Helping merchants boost cross-border e-commerce sales

Chris Stevens – Head of Industry Distance SellingSwiss Post International Management AGGlobal Sales Management (GSM)

growth

‘Staying At Home Is Not An Option’

Helping Merchants Boost Cross-Border e-Commerce Sales

eShop Expo, Brussels28 March 2012

>85% of the world’s online population has used the Internet to make a purchase.

AC Nielson Global Online Survey January 2009

Fact

Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012

“By 2014 Swiss Post – with and through its partners – is the world’s acknowledged leader in global cross-border full service e-commerce” as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of Swiss Post

The Distance Selling Industry

Market Definitionthe distance selling industry

Online (e-shop)

Business to Consumer Business to Business

Domestic Cross Border

B2C Mail B2C Parcel

Integrates both channels and provides the most competitive delivery option depending on weight and/or value

Consumer’s perspective - any order made in an e-shop from a non domestic retailer.

DISTANCE SELLING

Mailings / Catalogues

T-Commerce Direct sellingMobile

e-Commerce


Sizing the Cross-Border Opportunity - Europe orders for physical goods

EU population 2010: ~ 501 Mio. 37% made at least one on-line purchase in

2010 4% shopped from a country outside the EU


Challenges - Europe cultural and legislative

◙ 27 countries in the European Union

◙ Own customs and tax authorities

◙ 23 official languages

◙ Plus Norway and Switzerland

◙ One single currency – the Euro – plus other currencies (GBP, SEK, NOK, CHF)

◙ A single EU customs territory with ‘no borders’, but…

◙ Separate tax rules and regulations

◙ Import VAT and Duty payable in state where goods enter the EU

◙ Exceptions: LVCR (Low Value Consignment Relief) for low value items

◙ Off-shore fiscal representation options exist

◙ How to offer a single, workable, cost-effective solution for Europe?


Source: Emota

% of individuals who have never used the internet, 2011

Business opportunityfuture growth potential

Almost a quarter of persons aged 16-74 in the EU27 have never used the internet


Consumers: Cross-border shoppingcommon in the Nordic countries, developing across Europe



Barriers and Needs

Overviewthe e-commerce value chain

Customer data & Marketing

Online appear-

anceOrder

managementWarehousing &

Distribution

Warehousing & Distribution

New customer

s

Existingcustomers

Shop platform Warehouse Delivery Return

Mgmt

Customer Care

Customer Service

Order preparatio

n

Billing & payment

Data Mining Customer

segmen-tation

Loyalty pro-grams

Online Campaigns

offline Campaigns

Individual Shop platforms

SME platform

Delivery cost calculator (guarantee)

Pick & pack

labelling

Central stocking

Inventory management

Customs VAT Home

delivery

Pickup points

Quality check

Restocking transpor-

tation to retailer

Consumer support

Track & Trace

Country specific payments

Credit check

Payment guarantee

Online Campaigns

offline Campaigns


segmen-tation

Social Media integration

Address-Management

Search Engine optimization

Third party Platform management

Online Campaigns

offline Campaigns


segmen-tation


Address-Management

Newsletter-Management

Loyalty pro-grams


SME platform


Pick & pack

labelling

Central stocking


Customs VAT Home

delivery

Pickup points

Quality check

Restocking transport

to retailer

Consumer support

Track & Trace


Credit check

Payment guarantee


Drivers and barriersreasons for/against cross border shopping

Source: IPC Cross border e-commerce report 2010

Main drivers for cross-border on-line shopping

Main barriers for cross-border on-line shopping

1. Pricelower prices, compare prices, better price due to lower taxes and exchange rates

1.No needCan find everything I need in my own country

2. Exclusive productsNot sold in own country

2. Lack of trustQuality of goods, not confident in receiving goods, warranty

3. Wider range of products 3. Possible high delivery costs

4. ConvenienceAny time of the day

4. Complicated & long return processes


product and/or price attractiveness

competitive end-to-end delivery cost

„total cost of order“ transparency and guarantee

Secure and trusted home delivery

Transparent return processes

Shop promotion

support

Choose the right product segments in the respective scenarios

Find best process model for each scenario to achieve competitive cost structure

Develop calculator application and feed it with relevant data of products and overall delivery cost

Find ways to provide convenient return processes for each scenario

Provide Search Engine or comparison site

Provide retailer with innovative online promotion tools

Localized payment and escrow service

Provide escrow service to bring additional safety for retailer and shopper

Use track& trace of higher valuable products

What cross-border e-Commerce needs…from a private consumer’s perspective




„total cost of order“ transparency and

guarantee



Shop promotion

support Choose the right product segments in

the respective scenarios





Provide retailer with innovative online/offline promotion tools




What cross-border e-Commerce needs…from a merchant’s perspective




„total cost of order“ transparency and guarantee



Shop promotion

support

Choose the right product segments in the respective scenarios





Provide retailer with innovative online promotion tools




What cross-border e-Commerce needs…from a postal organisation’s perspective


What consumers requirecertainty, predictability and trust


While e-substitution is the driver for the decline in physical mail,

e-commerce is driving theonly significant growth in postal

services. IPC executive Forum on e-commerce, Oct. 2010

Why are posts so interested in e-commerce? huge potential



The positioning of B2C Parcelhelping merchants and SMEs go cross-border

November 2010

2011

2012

The role of B2C Parceldesigned to facilitate cross-border e-commerce


B2C Parcelproviding merchants with quality and reliability

100g to 30kg 26 countries Best-in-class postal partners Home delivery standard Track & Trace: cross-border parcel

