TRANSFORMINGCOMMERCE:Shipping strategies to enable a truly globalmarketplaceCarl GishVP, Global Shipping, eBay MarketplacesOctober 23, 2012
WHAT IF YOU COULD…purchase anything you want,from anywhere in the world,delivered the same day,and backed with a best-in-class returns experience?
AGENDAEvolution of commerceKey trends in consumer behaviorChanges in buyer expectations & service levelsRemoving the frictionWhat’s Next
EVERYTHING IS BECOMING CONNECTED:The internet is expanding at unprecedented ratesTRANSFORMING COMMERCE 5Internet Penetration% of Global Population2000 65.8%202038.1%2012Source: World Bank, EIU UN, futuretimeline.net1/3Of the world’shuman population6.8%
NEW BUYING POWER IS COMING FROMEMERGING ECONOMIESBy 2015:TRANSFORMING COMMERCE 691%58%Source: emarketer, invesp, Boston Consulting Group3yrs China overtakes US asbiggest online retail marketof new Internet usersfrom emerging economiesof ecommerce growthfrom emerging economies10 fastest growing countriesIn ecommerceVenezuelaMexicoArgentinaChileRussiaIndiaSouth AfricaChinaItalyHungary
INNOVATION IS FASTER THAN EVERTRANSFORMING COMMERCE 7telephonesmartphonesmobilephonesSource: Android Headlinestablets10% penetrationto reach25yrs8yrs12yrs3yrs
TRADITIONAL BOUNDARIESHAVE BLURRED:Technology isfundamentallychanging the waypeople shopTRANSFORMING COMMERCE 8OnlineworldOfflineworldMobileIn-storeresearch SocialCommercePaymentsMobilecommercePromotions& couponsSelf-scanning &self-checkoutShoppinglistsStorelocationLoyaltySource: slidesharenet
IT’S JUST COMMERCEThere’s no longer online and offlineTRANSFORMING COMMERCE 9Source: Forrester, Euromonitor andEconomist Intelligence UnitSource: Forrester Source: Economist Intelligence UnitYesterday TomorrowToday“Commerce”2013 = $10T2008 = $325BOffline Online Web-influenced Offline
INNOVATION DETERMINES WHO THRIVESAND WHO DIESTRANSFORMING COMMERCE 10Innovate or become obsolete.2000 2012 2020
THE PLAYING FIELD IS BEING LEVELEDTRANSFORMING COMMERCE 11Cost of entry is lower than ever.SoleproprietorsSmall and mediumsize businessesLargemerchants
BUYER EXPECTATIONS AND SERVICELEVELS ARE CHANGING:The bar is being raisedTRANSFORMING COMMERCE 12Shippingis one ofthe biggestblockingfactorscostspeedconvenienceSource: pbc.gov
WHAT FACTORS INFLUENCE THE ONLINESHOPPING EXPERIENCETRANSFORMING COMMERCE 13DELIVERYDELIVERY TIME ESTIMATEis among top factors influencing onlineshopping42% OF ONLINE SHOPPERS HAVEABANDONDED SHOPPING CARTS dueto delivery dates1/3 of shoppers choose to PAY AFEE for faster delivery2/3choose the most economicalshipping option most of the timeBut 43% expect to see the availabilityof 2-3 DAY DELIVERY30% expect to see OVERNIGHTSHIPPING as an optionRETURNSShoppers appreciate availability ofEASY-TO-UNDERSTANDRETURNS PROCESS63% of online buyers LOOK ATRETURN POLICY prior to purchase50% shop more often w/a retailer and aremore likely to RECOMMEND TO A FRIENDif retailer has lenient return policySHIPPINGSERVICES46% said that RECEIVING THEIRPRODUCT WHEN EXPECTED ledthem to recommend the online retailer75% of shoppers believe EVERYRETAILER SHOULD OFFERTRACKING INFORMATION2 hours delivery window, emailalters and ability to reroute areconsumer wantsSource: UPS
WE MUST REMOVE THEPOINTS OF FRICTION.Use the data, technology and infrastructureto enable a better experience.
IMAGINE…Global sale via mobile with international express delivery and local pickupin BrazilTRANSFORMING COMMERCE 15
SEAMLESS, BORDERLESS COMMERCE:Getting inventory to global buyers in a fast, cheap, reliable wayOpening up global selectionAccess to international products (and services)Anything anyone wants in as little as a dayAs simple as shipping domesticallyTRANSFORMING COMMERCE 16eBay Global ShippingProgram
FLEXIBLE RETURNS PLAYS A ROLE INPURCHASING DECISIONSTRANSFORMING COMMERCE 17eBay ManagedReturnsSource: comscore custom surveyShop more often with that retailerRecommend the retailer to a friendDrop another retailer with a lesseasy returns processFocus less on prices and more ontheir quality of service 32%35%48%48%
PICTURE A WORLD WHERE…• Same day delivery in USA; everywhere else in 2 days• You leave a package outside the door for a return pickup;you get a refund immediatelyTRANSFORMING COMMERCE 18It’s within our control.