Chris Stevens – Head of Industry Distance Selling Swiss Post International Management AG Global Sales Management (GSM) growth ‘Staying At Home Is Not An Option’ Helping Merchants Boost Cross-Border e-Commerce Sales eShop Expo, Brussels 28 March 2012
Chris Stevens, Head of Industry Distance Selling - Global Sales Management, Swiss Post International Management AG & Sonja van Dorslaer, General manager van Swiss Post International BelgiumThanks to the impressive development of e-commerce, recent years have proven successful for distance sellers, despite challenging economic conditions. In Europe, online sales have doubled since 2005. Growth rates in most European e-retail markets exceeded 20% in 2011, an d the majority of consumers are now buying online as internet sales nudge closer to the 10% of all retail sales mark. However, there are major differences across European countries; payment insecurity, privacy concerns, and lack of trust barriers still exist. Cross-border sales represent a small percentage of online transactions, where concerns about international shipping and the lack of cost transparency still hold back sales. In responding to customer needs and those of merchants and online sellers, the need for a competitively-priced, reliable European packet and parcel network, coupled with visibility of the actual landed cost of shipping has never been greater. Swiss Post will highlight various distribution options and customer-driven service features that are available to help Belgium-based merchants achieve greater online sales within and beyond Europe.In depth appreciation of the key trends driving cross-border e-commerce. Assessment of the barriers that still exist, and how merchants (SMEs and larger sellers) can benefit from an effective high-quality parcels network. Visitors will also be given an overview of the total landed cost model being developed by Swiss Post to help boost cross-border sales through transparent shipping costs and total visibility.
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1. growth Staying At Home Is Not An Option Helping Merchants
Boost Cross-Border e- Commerce Sales eShop Expo, Brussels 28 March
2012Chris Stevens Head of Industry Distance SellingSwiss Post
International Management AGGlobal Sales Management (GSM)
2. Fact >85% of the worlds online population has used the
Internet to make a purchase. AC Nielson Global Online Survey
January 2009Chris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 2
3. By 2014 Swiss Post Selling Industry The Distance with and
through itspartners is the worlds acknowledged leader inglobal
cross-border full service e-commerceas measured by the share of
e-commerce initiated b2c parcels sent across the world by or on
behalf of SwissPost
4. Market Definition the distance selling industry DISTANCE
SELLING Mailings / Online (e-shop) Mobile T-Commerce Direct selling
Catalogues e-Commerce Business to Consumer Business to Business
Consumers perspective - any order made in an e-shop Domestic Cross
Border from a non domestic retailer. Integrates both channels and
provides the most competitive delivery option depending B2C Mail
B2C Parcel on weight and/or valueChris Stevens - Swiss Post, Global
Sales ManagementE-Shop Expo, Brussels_03/2012 Page 4
5. Sizing the Cross-Border Opportunity - Europe orders for
physical goods EU population 2010: ~ 501 Mio. 37% made at least one
on-line purchase in 2010 4% shopped from a country outside the
EUChris Stevens - Swiss Post, Global Sales ManagementE-Shop Expo,
Brussels_03/2012 Page 5
6. Challenges - Europe cultural and legislative 27 countries in
the European Union Own customs and tax authorities 23 official
languages Plus Norway and Switzerland One single currency the Euro
plus other currencies (GBP, SEK, NOK, CHF) A single EU customs
territory with no borders, but Separate tax rules and regulations
Import VAT and Duty payable in state where goods enter the EU
Exceptions: LVCR (Low Value Consignment Relief) for low value items
Off-shore fiscal representation options exist How to offer a
single, workable, cost-effective solution for Europe?Chris Stevens
- Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 6
7. Business opportunity future growth potential Almost a
quarter of persons aged 16-74 in the EU27 have never used the
internet % of individuals who have never used the internet, 2011
Source: EmotaChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 7
8. Consumers: Cross-border shopping common in the Nordic
countries, developing across EuropeChris Stevens - Swiss Post,
Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 8
9. Barriers and NeedsBy 2014 Swiss Post with and through
itspartners is the worlds acknowledged leader inglobal cross-border
full service e-commerceas measured by the share of e-commerce
initiated b2c parcels sent across the world by or on behalf of
SwissPost
10. Overview the e-commerce value chain Customer data &
Online Order Warehousing & Customer Care Marketing appear-
management Distribution ance New Existing Shop Billing & Order
Warehousing & Warehouse Delivery Return Customer customers
platform payment preparation Mgmt Service customers Distribution
Online Mining Data Online Individual Country Delivery Central
Customs Consumer Pickup points Campaigns Customer Campaigns Shop
specific cost stocking VAT support Quality check offline offline
platforms payments calculator Inventory Track & segmen- Home
Restocking Campaigns tation Campaigns SME Credit check (guarantee)
management Trace delivery transport transpor- to Data Mining
Loyalty pro- Data Mining platform Payment Pick & pack retailer
tation to grams Customer Customer guarantee labelling retailer
segmen- segmen- tation tation Social Media Social Media integration
integration Address- Address- Management Management Search Engine
Newsletter- optimization Management Third party Loyalty pro-
Platform grams managementChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 10
11. Drivers and barriers reasons for/against cross border
shopping Main drivers for cross-border Main barriers for
cross-border on-line shopping on-line shopping 1. Price 1.No need
lower prices, compare prices, better price due to Can find
everything I need in my own country lower taxes and exchange rates
2. Exclusive products 2. Lack of trust Not sold in own country
Quality of goods, not confident in receiving goods, warranty 3.
