Case Study: CorreiosNet Shopping - PymesprácTICas...Feb 20, 2007 · zE-commerce platform with two...

Case Study: Case Study: CorreiosNet ShoppingCorreiosNet Shopping

The Brazilian Post eThe Brazilian Post e--commerce portalcommerce portal

Antonio BraquehaisAntonio [email protected]@correios.com.br

Head of Internet Business DepartmentHead of Internet Business Department

22

AgendaAgenda

eCommerce in BrazileCommerce in Brazil

Case Study DescriptionCase Study Description

CorreiosNet ShoppingCorreiosNet Shopping

Lessons LearntLessons Learnt

RecommendationsRecommendations

33

eCommerce TurnovereCommerce Turnover

Source: e-Bit – Feb 2007Growth 2001 – 2006 = 701%* 2007: forecast

0,55 0,85+55%

1,20

+41%

1,75

+47%

2,50

+43%

4,40

+76%

6,40

45%

2001 2002 2003 2004 2005 2006 2007*

eCommerce in Brazil - Retail Turnover (R$ billion)

44

Virtual ConsumersVirtual Consumers

2,53,3

4,8

7,0

9,8

2003 2004 2005 2006 *2007

eCommerce in Brazile-Consumers (millions of users)

33 million Internet

users

Source: e-Bit – Feb 2007* 2007: forecast

55

Consumer ProfileConsumer Profile

Age

Up to 171%

25 to 3432%

35 to 4938%

50 to 6414%

Over 642%

18 to 2413%

Less than 1,0006%

3,001 - 5,00028%

5,001 to 8,00017%

More than 8,00011%

1,001 to 3,00038%

Family income

Source: e-Bit – Feb 2006

66

BestBest--selling Productsselling Products

Average Ticket R$ 296.00 ~ US$ 140

Source: e-Bit – Feb 2007

15%

16%

17%

Electronic Goods

CDs and DVDs

Books, Mags &Newspapers

eCommerce in Brazil Best Selling Products - 2006

77

Consumer SatisfactionConsumer Satisfaction

• The surfing experience – usability and performance• Service• After Sales – packaging and delivery time Source: e-Bit – Feb 2007

eCommerce in BrazilConsumer satisfaction index

78,8%

86,0%84,6%

85,9%87,7% 87,4%

dez/00 dez/01 dez/02 dez/03 dez/04 dez/05

88

AgendaAgenda






99


CorreiosNet Shopping is an eCommerce platform used by CorreiosNet Shopping is an eCommerce platform used by

the Brazilian Post and its customers to sell products and the Brazilian Post and its customers to sell products and

services via the Internet. It operates in three areasservices via the Internet. It operates in three areas

1010


Hosting of shops

Methods of delivery

Methods of payment

Sale of third party products

Shopping trolleyProduct catalog

Sale of own products

Order collecting shops

1111

AgendaAgenda






1212


Sale of third party productsSale of third party productsCorreiosNet Shopping hosts around 500 virtual shops

Sale of own productsSale of own productsCorreios OnLine is the Brazilian Post’s virtual shop with over 300 products and 4 services available

Order collecting shopsOrder collecting shopsThe CorreiosLog shop is used exclusively for collecting orders through the site or the Customer Service Line (CSL), for the Integrated Logistics service

1313


The Brazilian Post’s eCommerce solution for hosting a virtual shop and carrying out secure transactions over the Internet

1414

CorreiosNet Shopping CorreiosNet Shopping

Comparison shopping tool in CorreiosNet ShoppingE-commerce platform with two types of shops

Hosted shopBeginning storekeepers$ 0,00/month + 3% transaction fee

Linked shopSenior e-storekeepersRemote freight calculationMonthly fees

New in 2007: Self-service hiring On-line payment by credit card or e-mail invoice bill

1515

Virtual store hostingVirtual store hosting

CorreiosNet Comparison Shopping

Brazilian PosteCommerce Solution

Virtual Internet shop

linked shop

hosted shop

1616

Major challengesMajor challenges

IT KnowledgeIT KnowledgeWorkforce sales team don’t know how to sell the virtual store hostingStorekeepers don’t know how to sell in Internet

EE--paymentpaymentSME have difficult to be attended by credit card companies

DeliveryDeliveryCostumers needs a quickly and cheap delivery. Tracking & trace and reverse logistics are mandatory to keep up the store credibility

AudienceAudienceSME need a measurable, effective and cheap advertising tools

ReliabilityReliabilityUsually SME start with no rating and unknown trend. How they could get credibility?

