ExploreExport 2014 - eCommerce Seminar

www.scottish-enterprise.com
ExploreExport
2014
Murrayfield Stadium
Edinburgh
Monday, 10 November 2014

Develop Your International Sales Online
Chris Elvery
&
Alan Linton
ICT Specialists
Scottish Enterprise

Question:
So what is International Ecommerce?

International Ecommerce
eCommerce…Internationally! “The sale or purchase of goods or services, conducted over computer networks by methods specifically designed for the purpose of receiving or placing of orders” It’s NOT just:
•Business to Consumer
•Physical goods
Source: OECD, ONS

International Ecommerce
Everything that is true of ecommerce,
is also true of international ecommerce,
………………only more so!

What are the challenges?
•Customer service (time of day around the world)
•Language
•Payment (Credit/ Debit card? Bank transfer? Payment on receipt?)
•Currency?
•Transport? Shipping? Returns?
•Legals?
•Seasons?
•Local customs/ culture/ design preferences
•Local Domains/ Search Engine Optimisation/ Social marketing?
•Brand recognition
•Will my products work?
•Trust?
•“It’s just too difficult!”
Image: http://activerain.com/blogsview/864127/turning-challenges-to-opportunities-will-rock-your-2009

What are the opportunities?
•The "internet economy" was worth £121 billion to the UK in 2010 equivalent to 8.3% of the UK economy, that’s more than £2,000 pp
•£221 billion by 2016 representing 12.4% of UK GDP
•UK exports £2.80 for every £1 imported.
•730,000 people work directly in/or support the ecommerce industry
•Of Scottish businesses:
–40% are selling products or service online
–48% generate 20% of their sales online
–29% generate over 50% of their sales online
Source: SE.com website and ONS

What are the risks?
•Going international before you’re ready
•Lack of planning
•Lack of execution
•Too much business
•Time spent on the wrong things
Image: www.integracore.com/atlanta/wp-content/uploads/2011/07/international-ecommerce.jpg

Where to get started
•Research
•Plan
•Get it right at home first!
•Develop a strategy (for each market)
“Thinking is the hardest work there is, which is probably the reason so few engage in it.”

Research
•Your target market
•Your target audience
–Keywords; behaviours; business practices; preferences
•Google Global Market Finder
•Google Trends
•Consumer Barometer http://www.consumerbarometer.eu/
“Speakers on a France and Germany panel at Multichannel Merchant’s recent Growing Global conference agreed that unlike other places like the UK and the Nordic countries – or the U.S., for that matter – consumers in France and Germany were more wary of ecommerce and thus merchants had to work harder to establish trust”.
http://multichannelmerchant.com/ecommerce/france- germany-ecommerce-matter-trust-31072014/#_

Research
•UK Trade & Investment Website - provides guides for exporting to Global markets including:
–Challenges
–Opportunities
–Growth potential
–Legal issues
–Tax & Customs
Source: https://www.gov.uk/government/collections/exporting-country-guides

Don’t make your customer think too hard!
•Acquisition: Get the right products/ services and the right message in front of the right people, in the right place, in the right way
•Persuasion: Remove the barriers: “I don’t understand”; “I don’t like it”; I can’t find it”; “I don’t trust it”; “I don’t get it”; “I don’t believe it” “I just don’t know”
•Conversion: Make the process to “purchase” from you as simple and as uncluttered as possible
Image: Steve Krug – “Don’t make me think”

www.searchenginecolossus.com & www.thesearchenginelist.com
International Search Engines

What will customers think of your site?

Language
•Do you need a foreign language site? (imagery/ photography can go a long way)
•Car Hire, Holiday, vs Auto Rental, Vacation
•To drive: mexican – manejar; Spanish – conducir
“Make sure your business finds the most talented people” 
“Asegúrese de que su negocio se encuentra la
gente más talentosa.” 
“Make sure your business the most talented
people are.”

Culture
•A picture speaks a thousand words!
•The left hand
•Cleanliness and purity? Or something else?
www.thumbsupworld.co.uk

Shipping
•Hidden delivery costs are the leading cause of shopping cart abandonment
•18% of abandonment due to delivery times
•Can you offer free shipping? Free returns?
•Can you consider local fulfilment?
•If you can’t, be VERY clear about shipping costs and times.
•Businesses will expect and accept shipping costs; consumers may not.

