eFashion2016 - HvA, Sjoukje Goldman

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The Current State of Cross-border E-commerce in Europe

The first preliminary results

Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA

2 2 _________________________________________________ Source: Blendle

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304 400

530 676

826 994

2015 2016 2017 2018 2019 2020

x B

illio

n $

Cross- border Domestic

Global cross-border B2C e-commerce forecast

_________________________________________________ Source: Accenture/AliResearch, 2015

- To what extent do online retailers engage in cross-border e-commerce?

- What are the differences between countries and sectors?

- How successful are they and which factors contribute to their success?

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Methodology

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Study area: EU28 + Iceland, Norway & Switzerland

Research objects: Companies in b2c e-commerce Online shops selling products Online shops with headquarter in the study area X

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Data collection

1. Web scraping to acquire lists of online shops per country: 67,500 online shops 2. Web visitor data from SimilarWeb to estimate the number of cross-border Web visitors per online shop 3. Content analysis among 10,000 online shops to determine their cross-border e-commerce strategy (double blind coding by 75 student assistants, all native speakers) 4. Online survey among the 10,000 online shops to determine their cross-border e-commerce success (to be started in September 2016)

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What we will NOT present today but also know….

• Use of payment methods (+/- 600) • Use of trust marks (+/- 100) • Use of carriers • Cross-border e-commerce localization strategies • Contact channels • Legal information • Results per sector • And more….

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Cross-border Web visitors

10 10

0%

20%

40%

60%

80%

100%

100% 80% 60% 40% 20% 0%

Cu

mu

lati

ve n

um

ber

of

on

line

sho

ps

(in

%)

Share of domestic Web visitors per online shop (in %)

Number of online shops in Europe according to share of domestic Web visitors*

40% has less than 15% cross-border Web visitors

_________________________________________________ Source: Amsterdam University of Applied Sciences, based on SimilarWeb data

70% has less than 30% cross-border Web visitors

_________________________________________________ * Figures (EU28 + Iceland, Norway & Switzerland) are weighted by the size of national e-commerce markets (based on 2014 figures of E-commerce Europe) (N=67,372 online shops).

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Average share of cross-border Web visitors per country (in %)

Less than 10 percent

10 to 15 percent

15 to 20 percent

20 to 30 percent

30 percent or more

_________________________________________________ Figures (EU28 + Iceland, Norway & Switzerland) are weighted by the size of national e-commerce markets (based on 2014 figures of E-commerce Europe) and individual country figures by the weighted average distribution of Web visitor size classes of online shops in the 31 European countries (N=67,372 online shops).


6%

13%

21%

40%

0% 25% 50%

Greece

Finland

Hungary

Bulgaria

Poland

Czech Republic

Italy

Slovenia

Norway

Romania

Denmark

Sweden

Netherlands

Slovakia

Iceland

Lithuania

Latvia

France

Croatia

Portugal

Estonia

Spain

Germany

Malta

Switzerland

Belgium

Cyprus

Ireland

United Kingdom

Austria

Luxembourg

European average: 23,6%

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Average share of Web visitors per country of origin for online shops in Croatia*

_________________________________________________ * Figures are weighted by the weighted average distribution of Web visitor size classes of online shops in the 31 European countries Weighted figures (N=370 online shops).


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Top 3 countries with the highest and lowest share of cross-border Web visitors*

_________________________________________________ Source: Amsterdam University of Applied Sciences, based on SimilarWeb data _________________________________________________

* EU31 figures are weighted by the size of national e-commerce markets (based on 2014 figures of E-commerce Europe) and individual country figures by the weighted average distribution of Web visitor size classes of online shops in the 31 European countries (N=67,372 online shops).

0% 25% 50% 75% 100%

Total

Greece

Finland

Hungary

Bulgaria

Poland

Czech Republic

Italy

Slovenia

Norway

Romania

Denmark

Sweden

Netherlands

Slovakia

Iceland

Domestic Other European countries Rest of the world

0% 25% 50% 75% 100%

Lithuania

Latvia

France

Croatia

Portugal

Estonia

Spain

Germany

Malta

Switzerland

Belgium

Cyprus

Ireland

United Kingdom

Austria

Luxembourg

Domestic Other European countries Rest of the world

Highest share other European countries:

Austria Luxembourg Switzerland

Highest share Rest of the world:

United Kingdom Ireland Cyprus

Lowest share other European countries:

Greece Finland Bulgaria

Lowest share Rest of the world:

Slovakia Czech Republic

Hungary

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Relationship between cross-border Web visitors of online shops and cross-border buyers per country

_________________________________________________ Source: Amsterdam University of Applied Sciences, based on data from

SimilarWeb and Eurostat

_________________________________________________ Individual country figures are weighted by the weighted average distribution of Web visitor size classes of online shops in the 31 European countries (N=67,372 online shops).

