SlideShare a Scribd company logo
1 of 24
The Pocket Guide to
Cross-Border E-Commerce
20
15/16
ED
ITIO
N
2
Manuel Bonnin,
Head of Industry, Distance Selling
& E-commerce, Asendia
Welcome to the second edition of
our Pocket Guide to cross-border
e-commerce, which can help you
make the most of the online retail
opportunities across the world.
In 2014, online sales reached an
unprecedented €1.27trn and show
no sign of slowing this year.
This is an exciting time to be a
cross-border retailer: all markets
present huge opportunities, with
constant growth in Western Europe,
significant developments in the
technology-focused Asia-Pacific
region, emerging Eastern and
Southern European markets eager
to trade with their neighbours, and
American consumers embracing
social media and m-commerce.
As your potential customers grow in
confidence when buying cross-border,
it is important to meet any challenges,
such as logistics and technology, by
choosing the right partners. In this
guide, we offer advice on various
areas of e-commerce, including how
to handle returns management,
cultural expectations, and how to
deliver the best experience for your
customers.
Combined with key facts on the best
global hotspots for cross-border
e-commerce this guide will help
you make the right choices when
expanding your business overseas.
Over one billion people in the world
now shop online – in other words,
it is time to develop your business
internationally.
Welcome
5www.asendia.com3
Providing an enjoyable online
experience for your shoppers
builds trust and loyalty, improving
your checkout conversion rate and
encouraging repeat custom.
Our range of integrated e-commerce
solutions makes cross-border retail
easy and reliable, helping you grow
your business overseas.
With our support, you can excel
in customer acquisition, order
management and customer care to
make your webshop a true online
retail destination.
To find out more about our solutions
go to www.asendia.com/ecommerce
where you can also take our simple
e-commerce audit to assess your
business and see how we could
help you grow your international
customer base.
Integrated
E-commerce
Solutions
Facilitating Transactions
With our partner eShopWorld,
our integrated webshop solutions
support your transaction process
so your customers return time
after time.
Delivering Orders
We make sure that your
orders are despatched to
customers safely and reliably
through an efficient distribution
network.
Managing Orders
Our solutions integrate
seamlessly into any supply chain,
so your orders are ready for
distribution in a cost-effective
and timely manner.
Customer Care
Our services give your
customers the best possible
retail experience, strengthening
your customer relationships and
building brand loyalty.
Customer
Service
Returns
International
Payments
Total
Landed
Costs
Global
Checkout
Pick & Pack
Inventory
Management
Warehousing
Customs
Clearance
Choice of
Delivery
Tracked
Goods
Standard
Goods
Acquiring Customers
We can help you to engage with
your customer base efficiently
and effectively, improving brand
awareness and generating sales.
Direct
Marketing
Catalogues
Magazines
Data
Cleaning
Localised
Webshop
5www.asendia.com
Acquiring Customers Facilitating Transactions Managing Orders Delivering Orders Customer Care
6 7www.asendia.com
47%
of all online
orders include
free shipping
(2013)
A world of
opportunities
E-commerce continues to grow across
the world, widening the opportunities
open to cross-border retailers and
consumers alike. As improving
infrastructure and the democratisation
of technology connects citizens on the
global stage like never before, this is
the perfect time to expand your
business overseas.
E-commerce reached $1.5trn (€1.27trn)
in 2014 and it is predicted to hit $2trn
(€1.69trn) this year alone. Every region
in the world is still registering strong
growth in online sales, presenting a true
variety of opportunities for any cross-
border e-commerce business.
In this guide, we look in detail at three
regions, Europe, Americas and Asia-
Pacific, highlighting some of the best
countries for cross-border e-commerce,
and also discuss some of the important
factors that you should consider when
building a customer base abroad.
7.23 BILLION PEOPLE
IN THE WORLD
2.67 BILLION
PEOPLE USE THE
INTERNET
1.18 BILLION PEOPLE
ARE E-SHOPPERS
1.88 BILLION PEOPLE
ARE SOCIAL MEDIA USERS
(Ecommerce Europe, Paypers 2013)
E-COMMERCE
TURNOVER
in Billion Euros
AUSTRALIA
€11.35
ITALY
€11.27
BRAZIL
€10.39
FRANCE
€51.10
SWITZERLAND
€10.20
CHINA
€240.20
USA
€213.35
UK
€107.10
GERMANY
€63.40
NORWAY
€8.90
24%
of baskets are
abandoned due
to no ‘save for
later’ option
(2014)
(CPC Strategy 2014)
3%
Average online
conversion rate
for retailers
(2014)
(Business Insider 2014)
(Selz 2013)
44%
of shoppers leave
a cart due to high
shipping costs
(2014)
(LK Conseil 2014)
8 9www.asendia.com
As a global provider of services to the
e-commerce sector, Asendia has a team
of experts who are on hand to support
your business, whether you are already
trading overseas or are considering
expanding into new markets.
Through our integrated approach to
e-commerce solutions we can help you
to acquire new customers, facilitate
your transactions, manage orders and
stock and, of course, deliver your goods
around the globe.
Take a look through our guide to
see where your business could
be benefiting from the growth in
international e-commerce. Get in touch
to discuss how you can grow your
business overseas with one of our
e-commerce market experts.
After all, The World is Your Address.
80%
SWITZERLAND
Internet penetration is growing in
each country, unlocking potential for
e-commerce businesses across the world.
Offering a product that can compete with
local retailers for quality and value for
money is crucial in attracting these new
potential e-shoppers.
(Ecommerce Europe, Paypers 2013)
INTERNET PENETRATION
The use of mobile and smart devices continues to rapidly grow across every
region, highlighting the importance of using a website that is mobile-responsive,
in order to appeal to and retain customers.
TABLET
PENETRATION
BRAZIL 12%
ITALY 19.6%
NORWAY 20%
GERMANY 24.9%
USA 34%
UK 34.5%
CHINA 39%
AUSTRALIA 49%
SWITZERLAND 31%
FRANCE 16.4%
(Ecommerce Europe, Paypers 2013)
SMARTPHONE
PENETRATION
75%
AUSTRALIA
71%
CHINA
68.8%
USA
67%
NORWAY
65.2%
UK
64.1%
ITALY
62%
GERMANY
60%
FRANCE
(Ecommerce Europe, Paypers 2013)
54%
SWITZERLAND
20%
BRAZIL
(World Bank Logistics Performance Index 2014)
Choosing reliable logistics partners
with excellent records is crucial in
overcoming local infrastructure
challenges and meeting customer
expectations.
LOGISTICS
PERFORMANCE
	 RANK
GERMANY 	 1
UK	4
NORWAY	7
USA	9
FRANCE	13
SWITZERLAND	14
AUSTRALIA	16
ITALY	20
CHINA	28
BRAZIL	65
94%
NORWAY88%
UK
86%
GERMANY
84%
FRANCE
87%
USA
86.9%
AUSTRALIA
51.6%
BRAZIL
45%
CHINA
61%
ITALY
www.asendia.com 11www.asendia.com
Make your international
e-commerce a success
Expanding your e-commerce business
to another country can seem like a
daunting challenge, especially when
doing so for the first time. But with
the right knowledge and partners, you
can make your business a cross-border
success with many happy customers.
Ensure that you offer your customers a
smooth and enjoyable experience. This
will encourage them to return time and
time again. Clarity and communication
are key factors in this, especially
when entering a foreign market that
may speak a different language, have
different expectations, and does
business in a different way.
On average, 70% of e-shoppers
worldwide do not complete their
orders, which is why it is so important
to ensure that your offering is
optimised to ensure they continue with
their purchase right through to the
checkout. In the following pages we
highlight some of the factors that will
help your business become a cross-
border success.
KNOW YOUR CUSTOMERS
Knowing how your customers think is
necessary for any business, but this is
particularly true if you are operating
in an overseas market. Understanding
the personality, culture and nuances of
your market ensures you can keep the
interest of your customers and build
their loyalty to your brand.
Asendia’s partner, eShopWorld, is
a leader in global e-commerce and
logistics management, with the only
modular solution that gives online
retailers control over the end-to-end
customer journey.
The company enables B2C brands
to sell globally, but feel local to
cross-border shoppers, delivering a
seamless, glocalized online shopping
experience. This includes providing
a global checkout with a range
of payment and delivery options,
customer service and marketing
insights, and logistics and returns
management.
For more information visit
www.asendia.com/eshopworld
Localising your website
Adapt your products and the options
you offer to each market based upon
your customers’ specific expectations
and needs.
For instance, some Central European
customers prefer to pay by invoice,
while many Latin American countries
use bank cards unique to the region.
E-shoppers in some countries are
comfortable with using a website in
English, whereas other consumers less
proficient in English would prefer to
engage with a business using their
own language.
Localise your website with an
integrated software platform, making
your e-commerce site truly global
by offering language options, local
currency options, dedicated payment
options, and product catalogues
geared to each market. Ensuring that
your website is fully localised is a great
way to drive traffic to your business
and reassure customers that you
understand their specific cultural needs.
10 www.asendia.com 11
73% of e-shoppers consider unconditional free
shipping to be critical to a purchase.
A STRAIGHT
FORWARD PROCESS
Encourage your customers to complete
their orders by making the process as
straightforward and secure as possible.
This can be achieved easily through
key areas such as the design of your
website and clarifying what options
(such as payment and delivery) your
customers can choose.
Optimising the transaction
Ensure that your order process is quick
and simple by limiting the amount
of pages and clicks necessary to
complete an order. Incorporate clear
call-to-actions on every page and leave
the back button operational. 10% of
all e-shoppers cite an overlong order
ASENDIA TIP: Opportunities beyond customs in Switzerland
Switzerland offers generous incentives to retailers, such as a low VAT rate
(8%, dropping to 2.5%  on certain items) and a duty-free limit of 300 CHF
(approx. €294). With the right documentation, your goods can get through customs
clearance within a day.
For more information, download our whitepaper on Switzerland at
www.asendia.com/whitepapers
13www.asendia.com12 www.asendia.com 13

