3e-commerce challenges for EU companies · Solving the 3 e-commerce challenges 1 3Solving thee-commerce challenges for EU companies By picking the right ecosystem to fit your e-commerce

1Solving the 3 e-commerce challenges

Solving the

3 e-commercechallengesfor EU companies

By picking the right ecosystem to fit your e-commerce strategy


Easy ordering. Fast delivery. Quick returns and refunds. In other words, a personal, reliable and fuss-free experience – every time. The result? Increasing complexity in the supply chain that a traditional, linear system can’t handle.

So you need a more sophisticated network that’s equipped to deal with the constant change. Indeed, around 96% of retail winners* attribute their success to the organisation of their supply chain. Let’s zoom in on the three most common challenges e-commerce companies in the EU are facing, and investigate how picking the right ecosystem will help you have it all: growth and profitability.

INTRODUCTION

What do e-shoppers expect today?

1 Source: RSR Research 2018

High customer expectations

Supply chain visibility

International trade

CHALLENGE #1

CHALLENGE #2

CHALLENGE #3


ATTENTION POINTS

Diversification & personalisation

Fulfilment complexity

Increasing pressure on the last mile (fast and reliable)

Customer satisfaction

High customer expectations

As options expand, customer expectations grow. Those who shop online expect to see a variety of products, with regular new arrivals. Is the item they’re looking for sold out? Then they’ll turn to your competitor. E-consumers are not keen on waiting until stock gets replenished. Or for their order to arrive: if they feel delivery takes too long, around one in six will abandon their shopping carts. And, over half of all shoppers will do the same if additional costs like shipping and taxes are too high.

Moreover, the e-shopping experience is getting more and more personalised (‘me-tail’). Say you own an accessories webshop and your customer is based in France. At the time your customer visits your webshop, a heatwave has just been announced so you’ll probably want to suggest sunglasses instead of scarves. Indeed, 48% of consumers spend more when their experience is personalised.

All this means you’ll be dealing with increased fulfilment complexity due to your inventory piling up and an increase in stock keeping units (SKUs).

Flexible partners: You’ll need to partner up with logistics service providers who’ll go where you grow: i.e. partners who offer you flexibility in volume treatment, who have experience dealing with many SKUs and who are willing to look beyond borders.

Logistics score: Due to the increasing complexity in the supply chain, you’ll want to go into business with the best in the game. Look at the Global Logistics Index for countries with a high ranking when it comes to logistics competence. Belgium ranks in the top 3 of this list on every aspect, and holds the No. 1 position in terms of timeliness, the key asset for e-commerce.

Location: Choose the location of your distribution centres strategically. You need to be close to the most efficient routes towards your customers, both on a local and an international level. This will enable you to bring shipping costs down while maintaining a competitive service level..

Multimodal infrastructure & sustainability: In order to (re)act fast, you’ll need a central e-commerce hub in Europe that is excellently connected to the hinterland (and to the postal services), whether it’s by rail, road, barge or even short-sea. Added bonus of a multimodal infrastructure? You can work out the transport combination that’s most cost-efficient and most environmentally friendly.

Warehousing space in a virtual free zone: Look for bonded warehouses in a virtual free zone, where you can store your goods free of payment of VAT, customs rights and excise taxes until they are shipped. This creates clear cash flow advantages.

CHALLENGE #1

Our customers want control over the delivery. They need it to be free, fast and reliable. On top of that, they count on free returns with quick refunds.”Pieter Zwart - Coolblue (The Netherlands)

Supply chain fixes


Supply chain visibility

Small individual shipments. High return rates. Multiple products. Different delivery options. In e-commerce there are a lot of factors that make it hard for online sellers to stay on top of everything. Unless you’re handling everything yourself, you have to trust your e-fulfilment partners to keep everything running smoothly – and to warn you about any potential bumps in the road.

Smart use of data and new technologies makes a huge difference when improving supply chain visibility. For example, GPS tracking and RFID (Radio Frequency Identification) can be used to track packages throughout the entire supply chain. You’ll be able to easily spot where delays occur and proactively warn the affected parties. Including – most importantly – your end-customer waiting for his package.

“Data sharing plays an increasingly important role,” says Jurrie-Jan Tap, Chief Sales Officer at Bleckmann, one of the world’s biggest supply chain management suppliers. “All major logistics hubs, like Port of Antwerp, have been investing in setting standards and creating data exchanges – and for a reason.”