Payment preferences

Expedia (UK)

Expedia (France)

Expedia (Hong Kong)

Expedia (Japan)

It doesn’t have to be difficult!
•Can set up an ecommerce quickly using an off-the-shelf service
•Can start off with using UK/ International market places (as much as 65% of shoppers prefer them) e.g. Amazon, eBay etc
•PayPal - An increasing alternative method for some markets
–Not currency dependent
–Provides automatic exchange process (if needed)
–Small transaction fee
–Has fast transaction times (mostly in minutes)
•Can use 3rd party logistics/ payment collection services

International Checklist
1.Research market (including your current analytics)
2.Understand your customers – do they shop online?
3.Understand your competitors
4.Does my product lend itself to online sales?
5.Get it right for home market first – but build for the future and budget accordingly
6.Prioritise markets - Simplest “jump” first – English speaking country/ same SEO/ social landscape/ similar payments?
7.Don’t assume they’ll know your brand outside of Scotland/UK
8.Product/ image led site
9.Make it easy to communicate with you
10.Set realistic expectations for traffic and conversion to sale

Top 10 things to ask your developer
1.Previous eCommerce work undertaken/ retail sales experience?
2.Do they have any sectoral experience?
3.What eCommerce platform do they propose and why?
4.Their experience of international sites?
5.Their experience of XYZ country?
6.How will the website integrate with your other systems?
7.Will the site be mobile friendly?
8.Will they set up Analytics to allow you to monitor sales and conversion?
9.Will they agree Key Performance Indicators (KPIs)?
10.Will they work with you on an ongoing basis?
Image: www.houseplanology.com/blog/top-10-house-plans-over-2000-sq-ft-2013/

Scottish Enterprise support
•International eCommerce workshops
•Scotland IS master classes (www.scotlandis.com/ecommerce/2014-2015- event-details)
–19th Nov: Multi-screen/Multi-channel Ecommerce Strategy (Margaret Robertson, European Marketing Director, Canvas Holidays/ Cat Leaver, Head of Marketing, Alienation Digital)
–29th January - Ecommerce Security and Legal (Matthew Godfrey- Faussett, partner, IT and healthcare, Pinsent Masons/ Dave Stubley, CEO, 7 Elements)
–3rd February - Analytics keynote (Kitt Gilbert Scott, EMEA Manager, Google Analytics/ John Cawdery, Account Director, Google)

Thanks!
Alan Linton
Chris Elvery
ICT Specialists
Scottish Enterprise

Sarah Chanter
Director
eteaket
My story

Bill Gordon
CEO
Red Torpedo
My story

Poering
POWERING EXPORT GROWTH

Poering
Est 2005 Maverick Male Underwear Brand Rooted in Indie Music scene Distribution biggest headache Change of Strategy Full blown Casual Wear Brand

Poering
UK Road Racing
High Octane niche market
Internationally known and revered
Hero culture
Affordable
Giving It Full Throttle

Poering
Web sales core distribution channel Finding right platform Keeping up with speed of development Funding Maintaining Growth Social Media Explosion

Poering
Red Riders / Social media
Commitment
Quality not quantity
Drive connection with the brand
Drive awareness / profile / sales
C 30,000 2007 , now 900,000 plus

Poering
Seeding new markets
Prioritise USA , Italy , Germany , France
Maximise power of social media
Attend key events
Start the buzz

Poering
Developing Export Markets
Establish local fulfilment
Supply distributors / dealers
Use Social Media to fuel the story
Broaden Distribution Channels
Expand web offer in UK

Poering
Developing Export Markets
Establish local fulfilment
Supply distributors / dealers
Use Social Media to fuel the story
Build Wholesale and direct Distribution Channels

Poering
Maintaining web store as key channel
Redesign
Enhance Impact
Continuous improvement
Add complementary brands to extend offer
Stay on It !

John McIlvogue
Managing Director
Stevens & Graham
My story

Q & A
Panel Session

Book an appointment with an Export Advisor to get you started.
Email: enquiries@smartexporter.co.uk
Telephone: 0800 0191 953
Events: http://www.scottish.enterprise.com/events
Newsletter sign-up: https://www.scottish-enterprise.com/subscribe
NEXT STEPS – TALK TO SDI

End of seminar
Thank you!

ExploreExport 2014 - eCommerce Seminar

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ExploreExport 2014 - eCommerce Seminar