Reaching out to your customers
Targeted communications to your
intended audience is essential in
building a customer base in any market.
However, individual markets will prefer
certain types of communications or
maybe restricted by legislation. For
example, sending unsolicited eshots
to private email accounts in Germany
and many other European countries is
against the law.
process as a reason for abandoning
their cart, so showing a display of
the checkout progress can help to
address this, along with bold and clear
navigation.
Optimising your website for mobile
devices is increasingly important. The
most active e-shoppers (who buy online
at least once a month) use more smart
devices than infrequent e-shoppers,
while 40% of worldwide consumers
habitually store their shopping carts
to view later on a different device.
This is especially true in countries with
emerging e-commerce markets, which
rely on mobiles and smart devices more
than desktop computers.
One important factor to consider is ensuring
that your data is current and accurate.
Therefore direct mail, catalogues and
corporate magazines are still very
important in developing conversations
with your customers across many
regions. One important factor to
consider is ensuring that your data
is current and accurate. Getting your
customer’s name and address wrong
could be an expensive mistake so
spend time either cleansing or checking
your data to avoid waste and achieve
a better return on your marketing
investment.
GET YOUR KNOW-HOW:
Our online Know-How Blog includes a wealth of articles and tips
that can help you drive your business more effectively.
www.asendia.com/knowhow
Delivering choice
and flexibility
Offer delivery options that are
convenient for the consumer, including
collection points and home delivery.
It is important to find the right shipping
provider experienced in international
distribution and can provide a complete
range of delivery options, like tracking
and insurance. For example, 93% of
e-shoppers are encouraged to buy
more if free shipping is included,
while 73% of e-shoppers consider
unconditional free shipping to be critical
to a purchase.
Managing your orders
and stock
The management of your orders and
stock can have a significant impact
upon repeat business. Being clear
and transparent about your stock
availability and having an efficient
process for packing and despatching
your goods is important in meeting
customer expectations and building
your reputation. Getting your fulfilment
and warehousing right can be make or
break for a small business, especially
when you do not have visibility and
control over your stock, therefore
optimisation of this function is an
important step to successful cross-
border trading.
Returns
Dealing with returns is an essential part
of any e-commerce business, and it is
vital to give your customers the same
level of service, speed, and ease of use
that they experienced when they first
placed their orders and that they are
offered by local suppliers.
For some products, such as fashion
items, return rates can be up to 40%,
so having a robust returns strategy in
place is crucial.
Not only must you be aware of and
adhere to local regulations regarding
customs, taxation, and returns, it is
also important to be as transparent as
possible about these to your customers.
Many countries now have mandatory
returns policies, and the European
Union’s Directive on Consumer Rights
aims to make it simpler for companies
to do business across borders by
increasing transparency and offering a
two-week ‘grace period’ for returns.
You might also wish to consider the
‘unwritten’ expectations of individual
countries - many consumers expect
free returns and this can be as
important a factor to their purchase as
offering free delivery.
15www.asendia.com14 www.asendia.com 15
A transparent
transaction process
Being upfront and clear about total
landed costs, timings, and customs
factors is important in building trust
with your customers.
Ensure that you are clear about your
products, but also remember to offer
a clear and distinct choice of payment
options - these can include paying by
invoice, a range of bank cards, and
e-wallets. Provide all of the necessary
documentation for your parcels so
they move through customs with ease
and so your customers will receive
them in good time. Also consider
additional costs and potential delays
when deciding on pricing and delivery
options - be transparent and realistic
to your customers so they can avoid
disappointment.
Displaying this type of information
during the checkout process simplifies
your customers’ journey and offers
convenience, reducing the risk of cart
abandonment.
ASENDIA TIP: Returns management needs a clear strategy
The EU Directive on Consumer Rights allows consumers fourteen days to change
their mind on a purchase and traders must offer a refund within fourteen days of the
withdrawal request. The trend towards free returns is also growing, but whether it’s the
retailer or consumer paying, the returns process needs to be as efficient as possible to
minimise on cost and delays.
Find out more about the returns solutions Asendia offers at www.asendia.com/returns
The importance of ‘save for later’ options
41% of shoppers are not ready to buy immediately, with many of them planning
to review their cart on a different device, so a ‘save for later’ option gives them the
freedom to resume their purchase whenever and wherever they wish.
Provide a guest checkout for customers who do not wish to register when making their
purchase - nearly a quarter of e-shoppers cite mandatory registration as a reason for
not completing an order. You can still collect valuable data on shopping habits, trends,
and preferences without compulsory registrations.
REASSURE YOUR
CUSTOMERS
One of the best ways to build brand
loyalty is to reassure customers that
your business is dependable, reliable,
and trustworthy - especially if you’re
not based in the same country as them.
Overcome any potential anxieties that
your customers may have and increase
your order conversion rate by taking a
few fundamental steps to build trust.
Build trust through
great service
Great customer service is essential in
building a positive online reputation
and offering clear contact information,
including a telephone number,
demonstrates that customers can get
in touch if necessary - nearly one in
ten e-shoppers cite a lack of contact
17www.asendia.com16 www.asendia.com 17
GET YOUR KNOW-HOW:
Our online Know-How Blog includes a wealth of articles and tips
that can help you drive your business more effectively.
www.asendia.com/knowhow
ASENDIA TIP: Keeping delivery in view
The value of the average basket is decreasing, which often means a lower level of
tracking is required, compared with items that are more valuable, or when delivery is
urgent. Asendia offers a range of services – including country-tracked or fully-tracked
– providing your customer with a helpful choice and the level of tracking they need.
For more information, go to www.asendia.com/goods
Tracking
Tracking the delivery of higher value
goods and then their possible return is
important for peace of mind, both for
you and your customers. Combining
this with insurance also provides extra
security and reassurance.
But by offering a variety of delivery
options, consumers can choose
whatever makes them feel most
comfortable – balancing their priorities
between cost, speed and information.
Security
22% of e-shoppers abandon their carts
due to concerns about data safety.
Secure data and payment pages are the
simplest ways to reassure customers,
whilst also authenticating your website
and encrypting data against hackers.
Along with this kind of security, the
way you store and use your customers’
data is increasingly pertinent. While
you should be absolutely clear on any
additional costs, such as shipping, it
is just as important to be transparent
about how, if at all, the personal
data your customers provide will be
used - many markets now have strict
requirements for data management and
you should ensure that you meet local
legal requirements even if operating
from overseas.
For some products, such as fashion items,
return rates can be up to 40%, so having a robust
returns strategy in place is crucial.
information as a reason for abandoning
their cart during the checkout process.
Ensure that you have the appropriate
levels of service available to your
customers, and also consider the time
zones that they may live in, allowing for
a timely response or being clear with
them when they might expect a reply.
Trustmarks or retail association
memberships can also help smaller and
less established online retailers show
customers that they are legitimate and
secure. Usually displayed discreetly but
clearly on a website, trustmarks can
give an e-commerce business more
weight - this is especially true if you
can use local trustmarks, which have
relevance to your customers.
18 www.asendia.com 19
Europe is a mature e-commerce market
with plenty of new and emerging
opportunities across the continent.
The region’s high population density
and relatively small area have helped it
become a leader in logistics - thirteen
of the top twenty countries in the
world for logistics performance are
located in Europe (according to World
Bank’s Logistics Performance Index).
Therefore, the expectation is for timely
and flexible deliveries of goods so
ensuring that you have a good delivery
management system and a credible
delivery partner is essential.
The continent’s efficiency is greatly
enhanced by various political projects
and measures, including the European
Union (EU), the European Economic
Area (EEA), and the Schengen
Agreement, which have contributed to
the free movement of goods, capital,
services, and people in Europe.
The increasing integration of Europe,
and in particular the creation of a single
currency across nineteen countries, has
provided price stability and removed
the challenge of navigating various
exchange rates. However, it is important
to offer the local currency in non-
Euro countries, such as Switzerland
and several countries in Northern and
Eastern Europe.
E-commerce regulations, such as the
Directive for Consumer Rights, are
generally uniform across the continent,
but it is always important to check any
national differences when it comes to
doing business online. For example,
data protection rules vary across
markets, affecting the way you store
data and use it.
Technology is helping citizens become
increasingly connected: in 2013, 69%
of Europeans use the internet, up
from 65% in the previous edition of
the pocket guide, and e-commerce
turnover is still showing significant
growth across all European regions,
with online sales in Eastern Europe
doubling in a year in 2013.
Europe provides a large population,
a third of which already buys online -
ideal for cross-border retailers.
Europe
ASENDIA TIP:
Sustainability matters
According to National Geographic’s
Greendex Survey, 61% of global
consumers are very concerned
about environmental issues.
Asendia is doing everything it can
to minimise the carbon footprint of
its e-commerce deliveries and ease
your customers’ worries.
For more information, go to
www.asendia.com/sustainability
SHARE OF EUROPEAN
E-COMMERCE MARKET
UK
29.4%
FRANCE
14.0%
SPAIN
3.9%
AUSTRIA
3.0%
SWITZERLAND
2.8%
REST OF EUROPE
17.5%
GERMANY
17.4%
RUSSIA
4.2%
ITALY
3.1%
NETHERLANDS
2.9%
FINLAND
1.8%
E-commerce
GDP:
2.2%
(2013)
E-commerce
turnover:
€363.1bn
(+16.3% growth
year on year)
(2013)
3.7bn+
parcels sent
annually
(2013)
E-commerce
annual spend
per capita:
€1,376
(2013)
(Ecommerce Europe 2013)
20 www.asendia.com 21
France is Europe’s third largest
e-commerce market and it continues
to see double-digit growth in online
revenues each year. According to the
local e-commerce association FEVAD,
a third of its 34 million active online
shoppers bought something from a
foreign website in 2013.
There are plenty of reasons France is an
attractive option for expanding retailers:
the country has good links with the rest
of Europe; it has low distribution costs;
there are few surprises to worry about
when it comes to payment methods;
and its consumers are confident online
shoppers, with a growing consumer
appetite for foreign brands.
Return rates are also very low at around
10%, but this means French consumers
can be more cautious about their
purchases. They may well need more
reassurance from product descriptions
and pictures, and about delivery and
other service levels.
The French are also very proud of their
culture and expect to be addressed in
a very local way, so consider translating
your website into French.
Their traditional affection for catalogues
and direct mail means they are
particularly keen on personalised offers
and incentives too – and the most
effective strategies for e-commerce
newcomers often include print, as well
as online, advertising.
France
E-commerce
as part of GDP:
2%
(2013)
E-commerce
turnover:
€51.1bn
(2013)
