Building an international e-commerce business

BUILDING AN INTERNATIONAL E-COMMERCE BUSINESS Gary Murray

eRetail Europe 2016, 05/10/16

http://eretaileurope.com

BUILDING AN INTERNATIONAL E-COMMERCE ORGANISATION

Agenda

- Introduction

- Before you start…

- What does it mean to build an international e-Commerce business?

- Overview of e-Commerce business functions

- Global, Regional and Local responsibilities

- Final thoughts…

- Personal learnings…

2/16

16 slides/ 20 mins

GARY MURRAY, GLOBAL RETAIL DIRECTOR ADBIRDS.GLOBAL

- 20 years in Digital, 17 years in Retail, 11 years in e-Commerce start-ups

- Started e-Commerce businesses around the globe for large multi-nationals

- Launched more than 200 sites in more than 20 countries

- Head of a European e-Commerce business for global brands across 13 countries

3/16

[email protected]

https://nl.linkedin.com/in/gmurray2

• https://nl.linkedin.com/in/gmurray2

mailto:[email protected]

Add Title – day XX month XXXX in the footer

1. Choose Insert in the top menu 2. Click on Header and Footer 3. Enter the title and date in the field Footer 4. Click Apply to All

To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list

Second to fifth level =

Regular bulleted list

Use soft return

(SHIFT+Enter)

to manually divide

a text line and don’t want

large space between lines

Example – bullets:

- First level =

Bulleted list in bold

text

- Use TAB-key for

second level =

regular bulleted list

- Third level

- Fourth level

- Fifth level

BEFORE YOU START…

ASK STRATEGIC QUESTIONS

BEFORE YOU START…

5/16

1. What is Brand v commercial strategy?

2. How does e-Commerce work alongside

other sales channels? (e.g. Wholesale, CS,

Sales Distribution policies)

3. Global URL Strategy and Search strategy?

4. Market entry strategy?

5. How good are your current data

management processes?

6. How good is your current expertise with

digital and D2C in your org?

7. What do you in-source and what do you

out-source?

8. Where is best location for talent?

WHAT DOES IT MEAN TO BUILD AN INTERNATIONAL E-COMMERCE BUSINESS?



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

7/16

WHAT DOES IT MEAN TO BUILD AN INTERNATIONAL E-COMMERCE BUSINESS?

Web Platform eCom

Platform

Website / UX

Financial

Management

Product

Management

Customer

Service

Marketing

(Brand / Digital / CRM)

Backend

Systems

HR & Legal

Order Management

& Logistics

Functional Systems

Analaytics

Re

po

rting

Monitoring

Re

po

rtin

g

WEBSITE & UX

- Keep it simple and start trading to start learning

- Learn how to use the standard platform before making unnecessary bespoke changes

- Use standard templates and make it configurable

- Brand identity differentiated through content and photography

- Localise language where markets demand it (60% of Europeans only buy in their own language)*

- Set up your analytics well and learn how to read it

- Mobile is key

- Have a clear development and improvement process that allows continuous releases

8/16

Centralise Localise

URL Strategy (Global) Y

UX Design (templates & Widgets) Y

Functional Designs Y

Brand identity / Content Y

Content Language Y Y

Analytics Y

Development and QA process Y

*Source: Forrester report 2011

FINANCIAL MANAGEMENT

- If relevant, launch EU members first… other markets may bring individual legal requirements

- Find a good payment processor that covers your key markets and offers key Payment types

- Fraud management can be managed by the PP… but be aware of how configurations impact

your CR%

9/16

Central Local

Legal entity Y

Tax Laws Y Y

Accounting/Reconciliation Y

Payment Processing Y Payment types

Fraud Management Y

PRODUCT CATALOG MANAGEMENT

10/16

Central Local

Product ranging Y

Masterdata processing Y

Pricing/ currencies Y

Sizing (different standards) Y

Product Descriptions (translations) Y

Product Images Y

- Single range across countries where possible - (e.g. no localised exclusives)

- Be aware of localised seasons and markets on Product

- Do NOT underestimate the impact of Masterdata and data processes… test, test & test !

- Single pricing in markets where possible- your pricing policy will be visible to the consumer

- Put effort into your translations process and quality – (this can impact Customer satisfaction, Returns and

SEO significantly)

- Bigger and more exceptions your range, the bigger your effort and costs (eg photography)

BRAND AND DIGITAL MARKETING

11/16

Central Local

Marketing Calendar Y Y

Brand Content Y Y

Social Y Y

SEO Y

SEA Y Y

CRM Data Management Y

Newsletters Management (Content) Y Y

Translation Services Y

- Clear Calendar is crucial… but need to be agile for events!

