Post on 28-Sep-2020
Simply Global
Discover a world of ecommerce possibilities with Digital River
With the world economy expected to grow by 3.9 percent each year over the next two years, we are in the midst of the broadest global growth upsurge the world has seen this decade.1
This, coupled with increased internet usage across the globe — recent reports2 show that 4 billion people, over half the world’s population, are now online — has created unprecedented opportunities for businesses to reach new customers, in both established and emerging markets worldwide.
THE GLOBAL ECOMMERCE OPPORTUNITY
INTRODUCTION
More and more, we’re seeing ecommerce break
down borders, allowing businesses to capitalise
on this global economic opportunity.
In fact, in 2017 alone, global retail ecommerce sales
reached $2.304 trillion, demonstrating a nearly 25%
increase year-on-year.3
What does all this mean for you?
Now is the time to think global. Expanding to more
markets around the globe puts you in a position to:
• Access a larger ecommerce opportunity
• Offset slower online growth in mature markets
with faster growth in emerging markets
• Diversify revenues
But, in order to successfully go global, you must
also go local, offering familiar experiences that meet
the expectations of your customers, wherever they
may be in the world. Global ecommerce can be
challenging and nuanced, and success requires
a thoughtful approach.
With nearly 25 years of experience ensuring risk-free
global ecommerce in 244 countries and territories,
Digital River is well positioned to help you on your way.
In this interactive guide, we’ve selected a few countries
and regions that our clients partner with us to sell in
and could be part of your ecommerce expansion plan,
and walk you through the considerations for your
global success.
Start exploring!
1 Source: https://www.imf.org/en/Publications/WEO/Issues/2018/01/11/world-economic-out-look-update-january-2018
2 Source: https://wearesocial.com/blog/2018/01/global-digital-report-20183 Source: https://retail.emarketer.com/article/global-ecommerce-topped-23-trillion-2017-emarketer-
esti-mates/5a6f89f5ebd40008bc791221
INDIA (BRIC)
CHINA (BRIC)
RUSSIA (BRIC)
SPAIN
UNITED KINGDOM
BRAZIL (BRIC)
MEXICO
UNITED STATES
CANADA
Click a location on the map to explore the opportunities different countries present for your business. Digital River’s experts will guide you on your way, highlighting the key opportunities, challenges and considerations for expanding your business into different markets worldwide.
BEGIN YOUR TRAVELS
NORWAY
FRANCEGERMANY
SWITZERLAND
OPPORTUNITIES
Business to Consumer (B2C) ecommerce is showing
strong growth across all countries, particularly in
Mexico, which is enjoying a sustained period of
economic stability. The ecommerce market in
Mexico is expected to reach $16.191 million by 2022.4
While the U.S. market is the most mature in the
region, there are still large competitive opportunities
for businesses entering the market — particularly
given that nearly half of small businesses in the U.S.
still don’t have a website. The same is true in
Canada and with ecommerce sales accounting
for less than 3% of total sales, there is plenty
of room to expand.5
Read on to find out more about the key North
American countries representing a significant
ecommerce opportunity for businesses looking
to expand into this region.
CHALLENGES
• Geography: A vast and diverse landscape makes
logistics a challenge.
• Varying expectations: There are very specific needs
in each country, from currency through to culture.
• Security & trust: Brands must focus on building
confidence, partnering with trusted suppliers, as well
as highlighting product return policies to alleviate
security concerns.
• Payments: Low credit card penetration
in Mexico.
4 Source: https://www.statista.com/outlook/243/116/ecommerce/mexico 5 Source: https://globalnews.ca/news/3929131/canada-online-sales-ecommerce/
North America accounts for over half a billion people across the United States, Canada and Mexico. The region is home to Google, Apple, Walmart and Amazon, some of the biggest brands in the world.
But, this is a huge geographical area with diverse socio-economic factors that influence different levels of technology and ecommerce adoption from country to country. If you can successfully negotiate these challenges, the profit potential in this region is great.
WELCOME TO NORTH AMERICA
UNITED STATES OF AMERICA
OPPORTUNITIES
Although a seemingly mature and saturated
ecommerce market, the US continues to
evolve, particularly in mobile commerce,
which is expected to account for 27% of
ecommerce retail sales by the end of 2018.9
Incredibly, 46% of American small businesses do
not have a website, so there is still plenty of work
to do to make sure they don’t miss out. Yet, the
overall ecommerce market is currently growing
at around 12% annually and is forecast to reach
over half a billion dollars by 2019.10
With 82% of online users accessing a mobile
device for online shopping 11 and 31% of the
population searching for products on their
mobile device at least once per week,12 mobile
shoppers are also driving significant ecommerce
growth in the United States.
