It's not that simple to build a successful online business, in another country. Many companies all over the world have learned this the hard way. In this presentation you will find a few tools that will make it easier for you to make the right decisions on your way.
This presentation used in electronic commerce conference "E-komercija '16" by Max Riis Christensen from company MakesYouLocal.
1. When an international customer is afraid, it is
because the answers to the following questions
aren’t good enough:
• Do I trust this shop enough to buy and pay for the products?
• Am I satisfied with delivery time and terms?
• Do I believe that the shop will refund my money, if I regret or
something is wrong with the products?
• Is the returnprocess convenient and fair?
3. What successful webshops do
Mistakes we see when things go wrong
The path to successful international e-commerce
6 elements important for you to succeed
Profitable growth abroad
4. About MakesYouLocal
• Established 2010, 100% focus on crossborder e-commerce
• Worked with more than 200 businesses from - from more than 10
different countries to more than 10 different countries
• Cover the Nordic and the Baltic countries, with our own
e-commerce specialists
• Part of the Salesupply network with offices all over EU and in the US
• Facilitating the official Danish export program for companies selling
online
Some of our customers:
5. When we look at the webshops that do well
• They sell brands / are brands
• Their prices are competitive
• They have a complete and well structured marketing approach
• They can match the competitors USP’S (Unique Selling Points)
• webshop
• delivery and returns
6. The 7 P’sPrior Proper Planning Prevents Piss Poor Performance
Lack of planning leads to the launch of projects without
the potential to become a profitabel project
Lack of planning also responsible for insufficient money
for localisation
No clear goals and not ressources enough for the daily
operations
7. Day to day operations
without ressources and competences needed
Processes not in place and no ressources ready to take the
important initial dialogue with new customers, in their own
language
8. marketing
investement
It takes an investment to build a position in a new market.
There are always local competitors with beautiful webshops
and smart and skilled teams to run them. You have to beat
them and it is hard to do without a marketing budget.
No
9. Solid logistic setup
Many webshops go for a simple logistic solution, but often the
solution that is simple from their point of view. You need to
make sure the solution your customers experience is simple
from their point of view.
10. What successful webshops do
Mistakes we see when things go wrong
The path to successful international e-commerce
6 elements important for you to succeed
Profitable growth abroad
11. • Choose the right country
• The competitive situation
• Businesscase
• GTM strategy
• Localisation of the shop
• Build trust
• USP’s
• Focus on the conversion rate
• Understand the market
• Optimise processes
• Build volume through localized
marketing
• Marketing investment
• Optimise and re-negotiate
based on new volume
• Set new goals
Launch
5 phases in a successful international
e-commerce launch
12. What successful webshops do
Mistakes we see when things go wrong
The path to successful international e-commerce
6 elements important for you to succeed
Profitable growth abroad
15. IPOIncome per order Actuals
Lithuania
Estimate
Sweden
Kommentarer
Average order value 105,00 105,00 Average basket value for the last 3 months
+ Shipping fee 3,50 0,00 Average per order for the last 3 months
- VAT 21,00 21,00 Deduct VAT
- Cost of goods 50,40 50,40 Calculate actual contribution margin
- Shipping costs 4,00 7,00 Average actual shipping cost per order (3 months)
- Payment fee’s 1,50 2,00 Fee’s to payment providers, average per order
- Labour cost warehouse 3,00 3,00 Saleries to employees for pick and pack, per order
- Customer service cost 0,50 1,50 Saleries and software costs per order
- Return costs 1,70 3,00 Total return costs split per order
- Packing materials 1,50 1,50 Total cost for packaging split per order
Indtjening pr. ordre 24,90 15,60 Income per order (before marketing cost)
Income per order Actuals
Lithuania
Estimate
Sweden
Comments
Average order value 105,00 135,00 Average basket value for the last 3 months
+ Shipping fee 3,50 0,00 Average per order for the last 3 months
- VAT 21,00 27,00 Deduct VAT
- Cost of goods 50,40 64,80 Calculate actual contribution margin
- Shipping costs 4,00 7,00 Average actual shipping cost per order (3 months)
- Payment fee’s 1,50 2,00 Fee’s to payment providers, average per order
- Labour cost warehouse 3,00 3,00 Saleries to employees for pick and pack, per order
- Customer service cost 0,50 1,50 Saleries and software costs per order
- Return costs 1,70 3,00 Total return costs split per order
- Packing materials 1,50 1,50 Total cost for packaging split per order
Indtjening pr. ordre 24,90 25,20 Income per order (before marketing cost)
17. CPO
Prepare a solid plan for your marketing
- Evaluate and choose channels
- Decide the CPO you can live with
- estimate the volume you can expect
- prepare the plan and budget
…and follow up!
18. What is it she can do?
• Write texts as a native e-commerce
manager
• Being able to think like a local customer
• Know how things are done
(VAT, legals, returns etc.)
• Understand the small things
that makes the difference
A Local HeroTalks the language perfect, is a native
and an e-commerce specialist
19. Logistic- The last mile is important, choose a distributor the customer knows
and use
- Do you have tracking from your warehouse to customers address/
pick up location?
- Remember customers shipping costs can’t be much higher than the
competitors
- Return terms - many international orders are lost here
21. Do the things you plan to do!
Daily activities
Respon
sible
Weekly
activities
Respon
sible
Monthly
activities
Respon
sible
Check frontpage and
check-out
PP
Sitecheck, everything
correct and localised
PP
Evaluate and prioritise
marketing budgets
AT
Check that orders are
completed
LP Make test ordre AT
Evaluate conversion
and try to improve
PP
Send newsletter AT
Go through cust.
service questions
LP
Go through Adwords
and Google shopping
AT
Prepare campaign on
marketplaces
AT
Check affiliate AT
Plan campaigns for
next month
AT
Check sales on
marketplaces
LP
Plan and take status
meetings
LP
22. It takes time, often things
don’t turn out as expected
and cost more than
expected
- Spend money wisely, avoid high fixed costs and big
investments
- Focus on giving a great customer experience
23. Summary, important for succes!
Prior proper planning….
Focus on your KPI’s (IPO and CPO)
Find a “local hero”
Competitive logistics
Get shit done!
Remember it takes time…