SUCCEEDING IN THE EUROPEAN ECOMMERCE MARKET How to find the balance between localization and standardization
Webwinkel Vakdagen Utrecht, 23.01.2013
Something about me…
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… 32 years old
… 5 years at Hermes Fulfilment
• International Business Development Manager
• Key Account Manager
… Primary Focus:
• International expansion of online business – Europe, USA, China and Russia
• International Fulfilment & Partner management
• International eCommerce projects
… Clients:
• Home Shopping Europe (HSE 24)
• Wolford AG
• MUJI Deutschland GmbH
• Chal-Tec GmbH
• Bombay Brands LLC
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Did you know that…
... Europe has 740 million population.
... Europe is the world’s largest eCommerce market based on total online revenue.
... internet retail sales volume reached €126.76 billion in 2012 – grew by +14.12% from 2011.
... there are 28 other currencies beside of the Euro.
... the United Kingdom, France and Germany dominate the internet retailing market, accounting for 62.65% of total value sales.
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Capture the Potential of Internet Retailing...
Source: Euromonitor Jan 2013
Each European Market is Different. Take a Look at…
…Language
… Common service times for call centers
… Preferred payment methods
… Currency
… Common delivery lead time
… Returns regulations
… Exclusion of delivery
… Delivery quota
… Sales Tax
…
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… Seal of Quality
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Your customers want to pay with…
UNITED KINGDOM
Others
PayPal
Debit Card
Credit Card
0% 10% 20% 30% 40% 50%
4%
21%
35%
40%
GERMANY
Cash on Deliverysofortüberweisung.de
Credit CardPayPal
Direct DebitingPayment in Advance
Invoice
0% 20% 40% 60%
1%8%
21%23%25%
37%52%
FRANCE
e-carte bleueDirect Debiting
ChequeVoucher
E-PaymentCredit Card
0% 50% 100%
8%9%12%12%
21%79%
ITALY
Others
Bank Transfer
Cash on Delivery
E-Payment
Credit Card
0% 20% 40% 60% 80%
4%
7%
9%
11%
69%
Σ
Credit Card x x x x x x x x x 9
PayPal x x x x x x x x x 9
Invoice x x x x x 5
Online Banking x x x x 4
Cash on Delivery x x x 3
Direct Debiting x x 2
sofortüberweisung.de x 1
Debit Card x 1
e-carte bleue x 1
Cash at Place of Coll. x 1
Payment Methods – must have vs. nice to have
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Σ
Credit Card x x x x x x x x x 9
PayPal x x x x x x x x x 9
Invoice x x x x x 5
Online Banking x x x x 4
Cash on Delivery x x x 3
Direct Debiting x x 2
sofortüberweisung.de x 1
Debit Card x 1
e-carte bleue x 1
Cash at Place of Coll. x 1
19.6% 100.000 € 15 days 5.95 €• French as language is legally
required for „Terms and Conditions“
21% 35.000 € 10 days 5.95 €• Storage costs for unsuccessful
shipments paid by customer
23% 35.000 € 14 days 4 – 6 €• No title in the communication,
informal communication is common
25% 320.000 SEK (= 35.000 €) 14 days 40 – 60 SEK
(= 4.50 – 7.00 €)• Usage of ID-number for online order • Opt-out for written ads
25% 280.000 DKK (= 35.000 €) 14 days 49 – 60 DKK
(= 6.50 – 8.00 €)• Return costs paid by customer• 50% delivery by Local Post
25% - 14 days 49 – 60 NOK (= 6.00 – 8.00 €)
• Special treatment of Spitzbergen• 95% of population (15-75y) buy online
20% 1.140.000 CZK (= 44.760 €) 14 days 4 – 6 €
• Sunday is a business day• Up to 8 local carriers (e.g. alza.cz)
19% 100.000 € 14 days 4 – 6 €• Widespread usage of
parcelshops and packstations
20% 70.000 GBP (= 85.473 €) 7 days 3 – 4 GBP
• Website must be accessible for handicapped people.
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From the Legal and Consumer Behavioral Perspective – the large differences in Europe
VATShippingthreshold
Right of Cancellation
Accepted Shipping Costs
Special Remarks
Shopping with Confidence - Pick the right one…
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Trusted Shop Guarantee - International
Combination of Certification, Seal of Approval, Customer Service and Buyer Protection
Allows customer evaluations
Thuiswinkel Waarborg - Netherlands
Highly appreciated by consumers for certified quality standards (e.g. data security, payment process)
complaint handling in case of disagreement with the customer
La Fevad - France
More than 500 membering companies
Recommended by the press and various shopping advisors in France
Euro Label - International
A cooperation of various national providers of internet certification
Compliance of the European Code of Conduct as prerequisite
Summing up localization and standardization…
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OPPORTUNITIES CHALLENGES
Capture the high sales potential
Be the second, if not the first
? Lack of transparency & experience
? Controllability is lower than at home
? Very heterogenic markets
? High complexity
? Cultural differences
Relatively mature business environment
Get higher brand awareness
Simple solutions in the market
…We can help.
Integrated Supply Chain Solution – The One for Europe.
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The entire supply chain from a single source: from modular concept to integrated solution
SOURCING & PRODUCT
DISTRIBUTIONTRANSPORT LOGISTICS E-COMMERCE
Product Development & Sourcing
Inspection & Certification
International Freight Forwarding
Fulfilment & Back-end Services
Web Shop & Online Marketing
Multi-Channel Fulfilment
Parcel Delivery
2-Man-Handling Shipments
Hermes Otto International
Hermes Hansecontrol Group
Hermes Transport Logistics
Hermes NexTec
Hermes Fulfilment
ADD/UP Connected Channels
Hermes Logistik Gruppe Deutschland
Hermes Ltd. UK
Hermes Italia S.p.A.
Hermes Logistik
B2C Russia OOO
Hermes Einrichtungs Service
Wolford – a Success Story.
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WAREHOUSING 6 RETURNS
PAYMENT & RISK
CALL CENTER
WEBSHOPSERVICE
DISTRIBUTION
FINANCE & ACCOUNTING
14 online shops in Europe and 1 online shop in the US.
Customer Service in 9 languages
7 integrated payment methods
All shipments to Europe stored, picked & packed in one DC.
Delivery to customers in 15 countries with 3 international and local carriers.
Automated system processing of 5 different currencies.
https://www.hermesworld.com
http://www.ecommerce-global.de
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