eCommerce Market Entry Strategies to Successfully
Launch your eCommerce Business Across Asia-Pacific
Marcelo Wesseler, CEO...
AGENDA
• Overview
• Market entry success factors & considerations
1. eCommerce Basics?
2. Which markets should you enter?
...
$3 billion market cap.
A+ Credit Rating*
Full Service eCommerce
in Asia Pacific
Localized front end,
payments, order & sto...
eCOMMERCE SUCCESS FACTORS
• Keep It Simple and Measure Daily
• Revenue = Visitors * Conversion * AOV
• Success =
- EBIT or...
CUSTOMER EXAMPLES
WHICH MARKETS SHOULD YOU ENTER?
WHICH MARKETS SHOULD YOU ENTER?
MAJORITY OF US SITES ARE LEAPFROGGING
TO ASIA PACIFIC WITH ECOMMERCE
HOW TO SIZE YOUR OPPORTUNITY?
Pragmatic sizing approach:
• Your international traffic * 5
• Consider brand / product restr...
IMPACT OF CUSTOMER EXPERIENCE ON
REVENUE
Don’t forget: success = positive GM after logistics & marketing cost!
*include cu...
US SITES WITH ECOMMERCE PRESENCE IN ASIA
CAN IMPROVE CUSTOMER EXPERIENCE
Best addressed through setting up a localized eCo...
Option 1:
• Separate international checkout
• Vendor buys on consumer’s behalf
Option 2:
• Outsource via vendor-branded
ch...
WHAT ABOUT LOGISTICS, DUTIES & LEGAL FRAMEWORK?
De Minimis (in USD) –
The challenge with custom duties.
Other regulatory c...
HOW DO YOU MARKET YOUR SITE & DRIVE TRAFFIC?
Seasonal Marketing Spend
Marketing Costs
Increasing
Rural Gold Mines
equals H...
SUMMARY
• Free, fast shipping & local returns
• Test the waters before you jump
• Carefully select markets and platform
• ...
THANK
YOU
Feel free to get in touch with us:
MARCELO
marcelowesseler@singpost.com
PRANAY
pranay@singpost.com
eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific
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eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific

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eCommerce Market Entry Strategies for Brands and Retailers – Practical Advice on How to Successfully Launch your eCommerce Business across Asia-Pacific.

This was presented by Marcelo Wesseler, Senior Vice President of eCommerce, Singapore Post Ltd and Pranay Mehra, Vice President, eCommerce & Marketing, Singapore Post Ltd at #adtechasean

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eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific

  1. 1. eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific Marcelo Wesseler, CEO, SingPost eCommerce Pranay Mehra, Vice President, SingPost eCommerce
  2. 2. AGENDA • Overview • Market entry success factors & considerations 1. eCommerce Basics? 2. Which markets should you enter? 3. How to size your opportunity and create a business case? 4. What are the market entry options & platforms? 5. How to choose the right payment options & prevent fraud? 6. What about logistics, customs, duties, & legal framework? 7. How do you market your site & drive traffic? • Summary • Q&A
  3. 3. $3 billion market cap. A+ Credit Rating* Full Service eCommerce in Asia Pacific Localized front end, payments, order & store management Logistics Centers15 3 Call Centers 8Languages & Dialects 600+ eCommerce Clients
  4. 4. eCOMMERCE SUCCESS FACTORS • Keep It Simple and Measure Daily • Revenue = Visitors * Conversion * AOV • Success = - EBIT or Net Margin - Customer Lifetime Value > CAC - GM after logistics & marketing spend - Owning customer data
  5. 5. CUSTOMER EXAMPLES
  6. 6. WHICH MARKETS SHOULD YOU ENTER?
  7. 7. WHICH MARKETS SHOULD YOU ENTER?
  8. 8. MAJORITY OF US SITES ARE LEAPFROGGING TO ASIA PACIFIC WITH ECOMMERCE
  9. 9. HOW TO SIZE YOUR OPPORTUNITY? Pragmatic sizing approach: • Your international traffic * 5 • Consider brand / product restrictions • Regulatory approvals • Local Keyword analysis • If you have offline sales, use % of retail Korea ~15% UK ~10% US ~9% China ~9% Australia ~6% Southeast Asia ~2%
  10. 10. IMPACT OF CUSTOMER EXPERIENCE ON REVENUE Don’t forget: success = positive GM after logistics & marketing cost! *include customer care cost in logistics cost SOURCE: McKinsey & Company, SP eCommerce Research
  11. 11. US SITES WITH ECOMMERCE PRESENCE IN ASIA CAN IMPROVE CUSTOMER EXPERIENCE Best addressed through setting up a localized eCommerce operation in- house or outsourcing to a regional end-to-end provider. SOURCE: McKinsey & Company, SP eCommerce Research
  12. 12. Option 1: • Separate international checkout • Vendor buys on consumer’s behalf Option 2: • Outsource via vendor-branded checkout with fraud protection; • Careful! Keep customer ownership • In-house local team • Language • Marketing • Free local shipping • Free local returns • Omni-channel enablement, e.g. fulfill from stores • Domain/ Language • Payments • Fast regional shipping • Local returns • Hybrid models (drop ship, fulfillment by market) • Franchise option for brands WHAT ARE THE MARKET ENTRY OPTIONS & PLATFORMS?
  13. 13. WHAT ABOUT LOGISTICS, DUTIES & LEGAL FRAMEWORK? De Minimis (in USD) – The challenge with custom duties. Other regulatory challenges… • Complex rules (e.g. import approvals for many commodities like books, etc) • Valuation concerns • Uneven application of rules • Payment options & fraud • Requirement to setup legal entities to trade in local currency and obtain domain • Foreign ownership restrictions SOURCE: Singapore Post Research
  14. 14. HOW DO YOU MARKET YOUR SITE & DRIVE TRAFFIC? Seasonal Marketing Spend Marketing Costs Increasing Rural Gold Mines equals High CLV Focus on Organic & Brand Traffic
  15. 15. SUMMARY • Free, fast shipping & local returns • Test the waters before you jump • Carefully select markets and platform • Know the regulatory & product restrictions • Marketing will be your biggest challenge
  16. 16. THANK YOU Feel free to get in touch with us: MARCELO marcelowesseler@singpost.com PRANAY pranay@singpost.com

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