Proportion
of e-shoppers:
80%
of internet users
(FEVAD, 2014)
Logistics
Performance:
13th
in the world
(2014)
POPULAR ONLINE CATEGORIES
Apparel/fashion
Technical products
Health  beauty
Home decoration
Games  toys
49%
39%
27%
27%
20%
PREFERRED PAYMENT METHODS
PAYPAL
16%
BANK
TRANSFER
10%
CREDIT/DEBIT
CARD
51%
OTHER
16%
CASH OR
CHEQUE
7%
MARKETS FRENCH CONSUMERS HAVE BOUGHT FROM
CHINA
7.9%
USA
9%
BELGIUM
15%
UK
29%
GERMANY
41%
GDP:
€2,580bn/$2,806bn
Official language:
French
Population:
66m
Currency:
Euro (€)
E-commerce
annual spend
per capita:
€1,503
9th in Europe
(2013)
(Paypers 2013/2014)
(Paypers 2013)
(Paypers 2013)
22 www.asendia.com 23
Switzerland sits outside the EU, but
remains closely linked to it and the
brand conscious, price sensitive Swiss
are keen to seek out products not
available in their own small market – or
a better deal – by shopping outside
their borders. According to NetComm
Suisse, nearly two thirds of Swiss
e-shoppers bought items from foreign
websites in the 12 months to July 2014.
Language clearly influences overseas
purchases as Switzerland’s German,
French and Italian speakers can easily
shop with neighbouring countries
that share their language. But the
Swiss are also proficient in English and
would rather be addressed in that,
than receive any communication in the
wrong national language.
Switzerland
There are several other differences to
be aware of when selling to the Swiss.
Plugs for electronics, for instance, do
not conform to EU standards. The Swiss
preference for payment by invoice is
gradually softening, but retailers will
lose potential customers if they don’t
offer it as an option. Customs duty is
calculated by weight, rather than value
or size. National return rates for fashion
are also high at around 40%.
Nevertheless, with a very international
attitude and high spending power, the
Swiss make an attractive target for
retailers looking for new markets.
E-commerce
as part of GDP:
2.1%
(2013)
E-commerce
turnover:
€10.2bn
9th in Europe
(2013)
Logistics
Performance:
14th
in the world
(2014)
E-commerce
annual spend
per capita:
€1,789
5th in Europe
(2013)
Proportion
of e-shoppers:
90%
of internet users
(NetComm Suisse,
2014)
MARKETS SWISS CONSUMERS HAVE BOUGHT FROM
Germany
France
North
America
UK
54%
16%
15%
8%
METHOD OF PAYMENT USED IN LAST 12 MONTHS
Invoice
Credit card
Paypal
Online bank
transfer
Payment on
delivery
55%
40%
35%
24%
11%
(NetComm Suisse 2013/2014)
(NetComm Suisse 2013/2014)
GDP:
€631.04bn/$685.4bn
Official languages:
German, French, Italian,
Romansh
Population:
8.1m
Currency:
Swiss Franc (CHF)
TOP ONLINE PRODUCT CATEGORIES
(NetComm Suisse 2013/2014)
BEAUTY
PRODUCTS
20%
ELECTRONICS
24%
CD’S/DVD’S
26%
BOOKS
32%
CLOTHING/
FASHION
52%
24 www.asendia.com 25
The United Kingdom is the leader for
e-commerce in Europe, with a turnover
surpassed only by China and the USA.
English is one of the most commonly
spoken languages in the world (1.5
billion people speak it worldwide
[Statista]). The UK is also part of the
European Union, making it one of the
most accessible markets to foreign
retailers.
As such, it is important to check
which EU regulations influence the
way business is done in the UK. For
example, the WEEE Directive requires
retailers selling electronic equipment
to register their goods and any returns.
Nonetheless, the UK has relatively low
return rates - in 2013, rates were around
5 - 10% for electronics and 20-30%
for fashion items, which position it as
a highly attractive, low-risk market.
Strongly consider including the
warranty on products you sell to the
UK, as consumers expect at least 12
months guarantee on items such as
electronics and household appliances
as standard practice.
With excellent logistics infrastructure
and high internet and smartphone
penetration, the United Kingdom is an
ideal starting point for cross-border
retailers.
United Kingdom
E-commerce
as part of GDP:
5.61%
(2013)
E-commerce
turnover:
€107.1bn
1st in Europe
(2013)
Logistics
Performance:
4th
in the world
(2014)
MARKETS UK CONSUMERS HAVE BOUGHT FROM
United States
China
Hong Kong
Germany
Ireland
70%
23%
21%
19%
15%
(Paypers 2013)
E-commerce
annual spend
per capita:
€2,614
(2013)
Proportion
of e-shoppers:
73%
of internet users
(2013)
GDP:
€2,544.40/$2,678.45bn
Official language:
English
Population:
64.1m
Currency:
Pound Sterling (£)
PREFERRED PAYMENT METHODS
PAYPAL
7.7%
CREDIT/DEBIT
CARD
88.5%
OTHER
0.7%
ONLINE BANK
TRANSFER
1.1%
AMAZON, OTHER
EWALLETS
2.0%
TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES
FASHION
€1.31m
HOME
ELECTRONICS
€0.69m
AIRLINE
TICKETS
€0.75m
COMPUTER
HARDWARE
€0.67m
HEALTH 
BEAUTY
€0.59m
(Paypers 2013)
(Paypers 2013)
26 www.asendia.com 27
With the best logistics performance
in the world, Germany is a prominent
player in the European e-commerce
market. Germany boasts the second
highest e-commerce turnover in Europe
and is the third most active country for
both import and export e-commerce in
the world.
However, return rates are relatively
high - they can reach 40%. Nearly
three quarters of German e-shoppers
return their goods and over a third
have bought goods knowing they
would return them (Bitkom, 2014).
Consumers increasingly expect free
returns, although their free return is no
longer compulsory due to changes in
EU legislation in June 2014.
Germany
The Duales System
Since 1991, German retailers have been obliged to take back and recycle packaging
waste through a separate ‘yellow bin’ waste collection. Retailers have to pay a licence
fee (a minimum of €140 each year) to take part in the scheme, while customers look out
for a green dot on packaging in order to know that they can dispose of the packaging
around the products they buy through this ‘Duales System’.
For more information, visit www.gruener-punkt.de/en/customer/new-customers
ASENDIA TIP:
Download our whitepaper about Germany at
www.asendia.com/whitepapers
German shoppers look overseas for
excellent value for money and are
happy to wait longer for their order if
free delivery is offered. Online payment
methods are growing in popularity, but
consider offering ‘Sofort Überweisung’,
a type of wire transfer, as an option for
German customers.
A well-connected country in the heart
of Europe, Germany is an established
e-commerce market with shoppers who
are now accustomed to buying abroad.
GDP:
€3,543.57/$3,730.26bn
Official language:
German
Population:
80.6m
Currency:
Euro (€)
E-commerce
as part of GDP:
2.3%
(2013)
E-commerce
turnover:
€63.4bn
1st in Central
Europe
(2013)
Logistics
Performance:
1st
in the world
(2014)
E-commerce
annual spend
per capita:
€1,585
(2013)
Proportion
of e-shoppers:
57%
of internet users
(2013)
PREFERRED PAYMENT METHODS
PAYPAL
20%
BANK
TRANSFER
11%
CREDIT/DEBIT
CARD
21%
OTHER
31%
SOFORT
ÜBERWEISUNG
17%
MARKETS GERMAN CONSUMERS HAVE BOUGHT FROM
Cross-border sales (€)
CHINA
€6.2m
USA
€8.6m
UK
€11.1m
(Paypers 2013)
(Paypers 2013)
28 www.asendia.com 29
Italy is a fantastic example of an
emerging e-commerce market that is
beginning to embrace technology and
is growing fast. With an e-commerce
turnover of €11.27bn in 2013 (up from
€9.56bn in 2012), Italian consumers are
increasingly buying online.
As of 2013, 30% of the entire population
are now shopping on overseas websites
due to a lack of domestic availability
of products, but consider translating
your website into Italian for this market
(Italian respondents to an EU survey
in 2012 were among the least likely in
Europe to speak a second language).
Italy
GDP:
€2,041.90/$2,149.48bn
Official language:
Italian
Population:
59.8m
Currency:
Euro (€)
E-commerce
as part of GDP:
0.72%
(2013)
E-commerce
turnover:
€11.268bn
(2013)
Logistics
Performance:
20th
in the world
(2014)
E-commerce
annual spend
per capita:
€854
(2013)
Proportion
of e-shoppers:
35%
of internet users
(2013)
As Italy moves from traditional
bricks-and-mortar shops and cash
transactions to e-commerce, many
shoppers are concerned about security
- 65% of Italians believe security needs
to be improved for electronic payments
(SWG, 2014). Reassure your customers
by applying for ‘Sigillo Netcomm’,
the trustmark for the national Italian
e-commerce association, and consider
offering prepaid cards and MyBank as
payment options.
As a rapidly growing market, Italy
offers great potential to cross-border
e-commerce businesses.
PREFERRED PAYMENT METHOD
Credit/debit card
PayPal
Prepaid card
Cash or cheque
Bank transfer
MyBank
Other
25.6%
22.7%
16.4%
12.9%
7.3%
5.6%
9.5%
(Paypers 2013)
MARKETS ITALIAN CONSUMERS HAVE BOUGHT FROM
CHINA
5.4%
USA
8.0%
FRANCE
5.8%
UK
12.5%
GERMANY
9.6%
(Paypers 2013)
TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES
CONSUMER
ELECTRONICS
€817.0m
MEDIA
PRODUCTS
€566.1m
FASHION
€786.9m
FOOD AND
DRINK
€400.1m
(Paypers 2013)
BEAUTY
PRODUCTS
€188.6m
30 www.asendia.com 31
Norway is a country with enthusiastic
cross-border shoppers known for their
early adoption of technology and
generous online spending.
Two thirds of Norwegians are proficient
in English (ranking the country second
in the world amongst those that do
not use English as an official language,
according to EducationFirst) and
over a quarter of online purchases are
already from foreign websites. Having
a responsive, mobile-optimised website
is vital, with nearly half of shoppers
abandoning shopping carts because of
non-optimised websites.
While Norway is not part of the
European Union, it is part of the
European Economic Area, which means
Norway
that it shares many of the freedoms and
regulations of the EU. The country has a
relatively high VAT rate (25% as of 2014)
so it is crucial that you are transparent
about potential additional costs to
customers. Also, it is important to note
that as of 2015, online retailers who
have a turnover exceeding 150,000kr
(approx. €16,500) a year should be
registered for VAT in the country.
Norwegian shoppers are looking for
bargains, but remember to offer the
local currency (Norwegian Krone) and
consider applying for a .no domain
and for the ‘Trygg E-Handel’ trustmark
from the national e-commerce trade
association.
GDP:
€486.93/$512.58bn
Official languages:
Norwegian, Sami
Population:
5.1m
Currency:
Norwegian Krone (kr)
E-commerce
as part of GDP:
1.90%
(2013)
E-commerce
turnover:
€8.9bn
1st in N Europe
(2013)
Logistics
Performance:
7th
in the world
(2014)
E-commerce
annual spend
per capita:
€2,688
(2013)
Proportion
of e-shoppers:
78%
of internet users
(2013)
MARKETS NORWEGIAN CONSUMERS
HAVE BOUGHT FROM
USA
UK
Sweden
China
Denmark
Germany
51%
46%
28%
27%
15%
12%
(Ecommerce Europe 2013)
PREFERRED PAYMENT METHODS
PAYPAL OR
SIMILAR
12%
CREDIT/DEBIT
CARD
54%
OTHER
2%
DIRECT
BANK PAYMENT
13%
INVOICES
19%
(Ecommerce Europe 2013)
DELIVERY PREFERENCES
(Ecommerce Europe 2014)
AT PHYSICAL
STORE
4%
HOME DELIVERY
(EVENING)
12%
AT WORK
2%
AT
TERMINAL
2%
COLLECTION
POINT
55%
MAILBOX
25%
32 www.asendia.com
Logistics in this area can be challenging -
choosing the right fulfilment partners is key
to successfully expanding your business
into this region.
33
The Americas is a region with a diverse
range of cultures and a handful of
widely spoken languages, which
makes it fairly easy to navigate with
careful market research. Showing
strong growth across established and
emerging e-commerce markets, the
Americas can be arbitrarily divided into
the Northern mature countries and the
fast-growing Southern e-commerce
markets.
The USA and Canada offer an
opportunity for retailers who are
looking for countries with well-
established logistical infrastructure
and e-shoppers who are enthusiastic
early adopters of technology and retail
trends. Both countries claim English as
a national language and share a close
relationship with each other. Carefully
research the customs regulations in this
Americas
area, so you can make your deliveries
as efficient as possible, while being
transparent about shipping costs and
times to your customers.
Latin American consumers are
increasingly engaging with online retail,
and like their Northern neighbours, are
keen users of smart devices and social
media. Strongly consider your social
presence for this region, as an excellent
reputation can take you far, and as
m-commerce continues to grow, having
a mobile-responsive website is crucial.
Latin America’s e-commerce growth
relies on technology uptake and can be
logistically challenging, which is why
it is essential to work with partners
and logistics providers who can help
you fulfil your orders in a timely and
efficient way.
REGIONAL LOGISTICS
PERFORMANCE
(World Bank Logistics Performance Index 2014)
With a mixture of
established and rapidly
growing smaller markets,
the Americas offer real
potential to your business.
TOP E-COMMERCE
MARKETS
USA
€213.35bn
(Paypers, Statista 2013)
BRAZIL
€10.39bn
ARGENTINA
€4.61bn
CANADA
€21.41bn
MEXICO
€9.64bn
Internet penetration:
88% North America, 57% South America (2014)
Mobile penetration:
101% North America, 126% South America (2014) - having
a mobile-responsive website can improve your customers’
experience and increase your completed orders