CHALLENGES
• Delivery expectations: The U.S. is full of savvy
online shoppers with high expectations. U.S.
shoppers expect fast delivery times. Speed
is key and great logistics are essential for
maintaining a competitive edge.
• Price consciousness: U.S. shoppers are
inherently wired to shop around for the
best deals, making the market increasingly
competitive for ecommerce businesses.
• Geography: Markets vary from state-to-state,
covering vast distances, with some
more lucrative than others. For instance,
California alone is now the world’s fifth
largest economy 13, so there is a need to
prioritise markets based on fulfilment
capabilities. There is no one-size-fits-all
policy here.
KNOW BEFORE YOU GO
• Opportunity size: The world’s second largest
retail commerce market, only after China.
• Banking & credit: 94% of the population have
bank accounts, and 60% of the population
have credit cards.
• Market: $16.6T GDP. Internet penetration is
88.5% at 286.9m people. 83% of internet users
will use a mobile phone to go online this year.
The U.S. ecommerce
market in 2017 was $453
billion and has grown 16.4%
year-on-year for the first
quarter of 2018.6
As the world’s second largest retail ecommerce market, the U.S. has
witnessed a rapid evolution in shopping habits. A substantial majority
of Americans, around 80%, have made an online purchase and this figure
continues to grow.7 Those that shop online regularly are more likely to prefer
shopping online than in-store. With a population of over 326 million people,
there is clearly significant opportunity for businesses looking to sell online
in this market.
The average annual ecommerce revenue per shopper in the U.S. is
$2,012.8 With Millennials and Generation Xers spending an average
of six hours per week shopping online, this figure could rise significantly
over the next 12 months.
6 Source: https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf 7 Source: http://www.pewinternet.org/2016/12/19/online-shopping-and-purchasing-preferences/ 8 Source: https://www.statista.com/chart/3790/e-commerce-revenue-per-online-shopper/9 Source: https://www.invespcro.com/blog/mobile-commerce/ 10 Source: https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/ 11 Source: https://www.statista.com/statistics/809665/us-online-users-shopping-reach-by-device/ 12 Source: https://www.slideshare.net/wearesocial/digital-in-2018-in-northern-america-86863088?qid=866b1624-3af0-4f7f-bc55-061f788f057e&v=&b=&from_search=1713 Source: https://www.theguardian.com/us-news/2018/may/04/california-economy-uk-fifth-largest
OPPORTUNITIES
In this digitally savvy nation, it’s perhaps
unsurprising that 93% of shoppers search
for and research products online before they
purchase. With 52% stating they shop online
for lower prices and 39% shopping online so
they don’t have to leave the house, there are
clearly defined groups to target.
Interestingly, less than half of the country’s
businesses have a website, which presents
an opportunity for ecommerce businesses
entering this market who can provide a
localised experience.
Canada has good mobile penetration at
83% and mobile ecommerce transactions
will account for approximately 30% of retail
ecommerce and 2.6% of total retail sales
this year.16
CHALLENGES
• Geography: Given the size of the country, it’s
not surprising that click and collect, or pick up
in store, is gaining traction. Logistics are key
for any ecommerce business, and in Canada
this is amplified.
• Localisation: Canadians are proud
nationalists and with 60% of consumers
preferring .ca websites because they are
Canadian17, it’s vital for ecommerce businesses
to offer a fully localised experience, including
a localised storefront, transaction currency,
and both English and French languages.
KNOW BEFORE YOU GO
• Currency: Canadian Dollar (CAD).
• Banking & credit: 99% of the population have
bank accounts, and 73% of the population
have credit cards.
• Market: $1.78 trillion GDP. Internet penetration
is 88.5% with 32.1 million users, while mobile is
83% with 29.8 million mobile users.
Canadians are more active online than any other nation, with the average
user spending over 36 hours online per month.14 Digital buyers recently
became the majority in Canada (there are 22.1 million online shoppers in
a country of 36.6 million people), presenting a wealth of opportunity for
ecommerce businesses to reach Canada’s active online population.