Wider range of products 3. Possible high delivery costs 4.
Convenience 4. Complicated & long return processes Any time of
the day Source: IPC Cross border e-commerce report 2010Chris
Stevens - Swiss Post, Global Sales ManagementE-Shop Expo,
Brussels_03/2012 Page 11
12. What cross-border e-Commerce needs from a private consumers
perspective Shop Provide Search Engine or comparison site promotion
Provide retailer with innovative online promotion tools support
Find best process model for each scenario to achieve competitive
competitive end-to-end delivery cost cost structure Provide escrow
service to bring additional safety for Localized payment and escrow
retailer and shopper service Find ways to provide convenient return
processes for each scenario Transparent return processes Use
track& trace of higher valuable products Secure and trusted
home delivery Develop calculator application and feed it with total
cost of order transparency relevant data of products and overall
delivery cost and guarantee Choose the right product segments in
the respective scenarios product and/or price attractivenessChris
Stevens - Swiss Post, Global Sales ManagementE-Shop Expo,
Brussels_03/2012 Page 12
13. What cross-border e-Commerce needs from a merchants
perspective Provide escrow service to bring additional safety for
Localized payment retailer and shopper and escrow service Develop
calculator application and feed it with total cost of order
relevant data of products and overall delivery cost transparency
and guarantee Use track& trace of higher valuable products
Secure and trusted home delivery Find ways to provide convenient
return processes for each scenario Transparent return processes
Find best process model for each scenario to achieve competitive
cost structure competitive end-to-end delivery cost Provide Search
Engine or comparison site Shop promotion Provide retailer with
innovative online/offline promotion tools support Choose the right
product segments in the respective scenarios product and/or price
attractivenessChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 13
14. What cross-border e-Commerce needs from a postal
organisations perspective Shop Provide Search Engine or comparison
site promotion Provide retailer with innovative online promotion
tools support Provide escrow service to bring additional safety for
Localized payment and retailer and shopper escrow service Develop
calculator application and feed it with total cost of order
transparency relevant data of products and overall delivery cost
and guarantee Find ways to provide convenient return processes for
each scenario Transparent return processes Use track& trace of
higher valuable products Secure and trusted home delivery Find best
process model for each scenario to achieve competitive cost
competitive end-to-end delivery cost structure Choose the right
product segments in the respective scenarios product and/or price
attractivenessChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 14
15. What consumers require certainty, predictability and
trustChris Stevens - Swiss Post, Global Sales ManagementE-Shop
Expo, Brussels_03/2012 Page 15
16. Why are posts so interested in e-commerce? huge potential
While e-substitution is the driver for the decline in physical
mail, e-commerce is driving the only significant growth in postal
services. IPC executive Forum on e-commerce, Oct. 2010Chris Stevens
- Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 16
17. The positioning of B2C ParcelBy 2014 Swiss Post with and
through its helping merchants and SMEs go cross-partners is the
worlds acknowledged leader inglobal cross-border full service
e-commerce borderas measured by the share of e-commerce initiated
b2c parcels sent across the world by or on behalf of SwissPost
18. The role of B2C Parcel designed to facilitate cross-border
e-commerce November 2010 2011 2012Chris Stevens - Swiss Post,
Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 18
19. B2C Parcel providing merchants with quality and reliability
100g to 30kg 26 countries Best-in-class postal partners Home
delivery standard Track & Trace: cross-border parcel tracking
in ONE system Insurance 50 EUR per parcel or EUR 10 / kg (>5kg)
Single point of contact Professional advice by your personal Swiss
Post customer advisor Local prepaid return solution Web-based
customer interface Additional services (e.g. PickPoint)Chris
Stevens - Swiss Post, Global Sales ManagementE-Shop Expo,
Brussels_03/2012 Page 19
20. The positioning of goCommerce helping Swiss companies
develop an onlineBy 2014 Swiss Post with and through itspresence is
the worlds acknowledged leader inpartners global cross-border full
service e-commercewww.post.ch/gocommerceas measured by the share of
e-commerce initiated b2c parcels sent across the world by or on
behalf of SwissPost
21. The importance of the shop platform basis for international
expansion the online shop platform is the control centre of the
entire value chain, because this process step influences
practically all of the downstream, but also the upstream process
steps Shop platform seen as central control unit for the entire
value chain Successive modules are influenced by this control unit
Providing a shop platform means helping merchants growChris Stevens
- Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 21
22. goCommerce one contract one partner one turnkey solution
Integrated distribution interface Boost revenue with new online
sales channel minimal upfront investment Exploit potential of
