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Helping merchants boost cross-border e-commerce sales

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Chris Stevens, Head of Industry Distance Selling - Global Sales Management, Swiss Post International Management AG & Sonja van Dorslaer, General manager van Swiss Post International Belgium


Thanks to the impressive development of e-commerce, recent years have proven successful for distance sellers, despite challenging economic conditions. In Europe, online sales have doubled since 2005. Growth rates in most European e-retail markets exceeded 20% in 2011, an d the majority of consumers are now buying online as internet sales nudge closer to the 10% of all retail sales mark. However, there are major differences across European countries; payment insecurity, privacy concerns, and lack of trust barriers still exist. Cross-border sales represent a small percentage of online transactions, where concerns about international shipping and the lack of cost transparency still hold back sales. In responding to customer needs and those of merchants and online sellers, the need for a competitively-priced, reliable European packet and parcel network, coupled with visibility of the actual landed cost of shipping has never been greater. Swiss Post will highlight various distribution options and customer-driven service features that are available to help Belgium-based merchants achieve greater online sales within and beyond Europe.

In depth appreciation of the key trends driving cross-border e-commerce. Assessment of the barriers that still exist, and how merchants (SMEs and larger sellers) can benefit from an effective high-quality parcels network. Visitors will also be given an overview of the total landed cost model being developed by Swiss Post to help boost cross-border sales through transparent shipping costs and total visibility.

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Helping merchants boost cross-border e-commerce sales