Population:
962.5bn (2014)
Common official languages:
English, Spanish, Portuguese, French - localising your
website for these languages can help you gain an
invaluable entry into this region
USA
1
CANADA
2
CHILE
3
PANAMA
4
MEXICO
5
ARGENTINA
6
EL SALVADOR
7
BRAZIL
8
DOMINICAN
REPUBLIC
10
34 www.asendia.com 35
The United States of America (USA) is
a very established e-commerce market,
with consumers accustomed to buying
online, but it is still reporting significant
growth that offers real opportunity for
cross-border retailers.
Shoppers in the USA tend to buy
from other English-speaking countries
or those which are proficient in the
language - almost half of e-shoppers
have bought from the UK and over
a third have bought from Canada.
However, it is also important to note
that the USA is the fifth largest Spanish-
speaking country in the world, with
37.6m people registered as speaking
Spanish in a 2011 census.
United States of America
Import restrictions
When navigating the USA’s customs procedures, take note of any import restrictions
that could affect your products.
These include:
•	The Child Safety Protection Act (all toys must comply)
•	Labelling household appliances for expected energy consumption.
•	Ensuring Food products meet the requirements of the US
Food and Drug Administration
•	Other restrictions, which cover medicines, animals, and explosives.
The country’s logistics infrastructure is
excellent and the best in the Americas,
although it is important to take into
account stringent customs and tax
regulations when selling to this market
and transit delays that can be caused
when goods travel through customs
(visit www.cbp.gov/trade for
more information).
Consider having a mobile-responsive
site - m-commerce was worth $57.8bn
in 2014 and is forecast to reach $76.4bn
in 2015. In 2013, Internet penetration
reached a record 87% (up from 80% in
the previous edition of this guide) and
smartphone use was at 69% (up from
61%), revealing the continuing potential
of this market.
GDP:
€15,928.87/$16,768.10bn
National language:
English
Population:
316.1m
Currency:
US Dollar ($)
Smartphone
penetration:
69%
(2013)
ASENDIA TIP:
Download our whitepaper about the USA at www.asendia.com/whitepapers
Logistics
Performance:
9th
in the world
(2014)
E-commerce
turnover:
€213.35bn
2nd in the world
(2013)
Internet
penetration:
87%
(2013)
MARKETS USA CONSUMERS HAVE BOUGHT FROM
AUSTRALIA
18%
CANADA
34%
HONG KONG
20%
UK
49%
CHINA
39%
(Paypers 2013)
PREFERRED PAYMENT METHODS
PAYPAL
15%
BANK
TRANSFER
6%
CREDIT/DEBIT
CARD
45%
OTHER
25%
CASH OR
CHEQUE
9%
(Paypers 2013)
36 www.asendia.com 37
Brazil is an emerging e-commerce
market with a young population eager
to buy abroad and highly engaged on
social media.
In 2013, 85% of Brazilians were under
the age of 55. As of 2014, 45% of
Brazilians are active social media users
and a significant 92% of Internet users
have a Facebook account (78% are
also on Google+). While smart devices
are currently only achieving modest
growth, this enthusiasm for social media
could be harnessed to build a strong
reputation for your brand in the country.
Brazil
GDP:
€2,133.28/$2,245.67bn
Official language:
Portuguese
Population:
200.4m
Currency:
Brazilian Real (R$)
E-commerce
turnover:
€10.39bn
(2013)
Logistics
Performance:
65th
in the world
(2014)
Brazilian consumers are now seasoned
online shoppers, with 79% having
bought from the USA alone (according
to Paypers, 2014). With careful social
marketing, Brazil could be the perfect
opportunity for your e-commerce
business.
The logistics record of the country is
average, so be realistic and transparent
about delivery times and costs.
However, as host to the 2014 World Cup
and the 2016 Olympics being held in
the country, the infrastructure is being
improved, which could unleash further
e-commerce growth.
Smartphone
penetration:
20%
(2013)
Internet
penetration:
51.6%
(2013)
Internet users
with a Facebook
account:
92%
(2013)
PREFERRED PAYMENT
METHODSPREFERRED PRODUCT
CATEGORIES
Fashion and accessories 19%
Cosmetics 18%
Home appliances 10%
Books and magazines 9%
Computers 7%
Phones 6%
Home and décor 6%
Consumer electronics 5%
Sports and leisure 5%
Toys and games 3%
(Paypers 2013)
CREDIT/DEBIT
CARD
71%
OTHER
13.9%
BOLETO
BANCARIO
10%
E-WALLET
5.1%
(Paypers 2013)
MARKETS BRAZILIAN CONSUMERS HAVE BOUGHT FROM
CANADA
14%
USA
79%
CHINA
48%
(Paypers 2013)
HONG KONG
17%
UK
17%
38 www.asendia.com 39
Asia-Pacific is a high-growth
e-commerce region, which is rapidly
increasing its share of worldwide online
sales as consumers turn to cross-border
retailers for products they cannot buy
at home. 44% of Internet users shopped
online in 2014 (up from 42% in 2013 - an
increase of 26 million people per year),
with many e-shoppers buying from
across the region and further afield
in countries such as the USA and the
United Kingdom.
Digital channels are a main driver
of the region’s economy. This can be
seen in the high social media uptake
in several countries (at present, China
has social networks with more than
half a billion registered users) and
smartphone penetration above 75%
is not uncommon. Invest in a credible
social media presence and a website
optimised for smart devices, in order
to build a solid reputation in the
Asia-Pacific.
Asia-Pacific
2014 GROWTH IN E-COMMERCE SALES
China
Indonesia
India
Other
South Korea
Japan
Australia
Total Asia Pacific
51.2%
45.1%
27.1%
12.0%
9.3%
7.1%
5.7%
29.0%
(ETC Digital 2014)
AUSTRALIA
7.6%
SOUTH KOREA
4.7%
CHINA
49.3%
JAPAN
26.1%
INDIA
4.1%
INDONESIA
1.9%
OTHER
6.3%
SHARE OF ASIA-PACIFIC E-COMMERCE SALES
(Statista 2014)
This region performs well logistically
with five countries in the top twenty
of the Logistics Performance Index,
and that’s despite the size of certain
countries and the island nature of
others. Creating a robust delivery
management process with a trusted
logistics provider can help your
business gain the advantage in this
young market. Careful research of each
market is key, so you can understand
and cater for the cultural nuances that
make this region so diverse.
Bear these differences in mind -
expanding your e-commerce venture
into Asia-Pacific could potentially be
very rewarding.
E-commerce
penetration:
20.5%
in 2018
50.9% of
internet users
Mobile
penetration:
72%
(2014)
Internet
penetration:
32%
(2014)
Share of global e-commerce:
37.4% in 2018 - a lucrative
market which can be entered
with careful consideration of
local cultures
113m social network users
(2014) - building a presence
across significant social
networks can help build
your brand
40 www.asendia.com 41
Australia is a standout e-commerce
market in the Asia-Pacific region, with
English as a widely accessible language,
excellent logistics, and the highest
average spend per online order in the
world (€120 compared to the global
average of €98 in 2014).
Australian consumers are enthusiastic
users of technology, with a smartphone
penetration of 75% and a tablet
penetration of 49% (as of 2013). In 2014,
89% of internet users used social media,
which surpasses most other markets, so
while only half of Australians shop on
the internet, this suggests an untapped
market which is willing to be engaged
with online and will expect mobile-
optimised websites.
Australia
This market has generous incentives
for retailers, including no import tariffs
or duties on items under AUD$1,000.
Carefully consider your returns policy
for this market, as recent regulations
state that consumers are only entitled
to a free replacement or refund under
certain circumstances.
With a high disposable income
and enthusiasm for smart devices,
Australian consumers are looking
abroad for products they cannot source
at home, making the country a prime
destination for overseas retailers.
GDP:
€1,482.48/$1,560.37bn
Official language:
English
Population:
23.1m
Currency:
Australian Dollar (AUD$)
E-commerce
turnover:
€11.35bn
(2013)
M-commerce:
3.57bn
(2014)
Proportion
of e-shoppers:
60%
of internet users
(2013)
Smartphone
penetration:
75%
(2013)
Tablet
penetration:
49%
(2013)
CHINA
45%
HONG KONG
43.9%
USA
77.4%
UK
58%
(Paypers 2013)
MARKETS AUSTRALIAN CONSUMERS BUY FROM
PREFERRED PAYMENT METHOD
Credit/debit card
PayPal
Cash or cheque
Prepaid card
Other
52%
17.1%
7.5%
5.9%
17.5%
(Paypers 2013)
TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES
MEDIA
PRODUCTS
€992m
FASHION
€1270m
FOOD AND
DRINK
€780m
(Paypers 2013)
CONSUMER
APPLIANCES
€340m
CONSUMER
ELECTRONICS
€1019m
42 www.asendia.com 43
With the highest e-commerce
turnover in the world, China is a rapidly
expanding e-commerce market and
a major player in the Asia-Pacific
region. An increase in purchasing
power and better online security is
driving the incredible growth in China
- the country’s share of online sales
in the region was 14.1% in 2014 and is
predicted to be worth 56.6% in 2016.
In 2013, only 14% of the population
shopped online (a substantial 190
million people), revealing plenty of
untapped potential. Chinese e-shoppers
tend to buy from English-language
countries, such as the USA and the UK,
and geographically close locations, such
as Hong Kong and Japan.
China
Logistics can be a challenge in China
and consumers have a legal ‘right to
regret’, by which they can return goods
(in a complete and good condition)
within a week of the purchase -
although the consumer must pay for
the return. Using a logistics provider
that can support your business from
the checkout to delivery and returns is
essential for this market.
Although the Chinese market has its
challenges, they are worth overcoming
for its large population and exceptional
e-commerce growth.
GDP:
€8,777.81/$9,240.27bn
Official language:
Standard Chinese
Population:
1357.4m
Currency:
Yuan (¥)
Smartphone
penetration:
71%
(2013)
E-commerce
turnover:
€240.2bn
1st in the world
(2013)
Projected
share of
E-commerce
in the region:
56.6%
(2016)
Tablet
penetration:
39%
(2013)
SOCIAL NETWORKS
Number of registered users
(We Are Social 2014)
PREFERRED PAYMENT METHOD
Credit/debit card
Alipay
Cash or cheque
Prepaid card
Bank Transfer
Other
28.9%
26.9%
10.7%
7.8%
6.9%
18.8%
(Paypers 2013)
MARKETS CHINESE CONSUMERS BUY FROM
UK
43%
(Paypers 2013)
HONG KONG
58%
JAPAN
52%
USA
84%
AUSTRALIA
39%
QZONE
645m
WECHAT
600m
TENCENT WEIBO
580m
SINA WEIBO
556m
Asendia is a leading provider of
integrated solutions that help you
become a cross-border commerce
success.
Formed in 2012 as a joint venture
between La Poste and Swiss Post,
we help some of the world’s leading
brands navigate global commerce
with our comprehensive range of
products designed for every aspect
of your business.
Whether you are fulfilling retail orders,
creating direct marketing campaigns,
sending business correspondence,
or producing magazines, we provide
the services you need to succeed in
your market.
We can help you acquire and manage
customers by cleaning data, processing
returns, and offering customer service.
Together with our partner eShopWorld,
we can facilitate your online transactions
by providing a localised webshop
allowing international payments and
displaying total landed costs.
And, of course, we manage and
deliver orders for you, with inventory
management, warehousing, tracking,
and customs clearance just part of what
we offer.
Asendia - Who we are
www.asendia.com44 45
A.T. Kearney
Australian Competition and
Consumer Commission
Bitkom
Business Insider
CPC Strategy	
Econsultancy
Ecommerce Europe
eMarketer
eShopWorld
ETC Digital
European Commission
LK Conseil
NetComm Suisse
Paypers
Payvision
Statista
SWG
The World Factbook - CIA
We Are Social
World Bank
World Bank Logistics
Performance Index
References and Sources
This guide is compiled from a variety of sources that are in the public domain
including research papers, websites, industry and financial publications and other
industry and economic data. These are listed below. It is designed to provide an
overview of markets in the regions and countries specified and should not be used
as a definitive reference point. This guide is meant for sole use by the recipient and
is not for general circulation. We have endeavoured to use reliable and credible
sources for the data included however we cannot guarantee its accuracy.
It should not be relied upon as such. Due to variations in definitions, dates and time
periods data sources should not be used for comparison purposes.
This guide and the opinions expressed herein are current at the time of production
however may change in the future.
Visit www.asendia.com
or contact your local representative now at www.asendia.com/contact
More than
1,100 employees
Committed to
sustainability
Global distribution
network
Distributes to
more than
200 destinations
Asendia is an international partnership between La Poste and Swiss Post. © Asendia 2015
Asendia is an international partnership between La Poste and Swiss Post.
From 15 different countries on three continents, our specialists deliver
goods, publications, letters and marketing letters to over 200 destinations.
Contact us at www.asendia.com/contact

