Accelerating global sales growth_Baker Ross

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Accelerating global sales growth_Baker Ross

  1. 1. Company Background • Family owned SME business selling childrens crafts, party bag fillers and toys • No bricks and mortar • Revenues £18m, only 80 staff, very limited resources • Two ecommerce brands: “Baker Ross” & “Yellow Moon” • 450,000 orders in 2012 • Sell to a mix of primary schools, consumers and groups • Strong sales from themed craft ranges ie Halloween, Christmas, Easter etc
  2. 2. Marketing • Company comes from mail order background but 90%+ of orders now online • Extensive use of pay per click advertising • Catalogues a good driver of traffic to our ecommerce sites but spend much reduced over time • Social media - Use Facebook, Twitter, Pinterest, YouTube and blogs to promote our product / brand
  3. 3. Overseas Expansion • A trickle of orders from ex pat Brits but zero intelligence on what products would work in what markets • Just over a year’s experience of selling our products on 2 UK online marketplaces – 1st 12 months on these marketplaces generated 60,000 orders • Decided to test new countries using online marketplaces before incurring large costs of creating our own ecommerce sites – A “putting our toe in the water” approach • Made a decision to go international in June and set target of being live in 3 countries by September.
  4. 4. Overseas Challenges • Typical product price point of £2.99 and low AOV meant consumers very sensitive to shipping rates – Felt our international shipping rates had to be competitive with local market domestic rates • This meant 3.99 euros / $4.99 range – Offering free P&P uneconomic as would absorb all profit on low value orders • Unique own brand products meant all titles, copy & search terms needed to be translated from scratch (with no piggy backing) • Product packaging needed foreign language titles etc added to them
  5. 5. Choosing Product for Overseas Markets • Focus on all year round products “evergreens” rather than seasonal ranges • Own brand “Baker Ross” products not available elsewhere – Our own designed product • Good sellers on UK online marketplaces • Picked items which weighed 250g or less – Low cost to ship – Many orders would fit through a letterbox • This gave us 300 products to start with
  6. 6. 1st Country – Germany • Why? Largest economy in Europe, shipping distance short, gut feel • How did we do it? – Had 250 products (titles, copy, search terms) translated plus all other set up done for 1,900 euros – Went live beginning of August – Initial daily sales promising and quickly approached 50 orders per day in holiday season – Based on experience of seasonality with UK marketplaces expect daily orders of 200 to 300 by November
  7. 7. 1st Country – Germany • What have we learned? – Germans like things delivered on time – Owl themed products are 5 of the top 6 sellers – Choosing the right local language search terms key • What are we doing? – Changed parcel delivery company – Getting 200 Halloween & Christmas products translated
  8. 8. Germany – Best Sellers
  9. 9. 2nd Country – USA • Why? Huge market, no language issues, users of our YouTube channel asked why didn’t we ship to the USA – Launched YouTube channel in 2012 to promote product and craft ideas • Inspired by other etailers such as Lovehoney & Kiddicare – Never expected that 70% of the views would be in the USA • How did we do it? – Used existing copy from UK marketplaces. No costs incurred – Went live this month – Initial daily sales lower than Germany
  10. 10. 2nd Country – USA • What have we learned? – Religious themed products sell better than in the UK – Going to be a tougher market to crack • What are we doing? – Promote product availability in USA on youtube channel – Create a US product blogging network
  11. 11. USA – Best Sellers
  12. 12. 3rd Country – France • Why? Large economy, shipping distance short, gut feel • How did we do it? – Had 450 products (titles, copy, search terms) translated plus all other set up done for 3,000 euros – Going live this week • What have we learned? – Should have a good idea within the first month
  13. 13. What next? • Use overseas marketplace experiences to decide what countries to prioritise for local language / domain ecommerce sites – We are learning a lot for very little expenditure – Keep moving quickly • Use our UK ecommerce sites to generate overseas sales – Offer multi currency pricing – PPC campaigns on • www.google.com • www.google.com.au • www.google.ie • Introduce / expand product ranges to take account of international differences

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