Ewdn cross-border summary

E-Commerce in Russia

What brands, entrepreneurs and investors need to know

to succeed in one of the world’s hottest markets

PART 2 – CROSS-BORDER SALES

EEXECUTIVE SUMMARY – SEPTEMBER 2014

E-COMMERCE IN RUSSIA

What international merchants, service providers and entrepreneurs must know to succeed in one of the world’s hottest markets

I N P A R T N E R S H I P W I T H

The National Mail Ordering Association

W I T H T H E S U P P O R T O F

Merchant Risk Council

This short, ad-funded version contains excerpts from a comprehensive research study created by East-West Digital News, the international resource for Russia’s digital industries, in partnership with e-commercefacts.com. The research was conducted in cooperation with leading consultants and universities, and based on interviews with over 50 industry players and experts. To order a copy of the full version (8 chapters, 150 pages – see table of contents at the end of this document) please email us at [email protected]. East-West Digital News is the first international information company dedicated to Russian digital industries. Its website EWDN.COM provides news, market data, business analysis and updates pertaining to the Internet, e-commerce, mobile and telecom industries, digital TV and satellite systems, software and hardware innovation, as well as to related investment activity and legal developments. A consulting branch, East-West Digital Consulting, provides international players with business development assistance in Russia and advises Russian companies on their international strategies. For more information, please contact us at [email protected] To inquire about advertising and sponsorship opportunities, or if your would like to get involved in the distribution of this study, please contact us at [email protected].

About this study

About the publisher

Advertising, sponsorship and distribution opportunities

2

CROSS-BORDER SALES TO RUSSIA

Chief editor’s note

Far from the international turmoil, the Russian e-commerce market is still growing – and many players across the globe continue serving an ever increasing number of online shoppers from this country.

But this very young market is also one of the least known and understood in today’s globalized e-commerce industry, due to the language barrier as well as to a lack of information and data.

For the first time, this research project, which began in 2013, sheds full light on the cross-border sales market. It is based on exchanges with more than 50 market players and experts and includes a set of reliable data.

Much credit for this breakthrough is due to Russia’s National Mail Ordering Association (NAMO) and its president Alexander Ivanov, who have patiently collected information from the Russian Post and key market players – be it officially or from insider sources.

Yet this document is, above all, a practical guide. In the full version, more than 100 pages are dedicated to analysis of, and recommendations for, each of the key operational hurdles confronting international online retailers willing to sell to Russian customers – from shipment, to customs clearance, to cross-border marketing and payments, to legal requirements.

Finally, our special gratitude goes to the sponsors and advertisers behind this study, who provided us with the support necessary for a pioneering, in-depth investigation.

We hope you enjoy this groundbreaking collaborative effort and wish you every success in your e-commerce projects.

Adrien Henni is co-founder and chief editor of East-West Digital News

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Participating organizations ONLINE RETAILERS

SERVICE PROVIDERS

RESEARCH PARTNERS

National Association of Mail Order and Distance

Selling (NAMO)

MEDIA PARTNERS

Merchant Risk Council

! !

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Key numbers 6 Executive summary 8 1. The Russian Internet market 9 1.1. Internet penetration 9 1.2. Regional contrasts 11 1.3. Russian audience world-wide 11 2. The domestic online retail market 12 2.1. Market size 13 2.2. Market growth forecasts 13 2.3. Number of users; user profiles and behavior 15 2.4. International comparisons 16 3. Cross-border sales 18 3.1. Market figures and trends 19 3.2. Why Russians buy abroad 21 3.3. What Russian consumers like – and fear 23 3.3. Customs clearance and shipment issues 23 3.4. From cross-border sales to market entry 24 Interviews & Analysis 25

Alex Vasiliev of SPSR: “Even a sharp increase in taxes would not be a problem if at the same time procedures are being simplified” 26 Alibaba PM Guzel Galeeva: Why we launched a social network for Russian cross-border shoppers 30 Merchant Risk Council: “Russian consumers are not all fraudsters” 31

Case studies 35 eBay: Cross-border leader sees Russia as priority market but feels threatened by troubled international relations 36 Shoes of Prey: Tailor-made Australian shoes for stylish Russians 40 About the full version 45

Key industry events 50

Table of contents of this free summary

Download the free summaries of EWDN’s report on Russian e-commerce

PART 1: The domestic e-commerce market: http://www.ewdn.com/e-commerce/summary-part1.pdf PART 2: Cross-border sales: http://www.ewdn.com/e-commerce/summary-part2.pdf

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$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

+75%

10 million Russians shopped in foreign online stores

CROSS-BORDER SALES 2013

KEY NUMBERS (PHYSICAL GOODS ONLY)

Approximately $3bn

Total market

size:

generating 38 million parcels

About

$2bn

UP from 2012 in number of parcels

With and

capturing the lion’s share of the market

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Average order value

$400 (for repeat purchases)

$180 $160 $105 $40 $24

Aliexpress

eBay

Clothing Electronics

Rutaobao.ru Dostami.ru (BayRu)

Source: East-West Dig i ta l News unless stated otherwise

S o u r c e : N A M O

Sources: Dostami, HSE,

NAMO

S o u r c e : N A M O

6

Key numbers


To receive the full version of EWDN’s report on cross-border sales to Russia (8 chapters, 150 pages) or inquire about other EWDN reports, please contact us at:

[email protected]

C R O S S - B O R D E R SALES TO RUSSIA

E X E C U T I V E S U M M A R Y

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1. The Russian Internet market 1.1. Internet penetration In the spring of 2014, 61% of the adult population, or 71 million people, were connected on a monthly basis, according to the Public Opinion Foundation (FOM). Of them, 58 million people – 50% of the adult population – used the Internet daily. The Internet became popular in Russia much later than in advanced European countries, with a mere 10% of the adult population connected in 2003 and just 20% in 2007. Today, Russia still lags behind most other European countries in terms of penetration, with roughly half of the adult population connected. Russia is catching up quickly however, with average annual growth in Internet users exceeding 10% over the last few years. In September 2011, Russia overtook Germany as the market with the largest number of unique Internet users in Europe. If growth continues at its current rate, it will take Russia less than a decade to reach the current levels of Europe's most connected countries.