The opportunity is growing fast, too. The ecommerce market was
worth $31 billion in 2017 and is estimated to reach $44.6 billion in 2020.
Retail ecommerce sales climbed an impressive 30% in 2017, on the back of
increased domestic ecommerce sites, as well as increased commitment by
multinational outlets to the Canadian ecommerce market.15
14 Source: https://cira.ca/factbook/domain-industry-data-and-canadian-Internet-trends/internet-use-canada 15 Source: https://www.emarketer.com/Report/Ecommerce-Canada-2018-eMarketers-Latest-Forecast-with-Focus-on-Grocery/2002204 16 Source: https://www.emarketer.com/Report/Ecommerce-Canada-2018-eMarketers-Latest-Forecast-with-Focus-on-Grocery/2002204 17 Source: https://cira.ca/factbook/domain-industry-data-and-canadian-Internet-trends/internet-use-canada
52% of Canadian shoppers
state they shop online
for lower prices, while
39% shop online to not
have to go out.
CANADA
MEXICO
OPPORTUNITIES
Mexico has the largest online Spanish
speaking population in the world and is one
of the top ten countries with the highest
number of internet users, at more than
85 million.20
Ecommerce is booming in this hyper-connected
country, with revenues expected to grow
more than 16% year-on-year, and likely to
reach U.S. $17.6 billion by 2020.21 Mobile
commerce in particular is a great opportunity
given the higher mobile than desktop internet
penetration figures. This, combined with
economic growth, makes Mexico an extremely
attractive market for businesses focused on
international expansion.
CHALLENGES
• Payment methods: Mexico has an average
of 0.8 credit cards per household, a figure
below many of its Latin American neighbours.
However, Mexico also has more debit
cards per household than most other Latin
American countries.22 Cash payments and
interest-free monthly payment instalments are
also popular options for Mexican shoppers.
• Immature web experience and logistics:
In addition to nuanced payment
considerations, in a study of Mexican online
retailers, A.T. Kearney found that factors
such as poor website experience and long
delivery windows were leaving Mexican online
shoppers dissatisfied.23 Offering a cohesive
buying experience from your website through
to purchasing and delivery will be key to
success in this promising market.
KNOW BEFORE YOU GO
• Currency: Peso (MXN).
• Banking & credit: 39% of the population
have bank accounts, and 18% of the
population have credit cards.
• Market: $1.21 trillion GDP. Internet penetration
45.1% with 58 million people. Mobile
penetration 86% with 106.8 million people.
Mexico is one of the top countries in the world for ecommerce growth.
To find the ecommerce sweet spot, look no further than Mexico’s growing
youth population. There’s an increasing number of young people buying
smartphones and making purchases online, stimulated by the stable and
growing economy (the Mexican economy will grow at around 2% in 2018
and 2019)18. In fact, online shoppers in Mexico are making more online
purchases via a smartphone than consumers in Brazil, United States,
Canada or Europe.19
Although Mexico is the second largest ecommerce market in Latin America,
it’s largely untapped, as Mexican retailers lag behind when it comes to
having an effective online presence.
18 Source: http://www.oecd.org/mexico/global-and-mexico-economic-outlook-2018.htm 19 Source: https://www.pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1520950836887-296 20 Source: https://www.statista.com/statistics/262966/number-of-internet-users-in-selected-countries/ 21 Source: https://www.eshopworld.com/blog-articles/mexican-ecommerce-insights/ 22 Source: https://www.atkearney.com/documents/10192/7376563/2016-The+Tipping+Point+for+E-Commerce+in+Mexico.pdf/f8b81c37-a042-454b-9a62-43140cf083a1 23 Source: https://www.atkearney.com/documents/10192/7376563/2016-The+Tipping+Point+for+E-Commerce+in+Mexico.pdf/f8b81c37-a042-454b-9a62-43140cf083a1
Mobile commerce
represents 24.5% of total
retail ecommerce sales in
Mexico, and is expected to
reach 35.4% in 2020.