More Related Content

Viewers also liked

Viewers also liked (12)

Solve the Customer Data Puzzle
Solve the Customer Data PuzzleSolve the Customer Data Puzzle
Solve the Customer Data Puzzle
 
Rakuten's Private Cloud
Rakuten's Private CloudRakuten's Private Cloud
Rakuten's Private Cloud
 
PayPal presentation at RIF 2015
PayPal presentation at RIF 2015PayPal presentation at RIF 2015
PayPal presentation at RIF 2015
 
E-Commerce Konferenz 2015: Erkenntnisse der Verhaltensökonomie zur Preisstrat...
E-Commerce Konferenz 2015: Erkenntnisse der Verhaltensökonomie zur Preisstrat...E-Commerce Konferenz 2015: Erkenntnisse der Verhaltensökonomie zur Preisstrat...
E-Commerce Konferenz 2015: Erkenntnisse der Verhaltensökonomie zur Preisstrat...
 
PayPal ipsos insights 2015 global
PayPal ipsos insights 2015 global PayPal ipsos insights 2015 global
PayPal ipsos insights 2015 global
 
Intro to E-commerce in South East Asia - Citibank
Intro to E-commerce in South East Asia - CitibankIntro to E-commerce in South East Asia - Citibank
Intro to E-commerce in South East Asia - Citibank
 
Ecommerce in Italia 2015
Ecommerce in Italia 2015Ecommerce in Italia 2015
Ecommerce in Italia 2015
 
E-commerce in Italia 2016
E-commerce in Italia 2016E-commerce in Italia 2016
E-commerce in Italia 2016
 
E-Commerce in Asean
E-Commerce in AseanE-Commerce in Asean
E-Commerce in Asean
 
3 Things Every Sales Team Needs to Be Thinking About in 2017
3 Things Every Sales Team Needs to Be Thinking About in 20173 Things Every Sales Team Needs to Be Thinking About in 2017
3 Things Every Sales Team Needs to Be Thinking About in 2017
 
Build Features, Not Apps
Build Features, Not AppsBuild Features, Not Apps
Build Features, Not Apps
 
How to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheHow to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your Niche
 

Recently uploaded

FAQ Settings-ZenBasket Your Ecommerce Solution
FAQ Settings-ZenBasket Your Ecommerce SolutionFAQ Settings-ZenBasket Your Ecommerce Solution
FAQ Settings-ZenBasket Your Ecommerce Solution
Deborahnich
 
SAP Transportation Management Document reference
SAP Transportation Management Document referenceSAP Transportation Management Document reference
SAP Transportation Management Document reference
mailgirish20029690
 

Recently uploaded (11)

FAQ Settings-ZenBasket Your Ecommerce Solution
FAQ Settings-ZenBasket Your Ecommerce SolutionFAQ Settings-ZenBasket Your Ecommerce Solution
FAQ Settings-ZenBasket Your Ecommerce Solution
 
SAP Transportation Management Document reference
SAP Transportation Management Document referenceSAP Transportation Management Document reference
SAP Transportation Management Document reference
 
Digital Business Strategy - How Food Brands Compete Through Technology
Digital Business Strategy - How Food Brands Compete Through TechnologyDigital Business Strategy - How Food Brands Compete Through Technology
Digital Business Strategy - How Food Brands Compete Through Technology
 
5CL-ADBA,5cladba, the best supplier in China
5CL-ADBA,5cladba, the best supplier in China5CL-ADBA,5cladba, the best supplier in China
5CL-ADBA,5cladba, the best supplier in China
 
Transform Your Outdoor Space: Landscaping with Plants in Singapore
Transform Your Outdoor Space: Landscaping with Plants in SingaporeTransform Your Outdoor Space: Landscaping with Plants in Singapore
Transform Your Outdoor Space: Landscaping with Plants in Singapore
 
(ANAYA)🎄Muslim Call Girls Lucknow Call Now 8630512678 Premium Collection Of H...
(ANAYA)🎄Muslim Call Girls Lucknow Call Now 8630512678 Premium Collection Of H...(ANAYA)🎄Muslim Call Girls Lucknow Call Now 8630512678 Premium Collection Of H...
(ANAYA)🎄Muslim Call Girls Lucknow Call Now 8630512678 Premium Collection Of H...
 
Hifi Agartala Escorts Service Girl ^ 9332606886, WhatsApp Anytime Agartala
Hifi Agartala Escorts Service Girl ^ 9332606886, WhatsApp Anytime AgartalaHifi Agartala Escorts Service Girl ^ 9332606886, WhatsApp Anytime Agartala
Hifi Agartala Escorts Service Girl ^ 9332606886, WhatsApp Anytime Agartala
 
Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?
 
The 2024 Prime Day Panel: From Preparation to Profit
The 2024 Prime Day Panel: From Preparation to ProfitThe 2024 Prime Day Panel: From Preparation to Profit
The 2024 Prime Day Panel: From Preparation to Profit
 
Supermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdfSupermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdf
 
Mira Road Comfortable Call Girls -07506202331-Terbhi Genuine Call Girl
Mira Road Comfortable Call Girls -07506202331-Terbhi Genuine Call GirlMira Road Comfortable Call Girls -07506202331-Terbhi Genuine Call Girl
Mira Road Comfortable Call Girls -07506202331-Terbhi Genuine Call Girl
 

