international market overvie...marketplace and within metapack . page 7 service characteristics...
TRANSCRIPT
Terry Man,
International Product Manager
International
Market Overview
Page 2
Agenda
Introduction to International eCommerce
Types of delivery services available in the market
Launch strategy and entry to International markets
Popular duty management models in the market
Page 3
Introduction to International shipping for retailers
Potential customers and tomorrow’s prospects
Online retail store effectively gives you access to whole new markets
• 2 billion active Internet users in 2010
• 5 billion active Internet users in 2020
Pure play e-tailers Asos.com
• 2012 Annual report – International business accounts for over 50%
of total group’s retail sales
International eCommerce is the platform of choice to sustain explosive
growth
Digital footprint on World Wide
Web
Online retail channel
International borders
[1] Google presentation IMRG International Seminar London March 2011
[2] International retail sales accounted for 59% of total retail sales (2010/11: 37%). 3rd Nov 2011 Half Yearly report – Asos.com
Investor Relations
Page 4
Introduction to International shipping for retailers
Items to consider for International logistics that weren’t as pivotal in
domestic models:
Customs – Duty, tax, charges, and trade restrictions
Documentation – Licenses, forms, addendum, and declarations
Price – International orders typically take longer, balance between total
landed price and service versus purchasing locally,
Service – Visibility of packages, transit times, network strength,
localisation
Returns – Process, operational impact, cost, and legal requirements
Page 5
Introduction to International shipping for retailers
Key objectives as a retailer
Removing barriers to purchase from you online
Improvement of your delivery proposition
More people are opting to buy online
Easier to buy online than ever before – tools and software
Logistics solutions in the marketplace targeted to eCommerce
Page 6
Types of delivery services in the market
Non Guaranteed
Royal Mail
TNTPost
LaPoste
DHL Global Mail
2-6 day service
HYBRID
Worldnet Direct
24/48 hour service
EXPRESS
DHL
FedEx
UPS
DPD
TNT
Categorise 3 major types of delivery services in the
marketplace and within MetaPack
Page 7
Service characteristics
•Affordable
•Non guaranteed service
•Strong residential networks ideal for B2C shipments delivery and collection
•Strong in-country brand recognition and experience •Tracking available on certain products
Mail characteristics
•Premium service and pricing
•Time/day definite delivery windows with money back guarantees •Proprietary networks boosting security •Air lifting for rapid transit times
•Full end to end shipment tracking and paperless Customs clearance
Express courier characteristics
•Priced within mail range •Consolidation of packages and injection into partner networks (mail or domestic courier) •Express line haul to destination country
•Tracked product and paperless Customs clearance
Hybrid Direct injection
characteristics
Page 8
Immediate start destinations
No Customs clearance
Minimal/No paperwork
No additional duty or tax
Destinations with strong English comprehension
No different from/ experience close to domestic
despatch
Destinations you should be shipping to now
• 27 Member countries within EU
• Free ports/ economic zones
Page 9
Initial Launch Destinations
Dependant on profile and average basket value
High duty thresholds – no duty or tax collection on
majority of orders
Support electronic clearance
Destinations with strong English comprehension Duty Threshold Equivalent
Australia 1,000 AUS £650
New Zealand 400 NZD £200
U.S.A 200 USD £120
Japan 10,000 YEN £77
South Korea 100 USD £60
Mexico 50 USD £30
Canada 22 CAD £14
Brazil 1 USD £0.60
IMRG Average Order Value: April 2011 £170 / April 2010 £85
Page 10
Phased Launch Destinations
Low duty thresholds increasing likelihood of
additional charges on every shipment
Duty solution recommended to collect duty up front
to reduce return rates
Will require translation and localisation to make
significant impact
Partnership with carriers with strong networks and
relationships to minimise lost in transit rate
Page 11
Improve international sales for shipping lanes
For better results or higher yield of successful transactions
Work with partners with a strong local brand or expertise
Localisation of website recommended for better results
Search Engine Optimisation required
Translation of content to native language preferred
Active listing strategy vs. passive sales
Duty solutions to improve customer experience
Page 12
Approaches to duty management
A duty unpaid solution vs a duty paid managed solution
• Notification vs Collection
Duty paid solutions
• Import charges absorbed by the retailer
• Import charges indirectly paid by the buyer via inflation of product, shipping
cost, exchange rate, VAT inclusive pricing
• Import charges directly paid by the buyer and separated from all other items
for total visibility
Collection of duty
• Retailer collecting on behalf of destination Customs
• Outsourcing collection to 3rd parties post sale
• Cash on delivery