The State of eCommerce by Aramex; ArabNet Digital Summit 2015

31
Arabnet 2015 Dubai IYAD KAMAL I [email protected] IYAD KAMAL @IYADKAM Confidential

Transcript of The State of eCommerce by Aramex; ArabNet Digital Summit 2015

Page 1: The State of eCommerce by Aramex; ArabNet Digital Summit 2015

Arabnet 2015Dubai

IYAD KAMAL

[email protected]

IYAD KAMAL

@IYADKAM

Confidential

Page 2: The State of eCommerce by Aramex; ArabNet Digital Summit 2015

eBUSINESS TRENDS

OPS, PAYMENT & RETURNS

SOCIAL TRENDS

ALL NEW

Confidential

Page 3: The State of eCommerce by Aramex; ArabNet Digital Summit 2015

% 15

GLOBAL ECOMMERCE SALES?eBUSINESS TRENDS

Source: eMarketer

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OF AGE COMPRISE ABOUT

MENA POPULATION

ONCE A MONTH

43%60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES

25 YEARS

Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East

REGIONAL ECOMMERCE POTENTIALeBUSINESS TRENDS

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Source: eMarketer

WHY DO PEOPLE BUY FROM ABROAD?

OPPORTUNITIES FOR REGIONAL ETAILEReBUSINESS TRENDS

Page 6: The State of eCommerce by Aramex; ArabNet Digital Summit 2015

SNS, ecommerce; domestic, regional, international

ARAMEX SPECIFIC DATA!eBUSINESS TRENDS

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Source: Aramex eCommerce Data

31% Saudi

94%

Saudi

29% Egypt Egypt

20% UAE UAE

14% UAE Saudi

Origin Destination % of total packages

WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING

FROM?eBUSINESS TRENDS

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Source: Aramex eCommerce Data

Intra MENA $102

Into MENA $139

willing to pay more shipping

as variety has a price with duty % being an

advantage

VALUE OF ORDER?eBUSINESS TRENDS

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SHOESAPPAREL BEAUTY SUPPLIES BOOKS/BAGS

20%

19%19%

2013

2014

BEAUTY SUPPLIESAPPAREL SHOESTOOLS

Source: Aramex Shop&Ship Data

WHAT DO PEOPLE BUYeBUSINESS TRENDS

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eBUSINESS TRENDS

OPS, PAYMENT & RETURNS

SOCIAL TRENDS

ALL NEW

Confidential

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COD VS. CREDIT CARD PAYMENT

Source: Aramex eCommerce Data

Year Credit Card Cash on Delivery

2011 29% 71%

2012 29% 71%

2013 27% 73%

2014 24% 76%

It is still a COD market and etailers promote it!

Mainly domestic COD today but changing!

GLOBAL ECOMMERCE SALES?OPS, PAYMENT & RETURNS

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PAYMENT MEANS USED

Source: Aramex Shop & Ship Data

2012 2013 2014

56% 52% 44%

35% 29% 23%

6% 16% 30%

3% 3% 3%

OPS, PAYMENT & RETURNS

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WHO PAYS ONLINE (SHIPPING) MORE

Source: Aramex Shop & Ship Data

36%

26%

24%

23%

UAE

BAHRAIN

LEBANON

QATAR

SAUDI ARABIA 22%

OPS, PAYMENT & RETURNS

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AVERAGE DELIVERY ATTEMPTS

Source: Aramex Shop & Ship Data

9%

50%

20%

9%25%Card: 1 1

COD: 1.88 1.50

2013 2014

OPS, PAYMENT & RETURNS

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LAST MILE PAYMENT CONVERGANCE

Source: Aramex Shop & Ship Data

COD becoming PODWith SADAD and mobile payment devices with couriers

OPS, PAYMENT & RETURNS

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MENA LOGISTICS RETURNS

Source: Aramex eCommerce Data

Payment 2012 2013 2014

COD 24% 21% 19%

Credit Card 7% 7% 8%

OPS, PAYMENT & RETURNS

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TOP RETURN REASONS

Source: Aramex eCommerce Data

No response 42%

Bad address 13%

Client not available 10%

OPS, PAYMENT & RETURNS

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EUROPEAN LOGISTICS RETURNS

Source: Aramex eCommerce Data

Less

than 1%

Why?

- Orders are made with credit card

- Addresses are correctly structured in Europe

and customers provide accurate addresses

including postcode

- Carriers can leave at a safe place or deliver

to a neighbor if the customer wasn’t

available

OPS, PAYMENT & RETURNS

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GROWTH OF PICKUPS

Source: Aramex eCommerce Data

17% from service

centersas more pick up points become available

OPS, PAYMENT & RETURNS

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MYADDRESS RESPONSE RATES

Source: Aramex Operations Data

50%

Saudi: 25%

UAE: 31%

direct impact on call center!

OPS, PAYMENT & RETURNS

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eBUSINESS TRENDS

OPS, PAYMENT & RETURNS

SOCIAL TRENDS

ALL NEW

Confidential

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WHERE ARE THE REQUESTS COMING FROM?

Source: Aramex Social Media Data

9%

50%

20%

9%

25%

KSA 53%

KUWAIT 12%

UAE 10%

INDIA 9%

EGYPT 5%

QATAR 4%

OTHER 9%

2013 2014

65%

5%

5%

4%

3%

14%

1%

SOCIAL TRENDS

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CUSTOMER SERVICE REQUESTS?

Source: Aramex Social Media Data

58% 78%

68% 94%

2013

2014

SM a main customer service channel!

SOCIAL TRENDS

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eBUSINESS TRENDS

PAYMENT & RETURNS

SOCIAL TRENDS

ALL NEW

Confidential

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WHAT KEEPS US BUSY?

Simple: delivery on time and at an affordable price

ALL NEW

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FURTHER CONNECTING WITH THE CLIENT

Client Courier

Objectives:

- Satisfied

- Delivery on time

- Affordable price

Objectives:

- Satisfied

- Deliver on time

- Affordable cost

Focus: How to get them closer, physically and technically?

(information and consistency)

ALL NEW

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ARAMEX KEY INVESTMENT AREA!

Why?

- Mobile is your address!

- C2C communication, bypass the

CC

- Live tracking and avoid calls

- Online payment, reduce cash

management

- Big data analysis:

- Non payers

- Not at home

- Same address delivery,

don’t call…

TECHNOLOGY is making it happen(mobile in specific with more than 90% penetration)

App App

ALL NEW

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LAST MILE SOLUTIONS / LAST MILE TO LOCKERS

NEVER MISS A DELIVERY AGAIN!

- Available 24/7

- 100% safe & secure

- Quick, simple and fun

- Cheapest delivery option

ALL NEW

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Announcement!

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OUR NEW OFFERING to grow the industry…

eCommerce Package

o Classify clients by shipping tiers

o Provide shipping rates based on tier volumes

o Advance COD payment which equates to paying of COD amounts upon

shipping

o July 1st 2015

Page 31: The State of eCommerce by Aramex; ArabNet Digital Summit 2015

Thank You

IYAD KAMAL

[email protected]

IYAD KAMAL

@IYADKAM