A-Z logistics: Look for logistics service providers who’ll assist you from A-Z: from the moment your customer places their order until it is delivered, and who will also take care of returns. Ideally, you’ll have a single point of contact throughout the entire process.

Data sharing & ICT services: Rely on partners that offer you top-end data sharing and ICT services, like tracking and tracing of your products and multimedia support. If anything unexpected happens along the way, you can let your customer know proactively – and keep them happy.

CHALLENGE #2

Data sharing not only facilitates the customs process, it is also used for cross-modal track and trace, security, risk management, ... And that’s only the tip of the iceberg.”Erwin Verstraelen - Data sharing platform Nxtport

Supply chain fixes

ATTENTION POINTS

Keeping track from payment to fulfilment

High IT investments


International trade

When selling products online, you could easily see yourself go from selling within your own country, to across the entire EU to anywhere in the world. Of course, as soon as your products cross a border, there are different rules and regulations to take into account. Therefore, it’s vital to have reliable contacts across the supply chain. You’ll need people who know how to navigate all of the intricacies of international e-commerce – and you’ll need them in the right places.

Additionally, two more things are essential in your logistics ecosystem. First of all, you need good connections to destinations all over the world. Secondly, you need to be able to combine sea and air freight in a way that best serves your e-commerce operations. An international harbour that offers container transport to and from any country on the planet, is a safe choice.

There’s one last international trade challenge you need to take into account: the uncertainty surrounding Brexit. Some companies are already treating Brexit as an opportunity. They are re-evaluating their current supply chain and weighing the benefits of alternative transport solutions and distribution centre locations.

CHALLENGE #3

Getting products to customers in the EU and around the world within 72 hours is not the challenge. Doing so while making a profit is. Traditionally, transport was organised in silos. Today, smart companies are making air, road, rail and sea transport work together much more. That’s why a small country like Belgium, where different hubs are located closely to each other, manages to attract large players like Alibaba.”Bert Selis – Cargo & Logistics manager at Liège Airport

For example, the benefits of switching from accompanied (trucks and ferries) to unaccompanied transport (containers and multimodal options) are huge in the face of Brexit. You’ll reduce the risk of delays and increase the resilience of your supply chain. What’s more: unaccompanied transport has fewer road miles, resulting in less congestion, less air pollution and lower transport costs.

ATTENTION POINTS

Sudden growth in demand for your products outside your traditional market – e.g. overseas

Complexity of legal frameworks, customs rules and tax requirements for the countries you are shipping to

E-commerce legislation is not the same across EU

International competition

Uncertainty about customs procedures after Brexit


Location: Keep the growing importance of the global market space in mind when choosing your DC’s. Opt for locations that offer overseas transport routes, so you’re ready for the next phase in your company’s life cycle.

Services: Look for partners who are experienced in doing business with non-EU countries. That way you can focus on your business challenges and let the experts handle all customs and VAT issues for you.

International mindset: Look for logistics partners who are used to navigating the European landscape, who speak multiple languages and who have a proven track record in international trade.

Short-sea Shipping (SSS): Could you benefit from moving your cargo along a coast, without crossing an ocean? It’s a reliable form of transport that offers regular departures, fixed schedules and smooth customs handling.

BE-Gate: Even though customs legislation is the same throughout the EU, the Union Customs Code gives national authorities the option to make use of trade facilitations. However, many European countries haven’t made use of that option. Belgium has, and now has its own countrywide system, designed to facilitate e-commerce traffic: BE-Gate.

CHALLENGE #3

Supply chain fixes

7

CONCLUSION

Find all of your fixes in one place: Port of Antwerp

Location—Overseas connectivity—Multimodal infrastructure—Logistics—Customs & VAT-free warehousing—Technology and innovation hub

Solving the 3 e-commerce challenges


“60% of European purchasing power is located within a radius of 500 km from Antwerp.”

250 km

Antwerp

500 km

750 km

1000 km

FIND ALL OF YOUR FIXES IN ONE PLACE: PORT OF ANTWERP

LocationFrom Port of Antwerp, Belgium, you’ll reach 60% of European purchasing power within a 500 km radius. Or to put it another way, you can reach most of the EU within 24 hours thanks to Port of Antwerp’s location in Europe’s extensive road network.

No wonder there are more than 700 European distribution centres nearby. One of the newest distribution centres in Antwerp is Made.com’s e-commerce hub. Thanks to the advantages of Port of Antwerp’s ideal geographical location, outstanding infrastructure and flexible service offering, the company is now able to deliver quickly across the EU.

