eRetail Europe 2014 - Patrick Simon - bPost International

The key factors to ensure your International success

Patrick b. Simon

Worldwide e-commerce market is growing with 18,3% and set to hit $1.5 Trillion

Source: eMarketer, January 2014

Western Europe: 12,4% Central and Eastern Europe: 19,2%

Asia and Pacific: 27,5%

North America: 13,5%

From the six major e-commerce countries word wide, 94 million people buy cross-border

USA UK

China/HK

Canada

Australia

Germany

45%

37%

26%

18%16%

14%

Most popular cross-border world-wide B2C markets

Source: eCommerce Europe Report 2014

European buyers are used to purchasing on foreign websites

Austra

lia

Finland

Denm

ark

India

Spain

Canad

a

Belgium

Mex

ico

China

Brazil

Russia

Argen

tina

Fran

ce UK

Germ

any

Nathe

rland

s

Japa

n

Kore

aUSA

76

6459 56 55 54 53 50

44 4339 38 38 38

32 30 3025 22

Rates of e-shoppers purchasing on websites located in another country

(percentage)

Source: Digital Agenda Scoreboard – EU Commission

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Preferred countries when buying from abroad

Source: TNS & NEPA, 2013

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1. United States of America2. China3. Germany4. France

1. United Kingdom2. Germany3. United States of America4. China

1. United Kingdom2. United States of America3. China4. Netherlands

1. Germany2. United Kingdom3. France4. United States of America

Germany

BeNeLuxFrance

United-Kingdom

Huge opportunities across the border

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1. Density in population

• Denmark: 20% for PUDO

• Germany: 90% of the population has an parcel automate at less then 10 minutes

Sources: E-commerce Europe / IPC

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2. Tax issues

• As from 35.000€ for Spain and Malta

• From 100.000€ for Germany and Luxembourg

Compulsory tax representation

Source: www.vatlive.com

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3. Customs clearance

In Switzerland the

clearance cost

depends on

the country of origin

In Russia all imports

with value less then

1000€ are exempt

Sources: www.post.ch/www.russianpost.ru

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4. Sales peaks

• Black Friday• Cyber Monday• Boxing Day• Singles Day• …

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5. Different expectations

• Switzerland: not primary

• UK: H+1

• Singapore: H+3 et J+1

• China: H+8

Time factor

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5. Different expectations

• Standardisation of the right to return in the EU (14 days)

• In Germany the return rate reaches 50%

• In China and in Russia, the parcels deliverer waits while trying clothes

Returns

Sources: The Wall Street Journal/www.techcrunch.com

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5. Different expectations

• France: 7% • Belgium: <20%

• United Kingdom: 21%

Free delivery

Sources: Simtrec Webwinkel Logistiek, 2013, Datatrans SA

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5. Different expectations

• Scandinavia: PUDO

• Russia: payment at delivery consignes automatic lockers + delivery points

• Belgium: 3 options to 90% of the preferences

Delivery methods

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Cross-border opportunities for Dutch webshops

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16

Ecommerce in Germany

1. Clothing/footwear

2. Books

3. Home electronics

4. Cosmetics

5. CDs

6. Films/DVDs

7. Sport/leisure

8. Home furnishing

54%

47%

39%

29%

29%

28%

24%

22%

Some facts and figures

Source: TNS & NEPA, 2013

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The importance of lowest price and free deliveryThe proportion of online shoppers who feel that lowest price and free delivery are very important if they are to buy from an online store.

Number of million consumers who have shopped online

58.239%

40%

Top 8 products bought by German consumers onlinelast year

The proportion of consumers who have at some time bought from a

foreign site.

46%

Top 3 most common purchases when buying from foreign sites

12 3

Home electronics

Clothing/footwear

CDs

Top 3 most popular countries from which to buy

1 2 3

UK USA China

Preferred payments methods in Germany

46%

29%

9%

8%

4%

3% 1%

InvoiceMicropayment Service Credit/debet cardother method Direct via bank Cash on deliveryInstallmant/financing

E-commerce in BelgiumSome facts and figures

Source: e-Commerce Europe

12

57% of the Belgians have shopped

online in the last year

647 €The average spending per e-shopper

Over 30% of BE e-shoppers spent more than €150 euro online last year

Best online selling categories

31

2

Clothing and Accessories

Home Decor Multimedia & hardware

25,6% e-commerce growth in 2013

Belgians have high expectations with regards to delivery

Source: country factsheet Belgium bpost Internatiional

Home delivery is

prefered by 70% of

Belgian e-shoppers

15% are prepared to collect their parcel in a bpost pick-up point

48% is favourable to lockers

25% expects free delivery

Payments and tax in Belgium

Source: eCommerce Europe report 2014

Most popular payment methods are Visa/Mastercards or Bancontact/Mister cash

Standard VAT rate is 21%

Belgium: our primary focus

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We think

global…

…but act

local

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We are a global company…… with global operations and gateways

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patrick.b.simon@bpost.be

www.bpostinternational.com

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