OPPORTUNITIES
The proportion of consumers shopping online is
highest in mature European ecommerce markets,
87% in the UK and 82% in Germany. However,
it’s worth keeping an eye on the wider region, as
the Netherlands and Italy are predicted to be the
fastest-growing ecommerce markets in Europe
over the next five years.24
Technology is driving growth in this region, with
mobile commerce sales in Western Europe predicted
to account for 42.6% of the region’s retail ecommerce
market by 2021.25
The EU’s Digital Single Market strategy is removing
barriers to online trade within the EU, with the EU
looking to create a digital version of its free-trade
single market, prohibiting price discrimination against
customers in different EU countries.26
Continue reading to discover the European countries
representing a significant ecommerce opportunity
for businesses expanding out of their home markets.
CHALLENGES
• Regulation: In May 2018, The EU’s General Data Protection
Regulation (GDPR) came into force. As these rules empower
digital consumers around the region to take more control
over the ways in which their personal data is used, the
implications for any organisation doing business in the
EU can’t be underestimated.
• Politics: The changing political climate, including ongoing
Brexit negotiations, threatens to impact the Single Market
trade and tax laws in the region.
24 Source: https://ecommercenews.eu/fastest-growing-ecommerce-markets-europe/25 Source: https://www.emarketer.com/Report/Western-Europe-Retail-Ecommerce-Update-
eMarketers-Estimates-Forecast-20162021/200218426 Source: http://uk.businessinsider.com/eu-set-for-impressive-e-commerce-growth-but-brexit-
challenges-loom-2017-6
European countries have been leading the way in shaping consumer ecommerce trends, with countries such as the United Kingdom, France and Germany home to booming online markets.
WELCOME TO EUROPE
OPPORTUNITIES
The UK currently has the strongest ecommerce
market in Europe and is predicted to grow to
the third largest in the world by 2021.30
This year, for the first time, digital purchases will
account for more than 21.2% of total retail sales
in the UK,31 which is almost double the average
for Western Europe.
For businesses looking to enter this market,
the profit potential is enormous, with online
shoppers in the UK spending more per
household than consumers in any other country
at an average of £4,611 (USD $6,597) spent
online annually.32
CHALLENGES
• Brexit: Brexit has caused instability and
uncertainty in the UK market, which
has resulted in slowed down growth.
The implications of potential Brexit-related
trade restrictions could have an impact on
domestic goods and services.
• High expectations: Although the demand for
ecommerce in the UK is huge, the maturity
of the market also means that customer
expectations are higher. UK customers tend to
know what they want, and often they expect
personalisation and free shipping as standard.
KNOW BEFORE YOU GO
• Market opportunity: Fourth largest
ecommerce market in the world after Japan,
China, and the U.S. – predicted to grow to the
world’s third largest market by 2021.
• Banking & credit: 99% of the population
have bank accounts, and 62% of the
population have credit cards.
UNITED KINGDOM Online sales per person are the highest in the UK compared to any
other country, with an estimated 87% of UK consumers shopping
online.27Already thriving, the UK ecommerce market is set to continue
to grow at a rapid pace in the coming years, across all devices.
There is strong growth in mobile, which currently accounts for over half of
all online purchases and is expected to reach 48.6 billion euros by the end
of 2018.28 Overall online sales growth is also strong, with sales up 13.9%
year-on-year in January 2018.29
27 Sources: http://www.bbc.co.uk/news/business-39655039; https://www.nasdaq.com/article/uk-online-shopping-and-e-commerce-statistics-for-2017-cm761063 28 Source: https://www.emarketer.com/Report/UK-Retail-Ecommerce-eMarketers-Updated-Estimates-Forecast-20162021/2002188 29 Source: https://www.imrg.org/media-and-comment/press-releases/uk-online-retail-sales-growth-up-in-january-2018/ 30 Source: https://www.worldpay.com/uk/about/media-centre/2017-10/uk-ecommerce-market-set-for-strong-growth-powered-by-rise-in-ewallets 31 Source: https://www.emarketer.com/Report/Western-Europe-Retail-Ecommerce-Update-eMarketers-Estimates-Forecast-20162021/2002184 32 Source: http://www.bbc.co.uk/news/business-39655039
Online shoppers in
the United Kingdom spend
more per household
than consumers in
any other country.
OPPORTUNITIES
Germany is a leading global economy,
with a highly sophisticated logistics
infrastructure — ranked number one
on the Logistical Performance Index —
meaning the country is able to manage
internal as well as cross-border sales and
transportation of goods and products.38
Germany has a regulatory and economic
foothold in the EU, which can make this strong
market opportunity all the more appealing to
businesses looking to expand into this country.