  1. 1. growth ‘Staying At Home Is Not An Option’ Helping Merchants Boost Cross-Border e- Commerce Sales eShop Expo, Brussels 28 March 2012Chris Stevens – Head of Industry Distance SellingSwiss Post International Management AGGlobal Sales Management (GSM)
  2. 2. Fact >85% of the world’s online population has used the Internet to make a purchase. AC Nielson Global Online Survey January 2009Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 2
  3. 3. “By 2014 Swiss Post Selling Industry The Distance – with and through itspartners – is the world’s acknowledged leader inglobal cross-border full service e-commerce”as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  4. 4. Market Definition the distance selling industry DISTANCE SELLING Mailings / Online (e-shop) Mobile T-Commerce Direct selling Catalogues e-Commerce Business to Consumer Business to Business Consumer’s perspective - any order made in an e-shop Domestic Cross Border from a non domestic retailer. Integrates both channels and provides the most competitive delivery option depending B2C Mail B2C Parcel on weight and/or valueChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 4
  5. 5. Sizing the Cross-Border Opportunity - Europe orders for physical goods  EU population 2010: ~ 501 Mio.  37% made at least one on-line purchase in 2010  4% shopped from a country outside the EUChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 5
  6. 6. Challenges - Europe cultural and legislative ◙ 27 countries in the European Union ◙ Own customs and tax authorities ◙ 23 official languages ◙ Plus Norway and Switzerland ◙ One single currency – the Euro – plus other currencies (GBP, SEK, NOK, CHF) ◙ A single EU customs territory with ‘no borders’, but… ◙ Separate tax rules and regulations ◙ Import VAT and Duty payable in state where goods enter the EU ◙ Exceptions: LVCR (Low Value Consignment Relief) for low value items ◙ Off-shore fiscal representation options exist ◙ How to offer a single, workable, cost-effective solution for Europe?Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 6
  7. 7. Business opportunity future growth potential Almost a quarter of persons aged 16-74 in the EU27 have never used the internet % of individuals who have never used the internet, 2011 Source: EmotaChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 7
  8. 8. Consumers: Cross-border shopping common in the Nordic countries, developing across EuropeChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 8
  9. 9. Barriers and Needs“By 2014 Swiss Post – with and through itspartners – is the world’s acknowledged leader inglobal cross-border full service e-commerce”as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  10. 10. Overview the e-commerce value chain Customer data & Online Order Warehousing & Customer Care Marketing appear- management Distribution ance New Existing Shop Billing & Order Warehousing & Warehouse Delivery Return Customer customers platform payment preparation Mgmt Service customers Distribution − Online Mining − Data − Online − Individual − Country − Delivery − Central − Customs − − Consumer Pickup points Campaigns − Customer Campaigns Shop specific cost stocking − VAT support − Quality check − offline − offline platforms payments calculator − Inventory − Track & segmen- − Home − Restocking Campaigns tation Campaigns − SME − Credit check (guarantee) management Trace delivery − transport transpor- to − Data Mining − Loyalty pro- − Data Mining platform − Payment − Pick & pack retailer tation to grams − Customer − Customer guarantee − labelling retailer segmen- segmen- tation tation − Social Media − Social Media integration integration − Address- − Address- Management Management − Search Engine − Newsletter- optimization Management − Third party − Loyalty pro- Platform grams managementChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 10
  11. 11. Drivers and barriers reasons for/against cross border shopping Main drivers for cross-border Main barriers for cross-border on-line shopping on-line shopping 1. Price 1.No need lower prices, compare prices, better price due to Can find everything I need in my own country lower taxes and exchange rates 2. Exclusive products 2. Lack of trust Not sold in own country Quality of goods, not confident in receiving goods, warranty 3. Wider range of products 3. Possible high delivery costs 4. Convenience 4. Complicated & long return processes Any time of the day Source: IPC Cross border e-commerce report 2010Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 11
  12. 12. What cross-border e-Commerce needs… from a private consumer’s perspective Shop − Provide Search Engine or comparison site promotion − Provide retailer with innovative online promotion tools support − Find best process model for each scenario to achieve competitive competitive end-to-end delivery cost cost structure − Provide escrow service to bring additional safety for Localized payment and escrow retailer and shopper service − Find ways to provide convenient return processes for each scenario Transparent return processes − Use track& trace of higher valuable products Secure and trusted home delivery − Develop calculator application and feed it with „total cost of order“ transparency relevant data of products and overall delivery cost and guarantee − Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 12
  13. 13. What cross-border e-Commerce needs… from a merchant’s perspective − Provide escrow service to bring additional safety for Localized payment retailer and shopper and escrow service − Develop calculator application and feed it with „total cost of order“ relevant data of products and overall delivery cost transparency and guarantee − Use track& trace of higher valuable products Secure and trusted home delivery − Find ways to provide convenient return processes for each scenario Transparent return processes − Find best process model for each scenario to achieve competitive cost structure competitive end-to-end delivery cost − Provide Search Engine or comparison site Shop promotion − Provide retailer with innovative online/offline promotion tools support − Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 13
  14. 14. What cross-border e-Commerce needs… from a postal organisation’s perspective Shop − Provide Search Engine or comparison site promotion − Provide retailer with innovative online promotion tools support − Provide escrow service to bring additional safety for Localized payment and retailer and shopper escrow service − Develop calculator application and feed it with „total cost of order“ transparency relevant data of products and overall delivery cost and guarantee − Find ways to provide convenient return processes for each scenario Transparent return processes − Use track& trace of higher valuable products Secure and trusted home delivery − Find best process model for each scenario to achieve competitive cost competitive end-to-end delivery cost structure − Choose the right product segments in the respective scenarios product and/or price attractivenessChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 14
  15. 15. What consumers require certainty, predictability and trustChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 15
  16. 16. Why are posts so interested in e-commerce? huge potential While e-substitution is the driver for the decline in physical mail, e-commerce is driving the only significant growth in postal services. IPC executive Forum on e-commerce, Oct. 2010Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 16
