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X Border Pp Sophia 09 [Lecture Seule]


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X Border Pp Sophia 09 [Lecture Seule]

  1. 1. Cross-Border E-Commerce WebIt, Sophia 7-8 Oct 2009 Przemek Pluta PayPal Europe Country Manager, Poland Confidential and Proprietary
  2. 2. TODAY’S AGENDA Cross boarder trade opportunities PayPal powering global e-commerce What we will talk aboutPolish market Some examples from the Confidential and Proprietary
  3. 3. They don't call it the World Wide Web for nothing Only 20 years later… 1989,Tim Berners-Lee invents World Wide Web Confidential and Proprietary 2
  4. 4. Every 3rd online users comes either from China, India or Brazil. % of global online population 20,3 C hina 13,6 tates Un it ed S an 5,6 Jap 4,9 Ind ia 4,0 l Brazi 3,3 any Germ 2,9 g dom d Kin ce 2,5 Unit e Fran ia 2,3 Russ 2,2 Sou th K o rea 1,7 Italy 1,7 Spain 1,6 co M e xi 1,6 y Turke 1,5 esia Ind on a 1,4 d Cana 1,4 Iran 1,3 am Vietn 1,2 d Po lan 1,2 ntina Arge 0 5 10 15 20 25 Source:, 2009 est. Confidential and Proprietary 3
  5. 5. Your best potential customers probably don’t live in your country. GDP (PPP) per capita But the easier first step would be to focus on mature and lucrative e- commerce markets with high population like US, DE, FR or UK. Source: IMF, 2008 Confidential and Proprietary 4
  6. 6. With 800M population and 170 B EUR e-commerce the EU represents a huge opportunity. E-Commerce turnover in 2007 in Euros 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Source: First Annapolis, 2009 eCommerce payments acceptance update, August 09 Confidential and Proprietary 5
  7. 7. And cross-border online trade already takes place. PayPal presence • 7% of EU consumers shop online abroad • 21% of online retailers sell cross-border • Obstacles / bariers: • Language • Regulatory • Delivery • Payment One out of three European consumers would consider buying a product or a service online from another EU country Fully localized site 20/80 light localization if it were cheaper or better. Send/receive/withdraw enabled Sourc: A report on e-commerce published by the Commission in March 2009 (see IP/09/354) Confidential and Proprietary 6
  8. 8. Used in190 countries and 19 currencies. PayPal is a global online trade enabler. X-border sent TPV as a percentage of total TPV 12% sent 37% sent 58% sent Cross-border TPV represents 22% of total PayPal TPV
  9. 9. Key barriers in starting a cross-boarder online business should be simple to overcome. Confidential and Proprietary 8
  10. 10. How am I going to get paid? Confidential and Proprietary 9
  11. 11. Local payments methods are still important in EU Confidential and Proprietary 10
  12. 12. How will I communicate with my new customers? Confidential and Proprietary 11
  13. 13. How will the goods be delivered? And what with the customs? Confidential and Proprietary 12
  14. 14. What if the foreign customer has questions or complains? Confidential and Proprietary 13
  15. 15. EU laws provide the legal framework for online trade Distance Selling Directive 1997/7/EC, E-Commerce Directive 2000/31/EC, Unfair Commercial Practices Directive (UCP) 2005/29/EC. • Information which online traders must provide – Identity, contact details of the trader – Main characteristics of products: full price (including taxes), delivery costs – Payment and delivery arrangements – Address for complaints – Information on consumer rights such as the right to withdraw • Under the Directive, the trader is obliged to deliver the goods within 30 days after the order is placed. • The consumer has the right to cancel the contract (and send the product back) within a minimum of 7 working days without giving any reason and without penalty, except the cost of returning the goods. • To confirm the receipt of the order promptly and by electronic means accessible to the consumer. • Black List of techniques that are illegal (such as fake "limited" or "free" offers, or bait advertising). Confidential and Proprietary 14