It also has a high percentage of English
speakers (64%).
Additionally, Germany is one of the world’s
strongest exporters, to countries such as the U.S.
and China,39 making the country both receptive
and able to facilitate global ecommerce.
CHALLENGES
• Tax: The country has high marginal tax
rates and complex tax laws.
• Regulations: Regulations often favour
established local businesses, which
ecommerce businesses should aim to
understand before entering the market.40
• High expectations: German shoppers have
high expectations of brands they buy from
online, with 77% expecting orders to arrive
between 3-5 days. With the highest product
return rates in Europe (50% on average),
German shoppers expect free returns as
a standard service.
KNOW BEFORE YOU GO
• Currency: Euro (EUR).
• Banking & credit: 99% of the population
have bank accounts, and 46% of the
population have credit cards.
• Payment preferences: German consumers
often prefer to pay by direct debit – not a
debit card, mind you, but a direct debit from
local banks.
• Market: $3.7 trillion GDP. Internet penetration
is 88% with 71 million people. Mobile
penetration is 117%.
GERMANY Germany is Europe’s largest economy, which in 2017 logged the highest
annual surplus since its unification in 1990.34 In addition to having one of the
strongest economies in the region, Germany boasts a growing population of
online shoppers. In fact, ecommerce is thriving, with 89% of the population
using the internet.35
The nation has a total of 51.6 million online shoppers, each spending an
average €1,157 (GBP £1,000; USD $1,430) per year.36 Ecommerce now accounts
for 14% of the country’s total retail sales.37 With the market valued at €58.4
billion in 2017 and growing at 11.6% annually, the opportunity for brands to
tap into Germany’s online purchasing power is significant.
33 Source: https://www.essentialretail.com/analysis/577d0c4f0cacd-retail-country-in-focus-germany/ 34 Source: https://www.dw.com/en/germany-confirms-2017-surplus-and-gdp-growth/a-42706491 35 Source: https://www.ecommerce-europe.eu/research-figure/germany/ 36 Source: https://www.ecommerce-europe.eu/research-figure/germany/ 37 Source: https://ecommercenews.eu/ecommerce-germany-worth-e58-4-billion-2017/ 38 Source: https://lpi.worldbank.org/international/global 39 Sources: https://eu.usatoday.com/story/money/2017/06/01/heres-why-germanys-trade-surplus-us-so-big/102349370/; https://www.cbs.nl/en-gb/background/2017/10/what-does-china-buy-from-us-and-our-neighbours- 40 Source: https://www.internations.org/germany-expats/guide/29458-social-security-taxation/taxes-in-germany-15969
Germany is known
for having one
of the highest
product return rates
in Europe, with estimates
at around 50%.33
OPPORTUNITIES
With over 80% of the population shopping
online, the French ecommerce opportunity
is strong for growth-minded businesses
considering this market. This figure continues
to grow, with ecommerce in France estimated
to be worth €100 billion by 2019.46
Brands looking to win market share in France
will need to focus on competitive pricing
and promotions to win over these shrewd
shoppers. In fact, a recent study found French
consumers among the most likely in the world
to be influenced by price or promotions, with
customers saying these were the factors that
drove their most recent product choice.47
CHALLENGES
• Payments: There are certain payment
nuances to consider in France, with popular
payment methods including Carte-Blue,
a debit card that can be used as a
credit card, as well as Visa.
• Declining order values: For the sixth
consecutive year, average cart value
declined.48 This is offset by purchase frequency,
which has increased over the last 3 years,
presenting a lucrative opportunity for brands
offering a seamless customer experience to
encourage repeat purchases.
KNOW BEFORE YOU GO
• Currency: Euro (EUR).
• Banking & credit: 97% of the population
have bank accounts, and 44% of the
population have credit cards.
• Market: $2.8 trillion GDP. Internet
penetration 86.4% with 55.8 million
people. Mobile penetration is 102.6%.
