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Cross-border Strategy & Success · 3 @jweltevreden Confidence in domestic and cross-border online...
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1 Cross-border Strategy & Success Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA
Transcript of Cross-border Strategy & Success · 3 @jweltevreden Confidence in domestic and cross-border online...
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Cross-border Strategy & Success Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA
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Cross-border Strategy & Success
1. Drivers & Barriers
2. Localisation & Performance
3. Desk-research
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Confidence in domestic and cross-border online shopping among e-shoppers
Cross-border online shopping Domestic online shopping
_________________________________________________
Source: GfK (2017)
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Most important concerns when shopping online domestically and in other EU countries
Domestic
1. Misuse of personal data
2. Wrong or damaged products
3. Theft of payment card details
Cross-border intra-EU
1. High delivery costs
2. High return shipping costs
3. Difficult to solve problems if something goes wrong
_________________________________________________ Source: GfK Belgium (2015)
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Cross-border e-commerce
88% 77% 75% 55% 54%
Cross-border selling Only after contact by e-mail/phone Domestic selling
_________________________________________________ Source: Amsterdam University of Applied Sciences
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Cross border Web visitors Domestic Web visitors
Cross-border Web visitors
33% 31% 23% 20% 13%
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Cross border Web visitors Domestic Web visitors
Cross-border Web visitors
Top 3 Belgium Germany
United States
Top 3 Belgium
Switzerland United States
Top 3 Austria
Switzerland United States
Top 3 Netherlands
France United Kingdom
Top 3 United States
India France
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Data
Online survey among online shops in 31 European countries Response: 430 European online shops
Owner
Co-owner
Director
E-commerce manager
Other
Respondent’s role in company
Northern Europe
Eastern Europe
Western Europe
Southern Europe
Region
Less than 10,000
10,000 to 100,000
100,000 to 1M
1M or more
Annual no. of Web visitors
Cross-border
Domestic
Cross-border or domestic
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HELP!
We’ve got a foreign customer!
32% of the online shops that say only to
sell domestically, offer the possibility to order from abroad
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Drivers & Barriers
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Drivers to further increase sales from foreign countries*
1. Growth opportunities
2. Foreign customer demand
3. Good past experiences with selling online to foreign countries
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* Only cross-border online shops are included
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Barriers for (further) online expansion to other countries*
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* 7-point scale, ranging from ‘Not at all’ to ‘Very much’
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Foreign
languages
Foreign partners
Risk of fraud
Legal/Taxation
Limited
recources
Domestic agenda
Logistics
Purely domestic online shop Cross-border online shop
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Cross-border e-commerce strategies
Growth orientation
• Grow is necessary to succeed in the future
• Company’s aims can only be achieved through further growth
Foreign market orientation
• Knowledge about how to market products to foreign markets
• Online sales strategy considers differences between the home market and the foreign markets
• Having people in the company with experience in foreign markets
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Localization & Performance
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Localization elements positively affect cross-border traffic!
But, to what extent do localization elements boost
cross-border online sales and other KPI’s?
Cross-border E-commerce Success
shop.co.uk
shop.fr
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1. Conversion ratio
2. Average basket value
3. Online turnover
4. No. of Returning customers
5. Average return rate
5 KPI’s
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1 2 3 4 5 6 7
Relative performance measures:
Was the average conversion ratio of foreign customers higher or lower than the conversion ratio of customers from your
home market in the past 12 months?
5 KPI’s
Much lower Much higher Equal
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1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No language switch Language switch
Effect of Language switch on cross-border performance compared to domestic performance
Much higher
Much lower
Equal
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Effect of offering English language on cross-border performance compared to domestic performance
Much higher
Much lower
Equal
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No English language offered English language offered
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Effect of Currency switch on cross-border performance compared to domestic performance for specific KPI’s
Much higher
Much lower
Equal
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No currency switch Currency switch
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Effect of Order information for foreign customers on cross-border performance compared to domestic performance
Much higher
Much lower
Equal
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No order information for foreign customers Order information for foreign customers
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1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No return information for foreign customers Return information for foreign customers
Effect of Return information for foreign customers on cross-border performance compared to domestic performance*
Much higher
Much lower
Equal
_________________________________________________ * Results are indicative, due to limited number of cases.
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Marketing activities by cross-border online shops to attract foreign customers
Do not conduct specific marketing activities
to attract foreign customers
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3%
13%
14%
15%
17%
29%
42%
0% 10% 20% 30% 40% 50%
Advertising in the foreign press and broadcasting media
Affiliate Marketing
Advertising on international online marketplaces like e-Bay orAmazon.com
Bannering
Advertising on (inter)national price comparison websites
Search Engine Advertising (SEA)
Search Engine Optimization (SEO)
Marketing activities by cross-border online shops to attract foreign customers
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Effect of SEO for attracting foreign customers on cross-border performance compared to domestic performance
Much higher
Much lower
Equal
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No SEO SEO
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Effect of Affiliate marketing for attracting foreign customers on cross-border performance compared to domestic performance
Much higher
Much lower
Equal
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Conversion ratio Online turnover Average basket value No. of returningcustomers
Average return rate
No Affiliate marketing Affiliate marketing
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Desk Research
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One week challenge: Cross-border e-commerce
Dimitri Arts – Under Armour Europe Erwin Hammers – Noppies Alvar Piepers - Paazl
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Desk-research
1. Demand from the market
2. Supply to the market (competition analysis)
3. Online buying behaviour
4. Search Engine: keyword research
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Advice to Under Armour about Lithuania 1. Transparency regarding return policies, product descriptions (the
products are very innovative) and prices 2. Select the national postal service of Lithuania to partner with, to win
the trust of Lithuanian people 3. Add delivery options: delivery at postal office and at parcel lockers 4. Add payment options: also cash-on-delivery 5. Offer free delivery 6. Use ratings from other e-shoppers, Lithuanian people like that 7. Promote the UA app: high rate of e-shoppers via smart phone 8. Focus on Facebook: 57% social media share in Lithuania
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More need for cross-border e-commerce data from Europe? Make your own data selections using our free, interactive online dashboard!
www.cmihva.link/cross-border-EU
Cross-border e-commerce adoption
Average cross-border traffic share
Country of origin of cross-border traffic
Localization features
Drivers & Barriers
Cross-border performance
And more…
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Lack of ‘professionalism’ among many ‘cross-border online shops’
Online shops that are successful in cross-border e-commerce employ localisation elements
Limited resources, domestic agenda and language issues are import barriers among cross-border online shops to further expand internationally
Cross-border e-commerce is serious business that requires good strategy & planning
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Contact us for more information
Dr. Jesse Weltevreden Professor Digital Commerce [email protected] +31 (0)6 10 15 32 68
Sjoukje Goldman MSc PhD Candidate [email protected] +31 (0)6 21 15 78 08
Julia Keuter BA Junior Researcher
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Thank you for your attention!
