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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Blank slide
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
