international ecommerce
DESCRIPTION
Learn how to take your online business global the right way in this presentation. Draw conclusions from supporting data and know what benefits and challenges to consider when it comes to going international.TRANSCRIPT
GreetingsMelissa BlackburnSenior Manager, Sales
International E-commerceThe benefits and challenges of selling globally
Growth of E-commerce
Internet users in the world Distribution by World Regions - 2011
Source: Internet World Stats - www.internetworldstats.com/stats.htmBasis: 2,267,233,742 Internet users on December 31, 2011Copyright © 2012, Miniwatts Marketing Group
Asia - 48.8%
North America - 12.0%
Africa - 6.2%
Oceania / Australia - 1.1%
48.8%
22.1%
12.0%
10.4%
6.2%3.4%1.1%
Europe - 22.1%
Lat Am / Caribb - 10.4%
Middle East - 3.4%
The e-commerce market is poised forexplosive growth... globally
Source: Internet World Statswww.internetworldstats.com/stats.htm
Source: Goldman Sachs
North America 78.6%
67.5%
61.3% 500.7
39.5% 273.1
35.6% 235.8
26.2% 139.9
13.5% 77.0
46.0% 23.9
Oceania/Australia Asia
North America
Europe Europe
Latin America /Caribbean
Latin America /Caribbean
Middle East
Asia Africa
Africa
2010
2013
Middle East
World, Avg.
CAGR
Oceania /Australia
2011 Penetration Rate 2011 Millions of Users
e-Commerce Growth Projection in Billions of GBP
10% 10020% 20030% 30040% 40050% 50060% 60070% 70080% 80090% 900 1000
US EU Asia ROW Worldwide
£102.8 £121.0 £96.5 £34.6 £355.0
£145.9 £175.5 £200.3 £75.5 £597.1
12.4% 13.2% 27.5% 29.1% 19.4%
1016.8
What to think about?
Language Barriers
- Bob Pearson
“83% of the online population can be addressed with 10 languages”
Top 10 Languages on the Internet
Japanese
English
65.4
59.8
59.7
39.4
Portuguese
Chinese
German
Spanish
Arabic
French
Russia
Korean
All the rest
Millions of Users
50 100 150 200 250 300 350 500400 550450 600
99.1
536.6
82.5
444.9
75.2
153.3
350.6
Source: Internet World Stats - www.internetworldstats.com/stats.htmBasis: 1,966,514,816 Internet users on June 30, 2010Copyright © 2000 - 2010, Miniwatts Marketing Group
2010in Millions of Users
Currency Options
Euros 11.14%
7.18%
4.27%
3.94%
.70%
.68%
.64%
.62%
British Pounds Sterling
Canadian Dollars
Australian Dollars
Japanese Yen
South African Rand
Mexican Peso
Indian Rupee
Percent of Transactions
2% 4% 6% 8% 10% 12%
(excludes USD)
Source: 2Checkout
Preferred Payment Methods
Cards are the most popular - 69%PayPal next most popular - 40%Debit cards coming in third - 37%
Survey (19,000 consumers in 15 countries)
Source: Internet Retailer
Preferred Payment Methods by Region (Online)
80%
90%
100%
5964
56
69
63
86
2321
28
4
13
23
13 15 14
27
13126
13
29
18
1211 12 12
22
911
70%
60%
50%
40%
30%
20%
10%
Region
PercentPreferred
Global Asia Pacific Europe North America Latin America South Africa
%%
%
%%
%
% %%
%
%
%
% % %
%%
%%%
%
%
%%% % %
%
% %
Credit Card Bank Transfer PayPal Debit CardCOD - Cash on Delivery
Source: AC Nielson Global Consumer Attitudes Towards Online Purchases
Fraudulent Orders
2.5
3.0
1.1
1.31.2
1.6 1.7
1.9
2.32.5
2.01.7
2.1
2.0
1.5
1.0
.5
Per Year
£ Lossin Billions
2002 2003 2005 2007 2009 20112001 2004 2006 2008 2010
Online Revenue Loss Due to Fraud Estimated £2.1B in 2011
££
£
£ ££
££
££
£Source: CyberSource and Merchant Risk Council
Where Fraud Typically Appears
“Friendly Fraud” over the last 2 Years
Fraudulent orders continue to look like Valid orders
Increased
35%Yes
46%
Decreased
5%
Remaindedthe Same
60%No
54%
= % of merchants that claim current fraudulent orders are cleaner than those from 12 months ago
Source: CyberSource and Merchant Risk Council
Countries/Regions where Merchants have stopped shipping...
2011 Riskiest Countries1. Nigeria - 50%2. Ghana - 35%3. Malaysia - 33%4. Indonesia - 30%
5. Venezuela - 25%6. Vietnam, Russia - 23%7. Iran, South Africa - 20%8. Pakistan - 18%
9. China, Philippines, Signapore, India, Ukraine - 15%10. Egypt, Myanmar, Mexico - 13%
Africa &Middle East
65%West Africa
35%Latin &CentralAmerica
30%
Europe
38%
Asia Pacific
60%
Indonesia
30%
Malaysia
33%Venezuela
25% Ghana
35%
Nigeria
50%
In the past year, 25% of Merchants who accept international orders, stopped from at least one country due to high Fraud levels
Up from 20% in 2010
Stopped
25%
Continue
75%
Percent of Orders Rejected for Fraud
7.3%Outside your border
Increase in Fraud orders outside your border
Source: CyberSource and Merchant Risk Council
2.8%
Impact of Fraud
Real Cost = Fraud Prevention Expenditures
What are you spending?Measure how many orders are:
Flagged for review?Rejected for fraud?Accepted that turn out to be fraudulent?
---
Most Effective Fraud Tools
Customer order history
IP geolocation
Negative lists (in-house lists)
Fraud model (in-house)
Device fingerprint results
Address Verification Service
Paid-for public records services
CVN (Card Verification Number)
Order velocity monitoring
Contact customer to verify order
Multi-merchant Fraud Model
Payer Auth / 3D Secure
Credit history check
Shared negative lists - shared hotlists
Percent of Merchants
5% 10% 15% 20% 25% 30% 35% 50%40% 45%
Merchants Most Effective Tools
27%26%
25%
18%24%
15%
37%
46%
33%
39%
29%
38%
24%
17%
Source: CyberSource and Merchant Risk Council
Our Recommendation
Threshold for Loss
Outsource
Fraud ModelNegative & Positive ListsDevice Finger printingIP Geo Location
---
Choose your Overseas Markets
SRSR
International traffic & order originationCultural & language differencesEconomic & political policies Tariffs or trade barriers
Pinpoint the best country or region----
Research with Social Media
Facebook users Distribution by Countries
Source: www.checkfacebook.com
US - 34%
India - 10%
Mexico - 7%
Philippines - 6%
Turkey - 7%
Germany - 5%
34%
10%10%
9%
7%
7%
7%
6%5%
5%
Brazil - 10%
Indonesia - 9%
UK - 7%
France - 5%
Groups by region
Buy credits by country
Forums
Wall posts
Connect with e-commerce partners
We’re here to help, cheers!
Stand #822
[email protected]+44 (0)808 234 0487
2Checkout
Melissa Blackburn
Stand
#822
Find us at the show!