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International eCommerce
The document discusses the growth and potential challenges of global e-commerce, highlighting various statistics on internet usage, market forecasts, and payment preferences across regions. It emphasizes the impact of language barriers and fraud on international sales, as well as regional differences in consumer behavior. Additionally, it underscores the importance of strategic market selection and fraud prevention measures for successful international e-commerce ventures.
International eCommerce
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- 2. International E-commerce The benefitsand challenges of selling globally
- 3. Growth of E-commerce 3.4% 1.1% 6.2% Internet users in the world Distribution by World Regions - 2011 10.4% Asia - 48.8% 48.8% Europe - 22.1% 12.0% North America - 12.0% Lat Am / Caribb - 10.4% Africa - 6.2% 22.1% Middle East - 3.4% Oceania / Australia - 1.1% Source: Internet World Stats - www.internetworldstats.com/stats.htm Basis: 2,267,233,742 Internet users on December 31, 2011 Copyright © 2012, Miniwatts Marketing Group
- 4. The e-commerce marketis poised for explosive growth... globally US EU Asia ROW Worldwide e-Commerce Growth 2010 £102.8 £121.0 £96.5 £34.6 £355.0 Projection in Billions of GBP 2013 £145.9 £175.5 £200.3 £75.5 £597.1 Source: Goldman Sachs CAGR 12.4% 13.2% 27.5% 29.1% 19.4% Source: Internet World Stats www.internetworldstats.com/stats.htm North America 78.6% Oceania/Australia 67.5% Asia 1016.8 Europe 61.3% Europe 500.7 Latin America / 39.5% North America 273.1 Caribbean 35.6% Latin America / 235.8 Middle East Caribbean Asia 26.2% Africa 139.9 Africa 13.5% Middle East 77.0 46.0% Oceania / 23.9 World, Avg. Australia 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 200 300 400 500 600 700 800 900 1000 2011 Penetration Rate 2011 Millions of Users
- 5. What to thinkabout?
- 6. Language Barriers “83% ofthe online population can be addressed with 10 languages” - Bob Pearson
- 7. Top 10 Languageson the Internet 2010 English 536.6 in Millions of Users Chinese 444.9 Spanish 153.3 Japanese 99.1 Portuguese 82.5 German 75.2 Arabic 65.4 French 59.8 Russia 59.7 Korean 39.4 All the rest 350.6 50 100 150 200 250 300 350 400 450 500 550 600 Millions of Users Source: Internet World Stats - www.internetworldstats.com/stats.htm Basis: 1,966,514,816 Internet users on June 30, 2010 Copyright © 2000 - 2010, Miniwatts Marketing Group
- 8. Currency Options (excludes USD) Euros 11.14% Source: 2Checkout British Pounds Sterling 7.18% Canadian Dollars 4.27% Australian Dollars 3.94% Japanese Yen .70% South African .68% Rand Mexican Peso .64% Indian Rupee .62% 2% 4% 6% 8% 10% 12% Percent of Transactions
- 9. Preferred Payment Methods Survey(19,000 consumers in 15 countries) Cards are the most popular - 69% PayPal next most popular - 40% Debit cards coming in third - 37% Source: Internet Retailer
- 10. Preferred Payment Methodsby Region (Online) Credit Card Bank Transfer COD - Cash on Delivery PayPal Debit Card 100% 90% 86 % 80% 70% 69 64 % 63 60% 59 % % Percent 56 % Preferred % 50% 40% 30% 28 29 23 % % 22 23 21 20% % % 18 % 13 12 11 % 15 14 13 12 13 13 12 11 12 % % %% % % %% % 7 9 % %% 10% 6 % 4 2 % % % % % Global Asia Pacific Europe North America Latin America South Africa Source: AC Nielson Global Consumer Attitudes Towards Online Purchases Region
- 11. Fraudulent Orders 3.0 Online Revenue Loss Due to Fraud Estimated 2.5 £2.1B in 2011 2.5 2.3 £ £ 2.1 2.0 2.0 1.9 £ 1.7 £ 1.6 1.7 £ Source: CyberSource and £ Loss £ Merchant Risk Council in Billions 1.5 £ £ 1.3 1.2 1.1 £ £ 1.0 £ .5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Per Year
- 12. Where Fraud TypicallyAppears Decreased 5% Increased Yes 35% Remainded 46% No the Same 54% 60% = % of merchants that claim current fraudulent orders are cleaner than those from 12 months ago “Friendly Fraud” over Fraudulent orders continue the last 2 Years to look like Valid orders Source: CyberSource and Merchant Risk Council
- 13. Countries/Regions where Merchants havestopped shipping...
- 14. Asia Pacific Europe 60% 38% Venezuela Ghana Malaysia 25% 35% 33% Africa & West Africa Middle East Indonesia Latin & Central 35% Nigeria 65% 30% America 50% 30% 2011 Riskiest Countries 1. Nigeria - 50% 5. Venezuela - 25% 9. China, Philippines, Signapore, India, Ukraine - 15% 2. Ghana - 35% 6. Vietnam, Russia - 23% 10. Egypt, Myanmar, Mexico - 13% 3. Malaysia - 33% 7. Iran, South Africa - 20% 4. Indonesia - 30% 8. Pakistan - 18%
- 15. In the pastyear, 25% of Merchants who accept international orders, stopped from at least one country due to high Fraud levels Up from 20% in 2010 Stopped 25% Continue 75%
- 16. Percent of OrdersRejected for Fraud Increase in Fraud orders outside your border 2.8% 7.3% Outside your border Source: CyberSource and Merchant Risk Council
- 17. Impact of Fraud RealCost = Fraud Prevention Expenditures What are you spending? Measure how many orders are: - Flagged for review? - Rejected for fraud? - Accepted that turn out to be fraudulent?
- 18. Most Effective FraudTools Merchants Most Device fingerprint results 46% Effective Tools Fraud model (in-house) 39% Negative lists (in-house lists) 38% Source: CyberSource and IP geolocation 37% Merchant Risk Council Paid-for public records services 33% Order velocity monitoring 29% Customer order history 27% Address Verification Service 26% CVN (Card Verification Number) 25% Contact customer to verify order 24% Multi-merchant Fraud Model 24% Payer Auth / 3D Secure 18% Credit history check 17% Shared negative lists - shared hotlists 15% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Percent of Merchants
- 19. Our Recommendation Threshold forLoss Fraud Model - Negative & Positive Lists - Device Finger printing - IP Geo Location Outsource
- 20. Choose your OverseasMarkets Pinpoint the best country or region - International traffic & order origination - Cultural & language differences - Economic & political policies - Tariffs or trade barriers SR SR
- 21. Research with SocialMedia 5% 5% Facebook users 6% Distribution by Countries US - 34% 7% 34% Brazil - 10% India - 10% 7% Indonesia - 9% Mexico - 7% 7% UK - 7% 10% 9% Turkey - 7% 10% Philippines - 6% France - 5% Germany - 5% Source: www.checkfacebook.com
- 22. Facebook Buy credits bycountry Wall posts LinkedIn Groups by region Forums Connect with e-commerce partners
- 23. We’re here tohelp, cheers! 2Checkout Stand #822 Melissa Blackburn mblackburn@2co.com salesteam@2co.com +44 (0)808 234 0487
- 24. Find us atthe show! Stand #822