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Profitable growth in a foreign countries (part I)

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It's not that simple to build a successful online business, in another country. Many companies all over the world have learned this the hard way. In this presentation you will find a few tools that will make it easier for you to make the right decisions on your way.
This presentation used in electronic commerce conference  "E-komercija '16" by Max Riis Christensen from company MakesYouLocal.

Published in: Internet
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Profitable growth in a foreign countries (part I)

  1. 1. When an international customer is afraid, it is because the answers to the following questions aren’t good enough: • Do I trust this shop enough to buy and pay for the products? • Am I satisfied with delivery time and terms? • Do I believe that the shop will refund my money, if I regret or 
 something is wrong with the products? • Is the returnprocess convenient and fair?
  2. 2. What successful webshops do
 Mistakes we see when things go wrong
 The path to successful international e-commerce 6 elements important for you to succeed Profitable growth abroad
  3. 3. About MakesYouLocal • Established 2010, 100% focus on crossborder e-commerce
 • Worked with more than 200 businesses from - from more than 10 
 different countries to more than 10 different countries
 • Cover the Nordic and the Baltic countries, with our own 
 e-commerce specialists • Part of the Salesupply network with offices all over EU and in the US
 • Facilitating the official Danish export program for companies selling online Some of our customers:
  4. 4. When we look at the webshops that do well • They sell brands / are brands
 • Their prices are competitive 
 • They have a complete and well structured marketing approach
 • They can match the competitors USP’S (Unique Selling Points) • webshop • delivery and returns
  5. 5. The 7 P’sPrior Proper Planning Prevents Piss Poor Performance
 Lack of planning leads to the launch of projects without the potential to become a profitabel project Lack of planning also responsible for insufficient money 
 for localisation No clear goals and not ressources enough for the daily operations
  6. 6. Day to day operations 
 without ressources and competences needed Processes not in place and no ressources ready to take the important initial dialogue with new customers, in their own language
  7. 7. marketing investement It takes an investment to build a position in a new market. There are always local competitors with beautiful webshops and smart and skilled teams to run them. You have to beat them and it is hard to do without a marketing budget. No
  8. 8. Solid logistic setup Many webshops go for a simple logistic solution, but often the solution that is simple from their point of view. You need to make sure the solution your customers experience is simple from their point of view.
  9. 9. What successful webshops do
 Mistakes we see when things go wrong
 The path to successful international e-commerce 6 elements important for you to succeed Profitable growth abroad
  10. 10. • Choose the right country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate 
 based on new volume • Set new goals Launch 5 phases in a successful international e-commerce launch
  11. 11. What successful webshops do
 Mistakes we see when things go wrong
 The path to successful international e-commerce 6 elements important for you to succeed Profitable growth abroad
  12. 12. 6
 important areas to be on top of, to succeed with international e-commerce
  13. 13. The numbers IPO
  14. 14. IPOIncome per order Actuals Lithuania Estimate Sweden Kommentarer Average order value 105,00 105,00 Average basket value for the last 3 months + Shipping fee 3,50 0,00 Average per order for the last 3 months - VAT 21,00 21,00 Deduct VAT - Cost of goods 50,40 50,40 Calculate actual contribution margin - Shipping costs 4,00 7,00 Average actual shipping cost per order (3 months) - Payment fee’s 1,50 2,00 Fee’s to payment providers, average per order - Labour cost warehouse 3,00 3,00 Saleries to employees for pick and pack, per order - Customer service cost 0,50 1,50 Saleries and software costs per order - Return costs 1,70 3,00 Total return costs split per order - Packing materials 1,50 1,50 Total cost for packaging split per order Indtjening pr. ordre 24,90 15,60 Income per order (before marketing cost) Income per order Actuals Lithuania Estimate Sweden Comments Average order value 105,00 135,00 Average basket value for the last 3 months + Shipping fee 3,50 0,00 Average per order for the last 3 months - VAT 21,00 27,00 Deduct VAT - Cost of goods 50,40 64,80 Calculate actual contribution margin - Shipping costs 4,00 7,00 Average actual shipping cost per order (3 months) - Payment fee’s 1,50 2,00 Fee’s to payment providers, average per order - Labour cost warehouse 3,00 3,00 Saleries to employees for pick and pack, per order - Customer service cost 0,50 1,50 Saleries and software costs per order - Return costs 1,70 3,00 Total return costs split per order - Packing materials 1,50 1,50 Total cost for packaging split per order Indtjening pr. ordre 24,90 25,20 Income per order (before marketing cost)
  15. 15. Styr på tallene CPO
  16. 16. CPO Prepare a solid plan for your marketing - Evaluate and choose channels - Decide the CPO you can live with - estimate the volume you can expect - prepare the plan and budget …and follow up!
  17. 17. What is it she can do? • Write texts as a native e-commerce 
 manager • Being able to think like a local customer • Know how things are done 
 (VAT, legals, returns etc.) • Understand the small things 
 that makes the difference A Local HeroTalks the language perfect, is a native and an e-commerce specialist
  18. 18. Logistic- The last mile is important, choose a distributor the customer knows and use - Do you have tracking from your warehouse to customers address/ pick up location? - Remember customers shipping costs can’t be much higher than the competitors - Return terms - many international orders are lost here
  19. 19. Do the things you plan to do! Daily activities Respon sible Weekly activities Respon sible Monthly activities Respon sible Check frontpage and check-out PP Sitecheck, everything correct and localised PP Evaluate and prioritise marketing budgets AT Check that orders are completed LP Make test ordre AT Evaluate conversion and try to improve PP Send newsletter AT Go through cust. service questions LP Go through Adwords and Google shopping AT Prepare campaign on marketplaces AT Check affiliate AT Plan campaigns for next month AT Check sales on marketplaces LP Plan and take status meetings LP
  20. 20. It takes time, often things don’t turn out as expected and cost more than expected - Spend money wisely, avoid high fixed costs and big
 investments - Focus on giving a great customer experience
  21. 21. Summary, important for succes! Prior proper planning…. Focus on your KPI’s (IPO and CPO) Find a “local hero” Competitive logistics Get shit done! Remember it takes time…
  22. 22. Time for questions… makesyoulocal.dk/blog twitter.com/makesyoulocal max@makesyoulocal.com

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