  17. 17. The positioning of B2C Parcel“By 2014 Swiss Post – with and through its helping merchants and SMEs go cross-partners – is the world’s acknowledged leader inglobal cross-border full service e-commerce” borderas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  18. 18. The role of B2C Parcel designed to facilitate cross-border e-commerce November 2010 2011 2012Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 18
  19. 19. B2C Parcel providing merchants with quality and reliability 100g to 30kg 26 countries Best-in-class postal partners Home delivery standard Track & Trace: cross-border parcel tracking in ONE system Insurance 50 EUR per parcel or EUR 10 / kg (>5kg) Single point of contact Professional advice by your personal Swiss Post customer advisor Local prepaid return solution Web-based customer interface Additional services (e.g. PickPoint)Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 19
  20. 20. The positioning of goCommerce ©helping Swiss companies develop an online“By 2014 Swiss Post – with and through itspresence is the world’s acknowledged leader inpartners –global cross-border full service e-commerce”www.post.ch/gocommerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  21. 21. The importance of the shop platform basis for international expansion the online shop platform is the control centre of the entire value chain, because this process step influences practically all of the downstream, but also the upstream process steps  Shop platform seen as central control unit for the entire value chain  Successive modules are influenced by this control unit Providing a shop platform means helping merchants growChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 21
  22. 22. goCommerce © one contract – one partner – one turnkey solution Integrated distribution interface ◙ Boost revenue with new online sales channel – minimal upfront investment ◙ Exploit potential of domestic Onlineshop and cross-border e-commerce ◙ Save time and money with the integrated distribution interface ◙ Eliminate need for evaluating „Ready to use“ and programming shop payment processing software TextChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 22
  23. 23. AW Shop Premium Design ©Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 23
  24. 24. Integrated online payment via SwissPost providing the best known online payment methodsChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 24
  25. 25. The positioning of POWA“By 2014 Swiss Post – with and through its an international partnership designed forpartners – is the world’s acknowledged leader inglobal cross-border fullfootprinte-commerce” a rapid cross-border serviceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  26. 26. POWA (and VENDA) a stunning customer baseChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 26
  27. 27. Creating International Sites low risk, transaction-based model • Traditionally companies try to layer multi-lingual, multicurrency into their main e-Commerce site • Brands are turning to new secure ‘private cloud’ technology to deploy International sites using ‘cloning’ • Low-risk, fast deployment • Dozens of sites in a few weeks • Complementary to existing e-Commerce footprint • PCI DSS Level 1 compliant – critical for foreign sites as some countries have PCI compliance embedded into criminal lawChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 27
  28. 28. The positioning of TLCS“By 2014 Swiss Post – with and through itspartners – is the world’sblock to facilitate an essential building acknowledged leader in cross-border transparencyglobal cross-border full service e-commerce”as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  29. 29. Cross border shopping why are consumers reluctant? Transparency: knowledge about total landed cost before closing the online deal generates security for the shopper Trust: A guarantee that there will be no additional costs arising, offered by a trustworthy company (e.g. Swiss Post) generates trustChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 29
  30. 30. Our Total Landed Cost Calculator Model a robust gateway for e-Commerce built upon 3 key principles Simple Shipping  We provide shipping label, necessary forms and indicia Simple Pricing/Billing  Regionalized pricing by zones  Insurance, end-to-end tracking and address cleansing/correction at no additional charge  Accurate pricing based on actual weight, detailed billing of each package shipped  No more guessing. Simple Tracking  End to end tracking across multiple carriersChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 30
  31. 31. Swiss Post“By 2014 Swiss Post – with and through its creating the infrastructure forpartners – is the world’s acknowledged leader inglobal cross-border full service e-commerce” innovative cross-border e-Commerceas measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  32. 32. Swiss Post Excellence delivered We see ourselves as your partner. We make you successful. We always produce something extraordinary. Idea Vocation Originality Excellence delivered. Promise Corporate culture We are already working today on your success We deliver Swiss quality tomorrow. worldwide.Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 32
  33. 33. The positioning in Belgium“By 2014 Swiss Post – with and through its Assisting e-merchants to go cross borderpartners – is the world’s acknowledged leader inglobal cross-border full service e-commerce”as measured by the share of e-commerce initiated b2c parcels sent across the world by or on behalf of SwissPost
  34. 34. Services available from Swiss Post Belgium as from today Customer data & Online Order Warehousing & Customer Care Marketing appear- management Distribution ance New Existing Shop Billing & Order Warehousing & Warehouse Delivery Return Customer customers platform payment preparation Mgmt Service customers Distribution − Online Mining − Data − Online − Individual − Country − Delivery − Central − Customs − − Consumer Pickup points Campaigns − Customer Campaigns Shop specific cost stocking − VAT support − Quality check − offline − offline platforms payments calculator − Inventory − Track & segmen- − Home − Restocking Campaigns tation Campaigns − SME − Credit check (guarantee) management Trace delivery − transport transpor- to − Data Mining − Loyalty pro- − Data Mining platform − Payment − Pick & pack retailer tation to grams − Customer − Customer guarantee − labelling retailer segmen- segmen- tation tation − Social Media − Social Media integration integration − Address- − Address- Management Management − Search Engine − Newsletter- optimization Management − Third party − Loyalty pro- Platform grams managementChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 34
  35. 35. International distribution services available out of Belgium • Worldwide : B2C International / B2C Professional up till 2 kgs postal channel low cost - no track & trace • Worldwide : B2C Parcel up till 30 kgs B2C delivery service value for money – track & trace • Switzerland : B2C into Switzerland duty free import solutions for consumers • Norway: B2C into Norway duty free import solutions for consumersChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 35
  36. 36. e-commerce delivered.Chris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 36

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