FRANCE France is ranked the sixth largest ecommerce market in the world and the
third largest in Europe, behind only the United Kingdom and Germany.42
France’s economy is expected to recover from a slow start to 2018 with
2% growth forecast for the year.43
French shoppers spend an average of €70 per order on online orders,
with 24% of shoppers making online purchases more than twice a month.44
These digital shoppers are active across a range of devices. In fact, France
is the fourth biggest m-commerce market in the world, with mobile
commerce representing around 32% of online sales and contributing
to the country’s overall ecommerce market growth.45
42 Source: https://ecommercenews.eu/ecommerce-per-country/ecommerce-france/ 43 Source: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-country/france/economic-forecast-france_en 44 Source: https://een.ec.europa.eu/sites/default/files/een_guide_ecommerce_2018.pdf 45 Source: https://ecommercenews.eu/mcommerce-uk-germany-france-e85-billion-2018/ 46 Source: https://ecommercenews.eu/ecommerce-france-will-worth-e100-billion-2019/ 47 Source: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/01/the-truth-about-online-consumers.pdf 48 Source: https://www.ecommerce-europe.eu/news-item/french-ecommerce-report-2017-online-sales-14-year-year/
80% of the
French population
shops online.
OPPORTUNITIES
Spanish consumers often find the best prices
online by searching across multiple sites (56%
choose to buy from a site based on price and
64% state free delivery is important).
In a bid to find the best deals they are not
afraid of sourcing products internationally.
In fact, of the 6.8 billion euros spent online by
Spanish consumers in the first quarter of 2017,
just over 55% went to Spanish online stores,
with the remaining 45% going to foreign
ecommerce websites.53 Understanding this
price-conscious market and catering to its
competitive expectations will fuel success
for businesses looking to capitalise on Spain’s
ecommerce opportunity.
Spain is considered to have one of the largest
smartphone penetration rates in Europe and
around 35% of shoppers made a purchase
using a mobile device in 2017. Therefore, it’s
vital to offer a seamless customer experience
that caters to these active buyers, no matter
the device.
CHALLENGES
• Abandoned carts: The main cause of
abandoned carts in Spain is a difficult
payment process. In fact, 41% of customers
would abandon their cart if there was a
charge for using their preferred payment
method and 39% would leave if their preferred
method wasn’t available.54
• Logistics: Spanish shoppers expect their
delivery in 3-5 days regardless of proximity.
Fulfilment must be a top consideration before
entering this market.
• Market maturity: Although the market
represents a wonderful growth opportunity,
the Spanish market is relatively immature in
relation to its Western European counterparts.
KNOW BEFORE YOU GO
• Currency: Euro (EUR).
• Banking & credit: 98% of the population
have bank accounts, and 54% of the
population have credit cards.
• Market: $1.4 trillion GDP. Internet penetration
82.2% with 37.9 million users. Mobile
penetration is 108.2%.
SPAIN The Spanish have the largest ecommerce market in Southern Europe, with the appetite for
online shopping growing — 28% of online stores in Spain participated in Cyber Monday last
year.49 Once you have established a local ecommerce presence in dominant European markets
like the U.K. and Germany, Spain is a strong market to consider as part of your expansion plan.
With an estimated 49.2% of the country’s population buying digitally in 2017 (compared with
78.1% of the population in the UK and 68.3% of residents in Germany), it’s clear that this growing
market is ripe with opportunity for businesses looking to expand their European footprint.50
Spain is expected to see economic growth of around 2.9% this year.51 As a result, there is
consumer confidence in the country, which is helping fuel growth in retail sales. The Spanish
ecommerce market is growing year-on-year, with ecommerce expected to account for 6.7%
of total retail sales this year.52
49 Source: https://ecommercenews.eu/47-5-spanish-online-stores-participate-black-friday/ 50 Source: https://www.emarketer.com/Article/Optimism-Ecommerce-Spain/1015722 51 Source: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-country/spain/economic-forecast-spain_en 52 Source: https://www.statista.com/statistics/379137/e-commerce-share-of-retail-sales-in-spain/ 53 Source: https://ecommercenews.eu/ecommerce-spain-grew-25-first-quarter-2017/ 54 Source: https://www.retail-week.com/analysis/how-to-guide-cracking-spanish-ecommerce-in-three-steps/7029063.article?authent=1
60% of the Spanish
population shop online but
this is mobile territory.
As you explore your options for ecommerce expansion in Europe, it’s also worth considering those countries that are situated outside of the European Union but hold strong trade opportunities for ecommerce businesses that are up to the challenge.
Here we give you a top-level overview of two of these countries worthy of consideration.
OPPORTUNITIES
The Norwegian and Swiss ecommerce markets are
growing year on year. In Switzerland, only 6% of
the population haven’t purchased online, while the
number of those who are shopping online is set to
reach 5.5 million by 2021.