Cross-border E-Commerce Pocket Guide

  • 1. The Pocket Guide to Cross-Border E-Commerce 20 15/16 ED ITIO N
  • 2. 2 Manuel Bonnin, Head of Industry, Distance Selling & E-commerce, Asendia Welcome to the second edition of our Pocket Guide to cross-border e-commerce, which can help you make the most of the online retail opportunities across the world. In 2014, online sales reached an unprecedented €1.27trn and show no sign of slowing this year. This is an exciting time to be a cross-border retailer: all markets present huge opportunities, with constant growth in Western Europe, significant developments in the technology-focused Asia-Pacific region, emerging Eastern and Southern European markets eager to trade with their neighbours, and American consumers embracing social media and m-commerce. As your potential customers grow in confidence when buying cross-border, it is important to meet any challenges, such as logistics and technology, by choosing the right partners. In this guide, we offer advice on various areas of e-commerce, including how to handle returns management, cultural expectations, and how to deliver the best experience for your customers. Combined with key facts on the best global hotspots for cross-border e-commerce this guide will help you make the right choices when expanding your business overseas. Over one billion people in the world now shop online – in other words, it is time to develop your business internationally. Welcome
  • 3. 5www.asendia.com3 Providing an enjoyable online experience for your shoppers builds trust and loyalty, improving your checkout conversion rate and encouraging repeat custom. Our range of integrated e-commerce solutions makes cross-border retail easy and reliable, helping you grow your business overseas. With our support, you can excel in customer acquisition, order management and customer care to make your webshop a true online retail destination. To find out more about our solutions go to www.asendia.com/ecommerce where you can also take our simple e-commerce audit to assess your business and see how we could help you grow your international customer base. Integrated E-commerce Solutions Facilitating Transactions With our partner eShopWorld, our integrated webshop solutions support your transaction process so your customers return time after time. Delivering Orders We make sure that your orders are despatched to customers safely and reliably through an efficient distribution network. Managing Orders Our solutions integrate seamlessly into any supply chain, so your orders are ready for distribution in a cost-effective and timely manner. Customer Care Our services give your customers the best possible retail experience, strengthening your customer relationships and building brand loyalty. Customer Service Returns International Payments Total Landed Costs Global Checkout Pick & Pack Inventory Management Warehousing Customs Clearance Choice of Delivery Tracked Goods Standard Goods Acquiring Customers We can help you to engage with your customer base efficiently and effectively, improving brand awareness and generating sales. Direct Marketing Catalogues Magazines Data Cleaning Localised Webshop 5www.asendia.com Acquiring Customers Facilitating Transactions Managing Orders Delivering Orders Customer Care
  • 4. 6 7www.asendia.com 47% of all online orders include free shipping (2013) A world of opportunities E-commerce continues to grow across the world, widening the opportunities open to cross-border retailers and consumers alike. As improving infrastructure and the democratisation of technology connects citizens on the global stage like never before, this is the perfect time to expand your business overseas. E-commerce reached $1.5trn (€1.27trn) in 2014 and it is predicted to hit $2trn (€1.69trn) this year alone. Every region in the world is still registering strong growth in online sales, presenting a true variety of opportunities for any cross- border e-commerce business. In this guide, we look in detail at three regions, Europe, Americas and Asia- Pacific, highlighting some of the best countries for cross-border e-commerce, and also discuss some of the important factors that you should consider when building a customer base abroad. 7.23 BILLION PEOPLE IN THE WORLD 2.67 BILLION PEOPLE USE THE INTERNET 1.18 BILLION PEOPLE ARE E-SHOPPERS 1.88 BILLION PEOPLE ARE SOCIAL MEDIA USERS (Ecommerce Europe, Paypers 2013) E-COMMERCE TURNOVER in Billion Euros AUSTRALIA €11.35 ITALY €11.27 BRAZIL €10.39 FRANCE €51.10 SWITZERLAND €10.20 CHINA €240.20 USA €213.35 UK €107.10 GERMANY €63.40 NORWAY €8.90 24% of baskets are abandoned due to no ‘save for later’ option (2014) (CPC Strategy 2014) 3% Average online conversion rate for retailers (2014) (Business Insider 2014) (Selz 2013) 44% of shoppers leave a cart due to high shipping costs (2014) (LK Conseil 2014)
  • 5. 8 9www.asendia.com As a global provider of services to the e-commerce sector, Asendia has a team of experts who are on hand to support your business, whether you are already trading overseas or are considering expanding into new markets. Through our integrated approach to e-commerce solutions we can help you to acquire new customers, facilitate your transactions, manage orders and stock and, of course, deliver your goods around the globe. Take a look through our guide to see where your business could be benefiting from the growth in international e-commerce. Get in touch to discuss how you can grow your business overseas with one of our e-commerce market experts. After all, The World is Your Address. 80% SWITZERLAND Internet penetration is growing in each country, unlocking potential for e-commerce businesses across the world. Offering a product that can compete with local retailers for quality and value for money is crucial in attracting these new potential e-shoppers. (Ecommerce Europe, Paypers 2013) INTERNET PENETRATION The use of mobile and smart devices continues to rapidly grow across every region, highlighting the importance of using a website that is mobile-responsive, in order to appeal to and retain customers. TABLET PENETRATION BRAZIL 12% ITALY 19.6% NORWAY 20% GERMANY 24.9% USA 34% UK 34.5% CHINA 39% AUSTRALIA 49% SWITZERLAND 31% FRANCE 16.4% (Ecommerce Europe, Paypers 2013) SMARTPHONE PENETRATION 75% AUSTRALIA 71% CHINA 68.8% USA 67% NORWAY 65.2% UK 64.1% ITALY 62% GERMANY 60% FRANCE (Ecommerce Europe, Paypers 2013) 54% SWITZERLAND 20% BRAZIL (World Bank Logistics Performance Index 2014) Choosing reliable logistics partners with excellent records is crucial in overcoming local infrastructure challenges and meeting customer expectations. LOGISTICS PERFORMANCE RANK GERMANY 1 UK 4 NORWAY 7 USA 9 FRANCE 13 SWITZERLAND 14 AUSTRALIA 16 ITALY 20 CHINA 28 BRAZIL 65 94% NORWAY88% UK 86% GERMANY 84% FRANCE 87% USA 86.9% AUSTRALIA 51.6% BRAZIL 45% CHINA 61% ITALY
  • 6. www.asendia.com 11www.asendia.com Make your international e-commerce a success Expanding your e-commerce business to another country can seem like a daunting challenge, especially when doing so for the first time. But with the right knowledge and partners, you can make your business a cross-border success with many happy customers. Ensure that you offer your customers a smooth and enjoyable experience. This will encourage them to return time and time again. Clarity and communication are key factors in this, especially when entering a foreign market that may speak a different language, have different expectations, and does business in a different way. On average, 70% of e-shoppers worldwide do not complete their orders, which is why it is so important to ensure that your offering is optimised to ensure they continue with their purchase right through to the checkout. In the following pages we highlight some of the factors that will help your business become a cross- border success. KNOW YOUR CUSTOMERS Knowing how your customers think is necessary for any business, but this is particularly true if you are operating in an overseas market. Understanding the personality, culture and nuances of your market ensures you can keep the interest of your customers and build their loyalty to your brand. Asendia’s partner, eShopWorld, is a leader in global e-commerce and logistics management, with the only modular solution that gives online retailers control over the end-to-end customer journey. The company enables B2C brands to sell globally, but feel local to cross-border shoppers, delivering a seamless, glocalized online shopping experience. This includes providing a global checkout with a range of payment and delivery options, customer service and marketing insights, and logistics and returns management. For more information visit www.asendia.com/eshopworld Localising your website Adapt your products and the options you offer to each market based upon your customers’ specific expectations and needs. For instance, some Central European customers prefer to pay by invoice, while many Latin American countries use bank cards unique to the region. E-shoppers in some countries are comfortable with using a website in English, whereas other consumers less proficient in English would prefer to engage with a business using their own language. Localise your website with an integrated software platform, making your e-commerce site truly global by offering language options, local currency options, dedicated payment options, and product catalogues geared to each market. Ensuring that your website is fully localised is a great way to drive traffic to your business and reassure customers that you understand their specific cultural needs. 10 www.asendia.com 11 73% of e-shoppers consider unconditional free shipping to be critical to a purchase.
  • 7. A STRAIGHT FORWARD PROCESS Encourage your customers to complete their orders by making the process as straightforward and secure as possible. This can be achieved easily through key areas such as the design of your website and clarifying what options (such as payment and delivery) your customers can choose. Optimising the transaction Ensure that your order process is quick and simple by limiting the amount of pages and clicks necessary to complete an order. Incorporate clear call-to-actions on every page and leave the back button operational. 10% of all e-shoppers cite an overlong order ASENDIA TIP: Opportunities beyond customs in Switzerland Switzerland offers generous incentives to retailers, such as a low VAT rate (8%, dropping to 2.5%  on certain items) and a duty-free limit of 300 CHF (approx. €294). With the right documentation, your goods can get through customs clearance within a day. For more information, download our whitepaper on Switzerland at www.asendia.com/whitepapers 13www.asendia.com12 www.asendia.com 13 Reaching out to your customers Targeted communications to your intended audience is essential in building a customer base in any market. However, individual markets will prefer certain types of communications or maybe restricted by legislation. For example, sending unsolicited eshots to private email accounts in Germany and many other European countries is against the law. process as a reason for abandoning their cart, so showing a display of the checkout progress can help to address this, along with bold and clear navigation. Optimising your website for mobile devices is increasingly important. The most active e-shoppers (who buy online at least once a month) use more smart devices than infrequent e-shoppers, while 40% of worldwide consumers habitually store their shopping carts to view later on a different device. This is especially true in countries with emerging e-commerce markets, which rely on mobiles and smart devices more than desktop computers. One important factor to consider is ensuring that your data is current and accurate. Therefore direct mail, catalogues and corporate magazines are still very important in developing conversations with your customers across many regions. One important factor to consider is ensuring that your data is current and accurate. Getting your customer’s name and address wrong could be an expensive mistake so spend time either cleansing or checking your data to avoid waste and achieve a better return on your marketing investment. GET YOUR KNOW-HOW: Our online Know-How Blog includes a wealth of articles and tips that can help you drive your business more effectively. www.asendia.com/knowhow
  • 8. Delivering choice and flexibility Offer delivery options that are convenient for the consumer, including collection points and home delivery. It is important to find the right shipping provider experienced in international distribution and can provide a complete range of delivery options, like tracking and insurance. For example, 93% of e-shoppers are encouraged to buy more if free shipping is included, while 73% of e-shoppers consider unconditional free shipping to be critical to a purchase. Managing your orders and stock The management of your orders and stock can have a significant impact upon repeat business. Being clear and transparent about your stock availability and having an efficient process for packing and despatching your goods is important in meeting customer expectations and building your reputation. Getting your fulfilment and warehousing right can be make or break for a small business, especially when you do not have visibility and control over your stock, therefore optimisation of this function is an important step to successful cross- border trading. Returns Dealing with returns is an essential part of any e-commerce business, and it is vital to give your customers the same level of service, speed, and ease of use that they experienced when they first placed their orders and that they are offered by local suppliers. For some products, such as fashion items, return rates can be up to 40%, so having a robust returns strategy in place is crucial. Not only must you be aware of and adhere to local regulations regarding customs, taxation, and returns, it is also important to be as transparent as possible about these to your customers. Many countries now have mandatory returns policies, and the European Union’s Directive on Consumer Rights aims to make it simpler for companies to do business across borders by increasing transparency and offering a two-week ‘grace period’ for returns. You might also wish to consider the ‘unwritten’ expectations of individual countries - many consumers expect free returns and this can be as important a factor to their purchase as offering free delivery. 15www.asendia.com14 www.asendia.com 15 A transparent transaction process Being upfront and clear about total landed costs, timings, and customs factors is important in building trust with your customers. Ensure that you are clear about your products, but also remember to offer a clear and distinct choice of payment options - these can include paying by invoice, a range of bank cards, and e-wallets. Provide all of the necessary documentation for your parcels so they move through customs with ease and so your customers will receive them in good time. Also consider additional costs and potential delays when deciding on pricing and delivery options - be transparent and realistic to your customers so they can avoid disappointment. Displaying this type of information during the checkout process simplifies your customers’ journey and offers convenience, reducing the risk of cart abandonment. ASENDIA TIP: Returns management needs a clear strategy The EU Directive on Consumer Rights allows consumers fourteen days to change their mind on a purchase and traders must offer a refund within fourteen days of the withdrawal request. The trend towards free returns is also growing, but whether it’s the retailer or consumer paying, the returns process needs to be as efficient as possible to minimise on cost and delays. Find out more about the returns solutions Asendia offers at www.asendia.com/returns The importance of ‘save for later’ options 41% of shoppers are not ready to buy immediately, with many of them planning to review their cart on a different device, so a ‘save for later’ option gives them the freedom to resume their purchase whenever and wherever they wish. Provide a guest checkout for customers who do not wish to register when making their purchase - nearly a quarter of e-shoppers cite mandatory registration as a reason for not completing an order. You can still collect valuable data on shopping habits, trends, and preferences without compulsory registrations.
