How e-commerce is shaping the future of trade? DHL has some insights that can help us. Watch the presentation of Monika Miteva - S&M Manager DHL Express Bulgaria
2. 2
The White Paper in a Nutshell
• E-commerce is transforming B2B
• E-commerce allows B2B companies to capture new revenue streams
• To compete, they have to become more agile, flexible and responsive
• A B2B e-commerce offering is built around five areas
• Becoming an ‘Innovator’ requires adopting a broad suite of features
3. 3
B2B and B2C are different
B2BB2C
• Decision process complex and lengthy,
involving multiple departments
• Transactions are usually high in size,
value and frequency
• Customer relationship is often long-
term
• Customized product catalogs
• Credit sales
• Purchase decision made by a single
customer
• Often smaller, one-off purchases with
lower value
• Higher share of ad hoc customer
relationships
• One unified product catalog
• Cash sales
4. 4
B2C has been revolutionized by e-commerce
Cross-border e-commerce is one of the fastest
growth opportunities in retail, according to DHL
report
• Cross-border online retail predicted to grow at twice
the rate of domestic e-commerce (CAGR: 25%) until
2020
• Retailers can grow 60% faster with a premium service
offering
• DHL Express CEO Ken Allen: "'Going global' and
'going premium' is an opportunity for retailers in all
markets."
5. 5
Now B2B is undergoing the next ‘Industrial Revolution’
Cross-border e-commerce is now being embraced
by an increasing number of B2B companies
• Forrester Research estimates that the cross-border
B2B e-commerce market will reach USD 1,2 trillion
by 2021
• DHL Express CEO Ken Allen: “There is the
potential for cross-border B2B e-commerce to grow
at a dynamic pace, and the DHL Express network
will be an enabler of that for businesses around the
world.”
6. There is a huge opportunity in cross-border B2B e-commerce
• Speed up order-to-delivery cycle
• Convert latent and ad hoc demand from
around the world into regular business
• Drive down costs through greater
efficiency and enhanced performance
• Create differentiated and personalized
offerings for various customer segments
7. 7
Customer Experience
Customer Personalization
Seamless Integration
Synchronization of Logistics
Digital Infrastructure
How to build your cross-border e-commerce offering
‘Amazon-like’ online shopping experience2
Customized solutions and offers based on customer insights3
Smooth customer engagement across multiple channels4
Meeting diverse customer demands with fast, flexible logistics5
Digital connectivity across all business processes1
Challenges to overcome include: exchange rates & customs clearance;
new employee skill-sets and mind-set/culture, competition with agile start-ups
8. 8
The journey from ‘Novice’ to ‘Innovator’
Example features
Characteristics
• Search Engine
Optimization
• Customized functionality
for key customers
• Social media presence
• CRM features
• Click & collect
• Dynamic pricing
• Website tutorials
• Cross-border shipping
management
• Virtual Reality
• Machine Learning
• Artificial Intelligence
• Transparent pricing
• Interactive & detailed
product content
• Secure online payments
• Multiple device-enabled
website
• More functions & features
• Customer personalization
& better customer
experience
• Not yet fully integrated
front & back end
• State-of-the-art e-
commerce platform
• End-to-end integration
• Multiple delivery
options, with real-time
tracking
• Limited adoption of e-
commerce technologies
• Frequent use of legacy
systems
• Usually, ad hoc interest
from overseas customers
9. 9
Quick Tips
Ensure the right, digitally-oriented mindset from management down
throughout the organization
Focus on customer experience, with insights, customized offerings,
responsiveness, omni-channel options and online support
Include international express delivery options to convert ad hoc,
low volume and premium demand from around the world
Consider agile, customer-focused supply chain strategies followed
by retailers