Learn how to take your online business global the right way in this presentation. Draw conclusions from supporting data and know what benefits and challenges to consider when it comes to going international.
4. The e-commerce market is poised for
explosive growth... globally
US EU Asia ROW Worldwide
e-Commerce Growth
2010 £102.8 £121.0 £96.5 £34.6 £355.0 Projection in Billions
of GBP
2013 £145.9 £175.5 £200.3 £75.5 £597.1
Source: Goldman Sachs
CAGR 12.4% 13.2% 27.5% 29.1% 19.4%
Source: Internet World Stats
www.internetworldstats.com/stats.htm
North America 78.6%
Oceania/Australia 67.5% Asia 1016.8
Europe 61.3% Europe 500.7
Latin America / 39.5% North America 273.1
Caribbean
35.6% Latin America / 235.8
Middle East
Caribbean
Asia 26.2% Africa 139.9
Africa 13.5% Middle East 77.0
46.0% Oceania / 23.9
World, Avg.
Australia
10% 20% 30% 40% 50% 60% 70% 80% 90% 100 200 300 400 500 600 700 800 900 1000
2011 Penetration Rate 2011 Millions of Users
8. Currency Options
(excludes USD)
Euros 11.14%
Source: 2Checkout
British Pounds
Sterling
7.18%
Canadian Dollars 4.27%
Australian Dollars 3.94%
Japanese Yen .70%
South African .68%
Rand
Mexican Peso .64%
Indian Rupee .62%
2% 4% 6% 8% 10% 12%
Percent of Transactions
9. Preferred Payment Methods
Survey (19,000 consumers in 15 countries)
Cards are the most popular - 69%
PayPal next most popular - 40%
Debit cards coming in third - 37%
Source: Internet Retailer
10. Preferred Payment Methods by Region (Online)
Credit Card Bank Transfer COD - Cash on Delivery PayPal Debit Card
100%
90%
86
%
80%
70% 69
64 % 63
60% 59 % %
Percent 56
%
Preferred %
50%
40%
30% 28 29
23 % % 22 23
21
20% % % 18 %
13 12 11
% 15 14 13 12 13 13 12 11
12 %
% %% % % %% % 7 9 % %%
10% 6 %
4
2 % %
%
% %
Global Asia Pacific Europe North America Latin America South Africa
Source: AC Nielson Global Consumer Attitudes Towards
Online Purchases
Region
11. Fraudulent Orders
3.0
Online Revenue Loss
Due to Fraud Estimated
2.5 £2.1B in 2011
2.5
2.3
£
£ 2.1
2.0
2.0 1.9 £
1.7
£
1.6
1.7 £ Source: CyberSource and
£ Loss £ Merchant Risk Council
in Billions 1.5 £ £
1.3
1.2
1.1 £
£
1.0 £
.5
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Per Year
12. Where Fraud Typically Appears
Decreased
5%
Increased Yes
35% Remainded 46% No
the Same
54%
60%
= % of merchants that
claim current fraudulent
orders are cleaner than
those from 12 months ago
“Friendly Fraud” over Fraudulent orders continue
the last 2 Years to look like Valid orders
Source: CyberSource and Merchant Risk Council
14. Asia Pacific
Europe 60%
38%
Venezuela
Ghana Malaysia
25% 35% 33%
Africa &
West Africa Middle East Indonesia
Latin &
Central 35% Nigeria
65% 30%
America 50%
30%
2011 Riskiest Countries
1. Nigeria - 50% 5. Venezuela - 25% 9. China, Philippines, Signapore, India, Ukraine - 15%
2. Ghana - 35% 6. Vietnam, Russia - 23% 10. Egypt, Myanmar, Mexico - 13%
3. Malaysia - 33% 7. Iran, South Africa - 20%
4. Indonesia - 30% 8. Pakistan - 18%
15. In the past year, 25% of Merchants who accept
international orders, stopped from at least one country
due to high Fraud levels
Up from 20% in 2010
Stopped
25%
Continue
75%
16. Percent of Orders Rejected for Fraud
Increase in Fraud orders
outside your border
2.8%
7.3%
Outside your border
Source: CyberSource and Merchant Risk Council
17. Impact of Fraud
Real Cost = Fraud Prevention Expenditures
What are you spending?
Measure how many orders are:
- Flagged for review?
- Rejected for fraud?
- Accepted that turn out to be fraudulent?
18. Most Effective Fraud Tools
Merchants Most
Device fingerprint results 46%
Effective Tools
Fraud model (in-house) 39%
Negative lists (in-house lists) 38%
Source: CyberSource and
IP geolocation 37% Merchant Risk Council
Paid-for public records services 33%
Order velocity monitoring 29%
Customer order history 27%
Address Verification Service 26%
CVN (Card Verification Number) 25%
Contact customer to verify order 24%
Multi-merchant Fraud Model 24%
Payer Auth / 3D Secure 18%
Credit history check 17%
Shared negative lists - shared hotlists 15%
5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Percent of Merchants
19. Our Recommendation
Threshold for Loss
Fraud Model
- Negative & Positive Lists
- Device Finger printing
- IP Geo Location
Outsource
20. Choose your Overseas Markets
Pinpoint the best country or region
- International traffic & order origination
- Cultural & language differences
- Economic & political policies
- Tariffs or trade barriers
SR
SR
21. Research with Social Media
5%
5% Facebook users
6% Distribution by Countries
US - 34%
7% 34%
Brazil - 10%
India - 10%
7% Indonesia - 9%
Mexico - 7%
7% UK - 7%
10%
9% Turkey - 7%
10% Philippines - 6%
France - 5%
Germany - 5%
Source: www.checkfacebook.com
22. Facebook
Buy credits by country
Wall posts
LinkedIn
Groups by region
Forums
Connect with e-commerce partners
23. We’re here to help, cheers!
2Checkout
Stand #822
Melissa Blackburn
mblackburn@2co.com
salesteam@2co.com
+44 (0)808 234 0487