  • 9. REASSURE YOUR CUSTOMERS One of the best ways to build brand loyalty is to reassure customers that your business is dependable, reliable, and trustworthy - especially if you’re not based in the same country as them. Overcome any potential anxieties that your customers may have and increase your order conversion rate by taking a few fundamental steps to build trust. Build trust through great service Great customer service is essential in building a positive online reputation and offering clear contact information, including a telephone number, demonstrates that customers can get in touch if necessary - nearly one in ten e-shoppers cite a lack of contact 17www.asendia.com16 www.asendia.com 17 GET YOUR KNOW-HOW: Our online Know-How Blog includes a wealth of articles and tips that can help you drive your business more effectively. www.asendia.com/knowhow ASENDIA TIP: Keeping delivery in view The value of the average basket is decreasing, which often means a lower level of tracking is required, compared with items that are more valuable, or when delivery is urgent. Asendia offers a range of services – including country-tracked or fully-tracked – providing your customer with a helpful choice and the level of tracking they need. For more information, go to www.asendia.com/goods Tracking Tracking the delivery of higher value goods and then their possible return is important for peace of mind, both for you and your customers. Combining this with insurance also provides extra security and reassurance. But by offering a variety of delivery options, consumers can choose whatever makes them feel most comfortable – balancing their priorities between cost, speed and information. Security 22% of e-shoppers abandon their carts due to concerns about data safety. Secure data and payment pages are the simplest ways to reassure customers, whilst also authenticating your website and encrypting data against hackers. Along with this kind of security, the way you store and use your customers’ data is increasingly pertinent. While you should be absolutely clear on any additional costs, such as shipping, it is just as important to be transparent about how, if at all, the personal data your customers provide will be used - many markets now have strict requirements for data management and you should ensure that you meet local legal requirements even if operating from overseas. For some products, such as fashion items, return rates can be up to 40%, so having a robust returns strategy in place is crucial. information as a reason for abandoning their cart during the checkout process. Ensure that you have the appropriate levels of service available to your customers, and also consider the time zones that they may live in, allowing for a timely response or being clear with them when they might expect a reply. Trustmarks or retail association memberships can also help smaller and less established online retailers show customers that they are legitimate and secure. Usually displayed discreetly but clearly on a website, trustmarks can give an e-commerce business more weight - this is especially true if you can use local trustmarks, which have relevance to your customers.
  • 10. 18 www.asendia.com 19 Europe is a mature e-commerce market with plenty of new and emerging opportunities across the continent. The region’s high population density and relatively small area have helped it become a leader in logistics - thirteen of the top twenty countries in the world for logistics performance are located in Europe (according to World Bank’s Logistics Performance Index). Therefore, the expectation is for timely and flexible deliveries of goods so ensuring that you have a good delivery management system and a credible delivery partner is essential. The continent’s efficiency is greatly enhanced by various political projects and measures, including the European Union (EU), the European Economic Area (EEA), and the Schengen Agreement, which have contributed to the free movement of goods, capital, services, and people in Europe. The increasing integration of Europe, and in particular the creation of a single currency across nineteen countries, has provided price stability and removed the challenge of navigating various exchange rates. However, it is important to offer the local currency in non- Euro countries, such as Switzerland and several countries in Northern and Eastern Europe. E-commerce regulations, such as the Directive for Consumer Rights, are generally uniform across the continent, but it is always important to check any national differences when it comes to doing business online. For example, data protection rules vary across markets, affecting the way you store data and use it. Technology is helping citizens become increasingly connected: in 2013, 69% of Europeans use the internet, up from 65% in the previous edition of the pocket guide, and e-commerce turnover is still showing significant growth across all European regions, with online sales in Eastern Europe doubling in a year in 2013. Europe provides a large population, a third of which already buys online - ideal for cross-border retailers. Europe ASENDIA TIP: Sustainability matters According to National Geographic’s Greendex Survey, 61% of global consumers are very concerned about environmental issues. Asendia is doing everything it can to minimise the carbon footprint of its e-commerce deliveries and ease your customers’ worries. For more information, go to www.asendia.com/sustainability SHARE OF EUROPEAN E-COMMERCE MARKET UK 29.4% FRANCE 14.0% SPAIN 3.9% AUSTRIA 3.0% SWITZERLAND 2.8% REST OF EUROPE 17.5% GERMANY 17.4% RUSSIA 4.2% ITALY 3.1% NETHERLANDS 2.9% FINLAND 1.8% E-commerce GDP: 2.2% (2013) E-commerce turnover: €363.1bn (+16.3% growth year on year) (2013) 3.7bn+ parcels sent annually (2013) E-commerce annual spend per capita: €1,376 (2013) (Ecommerce Europe 2013)
  • 11. 20 www.asendia.com 21 France is Europe’s third largest e-commerce market and it continues to see double-digit growth in online revenues each year. According to the local e-commerce association FEVAD, a third of its 34 million active online shoppers bought something from a foreign website in 2013. There are plenty of reasons France is an attractive option for expanding retailers: the country has good links with the rest of Europe; it has low distribution costs; there are few surprises to worry about when it comes to payment methods; and its consumers are confident online shoppers, with a growing consumer appetite for foreign brands. Return rates are also very low at around 10%, but this means French consumers can be more cautious about their purchases. They may well need more reassurance from product descriptions and pictures, and about delivery and other service levels. The French are also very proud of their culture and expect to be addressed in a very local way, so consider translating your website into French. Their traditional affection for catalogues and direct mail means they are particularly keen on personalised offers and incentives too – and the most effective strategies for e-commerce newcomers often include print, as well as online, advertising. France E-commerce as part of GDP: 2% (2013) E-commerce turnover: €51.1bn (2013) Proportion of e-shoppers: 80% of internet users (FEVAD, 2014) Logistics Performance: 13th in the world (2014) POPULAR ONLINE CATEGORIES Apparel/fashion Technical products Health beauty Home decoration Games toys 49% 39% 27% 27% 20% PREFERRED PAYMENT METHODS PAYPAL 16% BANK TRANSFER 10% CREDIT/DEBIT CARD 51% OTHER 16% CASH OR CHEQUE 7% MARKETS FRENCH CONSUMERS HAVE BOUGHT FROM CHINA 7.9% USA 9% BELGIUM 15% UK 29% GERMANY 41% GDP: €2,580bn/$2,806bn Official language: French Population: 66m Currency: Euro (€) E-commerce annual spend per capita: €1,503 9th in Europe (2013) (Paypers 2013/2014) (Paypers 2013) (Paypers 2013)
  • 12. 22 www.asendia.com 23 Switzerland sits outside the EU, but remains closely linked to it and the brand conscious, price sensitive Swiss are keen to seek out products not available in their own small market – or a better deal – by shopping outside their borders. According to NetComm Suisse, nearly two thirds of Swiss e-shoppers bought items from foreign websites in the 12 months to July 2014. Language clearly influences overseas purchases as Switzerland’s German, French and Italian speakers can easily shop with neighbouring countries that share their language. But the Swiss are also proficient in English and would rather be addressed in that, than receive any communication in the wrong national language. Switzerland There are several other differences to be aware of when selling to the Swiss. Plugs for electronics, for instance, do not conform to EU standards. The Swiss preference for payment by invoice is gradually softening, but retailers will lose potential customers if they don’t offer it as an option. Customs duty is calculated by weight, rather than value or size. National return rates for fashion are also high at around 40%. Nevertheless, with a very international attitude and high spending power, the Swiss make an attractive target for retailers looking for new markets. E-commerce as part of GDP: 2.1% (2013) E-commerce turnover: €10.2bn 9th in Europe (2013) Logistics Performance: 14th in the world (2014) E-commerce annual spend per capita: €1,789 5th in Europe (2013) Proportion of e-shoppers: 90% of internet users (NetComm Suisse, 2014) MARKETS SWISS CONSUMERS HAVE BOUGHT FROM Germany France North America UK 54% 16% 15% 8% METHOD OF PAYMENT USED IN LAST 12 MONTHS Invoice Credit card Paypal Online bank transfer Payment on delivery 55% 40% 35% 24% 11% (NetComm Suisse 2013/2014) (NetComm Suisse 2013/2014) GDP: €631.04bn/$685.4bn Official languages: German, French, Italian, Romansh Population: 8.1m Currency: Swiss Franc (CHF) TOP ONLINE PRODUCT CATEGORIES (NetComm Suisse 2013/2014) BEAUTY PRODUCTS 20% ELECTRONICS 24% CD’S/DVD’S 26% BOOKS 32% CLOTHING/ FASHION 52%
  • 13. 24 www.asendia.com 25 The United Kingdom is the leader for e-commerce in Europe, with a turnover surpassed only by China and the USA. English is one of the most commonly spoken languages in the world (1.5 billion people speak it worldwide [Statista]). The UK is also part of the European Union, making it one of the most accessible markets to foreign retailers. As such, it is important to check which EU regulations influence the way business is done in the UK. For example, the WEEE Directive requires retailers selling electronic equipment to register their goods and any returns. Nonetheless, the UK has relatively low return rates - in 2013, rates were around 5 - 10% for electronics and 20-30% for fashion items, which position it as a highly attractive, low-risk market. Strongly consider including the warranty on products you sell to the UK, as consumers expect at least 12 months guarantee on items such as electronics and household appliances as standard practice. With excellent logistics infrastructure and high internet and smartphone penetration, the United Kingdom is an ideal starting point for cross-border retailers. United Kingdom E-commerce as part of GDP: 5.61% (2013) E-commerce turnover: €107.1bn 1st in Europe (2013) Logistics Performance: 4th in the world (2014) MARKETS UK CONSUMERS HAVE BOUGHT FROM United States China Hong Kong Germany Ireland 70% 23% 21% 19% 15% (Paypers 2013) E-commerce annual spend per capita: €2,614 (2013) Proportion of e-shoppers: 73% of internet users (2013) GDP: €2,544.40/$2,678.45bn Official language: English Population: 64.1m Currency: Pound Sterling (£) PREFERRED PAYMENT METHODS PAYPAL 7.7% CREDIT/DEBIT CARD 88.5% OTHER 0.7% ONLINE BANK TRANSFER 1.1% AMAZON, OTHER EWALLETS 2.0% TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES FASHION €1.31m HOME ELECTRONICS €0.69m AIRLINE TICKETS €0.75m COMPUTER HARDWARE €0.67m HEALTH BEAUTY €0.59m (Paypers 2013) (Paypers 2013)
  • 14. 26 www.asendia.com 27 With the best logistics performance in the world, Germany is a prominent player in the European e-commerce market. Germany boasts the second highest e-commerce turnover in Europe and is the third most active country for both import and export e-commerce in the world. However, return rates are relatively high - they can reach 40%. Nearly three quarters of German e-shoppers return their goods and over a third have bought goods knowing they would return them (Bitkom, 2014). Consumers increasingly expect free returns, although their free return is no longer compulsory due to changes in EU legislation in June 2014. Germany The Duales System Since 1991, German retailers have been obliged to take back and recycle packaging waste through a separate ‘yellow bin’ waste collection. Retailers have to pay a licence fee (a minimum of €140 each year) to take part in the scheme, while customers look out for a green dot on packaging in order to know that they can dispose of the packaging around the products they buy through this ‘Duales System’. For more information, visit www.gruener-punkt.de/en/customer/new-customers ASENDIA TIP: Download our whitepaper about Germany at www.asendia.com/whitepapers German shoppers look overseas for excellent value for money and are happy to wait longer for their order if free delivery is offered. Online payment methods are growing in popularity, but consider offering ‘Sofort Überweisung’, a type of wire transfer, as an option for German customers. A well-connected country in the heart of Europe, Germany is an established e-commerce market with shoppers who are now accustomed to buying abroad. GDP: €3,543.57/$3,730.26bn Official language: German Population: 80.6m Currency: Euro (€) E-commerce as part of GDP: 2.3% (2013) E-commerce turnover: €63.4bn 1st in Central Europe (2013) Logistics Performance: 1st in the world (2014) E-commerce annual spend per capita: €1,585 (2013) Proportion of e-shoppers: 57% of internet users (2013) PREFERRED PAYMENT METHODS PAYPAL 20% BANK TRANSFER 11% CREDIT/DEBIT CARD 21% OTHER 31% SOFORT ÜBERWEISUNG 17% MARKETS GERMAN CONSUMERS HAVE BOUGHT FROM Cross-border sales (€) CHINA €6.2m USA €8.6m UK €11.1m (Paypers 2013) (Paypers 2013)
  • 15. 28 www.asendia.com 29 Italy is a fantastic example of an emerging e-commerce market that is beginning to embrace technology and is growing fast. With an e-commerce turnover of €11.27bn in 2013 (up from €9.56bn in 2012), Italian consumers are increasingly buying online. As of 2013, 30% of the entire population are now shopping on overseas websites due to a lack of domestic availability of products, but consider translating your website into Italian for this market (Italian respondents to an EU survey in 2012 were among the least likely in Europe to speak a second language). Italy GDP: €2,041.90/$2,149.48bn Official language: Italian Population: 59.8m Currency: Euro (€) E-commerce as part of GDP: 0.72% (2013) E-commerce turnover: €11.268bn (2013) Logistics Performance: 20th in the world (2014) E-commerce annual spend per capita: €854 (2013) Proportion of e-shoppers: 35% of internet users (2013) As Italy moves from traditional bricks-and-mortar shops and cash transactions to e-commerce, many shoppers are concerned about security - 65% of Italians believe security needs to be improved for electronic payments (SWG, 2014). Reassure your customers by applying for ‘Sigillo Netcomm’, the trustmark for the national Italian e-commerce association, and consider offering prepaid cards and MyBank as payment options. As a rapidly growing market, Italy offers great potential to cross-border e-commerce businesses. PREFERRED PAYMENT METHOD Credit/debit card PayPal Prepaid card Cash or cheque Bank transfer MyBank Other 25.6% 22.7% 16.4% 12.9% 7.3% 5.6% 9.5% (Paypers 2013) MARKETS ITALIAN CONSUMERS HAVE BOUGHT FROM CHINA 5.4% USA 8.0% FRANCE 5.8% UK 12.5% GERMANY 9.6% (Paypers 2013) TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES CONSUMER ELECTRONICS €817.0m MEDIA PRODUCTS €566.1m FASHION €786.9m FOOD AND DRINK €400.1m (Paypers 2013) BEAUTY PRODUCTS €188.6m