- Centralising content calendar and team can account for 80% of content

- 20% localised content – (eg local sport teams, events or holidays)

- Social is growing communication channel and for Customer Service

- Localised content supports SEO and traffic acquisition – (use local experts)

- Mobile is key today

- CRM is centralised with localised content and Customer Service languages

TECHNOLOGY & SYSTEMS

12/16

Central Local

Architecture Strategy Y

eCommerce Platform Y

Order Management System Y

CRM Tool (Deal with multi-lingual content) Y

Product Information Tool Y

- Technology is centralised but need to be aware of regional requirements (eg Warehousing and

enterprise systems)

- Single e-Commerce platform with regional flexibility (eg enable to manage multiple markets with single team)

- OMS will likely be centralised regionally but can be local need if closed borders

- Local legal requirements can impact technology (eg Brazil difficult tax laws)

- CRM tool centralised but needs to deal with multi-lingual content

- Translation process and feeds are critical

CUSTOMER SERVICE

13/16

Central Local

Customer Service 1st line team (phone mail, social channels) Y

Customer Service 2nd Line (eCommerce service, Orders,

Returns)

Y

Contact Channels (Phone,

Languages Y

Customer History Logging Tool Y

Order Status

CS Training (Product training) Y

- If you translate on front-end then customer expectation is that you will provide Customer Service

in local language

- Decide what channels your customer service teams will monitor. Be aware that Social is

becoming more powerful

- As Social channels become more important for Customer service, it becomes more important to

localise Customer Service teams

- 70% of calls were about e-Commerce orders…

- This leaves 30% more detailed calls, e.g. Product enquiries

- Online order status is important to reduce contacts (1:1 ratio per order)

ORDER MANAGEMENT & LOGISTICS

14/16

Central Local

Warehouse Y

Inventory Management Y

Carrier processes and integration Y Y

Returns and Exchanges Y

Order tracking Y

Marketplace Partnerships Y

- D2C logistics can be disruptive to W/S logistics, so out-sourcing logistics can be a

good option

- Be clear and monitor your expectations of Returns and Refurbishment costs

- Good monitoring of systems outages can help you react more quickly to issues

impacting customer orders

- Other channels or marketplaces can be serviced from Logistics centre to be cost

effective

- Integration companies can provide good quick ramp up times. Offering access to new

Sales channels or marketplaces quickly



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

GLOBAL, REGIONAL AND LOCAL RESPONSIBILITIES

15/16

Market strategy

URL strategy

Technology / Architecture

e-Com Platform

UX Design & Build

Development and Q.A.

Analytics standards

2nd lineTechnical Support

Global Brand Calendar

CRM strategy

CoE Training

• Sales Strategy

• Warehouse & Logistics

• OMS & ERP

• Product Catalog

• Product Images

• Pricing Strategy

• MasterData processes

• Finance

• HR & Legal

• Customer Service

• Cross Border

• Payment Processor

• Fraud Management

• Translation processes

• SEA & SEO

• eCRM execution

• 1st line Technical Support

• Marketplace partnerships

• Checkout

• Payment Types

• Delivery Options

• Local Calendar & Content

• Currencies

• Address formats

• Social support

• Customer Service 1st (optional)

• Legal consultancy

• ‘Tone of voice’ consultancy

• B & M Stores

Global Regional Localised



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

FINAL THOUGHTS…

- Be clear on the purpose of e-Commerce, Brand vs Commerce

- Keep it simple and grow your expertise

- Build front-end UX on single platform to be configurable and scale-able

- Enable constant delivery and improvement

- Localise payment types and delivery options (eg Cash on Delivery, pick up points)

- Translation process is critical. Make it efficient!

- Masterdata process is critical. Test, test and test.

- Customer Service is getting more difficult with more channels across (Omnichannel)

16/16



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

17

SOME LEARNINGS…

- Chasing the Market P&L before the traffic is there. (Wrong markets for the brand did not deliver

targets)

- Building sites on different technology (complexity adds to operational effort multiplied by

countries)

- Tried to do D2C logistics in a Wholesale warehouse

- Not enough expertise on Search marketing (money saved on expertise cost us much more)

- Did not understand importance of Payment types on shopping (eg Cash on Delivery for Russia)

- Did not build the CoE before Regional experts

- Testing was not adequate (TEST, TEST, TEST, TEST & TEST AGAIN!)

- Digital agencies with little or no e-Commerce experience



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

18

Gary Murray

Global Retail Director

[email protected]

https://nl.linkedin.com/in/gmurray2

Images sourced from https://unsplash.com & https://stocksnap.io

mailto:[email protected]

https://unsplash.com/

https://unsplash.com/

https://stocksnap.io/

https://stocksnap.io/



To add preformatted

bulleted list

Use TAB-key

First level =

Bold bulleted list



Use soft return

(SHIFT+Enter)

to manually divide




- First level =


text

- Use TAB-key for

second level =


- Third level

- Fourth level

- Fifth level

19

HR & LEGAL + SLIDE NOT NEEDED

20

Central Local

Staff recruiting Y

Legal consultancy (Local business compliance e.g tax laws,

DP compliance)

Y Y

CENTRALISED VS LOCALISED

Business

Building an international e-commerce business