1717

IT KnowledgeIT Knowledge

SolutionSolutionInternal education

CorreiosNet Shopping training for whole workforce team

E-commerce training for Regional managers

Client education

E-commerce Roadshow for Small and Medium Enterprises

E-commerce tips website

Commercial and technical guides

1818

Shops using CorreiosNet ShoppingShops using CorreiosNet Shopping

50 74

188

331

458

550

639

715

790

31 4283

133188

250303

366

450

jan/05 abr/05 jul/05 out/05 jan/06 abr/06 jul/06 out/06 jan/07

Active contracts Shops open

1919

EE--paymentpayment

SolutionSolutionCorporate agreement between Brazilian Post and Visa

Verified By Visa platform (+)

Major secure and used internet payment platform

Discount in transaction fee: 3%

100% discount in monthly fee

50% discount in subscription fee

Centralized application process

Bradesco (major private bank)Invoice delivery platform

On-line bank account debit

2020

DeliveryDelivery

SolutionSolutione-SEDEX

Parcel express service designed to e-commerce3 attempts on delivery, including night tryE-commerce tailored prices

Postal Service package for e-commerceNo flat feesNational and international; express and economic servicesOn-line tracking and tracing

Returning serviceOn-line e-ticket by e-mail

Home Pick-upShipping authorization for all Post Offices

2121

DeliveryDelivery

e-SEDEX Traffic

R$ 3,6

R$ 12,4R$ 15,6

R$ 21,3

R$ 35,7

R$ 51,1

1,2

3,03,3 3,5

4,0

5,2

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006

Milh

ões

-

1

2

3

4

5

6

Milh

ões

Turnover in millions of reals (R$) Traffic in millions of units

2222

AudienceAudience

SolutionSolutionBy Brazilian Post

Brazilian Post Portal advertising (+)

Sponsored links at Google, Yahoo, etc (+)

By client

Bonus for using in BuscaPéMajor comparison shopping in Latin America

New for 2007: Bonus for using in Google AdWords

2323

AudienceAudience

CorreiosNet Shopping Audience

82.250

211.074

126.836

319.114

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

jan/06 fev/06 mar/06 abr/06 mai/06 jun/06 jul/06 ago/06 set/06 out/06 nov/06 dez/06

Unique users Amount of visits

2424

ReliabilityReliability

SolutionSolutionTrusted mark by BuscaPé

Trusted mark by e-Bit (+)

Delivery Guaranteed by Brazilian Post (+)

2525

AgendaAgenda






2626

Lessons learntLessons learnt

1.1. Services based on new technologies still face a lot of Services based on new technologies still face a lot of resistance in the company and are difficult to resistance in the company and are difficult to commercializecommercialize

2.2. New digital services must primordially complement New digital services must primordially complement traditional services, potentializing their benefitstraditional services, potentializing their benefits

3.3. The virtual retail market still faces a lot of obstacles, The virtual retail market still faces a lot of obstacles, where the main ones are the shopkeeperswhere the main ones are the shopkeepers’’ lack of training, lack of training, the difficulty in products advertising, especially the difficulty in products advertising, especially SMEsSMEs, , and set up costs.and set up costs.

2727

AgendaAgenda






2828

Recommendations Recommendations

1.1. Make pilots of the services for cases with higher Make pilots of the services for cases with higher transaction volumes to reach critical masstransaction volumes to reach critical mass

2.2. Take the services to where the consumers are: the Take the services to where the consumers are: the main content and eCommerce sitesmain content and eCommerce sites

3.3. Use technology to optimize operational processes, Use technology to optimize operational processes, facilitate service use and meet customer needsfacilitate service use and meet customer needs

4.4. Look for generating income with successful casesLook for generating income with successful cases

5.5. Build strategic partnership with the major players in Build strategic partnership with the major players in complementary areascomplementary areas

2929

CorreiosNet Shopping was launched in August 2003 as CorreiosNet Shopping was launched in August 2003 as

an eCommerce solution for hosting virtual shops for an eCommerce solution for hosting virtual shops for

micro and small companies. micro and small companies.

After two years of operation, CorreiosNet Shopping is After two years of operation, CorreiosNet Shopping is

now an eCommerce platform for its own and third party now an eCommerce platform for its own and third party

products through the Brazilian Postproducts through the Brazilian Post

To summarize...To summarize...

Case Study: Case Study: CorreiosNet ShoppingCorreiosNet Shopping

Thank youThank you

Shop well!Shop well!

Antonio BraquehaisAntonio [email protected]@correios.com.br

Head of Internet Business DepartmentHead of Internet Business Department

Case Study: CorreiosNet Shopping - PymesprácTICas...Feb 20, 2007 · zE-commerce platform with two...

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