SUCCEEDING IN THE
EUROPEAN ECOMMERCE
MARKET How to find the balance between localization and standardization
Webwinkel Vakdagen Utrecht, 23.01.2013
Something about me…
2
… 32 years old
… 5 years at Hermes Fulfilment
• International Business Development Manager
• Key Account Manager
… Primary Focus:
• International expansion of online business
– Europe, USA, China and Russia
• International Fulfilment & Partner management
• International eCommerce projects
… Clients:
• Home Shopping Europe (HSE 24)
• Wolford AG
• MUJI Deutschland GmbH
• Chal-Tec GmbH
• Bombay Brands LLC
3
Did you know that…
... Europe has 740 million population.
... Europe is the world’s largest
eCommerce market based on total online
revenue.
... internet retail sales volume reached
€126.76 billion in 2012 – grew by +14.12%
from 2011.
... there are 28 other currencies beside of
the Euro.
... the United Kingdom, France and
Germany dominate the internet retailing
market, accounting for 62.65% of total value
sales.
4
Capture the Potential of Internet Retailing...
Source: Euromonitor Jan 2013
Each European Market is Different. Take a Look at…
…Language
… Common service times for call centers
… Preferred payment methods
… Currency
… Common delivery lead time
… Returns regulations
… Exclusion of delivery
… Delivery quota
… Sales Tax
…
5
… Seal of Quality
6
Your customers want to pay with…
UNITED KINGDOM
4%
21%
35%
40%
0% 20% 40% 60%
Others
PayPal
Debit Card
Credit Card
GERMANY
1%
8%
21%
23%
25%
37%
52%
0% 20% 40% 60%
Cash on Delivery
sofortüberweisung.de
Credit Card
PayPal
Direct Debiting
Payment in Advance
Invoice
FRANCE
8%9%12%12%
21%79%
0% 50% 100%
e-carte bleueDirect Debiting
ChequeVoucher
E-PaymentCredit Card
ITALY
4%
7%
9%
11%
69%
0% 20% 40% 60% 80%
Others
Bank Transfer
Cash on Delivery
E-Payment
Credit Card
Σ
Credit Card x x x x x x x x x 9
PayPal x x x x x x x x x 9
Invoice x x x x x 5
Online Banking x x x x 4
Cash on Delivery x x x 3
Direct Debiting x x 2
sofortüberweisung.de x 1
Debit Card x 1
e-carte bleue x 1
Cash at Place of Coll. x 1
Payment Methods – must have vs. nice to have
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Σ
Credit Card x x x x x x x x x 9
PayPal x x x x x x x x x 9
Invoice x x x x x 5
Online Banking x x x x 4
Cash on Delivery x x x 3
Direct Debiting x x 2
sofortüberweisung.de x 1
Debit Card x 1
e-carte bleue x 1
Cash at Place of Coll. x 1
19.6% 100.000 € 15 days 5.95 €• French as language is legally
required for „Terms and Conditions“
21% 35.000 € 10 days 5.95 €• Storage costs for unsuccessful
shipments paid by customer
23% 35.000 € 14 days 4 – 6 €• No title in the communication,
informal communication is common
25%320.000 SEK
(= 35.000 €)14 days
40 – 60 SEK
(= 4.50 – 7.00 €)
• Usage of ID-number for online order
• Opt-out for written ads
25%280.000 DKK
(= 35.000 €)14 days
49 – 60 DKK
(= 6.50 – 8.00 €)
• Return costs paid by customer
• 50% delivery by Local Post
25% - 14 days49 – 60 NOK
(= 6.00 – 8.00 €)
• Special treatment of Spitzbergen
• 95% of population (15-75y) buy online
20%1.140.000 CZK
(= 44.760 €)14 days 4 – 6 €
• Sunday is a business day
• Up to 8 local carriers (e.g. alza.cz)
19% 100.000 € 14 days 4 – 6 €• Widespread usage of
parcelshops and packstations
20%70.000 GBP
(= 85.473 €) 7 days 3 – 4 GBP
• Website must be accessible for
handicapped people.
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From the Legal and Consumer Behavioral Perspective
– the large differences in Europe
VATShipping
threshold
Right of
Cancellation
Accepted
Shipping Costs
Special Remarks
Shopping with Confidence - Pick the right one…
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Trusted Shop Guarantee - International
Combination of Certification, Seal of
Approval, Customer Service and Buyer
Protection
Allows customer evaluations
Thuiswinkel Waarborg - Netherlands
Highly appreciated by consumers for
certified quality standards (e.g. data security,
payment process)
complaint handling in case of disagreement
with the customer
La Fevad - France
More than 500 membering companies
Recommended by the press and various
shopping advisors in France
Euro Label - International
A cooperation of various national providers
of internet certification
Compliance of the European Code of
Conduct as prerequisite
Summing up localization and standardization…
10
OPPORTUNITIES CHALLENGES
Capture the high sales potential
Be the second, if not the first
? Lack of transparency & experience
? Controllability is lower than at home
? Very heterogenic markets
? High complexity
? Cultural differences
Relatively mature business environment
Get higher brand awareness
Simple solutions in the market
…We can help.
Integrated Supply Chain Solution – The One for Europe.
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The entire supply chain from a single source: from modular concept to integrated solution
SOURCING &
PRODUCTDISTRIBUTION
TRANSPORT LOGISTICS
E-COMMERCE
Product Development
& Sourcing
Inspection &
Certification
International
Freight Forwarding
Fulfilment &
Back-end Services
Web Shop &
Online Marketing
Multi-Channel
Fulfilment
Parcel Delivery
2-Man-Handling
Shipments
Hermes
Otto International
Hermes
Hansecontrol Group
Hermes
Transport Logistics
Hermes NexTec
Hermes Fulfilment
ADD/UP
Connected Channels
Hermes Logistik Gruppe
Deutschland
Hermes Ltd. UK
Hermes Italia S.p.A.
Hermes Logistik
B2C Russia OOO
Hermes Einrichtungs
Service
Wolford – a Success Story.
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WAREHOUSING 6 RETURNS
PAYMENT & RISK
CALL CENTER
WEBSHOPSERVICE
DISTRIBUTION
FINANCE & ACCOUNTING
14 online shops in Europe and
1 online shop in the US.
Customer Service in
9 languages
7 integrated
payment methods
All shipments to Europe
stored, picked & packed in
one DC.
Delivery to customers in 15
countries with 3 international and
local carriers.
Automated system processing of
5 different currencies.
https://www.hermesworld.com
http://www.ecommerce-global.de
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