domestic Onlineshop and cross-border e-commerce Save time and money
with the integrated distribution interface Eliminate need for
evaluating Ready to use and programming shop payment processing
software TextChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 22
23. AW Shop Premium Design Chris Stevens - Swiss Post, Global
Sales ManagementE-Shop Expo, Brussels_03/2012 Page 23
24. Integrated online payment via SwissPost providing the best
known online payment methodsChris Stevens - Swiss Post, Global
Sales ManagementE-Shop Expo, Brussels_03/2012 Page 24
25. The positioning of POWABy 2014 Swiss Post with and through
its an international partnership designed forpartners is the worlds
acknowledged leader inglobal cross-border fullfootprinte-commerce a
rapid cross-border serviceas measured by the share of e-commerce
initiated b2c parcels sent across the world by or on behalf of
SwissPost
26. POWA (and VENDA) a stunning customer baseChris Stevens -
Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 26
27. Creating International Sites low risk, transaction-based
model Traditionally companies try to layer multi-lingual,
multicurrency into their main e-Commerce site Brands are turning to
new secure private cloud technology to deploy International sites
using cloning Low-risk, fast deployment Dozens of sites in a few
weeks Complementary to existing e-Commerce footprint PCI DSS Level
1 compliant critical for foreign sites as some countries have PCI
compliance embedded into criminal lawChris Stevens - Swiss Post,
Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 27
28. The positioning of TLCSBy 2014 Swiss Post with and through
itspartners is the worldsblock to facilitate an essential building
acknowledged leader in cross-border transparencyglobal cross-border
full service e-commerceas measured by the share of e-commerce
initiated b2c parcels sent across the world by or on behalf of
SwissPost
29. Cross border shopping why are consumers reluctant?
Transparency: knowledge about total landed cost before closing the
online deal generates security for the shopper Trust: A guarantee
that there will be no additional costs arising, offered by a
trustworthy company (e.g. Swiss Post) generates trustChris Stevens
- Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 29
30. Our Total Landed Cost Calculator Model a robust gateway for
e-Commerce built upon 3 key principles Simple Shipping We provide
shipping label, necessary forms and indicia Simple Pricing/Billing
Regionalized pricing by zones Insurance, end-to-end tracking and
address cleansing/correction at no additional charge Accurate
pricing based on actual weight, detailed billing of each package
shipped No more guessing. Simple Tracking End to end tracking
across multiple carriersChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 30
31. Swiss PostBy 2014 Swiss Post with and through its creating
the infrastructure forpartners is the worlds acknowledged leader
inglobal cross-border full service e-commerce innovative
cross-border e-Commerceas measured by the share of e-commerce
initiated b2c parcels sent across the world by or on behalf of
SwissPost
32. Swiss Post Excellence delivered We see ourselves as your
partner. We make you successful. We always produce something
extraordinary. Idea Vocation Originality Excellence delivered.
Promise Corporate culture We are already working today on your
success We deliver Swiss quality tomorrow. worldwide.Chris Stevens
- Swiss Post, Global Sales ManagementE-Shop Expo, Brussels_03/2012
Page 32
33. The positioning in BelgiumBy 2014 Swiss Post with and
through its Assisting e-merchants to go cross borderpartners is the
worlds acknowledged leader inglobal cross-border full service
e-commerceas measured by the share of e-commerce initiated b2c
parcels sent across the world by or on behalf of SwissPost
34. Services available from Swiss Post Belgium as from today
Customer data & Online Order Warehousing & Customer Care
Marketing appear- management Distribution ance New Existing Shop
Billing & Order Warehousing & Warehouse Delivery Return
Customer customers platform payment preparation Mgmt Service
customers Distribution Online Mining Data Online Individual Country
Delivery Central Customs Consumer Pickup points Campaigns Customer
Campaigns Shop specific cost stocking VAT support Quality check
offline offline platforms payments calculator Inventory Track &
segmen- Home Restocking Campaigns tation Campaigns SME Credit check
(guarantee) management Trace delivery transport transpor- to Data
Mining Loyalty pro- Data Mining platform Payment Pick & pack
retailer tation to grams Customer Customer guarantee labelling
retailer segmen- segmen- tation tation Social Media Social Media
integration integration Address- Address- Management Management
Search Engine Newsletter- optimization Management Third party
Loyalty pro- Platform grams managementChris Stevens - Swiss Post,
Global Sales ManagementE-Shop Expo, Brussels_03/2012 Page 34
35. International distribution services available out of
Belgium Worldwide : B2C International / B2C Professional up till 2
kgs postal channel low cost - no track & trace Worldwide : B2C
Parcel up till 30 kgs B2C delivery service value for money track
& trace Switzerland : B2C into Switzerland duty free import
solutions for consumers Norway: B2C into Norway duty free import
solutions for consumersChris Stevens - Swiss Post, Global Sales
ManagementE-Shop Expo, Brussels_03/2012 Page 35
36. e-commerce delivered.Chris Stevens - Swiss Post, Global
Sales ManagementE-Shop Expo, Brussels_03/2012 Page 36