How to Achieve Profitability in Global Ecommerce


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Can I make any money with global ecommerce? Are overcoming the challenges and complexities worth it? Much is made of the promise of global ecommerce – but how profitable will it really be?

There are many issues that can rob your profit margins, including unexpected customer charges, problems with tracking packages, local clearances and restrictions and delivery delays. The lure of new markets and increased revenue is appealing – but is profitable global ecommerce achievable?

The answer is yes – and the solution lies in providing price-sensitive web consumers a high level of customer service and value. To get there, retailers must make these achievable goals a high priority: provide customers with a guaranteed landed cost before they buy; give them accurate delivery times; provide accurate package tracking.

Miss any of these fundamental steps, and the above issues can quickly erode margins and curtail repeat business.

This slide deck taken from our webinar with Multichannel Merchant on July 17 2014 provides actionable insights that will help you structure your global ecommerce program in order to guarantee the highest level of customer satisfaction and loyalty – and ensure profitability.

Key takeaways:

• How to create a cost-efficient international delivery network
• How to provide global customers with complete landed costs
• How to simplify the complexities of clearances and restrictions
• Insights into market sizes and growth rates from Pitney Bowes market intelligence update

View the webinar recording:

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How to Achieve Profitability in Global Ecommerce

  1. 1. How to achieve profitability in global ecommerce z
  2. 2. 2 Agenda 1. US outbound market sizes and growth engines 2. 4 common challenges to selling globally 3. Avoiding these challenges 4. Case studies: Rickshaw Bagworks PlanetShoes
  3. 3. 3 How big is global ecommerce?  1.15 billion digital buyers  They will spend $1.5 trillion on ecommerce purchases in 2014 Source: eMarketer, Worldwide B2C Ecommerce
  4. 4. 4 B2C ecommerce sales worldwide 2012-17 Trillions (US Dollars) Note: CAGR 2012-2017=17.3%; includes products and services ordered and leisure and unmanaged business travel sales booked using the internet via any device, regardless of the method of payment or fulfillment. Source: eMarketer, Jan 2014 $1.058 $1.248 $1.500 $1.763 $2.043 $2.345 B2C Ecommerce sales 2012 2013 2014 2015 2016 2017
  5. 5. 5 By the numbers… Source: Pitney Bowes ResearchSource: Pitney Bowes Research
  6. 6. 6 US is the FAVORITE shopping destination for global shoppers Source: NielsenSource: Pitney Bowes Research
  7. 7. 7 Red + gray=the untapped potential; All figures in the pie charts are in millions Source: Pitney Bowes Research US cross-border ecommerce growth engines
  8. 8. 8 US cross-border ecommerce growth engines Red + gray=the untapped potential All figures in the pie charts are in millions Source: Pitney Bowes Research
  9. 9. 9 Four Common Challenges To Selling Globally
  10. 10. 10 Challenge 1: Complex customs, duties, shipping restrictions and tax issues 27% of global e-retailers cite lack of knowledge of local rules and regulations acts as an inhibitor to cross-border ecommerce 20% are held back by complex foreign tax laws Source: Payvision and CEPIS
  11. 11. 11 Challenge 2: Shipping complexities Shipping takes too long Shipping costs are too high End-to-end tracking
  12. 12. 12 Challenge 3: Long and complicated returns process 47% of global e-retailers indicated that rules and regulations for product returns play a critical role in cross-border ecommerce Source: Payvision and Accenture
  13. 13. 13 Challenge 4: Payment processing 53% of e-retailers indicated that providing a wide variety of payment options is complex Source: Payvision and Accenture
  14. 14. 14 Blank slide How global ecommerce should work
  15. 15. 15 Keys to success  Master the basics • Cost certainty • Reasonable shipping • Clear returns policy
  16. 16. 16 Master the basics
  17. 17. 17 Keys to success  Master the basics • Cost certainty • Reasonable shipping • Clear returns policy  Increase sophistication • Payment processing and fraud management • Currency conversion • Localized site in-language
  18. 18. 18 Increase sophistication Up to 80% lift in sales when displaying local currency Source: International Business Times Source: Internet Retailer
  19. 19. 19 Rickshaw Bagworks Case Study
  20. 20. 20 PlanetShoes Case Study
  21. 21. 21 Q&A Email: Call: 855-PB-ECOMM