Sebastián Herrera - eCommerce Day Africa Blended [Professional] Experience 2023

2. Sebastian Herrera
Director, Price2b.com
https://www.linkedin.com/in/sebastianherrera/
Speaker’s Photo

3. Key Concepts
• CROSSBORDER 101
• INTERNATIONAL TRADE
• INTERNATIONAL LOGISTICS

4. CROSS-BORDER
ECOMMERCE 101

5. 1. CROSSBORDERECOMMERCE101
1- FINAL PRODUCTPRICE
- INCLUDINGLOGISTICSCOSTANDDUTIES/TAXES
2- TRANSITTIME
- THEAMOUNTOFTIMEITTAKESTOGETHOME
3- SELLER ONLINE PRESTIGE
-NUMBEROFPOSITIVEREVIEWS FROMPREVIOUSBUYERS
PURCHASEDECISIONPROCESS INECOMMERCE

6. 1. CROSSBORDERECOMMERCE101
• TRANSITTIME:
• SIMILARTRANSITTIMESIN SERVICE.DOMESTICANDINTERNATIONALEXPRESSMAIL(24HS-96HS)
PRICE(ARBITRATION):
• DIFFERENTPRICESIN THEWORLD FORTHESAMEOR SIMILARTYPEOF PRODUCTS
= OPPORTUNITYGLOBAL SELLERS / THREAT FOR LOCAL SELLERS
PRODUCTSCOMPETE IN TRANSITTIME ANDPRICE WITHSIMILARPRODUCTSLOCATED AROUNDTHEWORLD
ESTIMATE THE DELIVERED FINAL PRICE ANDSELL TO FINAL CONSUMERS
0USD
11USD 18.69 USD
3USD 14USD

7. MARKET:GLOBAL SUPPLY
CONSUMERSACCESSTOLOCAL ANDGLOBAL PRODUCTS
MANUFACTURERS MARKETPLACES SERVICES
GLOBAL
LOCAL
GLOBAL
COMPRADOR

8. • INTHEWEST,MARKETPLACESAREDRIVING CBT'SSALES:AMAZON&EBAYARETHETWOMOSTPOPULARMARKETPLACESINTHEUNITEDSTATESANDEUROPE
• CROSS-BORDERELECTRONICCOMMERCE SALESCURRENTLYACCOUNT25%OF AMAZON'SSALESVOLUME
• ASIA-PACIFIC,LEADEDBYCHINA,ISBECOMINGTHEWORLD'S LARGESTCBTREGION FORBOTHIMPORT ANDEXPORT
CROSSBORDER:PRESENTSITUATION
IT ISA MARKET THATWASEXPECTEDTOREACH A TRILLIONDOLLARSIN 2022/2023
MEANWHILE IN AFRICA
• JUMIAhttps://jumia-global.com/ANNOUNCES THELAUNCHOFTHEGLOBALVENDORS PROGRAM
• PROVIDES THEPOSSIBILITYFORGLOBALSELLERSLOCATEDATCHINA,INDIA,SPAIN,TURKEY,UNITEDARABEMIRATESTOSELLTOMORE THAN 1.3 BILLION
USERSIN THEREGION

9. INTERNATIONAL TRADE
BUSINESS MODELS

10. COMMERCIAL INCOME
• REGARDINGINCOMEGENERATIONFORINTERNATIONALTRADE:
• SALEPRICEIS HIGHERWHENSOLDTOFINALCONSUMERS
• THEMORE RESPONSIBILITYTHESELLERASSUMESIN THETRADEPROCESS,THEGREATERINCOME PERUNITSOLDWILLOBTAIN
COMPANIESMUST LEARN TOSELL DIRECTLY TO CONSUMERSWORLDWIDE
MANUFACTURING LOGISTICS MARKETING
INTERNATIONALTRADE
THERETAILPRICEOF A PRODUCTISTHE SUM OF EFFORTS:
PROFIT
+ + +
DDP: $18
FOB:3$

11. FOB:3$
FOB/
FCA
DDP
DAT
CIF
EXW
FOB/FCA
17%
CIF
37%
DAT
42%
CIF:7$ DAT:8$ DDP:8$
DDP
42%
$14
$16
$18
LOCAL
AVERAGE
PRICE
$18
1/2- B2B
EFFORTS MADE DEFINE% OF PRICE RECEIVED BY EACH PARTY
MANUFACTURING LOGISTICS MARKETING
4- MARKETPLACES
5-YOUR WEBSITE
3- CONVENIENCE
STORES
$18
INCOME GENERATION -INTERNATIONALTRADE:

12. SELLER / DISTRIBUTORON A FAIRTRADEROLE PLAY
1- HEADQUARTERS IN FRANCE
2- OPERATES CONVENIENCE STORES INFRANCE, UKAND NORDIC COUNTRIES
3- OPERATE ONLINE THROUGHOUT EUROPE.
TRADITIONALINTERNATIONAL TRADE

13. SELLERS: 4 SALES MODELS
EFFORTS MADE DEFINE%PRICERECEIVEDBY PARTIES
MANUFACTURING LOGISTICS MARKETING
TARGET: LARGE QUANTITIES B2B BUYERS
FOR BUYERS WITH RESOLVED LOGISTICS AND MARKETING
B2BFOB/ CIF
OBJECTIVE: TO FACILITATE THE PHYSICALDISTRIBUTION TO CONVENIENCE STORES
FOR BUYERS WITH LAST MILERESOLVED MARKETING
B2BWITH DELIVERYIN
CONVENIENCESTORES
OBJECTIVE: UNIT SALES TO FINAL CONSUMERS IN THE WORLD
SELLER:YOU MUST HAVE YOUR OWN LOGISTIC AND COMMERCIALCAPACITY
B2CMARKETPLACES
B2CWEBSITE
THE OBJECTIVE IS TO COMPLEMENTYOUR COUNTERPART TOPLACE MOREPRODUCTS IN EACH MARKET

14. MANUFACTURERS:INCOMESBASED ON TRADE
SELLING DIRECTDOES NOT ATTEMPTAGAINSTTHEDISTRIBUTIONCHAIN
MANUFACTURERS CHANNEL INCOME
B2B
STORES
B2C
FOB:3$
FOB/FCA
17%
$14
$16.5
$18.69
LOCAL
AVERAGE
PRICE.
$18.69
$18.69
DDP
75%

15. TRADEBALANCE GENERATION
COMPANIESMUST LEARN TOSELL TO CONSUMERSOF THE WORLD
MANUFACTURING LOGISTICS MARKETING
B2B
STORES
B2C
FOB:3$
$14
$16
$18
LOCAL
AVERAGE
PRICE
$18
$18
DDP
75%
FOB:3$
FOB:3$ $14 DDP
75%
$14 DDP
75%
$18
$18

16. MANUFACTURING LOGISTICS MARKETING
EMPLOYMENTGENERATION
WHEN COMPANIESSELL TOCONSUMERSAROUNDTHE WORLD
+ +
DDP: $18.69
FOB:3$
=
- JOBS AIR / MARINE CARGO
COMPANY
- CUSTOMS CLEARERS
- FREIGHT AND TRANSPORTATION
- POSTAL COMPANY JOBS
(TRUCKERS, CLASSIFIER,
CUSTOMS, ETC)
- EMPLOYMENT AT
WAREHOUSING COMPANIES
(PICKING, PACKING)
- ADVERTISING AGENCIES
- GRAPHIC DESIGN
- PROGRAMMING
- TRANSLATION
- VIDEO AND PHOTOS EDITING
- CUSTOMER SERVICE
- AMONG OTHERS
- INDUSTRIAL JOBS
- EMPLOYMENT ON EXTERNAL
SUPPLIERS OF RAW MATERIALS
- EMPLOYMENT ON PACKAGING
SUPPLIERS
- MANUFACTURING JOBS IN
GENERAL
- B2B SELLERS

17. TRADEBALANCE SURGESINTO POSITIVETERRITORY
WHEN GLOBAL COMMERCE'SFUTUREHINGES ONCOLLECTIVE CONTRIBUTIONS
Goods exports combined with service
exports contribute to thetotal export value
of a country

18. INTERNATIONAL TRADE
LOGISTICS

19. LOGISTICS SYSTEMS
MAINOBJECTIVESOF ALOGISTICSSYSTEM:
MACROVARIABLESOF THELOGISTICSSYSTEM
• INTERMSOFLOGISTICSCOSTS:
• HIGHERSPEEDINTRANSITTIME =THEHIGHERTHEPRICE
• THEMORETRACEABILITYOFPACKAGES(TRACKINGINFORMATION),THEHIGHERTHEPRICE
• ATTHELEVELOFREVENUEGENERATIONININTERNATIONALTRADE:
• THEMORE INCOTERMS THESELLERCOVERS,THEGREATERINCOME PERUNITSOLDWILLGET
• TAKEPRODUCTSFROMTHEOFFERTOTHEDEMAND:
• FROMPRODUCERSANDMANUFACTURINGFACILITIESTOCONSUMERSAROUNDTHEWORLD
• FACILITATEGLOBALTRADE:
• THROUGHTHECREATIONOF LOGISTICSPROPOSALSFORTHETRANSPORTATIONANDDELIVERYOF GOODS (2DAYSDELIVERY,4 DAYSDELIVERY,20DAYS
DELIVERY)