Belgium’s neighbouring countries represent about two thirds of the entire European e-commerce turnover. A terrific asset, which no other EU country possesses.”Lorenz Hertoghs – Katoennatie (Belgium)

Overseas connectivityLooking for some room to grow (internationally)? As Europe’s second largest port, Port of Antwerp offers weekly calls to and from more than 300 destinations worldwide. That includes all of the Far East, with fast links to and from the Guangdong and Shanghai provinces. You’ll find our international agents all over the globe.

Need storage space for all those international shipments? Keep in mind the Antwerp area has over 6.1 million m² of covered warehouse space available.

What’s more, Belgium ranks second in terms of adult English proficiency across Europe so most of your Belgian contacts will be able to speak a variety of foreign languages fluently (English, French, German, Dutch). Add to that a centuries-long trade history and you know they’ll help you bridge cultural and language gaps effortlessly. We’re ready when you are.


Belgium is perfectly situated to handle shipments coming in through all means of transport.” Ingrid Vanstreels – Port of Antwerp (Belgium)

Multimodal infrastructureThanks to Port of Antwerp’s multimodal transport options and ideal inland location, you’ll be able to select the most sustainable transport combination for your business. On top of that, Port of Antwerp has excellent hinterland connections, including:

→ The barge corridors: Antwerp-Liège and Antwerp-Brussels

→ Short-sea routes along the coast → Daily rail shuttles to every country in Europe, with a particular focus on Eastern Europe

→ Global air connections

This makes Port of Antwerp the ideal gateway for multichannel logistics. Just choose whichever combination is most suitable for your business needs.

LogisticsPort of Antwerp stands out as a multifunctional world-class port. The reason? Outstanding close coordination of handling and logistics services and industries within the port. This has led to Belgium being ranked second on the Global Logistics Performance index in terms of competence, and third overall.

DID YOU KNOW?

From Port of Antwerp, an average of 4 million containers are shipped by barge to and from the hinterland every year.

240 rail shuttles reach 90 European destinations every week.

Over 1000 km of rail tracks keep Port of Antwerp connected to 20 different countries.

Country LPI Rank LPI Score Customs Insfrastructure International shipments Logistics competence Tracking & Tracing Timeliness

Germany 1 4.20 4.09 4.37 3.86 4.31 4.24 4.39

Sweden 2 4.05 4.05 4.24 3.92 3.98 3.88 4.28

Belgium 3 4.04 3.66 3.98 3.99 4.13 4.05 4.41

Austria 4 4.03 3.71 4.18 3.88 4.08 4.09 4.25

Japan 5 4.03 3.99 4.25 3.59 4.09 4.05 4.25

* The LPI scores countries on how efficiently they move goods across and within borders.

Global Logistics Performance Index, 2018

SOURCE: WORLDBANK



Customs & VAT-free warehousingPort of Antwerp has over 6.1 million m2 covered warehouse space with ‘bonded warehouse’ status. This allows goods to be stored at the port without any customs or VAT being payable at the time of arrival, with clear cash flow benefits.

Belgian customs authorities have invested in BE-Gate, a unique procedure that facilitates the clearance of e-commerce goods. Its advantages include:

→ Fast treatment of simplified declarations of release for consumption;

→ Quick computerized communication of packages selected for control; and

→ Immediate release of all packages not selected for control.

Technology and innovation hubPort of Antwerp plays a pioneering role in developing new digital logistics processes using artificial intelligence. Start-ups are given the opportunity to conduct research, create solutions and test new technologies in the port.

With companies like TNT and Alibaba turning up the pressure, we took a leap that put us years ahead of the rest of Europe.” Werner Rens, FPS Finances, Customs and Excise (Belgium)


One of these start-ups is NxtPort, an innovate data sharing platform. At the port, a lot of data are generated every day. An example are customs declarations and details of containers ready to be shipped or collected. However, prior to NxtPort, those data weren’t being shared effectively. NxtPort ensures the fast, clear and secure exchange of data between different players in the port. That way, the company wants to increase operational efficiency and apply smart logistics in the entire supply chain.


Meet your match—Contact our e-commerce experts to hook you up with the perfect logistics partners.

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3e-commerce challenges for EU companies · Solving the 3 e-commerce challenges 1 3Solving thee-commerce challenges for EU companies By picking the right ecosystem to fit your e-commerce