Poland

Romania Iceland

Estonia

Spain

Cyprus Austria

Luxembourg

0%

25%

50%

75%

0% 25% 50% 75%

Percentage of cross - border buyers per country

Shar

e o

f cr

oss

-bo

rder

Web

vis

ito

rs p

er c

ou

ntr

y

In countries with a high share of cross-border buyers online shops also have relatively many

cross-border Web visitors.

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Cross-border Strategy

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3 Types of online shops compared in Europe*

1. Online shops with a single website

2. Online shops with country-specific websites

3. Online shops with country-specific pages (and websites)

Examples:

Number of online shops (in %):

Average monthly Web visitors**:

Cross-border Web visitors share (in %):

97% 2,3% 0,5%

64%

268,500 12,500

54% 23%

838,500

_________________________________________________ * Figures (EU28 + Iceland, Norway & Switzerland) are weighted by the size of national e-commerce markets (based on 2014 figures of E-commerce Europe) (N=67,372 online shops). ** To correct for outliers, a 5% trimmed mean was used to calculate the average monthly Web visitors per type of only shop (figures are rounded on 500 visitors).

The upcoming slides are all about online shops with a

single website

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Average share of online shops* with direct international ordering (per country**)

Less than 15 percent

15 to 30 percent

30 to 50 percent

50 to 70 percent

70 percent or more

_________________________________________________ * Figures only include online shops with a single website. ** Figures (EU28 + Iceland, Norway & Switzerland) are weighted by the size of national e-commerce markets (based on 2014 figures of E-commerce Europe) and individual country figures by the weighted average distribution of Web visitor size classes of online shops in the 31 European countries (N=8,570 online shops).

_________________________________________________ Source: Amsterdam University of Applied Sciences

European averages: Purely domestic shipment: 35% International shipment after contact by e-mail or phone: 5%

1%

44%

9%

46% Deliver world wide

Deliver only to countries in Europe

Deliver to countries in and outside Europe (but not world wide)

Deliver only to countries outside Europe

Direct international ordering: 60%

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Towards a mature cross-border e-commerce market in Europe

Long way to go Ambitious, but still relatively unsuccessful

Potentials Going in the right direction

Share of online retailers engaging in cross-border e-commerce

Shar

e o

f cr

oss

-bo

rde

r W

eb

vis

ito

rs

High

Low High

Bulgaria

Poland

Czech Republic Netherlands

France

Germany Malta

Cyprus

Austria

0% 50% 100%

Shar

e o

f cr

oss

-bo

rder

Web

vis

ito

rs

Share of online retailers engaging in cross-border e-commerce

?



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Success factors for online shops with a single website

Having (international) trust marks has no significant impact on the cross-border Web visitors share

Offering international delivery and particularly delivery both in and outside Europe has a significant impact on the cross-border Web visitor share

Offering language translation has a significant impact on the cross-border Web visitor share

Offering a currency switch has a significant impact on the cross-border Web visitor share



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Conclusions

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There is much variation among countries in Europe with regard to cross-border activity and success Some countries are already moving in the right direction, but many still have a long way to go Developing a (highly localized) country-specific strategy is key in becoming successful in cross-border e-commerce Current (domestic) trust marks do not seem to boost cross-border traffic. Pressing need for a strong international trust mark?

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Planning & Contact details

General report ready in September Country reports available upon request

Dr. Jesse Weltevreden Professor of E-business [email protected] +31 (0)6 10 15 32 68

Sjoukje Goldman MSc PhD Candidate [email protected] +31 (0)6 21 15 78 08

Julia Keuter BA Junior Researcher [email protected]

mailto:[email protected]



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Thank you for your attention!

eFashion2016 - HvA, Sjoukje Goldman

Marketing

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