20. HOW EXPORT/ IMPORT WORKSBY USING THE GENERAL REGIME
TRADITIONALTRANSIT TIME 15 DAYSUP TO90 DAYS
½ B2B LOGISTICS SYSTEMS (FOB / CIF)

21. FOB/ CIF B2B LOGISTICS SYSTEMS
CHARACTERISTICS OF AN EXPORT / IMPORT BY GENERAL REGIME
• TWO / + COMPANIES INVOLVED = ONE IN ORIGIN AND THE OTHER IN DESTINATION WITH CUSTOMS REGISTRATION
(IMPORTER / EXPORTER NUMBER)
AT THE LOGISTICS LEVEL
• SEVERAL LOGISTICS ACTORS INVOLVED
• TRANSIT TIME= 15 DAYS (AIR) UP TO 90 DAYS BY MARITIME OPERATIONS
• STORAGE CHARGES = DISPLAYED IN DIFFERENT TRANSIT STAGES
• TRACKING INFORMATION OF GOODS = PRECARIOUS
• DUTIES AND TAXES = PAYS BASED ON HARMONIZED TARIFF CODE %
• TARIFF & NON-TARIFF BARRIERS: PROHIBITIONS AND INTERVENTIONS WILL APPLY
• TRANSPORTATION SYSTEM: AIR, SEA, LAND
• FREE TRADE AGREEMENTS

22. HOW CROSSBORDERCOMMERCE WORKS INLOGISTICS (COURIER/ UPU)
3-4-5 LOGISTICS SYSTEMS: ECOMMERCEB2B / B2C
BUYER COUNTRYB
SELLER COUNTRYA
CUSTOMS
CARRIER
FCA:1000$
INTERNATIONAL COURIER TRANSIT TIME:24 HS - 96 HS
COURIER CHINA- EUROPE:48 HS /CHINA - US: 24HS - 48 HS
DUTIES:25% DDP:1250$
FCA/FOB DDP
DAT
CIP
CIF
FCA
EXW
CUSTOMS

23. CROSSBORDER ECOMMERCE: B2C
CHARACTERISTICSOF CROSS-BORDER ECOMMERCE
• NATURALORLEGALPERSONS=DONOT NEEDTOHAVEACUSTOMSREGISTRATION(IMPORTER/EXPORTERNUMBER)
• ASACONSEQUENCE:ALLOWSTOSELLTOTHEENDCONSUMERSWORLDWIDE
ATTHECUSTOMS/LOGISTICSLEVEL
• ASINGLEACTORMANAGESALLTHELOGISTICS
• TRANSITTIME=24HSTO72HS.(COURIER)OR 10-30DAYSTHESLOWEST(UPU)
• STORAGECHARGES=NOT DISPLAYED
• TRACKINGINFORMATION =ATALLTIMES(COURIER) /WITH/WITHOUTTRACKING(UPU)
• DUTIESANDTAXES:PAYS BASED ON HARMONIZED TARIFF CODE %
• TARIFF&NON-TARIFF BARRIERS:PROHIBITIONSANDINTERVENTIONS WILLAPPLY
• TRANSPORTATIONSYSTEM:AIR
• DE MINIMISVALUE=FINALCONSUMERSDONT PAYDUTIESANDTAXESBELOWANAMOUNT(800)

24. CONCLUSIONS

25. ECOMMERCECROSSBORDER BENEFITS
BENEFITSDISPLAYEDBY A MULTICHANNELSELLING STRATEGY
• COMMERCIALPENETRATION:MORE QUANTITYOF COMMERCIAL/LOGISTICALSTRATEGIESTOSELLYOURPRODUCTSWORLDWIDE.
• WORKING CAPITAL:LESSREQUIREMENT,WHATHASALREADYBEENSOLDISPRODUCED ORBOUGHT
• SALEPRICE:ISHIGHER,ALLOWSRECEIVINGMORE REVENUEPERUNITSOLD.
• LONG TAIL:PROVIDING GREATERQUANTITYOF SALES.
• COUNTRY BRAND:GLOBALCONSUMERSBUYFROMLOCALCOMPANIESDIRECTLYVSTHECURRENTMODEL WHERETHEYBUYFROMFOREIGN
WHOLESALERS.
FUTURE
• GOODS EXPORTS+SERVICEEXPORTS=THEKEYTOENHANCEDINCOME, IMPROVEDTRADEBALANCES,ANDJOBGROWTHIN FORWARD-THINKING
NATIONS