  16. 16. Anything else before I get started? Confidential and Proprietary 15
  17. 17. TODAY’S AGENDA Cross boarder trade opportunities PayPal powering global e-commerce What we will talk aboutPolish market Some examples from the Confidential and Proprietary
  18. 18. PayPal: Facts and Figures • Headquarters: San Jose, California • European Bank HQ: Luxembourg • Founded: 1998, acquired by eBay in 2002 • CEO: Scott Thompson • More than 193 million accounts – 190 markets and 19 currencies • 9% of global e-commerce • 66% of internet users in EU know PayPal • 36% have already pay with PayPal* •In the last 3 months. •Source: Forrester Research Confidential and Proprietary 17
  19. 19. Our wallet connects buyers and sellers Credit Card Direct Debit Bank transfer Bank Transfer PayPal Balance giropay 2 € € Withdrawing methods PayPal Balance Buyer account Seller account Funding method "I like the security that "I like the security that 1 PayPal offers. I Idon’t PayPal offers. don’t like giving my card like giving my card details out directly to details out directly to any company." any company." 1 Buyer pays with PayPal – "I wouldn’t have bought "I wouldn’t have bought 3 as easy as sending an eMail at these merchants ififI I at these merchants hadn’t seen that hadn’t seen that 2 PayPal credits the amount PayPal was offered." PayPal was offered." 3 Seller sends the shipment Confidential and Proprietary 18
  20. 20. How does it work for the buyer in the merchant website Confidential and Proprietary Confidential and Proprietary 19
  21. 21. We integrate local funding sources CANADA UK Connection to 27 financial networks and &15,000 local banks. GERMANY FRANCE US CHINA SPAIN ITALY SWITZERLAND AUSTRALIA Confidential and Proprietary 20
  22. 22. PayPal represents 9% of worldwide e-commerce 193 millions accounts worldwide 95 50 millions in Europe 22 1 9 Key figures 8 $16.7 billion Total Payment 3 Volumes (2008) 2 15% of US E-commerce 9% of worldwide E-commerce Confidential and Proprietary 21
  23. 23. PayPal is increasing Consumer Usage ‘Which of the following online payment methods have you used in the past three months?’ - PayPal 47% 46% 41% 36% 37% 26% 25% '07 20% '09 EU UK FR DE Source: Forrester, European Technographics Media, Marketing and Retail Online Survey, Q3 2007 and Q3 09 Confidential and Proprietary 22
  24. 24. Payments that are not so much alternative anymore Payments acceptance among US Top 500 Internet Retailers 41% 34% 27% 22% 23% '08 20% 18% '09 17% 4% 3% PayPal Co-brand BML Google eBillME Amazon PLCC Source: First Annapolis, 2009 eCommerce payments acceptance update, August 09 Confidential and Proprietary 23
  25. 25. How do we keep up with innovation? We enter agressively in the Mobile space RIM Appstore Mobile P2P Yahoo! Mail Send Money Twitpay And we go where the users are But the most exciting things are about to happen very soon … Confidential and Proprietary 24
  26. 26. PayPal X: Launch on Nov 3, SF Confidential and Proprietary 25
  27. 27. TODAY’S AGENDA Cross boarder trade opportunities PayPal powering global e-commerce What we will talk aboutPolish market Some examples from the Confidential and Proprietary
  28. 28. International online shop that happen to be based in Poland Confidential and Proprietary 27
  29. 29. Based in Łódź, central Poland, selling photo equipment worldwide on eBay Confidential and Proprietary 28
  30. 30. Very succesull domestic business but friendly & open for intl. customers Confidential and Proprietary 29
  31. 31. Think globally, and follow a few simple rules, your business can be as world- wide as the Web itself. Confidential and Proprietary 30
  32. 32. Thank you! What we will talk about Confidential and Proprietary
  33. 33. Building blocks for PayPal in Poland 1 000 000 by EOY 2009 65% Penetration 2/4 PSP, 9/10 Carts 4 / top 10, 14 / 100 # SPs at 100%+ YoY Confidential and Proprietary 32