Want to sell your products internationally but have no idea where to begin? Check out this presentation to learn about Global Insights and Guidance to Selling Internationally with Gautam Kalita from PayPal Canada. We break down the basics required to sell products, and the various transactional costs associated when going global. We also evaluate whether or not you should invest in 'internationalizing' your current solution or look to leverage Global Platforms & Marketplaces, as well as discuss on whether or not you need to sell internationally in the first place.

1. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
INSIGHTS TO SELL
INTERNATIONALLY
Mar 26, 2015

2. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Emerging Markets & Mobile are key drivers of Cross-border
Trade Growth
2
International e-commerce is still at a
relatively early stage but is growing
quickly
International shoppers tend to be
younger, better educated and spend
more than the average consumer
and represent an attractive market
for those merchants who can meet
their demand for
trustworthy, simple and risk-free
retail.
Source: PayPal’s Report:
Modern Spice Routes - The Cultural Impact and Economic
Opportunity of Cross-Border Shopping
Cross-border online and mobile shopping 5 year growth trends

3. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Barriers
3
The Consumer Perspective
Consumers are becoming increasingly confident
with shopping across borders. However, they still
mention some concerns as listed below:
• Concerns about fraud or non-delivery
of goods
• What to do if a problem arises
• Concerns over delivery
• Uncertainty about their consumer rights
The Business Concerns
Despite the growing market opportunity, many retailers
aren’t actively pursuing international opportunities
because they’re unsure about:
• Delivery costs
• The complexity of handling returns
• National regulations and taxes
• Accommodating locally preferred payment methods
• The need to build local brand awareness.

4. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Most popular overseas online shopping destinations
4
% of cross-border shoppers
across surveyed markets
purchased from these
markets in the past 12
months
Source: PayPal’s Report:
Modern Spice Routes - The Cultural Impact and Economic Opportunity of Cross-Border Shopping

5. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Top five cross-border purchase categories
5Source: PayPal’s Report:
Modern Spice Routes - The Cultural Impact and Economic Opportunity of Cross-Border Shopping

6. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
The five species of cross-border online shopper
Research
reveals that the
cross-border
shopping
population
around the
world can be
divided into five
distinct types.
6Source: PayPal’s Report:
Modern Spice Routes - The Cultural Impact and Economic Opportunity of Cross-Border Shopping

7. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Canada
7
• Canada is the fourth most popular online cross-
border shopping destination across the U.S., U.K,
Germany, Australia, China and Brazil.
• These six markets purchased a combined CAD 6.4
billionworth of Canadian goods in 2013.
• A 192 per cent growth in international online sales
is expected by 2018, bringing cross-border sales to
an estimated CAD 12.8 billion
Rank Industry
1 fashion
2 auto-parts
3 website-services
4 software
5 travel
6 sports-equip
7 arts-n-craft
8 memorabilia
9 cellphones
10 computer-hardware
Based on PayPal data, below are top
exporting industries from Canada -

8. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Canada’s Top online export countries… (based on PayPal data)
8
1 USA
2 UK
3 Australia
4 Germany
5 France
6 China
7 Netherlands
8 Hong Kong
9 Brazil
10 Japan
1
2
3
4
5
6
7
8
9
10
Austria, Norway and Israel are
opportunities

9. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 9
How They Shop
• 70% of consumers shopped online;
• 30% have shopped from intl sites.
Consumers most often purchase from:
1. China (13%)
2. UK/Great Britain (9%)
3. Canada (9%)
Categories:
1. Clothing/apparel, footwear and
accessories (34%)
2. Toys and hobbies (18%)
3. Travel and transportation (18%)
Barriers and Drivers
• shipping costs, and
• delivery times.
How They Shop
• 76% of consumers shopped online;
• 42% have shopped from intl sites.
Consumers most often purchase from:
1. United States (24%)
2. China (16%)
3. Germany (9%)
Categories:
1. Clothing/apparel, footwear and
accessories (33%)
2. Cosmetics/beauty products (19%)
3. Jewelry/watches (18%)
4. Entertainment/education (physical
items) (18%)
Barriers and Drivers
• shipping costs
How They Shop
• 70% of consumers shopped online;
• 76% have shopped from intl sites.
Consumers most often purchase from:
1. United States (50%)
2. UK/GB (36%)
3. China (32%)
Categories:
1. Clothing/apparel, footwear and
accessories (42%)
2. Entertainment/education (physical
items) (27%)
3. Toys and hobbies (24%)
Barriers and Drivers
• shipping costs
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10. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 10
How They Shop
• 26% of online consumers have shopped
from intl sites.
Consumers most often purchase from:
1. United States (14%)
2. Hong Kong (9%)
3. UK/Great Britain (6%)
4. Japan (6%)
Categories:
1. Clothing/apparel, footwear and
accessories (45%)
2. Cosmetics/beauty products (38%)
3. Consumer electronics (31%)
Barriers and Drivers
• shipping costs
• Word of mouth - Ensure Your Supply Can Meet the
Demand
• Shipping Costs
• Focus on a Product Line that is Already in Demand
• Go Mobile
• Invest in Translations
• Simplify Payment
• Singles Day (November 11th)

11. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Top Canadian
Cities exporting
and their top
export industries
(based on PayPal Data)
11
1
2
3
4
5
6
8
City Industry
1 Toronto Fashion
2 Vancouver Fashion
3 Montreal Fashion
4 Calgary Photography
5 Mississauga Auto-Parts
6 Ottawa Software
7 Victoria Fashion
8 Edmonton Fashion
9 London Travel
10 Oakville Fashion
Rank Industry
1 fashion
2 auto-parts
3 website-services
4 software
5 travel
6 sports-equip
7 arts-n-craft
8 memorabilia
9 cellphones
10 computer-hardware

12. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Case Study: Canadian companies that went global
12
Penzu, www.penzu.com
Alexander Mimran
Australia, Germany, Hong Kong, New Zealand
Whistle & Flute Clothing,
www.whistleandfluteclothing.com
Miranda and Ryan McCullagh
Southeast Asia and Canada

13. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
6 steps to consider when taking your business across borders
13
Planning your
Entry
•Demand for
product
•Local
Infrastructure
•Customers
•Competition
•Routes to
market
•Cultural
differences
•Promoting
your
presence
Accepting
Payments
•Preferred
payment
methods
•Local
currency
Shipping
Services
•Delivery –
clarity, free
•Returns- FRS,
time limit,
other fees
Taxes, laws and
regulations
•Duties and
taxes
•Data
protection
Setting up in-
country presence
•Build
confidence
and
credibility
•User Testing
•Make your
website easy
to use
Great local
customer
service
•Email address
•Telephone
helpline
•Skype or
instant
messaging
https://www.paypal-passport.com/

14. Questions