tracking in ONE system Insurance 50 EUR per parcel or EUR

10 / kg (>5kg) Single point of contact Professional advice by your

personal Swiss Post customer advisor Local prepaid return solution Web-based customer interface Additional services (e.g. PickPoint)



The positioning of goCommerce©

helping Swiss companies develop an online presence

www.post.ch/gocommerce

the online shop platform is the control centre of the entire value chain, because this process step influences practically all of the downstream, but also the upstream process steps

Shop platform seen as central control unit for the entire value chain

Successive modules are influenced by this control unit

Providing a shop platform means helping merchants grow

The importance of the shop platformbasis for international expansion


Text

Onlineshop

Integrated distribution interface

„Ready to use“ payment processing

◙ Boost revenue with new online sales channel – minimal upfront investment

◙ Exploit potential of domestic and cross-border e-commerce

◙ Save time and money with the integrated distribution interface

◙ Eliminate need for evaluating and programming shop software

goCommerce©

one contract – one partner – one turnkey solution


AW ShopPremium Design©


Integrated online payment via SwissPostproviding the best known online payment methods



The positioning of POWAan international partnership designed for a rapid cross-border footprint

POWA (and VENDA)a stunning customer base


Creating International Siteslow risk, transaction-based model

• Traditionally companies try to layer multi-lingual, multicurrency into their main e-Commerce site

• Brands are turning to new secure ‘private cloud’ technology to deploy International sites using ‘cloning’

• Low-risk, fast deployment

• Dozens of sites in a few weeks

• Complementary to existing e-Commerce footprint

• PCI DSS Level 1 compliant – critical for foreign sites as some countries have PCI compliance embedded into criminal law



The positioning of TLCSan essential building block to facilitate cross-border transparency

Transparency:knowledge about total landed cost before closing the online deal generates security for the shopper

Trust:A guarantee that there will be no additional costs arising, offered by a trustworthy company (e.g. Swiss Post) generates trust

Cross border shoppingwhy are consumers reluctant?


Simple Shipping

We provide shipping label, necessary forms and indicia

Simple Pricing/Billing

Regionalized pricing by zones Insurance, end-to-end tracking and address cleansing/correction at no additional charge Accurate pricing based on actual weight, detailed billing of each package shipped No more guessing.

Simple Tracking

End to end tracking across multiple carriers

Our Total Landed Cost Calculator Modela robust gateway for e-Commerce built upon 3 key principles



Swiss Post creating the infrastructure for innovative cross-border e-Commerce

Swiss PostExcellence delivered

Idea

Originality

Vocation

Promise

Corporate culture

Excellence delivered.

We see ourselves as your partner. We make you

successful.

We are already working today on your success tomorrow. We deliver Swiss quality

worldwide.

We always producesomething extraordinary.



The positioning in BelgiumAssisting e-merchants to go cross border

Services available from Swiss Post Belgium as from today

Customer data & Marketing

Online appear-

anceOrder

managementWarehousing &

Distribution

Warehousing & Distribution

New customer

s

Existingcustomers

Shop platform Warehouse Delivery Return

Mgmt

Customer Care

Customer Service

Order preparatio

n

Billing & payment


segmen-tation

Loyalty pro-grams

Online Campaigns

offline Campaigns


SME platform


Pick & pack

labelling

Central stocking


Customs VAT Home

delivery

Pickup points

Quality check

Restocking transpor-

tation to retailer

Consumer support

Track & Trace


Credit check

Payment guarantee

Online Campaigns

offline Campaigns


segmen-tation


Address-Management

Search Engine optimization

Third party Platform management

Online Campaigns

offline Campaigns


segmen-tation


Address-Management

Newsletter-Management

Loyalty pro-grams


SME platform


Pick & pack

labelling

Central stocking


Customs VAT Home

delivery

Pickup points

Quality check

Restocking transport

to retailer

Consumer support

Track & Trace


Credit check

Payment guarantee


International distribution servicesavailable out of Belgium

• Worldwide : B2C International / B2C Professionalup till 2 kgspostal channellow cost - no track & trace

• Worldwide : B2C Parcel up till 30 kgsB2C delivery servicevalue for money – track & trace

• Switzerland : B2C into Switzerlandduty free import solutions for consumers

• Norway: B2C into Norwayduty free import solutions for consumers


e-commerce delivered.


Helping merchants boost cross-border e-commerce sales

Business

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