Internationalising your webshop: One Europe, still 27 countries

“Enabling global e-retail”

Internationalising your webshop:‘ One Europe, still 27 countries ’

v5

“Enabling global e-retail”

Internationalising your webshop:‘One Europe, still 27 countries’

Content:• Why internationalise• Country prioritisation• Localisation: what, why, how

“Enabling global e-retail”

Why consider the market place outside the UK?

Fantastic growth opportunities

A strong starting position

‘…. and your next competitor…’

Innovation

“Enabling global e-retail”

Why consider the marketplace outside the UK?

Fantastic growth opportunities

A strong starting position

‘…. and your next competitor…’

Innovation

However, additional

costs

complexity/management time

risk (financial, legal (T&C, Permanent Establishment,..)

“Enabling global e-retail”

European Union | Chances & risks

The pros and cons of Europe

Opportunities

Largest E-commerce market worldwide

Access to 500 million people

Growing market

Choice of countries (demand, eMaturity)

Very stable region

A common legal framework

Excellent distribution network

Low to zero corruption

“Enabling global e-retail”

European Union | Chances & risks

The pros and cons of Europe

Opportunities However

Largest E-commerce market worldwide

Access to 500 million people

Growing market

Choice of countries (demand, eMaturity)

Very stable region

A common legal framework

Excellent distribution network

Low to zero corruption

27 member states (where to begin?)

27 different cultures

27 domestic markets

20 different languages

Still some significant differences in legislation

Every country requires it‘s own marketing, cultural and customer approach

“Enabling global e-retail”

Prioritisation – consider size of market

8

28

5

19

5

22

6

0

5

10

15

20

25

30

35

E-commerce sales 2010 in bill. €

Sweden UK Spain France Italy Germany Netherlands

“Enabling global e-retail”

Prioritisation – consider price points & marketing costs

Business case 1: Sport/Callaway Razr Hawk Driver

255

“Enabling global e-retail”

Prioritisation – consider price points & marketing costs

Business case 3: Technik/Kettensäge Bosch AKE 35s

Product price

“Enabling global e-retail”

Prioritisation – consider cost of returns

UK Germany

Payment of goods at ordering often after 14 days

Cost of returns often for customer normally for supplier

Return rates fit critical 20 - 30 % 25 - 60 % normal 5 - 15 % 10 - 25 %

“Enabling global e-retail”

Prioritisation – in conclusion

Research

Look beyond market size - include key drivers of costs

Prioritise

“Enabling global e-retail”

Localisation – why is it important

‘Localisation is the key element for a UK company going to an international market ‘ Richard Moore, Head of International Sales,

Mobile Fun

‘It should feel like a Dutch site to the Dutch, an Italian site to the Italians’ Hash Ladha, Group Multi-Channel Director,

Aurora Fashion

Would you buy from a German, French, Polish eRetailer if the webshop is poorly translated and products are hard to find

is priced in Euros, Kroner

has customer contact address and telephone numbers overseas

does not offer some guarantee ie.known brand or trust mark?

“Enabling global e-retail”

Key elements for localisation

Delivery & returns

Currency and payment solutions

1

2Credit cardLocal bank solutions

Dankort Invoice, credit card

Ideal, Paypal

“Enabling global e-retail”

Key elements for localisation

Delivery & returns

Currency and payment solutions

Language (translation site, new products, campaigns etc)

In-tune marketing and sales messaging

1

2

3

4

“Enabling global e-retail”

Key elements for localisation

Delivery & returns

Currency and payment solutions

Language (translation site, new products, campaigns etc)

In-tune marketing and sales messaging

Legal and Tax compliance (T&C’s, Privacy, Imprint, VAT etc)

1

2

3

4

5

“Enabling global e-retail”

Key elements for localisation

Delivery & returns

Currency and payment solutions

Language (translation site, new products, campaigns etc)

In-tune marketing and sales messaging

Legal and tax compliance (T&C’s, Privacy, Imprint etc)

1

2

3

4

5Lead generation (SEO, PPC, social media)

Trust marks

6

7Confianza on-line

E-maerket Trusted shop Thuiswinkel waarborg

“Enabling global e-retail”

Key elements for localisation

Delivery & returns

Currency and payment solutions

Language (translation site, new products, campaigns etc)

In-tune marketing and sales messaging

Legal and tax compliance (T&C’s, Privacy, Imprint etc)

1

2

3

4

5Lead generation (SEO, PPC, social media)

Trust marks

Local contact details (beware of Permanent Establishment)

6

7

8Local customer service (native speakers at location)9

“Enabling global e-retail”

Localisation – the how: ‘make or buy ?’

Do it alone For those that have the know-how and large scale resources, focus on brand

Channel partner - distributor For those that have relatively small product range and not focussed on brand

Third party service provider – outsource marketing sales, service etc

“Enabling global e-retail”

Salesupply

Providing local facilities

Local address and telephone number

(but not a P.E…)

Set up

Market insights

Shop optimisation

Legal/tax docs

Trust marks

Project management

Translation

Ongoing support

Customer service in country

Translation

E-marketing

Social media

VAT returns

Providing local facilities, know how and active support

“Enabling global e-retail”

Founded January 2008

~ 90 active customers

for ongoing support

8 European branch offices

39 employees

About Salesupply | Figures

Germany

France

UK

Benelux

Spain

Swiss

Austria

Italy

Nordic

Poland

Czech Republic

Countries

“Enabling global e-retail”

Founded January 2008

~ 90 active customers

for ongoing support

8 European branch offices

39 employees

About Salesupply | Figures

Germany

France

UK

Benelux

Spain

Swiss

Austria

Italy

Nordic

Poland

Czech Republic

Countries

One partner for all activities in 12 countriesPerformance or events based pricing model