How to achieve profitability in global ecommerce

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Agenda

1. US outbound market sizes and growth engines 2. 4 common challenges to selling globally 3. Avoiding these challenges 4. Case studies:

Rickshaw Bagworks PlanetShoes

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How big is global ecommerce?

1.15 billion digital buyers They will spend $1.5 trillion on ecommerce

purchases in 2014

Source: eMarketer, Worldwide B2C Ecommerce

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B2C ecommerce sales worldwide 2012-17

Trillions (US Dollars)

Note: CAGR 2012-2017=17.3%; includes products and services ordered and leisure and unmanaged business travel sales booked using the internet via any device, regardless of the method of payment or fulfillment. Source: eMarketer, Jan 2014

$1.058 $1.248

$1.500

$1.763

$2.043

$2.345

B2C Ecommerce sales

2012 2013 2014 2015 2016 2017

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By the numbers…

Source: Pitney Bowes Research Source: Pitney Bowes Research

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US is the FAVORITE shopping destination for global shoppers

Source: Nielsen Source: Pitney Bowes Research

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Red + gray=the untapped potential; All figures in the pie charts are in millions Source: Pitney Bowes Research

US cross-border ecommerce growth engines

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US cross-border ecommerce growth engines

Red + gray=the untapped potential All figures in the pie charts are in millions Source: Pitney Bowes Research

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Four Common Challenges To Selling Globally

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Challenge 1: Complex customs, duties, shipping restrictions and tax issues

27% of global e-retailers cite lack of knowledge of local rules and regulations acts as an inhibitor to cross-border ecommerce

20% are held back by complex foreign tax laws

Source: Payvision and CEPIS

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Challenge 2: Shipping complexities

Shipping takes too long Shipping costs are too high End-to-end tracking

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Challenge 3:

Long and complicated returns process

47% of global e-retailers indicated that rules and regulations for product returns play a critical role in cross-border ecommerce

Source: Payvision and Accenture

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Challenge 4:

Payment processing

53% of e-retailers indicated that providing a wide variety of payment options is complex

Source: Payvision and Accenture

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How global ecommerce should work

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Keys to success

Master the basics • Cost certainty • Reasonable shipping • Clear returns policy

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Master the basics

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Keys to success

Master the basics • Cost certainty • Reasonable shipping • Clear returns policy

Increase sophistication • Payment processing and

fraud management • Currency conversion • Localized site in-language

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Increase sophistication

Up to

80% lift in sales when displaying local currency

Source: International Business Times

Source: Internet Retailer

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Rickshaw Bagworks Case Study

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PlanetShoes Case Study

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Q&A Email: bd-ecommerce@pb.com Call: 855-PB-ECOMM