Similarly, in Norway an impressive 93% of all internet
users shop online, while 4.65 billion euros were spent
on ecommerce websites last year.55
CHALLENGES
Trading separately to the Eurozone, these
countries present their own complex tax
and regulatory challenges.
Local knowledge is essential to navigate
the administrative landscape for any business
looking to pursue ecommerce opportunities
in these markets. This is where the guidance
of an expert partner can be invaluable.
WELCOME
Norway and Switzerland both have their own currencies,
which means their economies and GDP have been able
to maintain independent strength despite economic
uncertainty in Europe.
While the market opportunity for ecommerce is strong, it
also calls for an in-depth understanding of the complexity
of these countries, as they operate under separate free trade
agreements to their EU cousins.
55 Source: https://ecommercenews.eu/nordic-ecommerce-worth-e20-6-billion-2017/
COUNTRY SNAPSHOTS WELCOME TO NORWAY AND SWITZERLAND
NORWAY
Sitting outside of the Eurozone, Norway
has a strong and stable economy that
boasts almost 3.2 million online shoppers.
Thanks to high disposable incomes,
the average online shopper spends
more than $2,600 annually.57
However, it’s worth bearing in mind
that there are also complex tax and
regulatory requirements, which make
entering the ecommerce space in
Norway a difficult challenge.
SWITZERLAND
Like Norway, Switzerland sits outside of
the European Union, and has much lower
Value Added Tax (VAT) than other EU
member states.
By 2017, half of Swiss shoppers were making
an online purchase every month, with 18%
making an online purchase every week, and
4% every day.59
It’s important to note, that due to not being
part of the EU, Switzerland has its own,
highly regulated market. Domestic rules and
regulations apply, which can make it a complex
terrain to navigate.
NORWAY AND SWITZERLAND
56 Source: https://www.eshopworld.com/blog-articles/norway-ecommerce-insights-2018/ 57 Source: https://www.eshopworld.com/blog-articles/norway-ecommerce-insights-2018/ 58 Source: https://iceclog.com/swiss-ecommerce-experienced-record-growth-in-2017/ 59 Source: https://www.asendia.com/news-blog/the-swiss-e-commerce-trends-your-business-needs-to-know/
There are 3.17 million
online shoppers
in Norway.56
In 2017, the Swiss
ecommerce market grew by
10%, but 56% of consumers
seldom or never use
their smartphone for
online purchases.58
In addition to established global ecommerce markets, it’s worth considering emerging markets that hold a lot of promise for ecommerce expansion. Here, we give you a top-level overview of the BRIC countries, which are collectively expected to spend over $1 trillion on B2C ecommerce by 2022.60
OPPORTUNITIES
The BRIC countries are undergoing rapid population
growth, as well as fast paced economic development.
The targetable market within BRIC countries is
therefore ever increasing.
The rapidly growing middle classes in these countries
have seen disposable incomes rise significantly, as
Western appetite for their exports grows and, in turn,
boosts the BRIC economies.
CHALLENGES
The BRIC countries are characterised by rapid
development, yet their current socio-economic
statuses sit somewhat behind European and
North American markets. This can present a
number of hurdles for ecommerce businesses
looking to expand into these countries.
WELCOME
The so-called BRIC countries are made-up of Brazil, Russia,
India and China. They were originally grouped together for
economic reasons, as part of a Goldman Sachs economic
paper.61 The theory being that they had the potential to
change the world economic order.
And for good reason. After all, these countries jointly include
over 25% of the world’s land coverage, 40% of the world’s
population and hold a combined GDP of $20 trillion.62 For instance, poor infrastructure combined
with a lack of credit card penetration and
a desire for alternative payment methods,
such as cash-on-collection, can make
the purchase and delivery of goods and
services a challenge in the BRIC countries.
COUNTRY SNAPSHOTS WELCOME TO THE BRIC COUNTRIES
60 Source: https://www.statista.com/statistics/255268/bric-b2c-e-commerce-sales/61 Source: https://www.goldmansachs.com/insights/archive/archive-pdfs/ build-better-brics.pdf62 Source: https://en.wikipedia.org/wiki/Gross_domestic_product
BRAZIL
Brazil has the biggest and most developed
ecommerce market in Latin America,
accounting for 42% of Latin America’s
ecommerce.
