into Norwayduty free import solutions for consumers
Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 35
e-commerce delivered.
Page 36Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012