  • 16. 30 www.asendia.com 31 Norway is a country with enthusiastic cross-border shoppers known for their early adoption of technology and generous online spending. Two thirds of Norwegians are proficient in English (ranking the country second in the world amongst those that do not use English as an official language, according to EducationFirst) and over a quarter of online purchases are already from foreign websites. Having a responsive, mobile-optimised website is vital, with nearly half of shoppers abandoning shopping carts because of non-optimised websites. While Norway is not part of the European Union, it is part of the European Economic Area, which means Norway that it shares many of the freedoms and regulations of the EU. The country has a relatively high VAT rate (25% as of 2014) so it is crucial that you are transparent about potential additional costs to customers. Also, it is important to note that as of 2015, online retailers who have a turnover exceeding 150,000kr (approx. €16,500) a year should be registered for VAT in the country. Norwegian shoppers are looking for bargains, but remember to offer the local currency (Norwegian Krone) and consider applying for a .no domain and for the ‘Trygg E-Handel’ trustmark from the national e-commerce trade association. GDP: €486.93/$512.58bn Official languages: Norwegian, Sami Population: 5.1m Currency: Norwegian Krone (kr) E-commerce as part of GDP: 1.90% (2013) E-commerce turnover: €8.9bn 1st in N Europe (2013) Logistics Performance: 7th in the world (2014) E-commerce annual spend per capita: €2,688 (2013) Proportion of e-shoppers: 78% of internet users (2013) MARKETS NORWEGIAN CONSUMERS HAVE BOUGHT FROM USA UK Sweden China Denmark Germany 51% 46% 28% 27% 15% 12% (Ecommerce Europe 2013) PREFERRED PAYMENT METHODS PAYPAL OR SIMILAR 12% CREDIT/DEBIT CARD 54% OTHER 2% DIRECT BANK PAYMENT 13% INVOICES 19% (Ecommerce Europe 2013) DELIVERY PREFERENCES (Ecommerce Europe 2014) AT PHYSICAL STORE 4% HOME DELIVERY (EVENING) 12% AT WORK 2% AT TERMINAL 2% COLLECTION POINT 55% MAILBOX 25%
  • 17. 32 www.asendia.com Logistics in this area can be challenging - choosing the right fulfilment partners is key to successfully expanding your business into this region. 33 The Americas is a region with a diverse range of cultures and a handful of widely spoken languages, which makes it fairly easy to navigate with careful market research. Showing strong growth across established and emerging e-commerce markets, the Americas can be arbitrarily divided into the Northern mature countries and the fast-growing Southern e-commerce markets. The USA and Canada offer an opportunity for retailers who are looking for countries with well- established logistical infrastructure and e-shoppers who are enthusiastic early adopters of technology and retail trends. Both countries claim English as a national language and share a close relationship with each other. Carefully research the customs regulations in this Americas area, so you can make your deliveries as efficient as possible, while being transparent about shipping costs and times to your customers. Latin American consumers are increasingly engaging with online retail, and like their Northern neighbours, are keen users of smart devices and social media. Strongly consider your social presence for this region, as an excellent reputation can take you far, and as m-commerce continues to grow, having a mobile-responsive website is crucial. Latin America’s e-commerce growth relies on technology uptake and can be logistically challenging, which is why it is essential to work with partners and logistics providers who can help you fulfil your orders in a timely and efficient way. REGIONAL LOGISTICS PERFORMANCE (World Bank Logistics Performance Index 2014) With a mixture of established and rapidly growing smaller markets, the Americas offer real potential to your business. TOP E-COMMERCE MARKETS USA €213.35bn (Paypers, Statista 2013) BRAZIL €10.39bn ARGENTINA €4.61bn CANADA €21.41bn MEXICO €9.64bn Internet penetration: 88% North America, 57% South America (2014) Mobile penetration: 101% North America, 126% South America (2014) - having a mobile-responsive website can improve your customers’ experience and increase your completed orders Population: 962.5bn (2014) Common official languages: English, Spanish, Portuguese, French - localising your website for these languages can help you gain an invaluable entry into this region USA 1 CANADA 2 CHILE 3 PANAMA 4 MEXICO 5 ARGENTINA 6 EL SALVADOR 7 BRAZIL 8 DOMINICAN REPUBLIC 10
  • 18. 34 www.asendia.com 35 The United States of America (USA) is a very established e-commerce market, with consumers accustomed to buying online, but it is still reporting significant growth that offers real opportunity for cross-border retailers. Shoppers in the USA tend to buy from other English-speaking countries or those which are proficient in the language - almost half of e-shoppers have bought from the UK and over a third have bought from Canada. However, it is also important to note that the USA is the fifth largest Spanish- speaking country in the world, with 37.6m people registered as speaking Spanish in a 2011 census. United States of America Import restrictions When navigating the USA’s customs procedures, take note of any import restrictions that could affect your products. These include: • The Child Safety Protection Act (all toys must comply) • Labelling household appliances for expected energy consumption. • Ensuring Food products meet the requirements of the US Food and Drug Administration • Other restrictions, which cover medicines, animals, and explosives. The country’s logistics infrastructure is excellent and the best in the Americas, although it is important to take into account stringent customs and tax regulations when selling to this market and transit delays that can be caused when goods travel through customs (visit www.cbp.gov/trade for more information). Consider having a mobile-responsive site - m-commerce was worth $57.8bn in 2014 and is forecast to reach $76.4bn in 2015. In 2013, Internet penetration reached a record 87% (up from 80% in the previous edition of this guide) and smartphone use was at 69% (up from 61%), revealing the continuing potential of this market. GDP: €15,928.87/$16,768.10bn National language: English Population: 316.1m Currency: US Dollar ($) Smartphone penetration: 69% (2013) ASENDIA TIP: Download our whitepaper about the USA at www.asendia.com/whitepapers Logistics Performance: 9th in the world (2014) E-commerce turnover: €213.35bn 2nd in the world (2013) Internet penetration: 87% (2013) MARKETS USA CONSUMERS HAVE BOUGHT FROM AUSTRALIA 18% CANADA 34% HONG KONG 20% UK 49% CHINA 39% (Paypers 2013) PREFERRED PAYMENT METHODS PAYPAL 15% BANK TRANSFER 6% CREDIT/DEBIT CARD 45% OTHER 25% CASH OR CHEQUE 9% (Paypers 2013)
  • 19. 36 www.asendia.com 37 Brazil is an emerging e-commerce market with a young population eager to buy abroad and highly engaged on social media. In 2013, 85% of Brazilians were under the age of 55. As of 2014, 45% of Brazilians are active social media users and a significant 92% of Internet users have a Facebook account (78% are also on Google+). While smart devices are currently only achieving modest growth, this enthusiasm for social media could be harnessed to build a strong reputation for your brand in the country. Brazil GDP: €2,133.28/$2,245.67bn Official language: Portuguese Population: 200.4m Currency: Brazilian Real (R$) E-commerce turnover: €10.39bn (2013) Logistics Performance: 65th in the world (2014) Brazilian consumers are now seasoned online shoppers, with 79% having bought from the USA alone (according to Paypers, 2014). With careful social marketing, Brazil could be the perfect opportunity for your e-commerce business. The logistics record of the country is average, so be realistic and transparent about delivery times and costs. However, as host to the 2014 World Cup and the 2016 Olympics being held in the country, the infrastructure is being improved, which could unleash further e-commerce growth. Smartphone penetration: 20% (2013) Internet penetration: 51.6% (2013) Internet users with a Facebook account: 92% (2013) PREFERRED PAYMENT METHODSPREFERRED PRODUCT CATEGORIES Fashion and accessories 19% Cosmetics 18% Home appliances 10% Books and magazines 9% Computers 7% Phones 6% Home and décor 6% Consumer electronics 5% Sports and leisure 5% Toys and games 3% (Paypers 2013) CREDIT/DEBIT CARD 71% OTHER 13.9% BOLETO BANCARIO 10% E-WALLET 5.1% (Paypers 2013) MARKETS BRAZILIAN CONSUMERS HAVE BOUGHT FROM CANADA 14% USA 79% CHINA 48% (Paypers 2013) HONG KONG 17% UK 17%
  • 20. 38 www.asendia.com 39 Asia-Pacific is a high-growth e-commerce region, which is rapidly increasing its share of worldwide online sales as consumers turn to cross-border retailers for products they cannot buy at home. 44% of Internet users shopped online in 2014 (up from 42% in 2013 - an increase of 26 million people per year), with many e-shoppers buying from across the region and further afield in countries such as the USA and the United Kingdom. Digital channels are a main driver of the region’s economy. This can be seen in the high social media uptake in several countries (at present, China has social networks with more than half a billion registered users) and smartphone penetration above 75% is not uncommon. Invest in a credible social media presence and a website optimised for smart devices, in order to build a solid reputation in the Asia-Pacific. Asia-Pacific 2014 GROWTH IN E-COMMERCE SALES China Indonesia India Other South Korea Japan Australia Total Asia Pacific 51.2% 45.1% 27.1% 12.0% 9.3% 7.1% 5.7% 29.0% (ETC Digital 2014) AUSTRALIA 7.6% SOUTH KOREA 4.7% CHINA 49.3% JAPAN 26.1% INDIA 4.1% INDONESIA 1.9% OTHER 6.3% SHARE OF ASIA-PACIFIC E-COMMERCE SALES (Statista 2014) This region performs well logistically with five countries in the top twenty of the Logistics Performance Index, and that’s despite the size of certain countries and the island nature of others. Creating a robust delivery management process with a trusted logistics provider can help your business gain the advantage in this young market. Careful research of each market is key, so you can understand and cater for the cultural nuances that make this region so diverse. Bear these differences in mind - expanding your e-commerce venture into Asia-Pacific could potentially be very rewarding. E-commerce penetration: 20.5% in 2018 50.9% of internet users Mobile penetration: 72% (2014) Internet penetration: 32% (2014) Share of global e-commerce: 37.4% in 2018 - a lucrative market which can be entered with careful consideration of local cultures 113m social network users (2014) - building a presence across significant social networks can help build your brand
  • 21. 40 www.asendia.com 41 Australia is a standout e-commerce market in the Asia-Pacific region, with English as a widely accessible language, excellent logistics, and the highest average spend per online order in the world (€120 compared to the global average of €98 in 2014). Australian consumers are enthusiastic users of technology, with a smartphone penetration of 75% and a tablet penetration of 49% (as of 2013). In 2014, 89% of internet users used social media, which surpasses most other markets, so while only half of Australians shop on the internet, this suggests an untapped market which is willing to be engaged with online and will expect mobile- optimised websites. Australia This market has generous incentives for retailers, including no import tariffs or duties on items under AUD$1,000. Carefully consider your returns policy for this market, as recent regulations state that consumers are only entitled to a free replacement or refund under certain circumstances. With a high disposable income and enthusiasm for smart devices, Australian consumers are looking abroad for products they cannot source at home, making the country a prime destination for overseas retailers. GDP: €1,482.48/$1,560.37bn Official language: English Population: 23.1m Currency: Australian Dollar (AUD$) E-commerce turnover: €11.35bn (2013) M-commerce: 3.57bn (2014) Proportion of e-shoppers: 60% of internet users (2013) Smartphone penetration: 75% (2013) Tablet penetration: 49% (2013) CHINA 45% HONG KONG 43.9% USA 77.4% UK 58% (Paypers 2013) MARKETS AUSTRALIAN CONSUMERS BUY FROM PREFERRED PAYMENT METHOD Credit/debit card PayPal Cash or cheque Prepaid card Other 52% 17.1% 7.5% 5.9% 17.5% (Paypers 2013) TOP CROSS-BORDER ONLINE PRODUCT CATEGORIES MEDIA PRODUCTS €992m FASHION €1270m FOOD AND DRINK €780m (Paypers 2013) CONSUMER APPLIANCES €340m CONSUMER ELECTRONICS €1019m
  • 22. 42 www.asendia.com 43 With the highest e-commerce turnover in the world, China is a rapidly expanding e-commerce market and a major player in the Asia-Pacific region. An increase in purchasing power and better online security is driving the incredible growth in China - the country’s share of online sales in the region was 14.1% in 2014 and is predicted to be worth 56.6% in 2016. In 2013, only 14% of the population shopped online (a substantial 190 million people), revealing plenty of untapped potential. Chinese e-shoppers tend to buy from English-language countries, such as the USA and the UK, and geographically close locations, such as Hong Kong and Japan. China Logistics can be a challenge in China and consumers have a legal ‘right to regret’, by which they can return goods (in a complete and good condition) within a week of the purchase - although the consumer must pay for the return. Using a logistics provider that can support your business from the checkout to delivery and returns is essential for this market. Although the Chinese market has its challenges, they are worth overcoming for its large population and exceptional e-commerce growth. GDP: €8,777.81/$9,240.27bn Official language: Standard Chinese Population: 1357.4m Currency: Yuan (¥) Smartphone penetration: 71% (2013) E-commerce turnover: €240.2bn 1st in the world (2013) Projected share of E-commerce in the region: 56.6% (2016) Tablet penetration: 39% (2013) SOCIAL NETWORKS Number of registered users (We Are Social 2014) PREFERRED PAYMENT METHOD Credit/debit card Alipay Cash or cheque Prepaid card Bank Transfer Other 28.9% 26.9% 10.7% 7.8% 6.9% 18.8% (Paypers 2013) MARKETS CHINESE CONSUMERS BUY FROM UK 43% (Paypers 2013) HONG KONG 58% JAPAN 52% USA 84% AUSTRALIA 39% QZONE 645m WECHAT 600m TENCENT WEIBO 580m SINA WEIBO 556m
  • 23. Asendia is a leading provider of integrated solutions that help you become a cross-border commerce success. Formed in 2012 as a joint venture between La Poste and Swiss Post, we help some of the world’s leading brands navigate global commerce with our comprehensive range of products designed for every aspect of your business. Whether you are fulfilling retail orders, creating direct marketing campaigns, sending business correspondence, or producing magazines, we provide the services you need to succeed in your market. We can help you acquire and manage customers by cleaning data, processing returns, and offering customer service. Together with our partner eShopWorld, we can facilitate your online transactions by providing a localised webshop allowing international payments and displaying total landed costs. And, of course, we manage and deliver orders for you, with inventory management, warehousing, tracking, and customs clearance just part of what we offer. Asendia - Who we are www.asendia.com44 45 A.T. Kearney Australian Competition and Consumer Commission Bitkom Business Insider CPC Strategy Econsultancy Ecommerce Europe eMarketer eShopWorld ETC Digital European Commission LK Conseil NetComm Suisse Paypers Payvision Statista SWG The World Factbook - CIA We Are Social World Bank World Bank Logistics Performance Index References and Sources This guide is compiled from a variety of sources that are in the public domain including research papers, websites, industry and financial publications and other industry and economic data. These are listed below. It is designed to provide an overview of markets in the regions and countries specified and should not be used as a definitive reference point. This guide is meant for sole use by the recipient and is not for general circulation. We have endeavoured to use reliable and credible sources for the data included however we cannot guarantee its accuracy. It should not be relied upon as such. Due to variations in definitions, dates and time periods data sources should not be used for comparison purposes. This guide and the opinions expressed herein are current at the time of production however may change in the future. Visit www.asendia.com or contact your local representative now at www.asendia.com/contact More than 1,100 employees Committed to sustainability Global distribution network Distributes to more than 200 destinations
  • 24. Asendia is an international partnership between La Poste and Swiss Post. © Asendia 2015 Asendia is an international partnership between La Poste and Swiss Post. From 15 different countries on three continents, our specialists deliver goods, publications, letters and marketing letters to over 200 destinations. Contact us at www.asendia.com/contact