With 61.1 million online shoppers currently, and
set to rise to 94.6 million by 2021, there is an
enormous opportunity for any business looking
to expand their footprint into this region.64
Yet, Brazil is a complex country to begin
selling in; lack of visibility and slow shipping
speeds, as well as tax and regulatory
requirements can present challenges
for businesses entering this market.
RUSSIA
In the first quarter of 2017, Russians spent 106%
more in foreign online stores than the previous
year. In 2016, 80% of Russia’s cross-border
orders came from China.65
Ecommerce is a fairly new concept within Russia,
yet with the largest online audience within
Europe, currently set at 102 million, ecommerce
is a trend that is set to grow.66
There is huge profit at stake for any ecommerce
business looking to expand into this region.
But be aware, Russia’s vast geography and
sensitive political climate can make navigating
this country challenging for businesses entering
this region for the first time.
BRAZIL AND RUSSIA
63 Source: https://www.statista.com/statistics/251659/number-of-digital-buyers-in-brazil/ 64 Source: https://www.eshopworld.com/blog-articles/brazil-ecommerce-insights-2017/ 65 Source: https://bearmarketbrief.com/2018/02/12/crouching-bear-hidden-dragon-china-and-the-future-of-russias-e-commerce-market/ 66 Source: http://blog.webcertain.com/the-most-popular-russian-search-engines/02/03/2018/
There are 73 million
online shoppers in Brazil,
reaching 87 million
by 2020.63
46% of online shopping
in Russia came from
25-54 age category.
INDIA
Ecommerce is accelerating at a rapid rate
in India, but there is still plenty of room for
growth. It’s currently estimated that only 14%
of India’s internet users are shopping online,
with these numbers set to skyrocket in the
next five years.
In fact, Morgan Stanley predicts that the number
of online buyers will exceed 475 million by 2026,
from 60 million in 2016.
With more of the population shopping
online, as internet penetration and access
to smartphones rises, India is becoming an
increasingly attractive market for ecommerce
expansion. However, this can be a complex
market to enter, with cash-on-delivery still
being the most popular payment method, and
government regulations limiting the penetration
for international ecommerce businesses.
CHINA
Ecommerce is booming in China, with 40%
of global ecommerce spending coming from
the country, and the outlook is that it’s only
set to increase.70
The Chinese government now facilitates
favourable economic trade conditions
for international merchants, meaning the
opportunity for ecommerce businesses looking
to expand globally into this region has never
been so timely.
Before thinking about entering the Chinese
ecommerce space, be aware that localising
content and shopping experience is very
important to the Chinese and is essential in
gaining consumer trust.
INDIA AND CHINA
67 Source: https://www.export.gov/article?id=India-e-Commerce 68 Source: https://qz.com/1089559/morgan-stanley-explains-why-indias-e-commerce-market-is-a-hot-investment-opportunity/ 69 Source: https://www.indez.com/blog/sell-products-china-using-ecommerce/ 70 Source: https://www.export.gov/article?id=China-ecommerce
Ecommerce in India is
growing at an annual
rate of 51%.67
China’s ecommerce
market is expected
to reach $1.6 trillion
by 2019.69
How do you create a localised storefront in Spanish or manage product fulfilment while protecting against fraud and adhering to complex local tax rules? Expanding out of your home market to capitalise on the global ecommerce opportunity can be a complicated business, with a number ofnuanced regional considerations.
From payments and logistics to language and laws, no country is the same. Each region has its own risks but also opportunities. Understanding how to mitigate the risks and take full advantage of those opportunities is the challenge, which is why Digital River, with expert local knowledge across Asia, Europe and North and South America is an ideal partner to help you on your journey.
Digital River is a global leader in providing comprehensive ecommerce solutions and is a trusted partner to top enterprise software, consumer electronics and digital game brands. Our agile, always-on cloud-based systems are designed for speed to global markets. Able to transact in 244 countries and territories, we are more than just a global partner, we are also your local ecommerce guide. We take care of your local banking relationships and act as your Merchant and Seller of Record. We absorb your risk and we ensure that your entire customer payment experience is fully localised. Wherever you are looking to take your business, Digital River can support you.
In short, Digital River helps you break down the barriers of global ecommerce, taking care of the “how” so that you can get on with trading, wherever you are in the world and wherever your potential customers may be.
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