how to achieve profitability in global ecommerce
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Can I make any money with global ecommerce? Are overcoming the challenges and complexities worth it? Much is made of the promise of global ecommerce – but how profitable will it really be? There are many issues that can rob your profit margins, including unexpected customer charges, problems with tracking packages, local clearances and restrictions and delivery delays. The lure of new markets and increased revenue is appealing – but is profitable global ecommerce achievable? The answer is yes – and the solution lies in providing price-sensitive web consumers a high level of customer service and value. To get there, retailers must make these achievable goals a high priority: provide customers with a guaranteed landed cost before they buy; give them accurate delivery times; provide accurate package tracking. Miss any of these fundamental steps, and the above issues can quickly erode margins and curtail repeat business. This slide deck taken from our webinar with Multichannel Merchant on July 17 2014 provides actionable insights that will help you structure your global ecommerce program in order to guarantee the highest level of customer satisfaction and loyalty – and ensure profitability. Key takeaways: • How to create a cost-efficient international delivery network • How to provide global customers with complete landed costs • How to simplify the complexities of clearances and restrictions • Insights into market sizes and growth rates from Pitney Bowes market intelligence update View the webinar recording: http://multichannelmerchant.com/up-coming-webinars/achieve-profitability-global-ecommerce-24062014/TRANSCRIPT
How to achieve profitability in global ecommerce
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Agenda
1. US outbound market sizes and growth engines 2. 4 common challenges to selling globally 3. Avoiding these challenges 4. Case studies:
Rickshaw Bagworks PlanetShoes
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How big is global ecommerce?
1.15 billion digital buyers They will spend $1.5 trillion on ecommerce
purchases in 2014
Source: eMarketer, Worldwide B2C Ecommerce
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B2C ecommerce sales worldwide 2012-17
Trillions (US Dollars)
Note: CAGR 2012-2017=17.3%; includes products and services ordered and leisure and unmanaged business travel sales booked using the internet via any device, regardless of the method of payment or fulfillment. Source: eMarketer, Jan 2014
$1.058 $1.248
$1.500
$1.763
$2.043
$2.345
B2C Ecommerce sales
2012 2013 2014 2015 2016 2017
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By the numbers…
Source: Pitney Bowes Research Source: Pitney Bowes Research
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US is the FAVORITE shopping destination for global shoppers
Source: Nielsen Source: Pitney Bowes Research
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Red + gray=the untapped potential; All figures in the pie charts are in millions Source: Pitney Bowes Research
US cross-border ecommerce growth engines
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US cross-border ecommerce growth engines
Red + gray=the untapped potential All figures in the pie charts are in millions Source: Pitney Bowes Research
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Four Common Challenges To Selling Globally
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Challenge 1: Complex customs, duties, shipping restrictions and tax issues
27% of global e-retailers cite lack of knowledge of local rules and regulations acts as an inhibitor to cross-border ecommerce
20% are held back by complex foreign tax laws
Source: Payvision and CEPIS
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Challenge 2: Shipping complexities
Shipping takes too long Shipping costs are too high End-to-end tracking
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Challenge 3:
Long and complicated returns process
47% of global e-retailers indicated that rules and regulations for product returns play a critical role in cross-border ecommerce
Source: Payvision and Accenture
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Challenge 4:
Payment processing
53% of e-retailers indicated that providing a wide variety of payment options is complex
Source: Payvision and Accenture
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How global ecommerce should work
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Keys to success
Master the basics • Cost certainty • Reasonable shipping • Clear returns policy
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Master the basics
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Keys to success
Master the basics • Cost certainty • Reasonable shipping • Clear returns policy
Increase sophistication • Payment processing and
fraud management • Currency conversion • Localized site in-language
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Increase sophistication
Up to
80% lift in sales when displaying local currency
Source: International Business Times
Source: Internet Retailer
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Rickshaw Bagworks Case Study
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PlanetShoes Case Study
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Q&A Email: [email protected] Call: 855-PB-ECOMM