0%

10%

20%

30%

40%

50%

60%

Spring 2003

Spring 2004

Spring 2005

Spring 2006

Spring 2007

Spring 2008

Spring 2009

Spring 2010

Spring 2011

Spring 2012

Spring 2013

Daily users Weekly users Monthly users

Source: Public Opinion Foundation (FOM)

Internet penetration rate in Russia (2003-2013)

Executive Summary

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Executive Summary

28% 19.3 M

11% 7.6 M

19% 13.3 M

15% 10 M

9% 6.3 M

14% 9.3 M

4% 3 M

South

North-West

Volga Urals

Siberia

Far East

Source: FOM

Distribution of Internet users by federal district (winter 2013-14)

Center incl.

Moscow

Nationwide – 100% (68.7 million unique users)

International comparison: Internet user engagement across Europe (average hours per visitor 15+, April 2014)

Source: comScore MMX

European average: 23h

39 37

36 33

28 26

24 23

22 18

17 17

16 16 16

15 13

12

Turkey Russia

Netherlands UK

France Spain

Italy Poland Finland Norway

Germany Portugal Sweden Belgium

Ireland Denmark

Austria Switzerland

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1.2. Regional contrasts Internet penetration in Russia is still uneven. There is a nearly two-fold difference in the percentage of monthly Internet users between the capitals, Moscow and St. Petersburg, which have over 75% Internet penetration, compared to 45% in Dagestan and 42% in Mordovia, according to a FOM report from February 2013. The average penetration across Russia was 58%. Among the key factors driving these regional contrasts are differences in the standard of living, purchasing power and development of broadband and wireless Internet access, as well as computer and Internet literacy. As of Summer 2013, just 11% of Russian Internet users lived in Moscow, 4% in St. Petersburg and 9% in cities with more than 1 million inhabitants, while 20% lived in rural areas. Almost three quarters of all Russian Internet users live in the European part of Russia. 1.3. Russian audience world-wide The Russian-speaking internet audience numbers in the range of 90 million users, including an approximate 20 million Russian speaking users in the former Soviet republics, Western Europe, Israel and North America.

Executive Summary

A D V E R T I S E M E N T

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2. The domestic online retail market 2.1. Market size In 2013, according to Data Insight, the Russian online retail market neared ($16.5 billion), up 28% from the previous year. This volume includes online sales of both physical and digital goods, as well as ticket sales (airline, train and entertainment tickets) – but not hotel bookings ($2 billion), sales to corporations ($3 million), and cross-border sales of physical goods (approximately $3 billion). Thus in total the Russian online retail market reached about ($25 billion). On a yearly basis, in 2013, 30 million Russians bought physical goods online.

Source: InSales

Turnover by segment in Russian domestic online retail (2013, in billion rubles)

Segments

2013 Growth/2012

Household appliances & electronics 107 34%

Clothing, footwear 76 34%

Computer, notebooks, computer parts 56 23%

Car parts 26 43%

Mobile phones 26 32%

Children’s goods 24 29%

Home items 22 97%

Furniture 20 36%

B2B equipment 19 55%

Construction materials 15 40%

Sports, tourism, leisure 14 42%

Groceries 13 -1%

Office appliances 12 30%

Cosmetics, perfumes 9 31%

Accessories 7 37%

Books 6 3%

Gifts 5 50%

Medicine 3,5 63%

Pet goods 3 95%

Flowers 3 31%

Executive Summary

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2.2. Market growth forecasts We anticipate that, in 2015, Russia’s domestic online retail market will amount to at least$27 billion in turnover (domestic sales of physical and digital goods, including tickets but not hotel bookings, B2B sales and coupons). The fastest growth rate is expected to be found in the regions. According to moderate forecasts, Russia’s online retail market could reach $50-70 billion by 2020. In no case should this figure, which represents around 7% of Russia's total retail market, be regarded as a maximum. In the long term, strong growth will be fueled mainly by such structural factors as:

•  E-signature and online payments becoming more popular: mass demand for non- material products such as insurance and tour package offers.

•  Fulfillment infrastructure reaching maturity: With reduced delivery costs the scope of e-commerce will extend to cheaper product categories and be made available even to small cities and remote areas.

Russian e-commerce could thus represent a market of up to $150 billion within 10 to 15 years.

Russian domestic e-commerce market growth forecast

2010: $8bn

2013: $16.5bn

2020: $50bn to

$70bn

Long term: > $100bn

Executive Summary

Domestic sales of physical and digital goods, including tickets but not hotel bookings, B2B sales and coupons – Source: EWDN

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2.3. Number of users; user profiles and behavior Online shopping has already become a common method of consumption for active Russian Internet users, particularly those with upper middle and high income levels living in Moscow, St. Petersburg and large Russian cities. This is why online shopping penetration in Russia, which is still weak compared to some Western European countries, is expected to eventually catch up with the most connected countries like the UK, where up to 85% of Internet users are involved in online shopping. According to Data Insight, the Russian online retail market could well involve 44 million shoppers in 2015 (doubling from 2012) and tens of millions more by the end of the decade.1

Significant differences regarding online purchasing can be observed between different population groups. For example, men tend to spend more online than women; they more actively purchase car parts, mobile phones and computers, while women are more likely to purchase from such categories as clothing and children’s goods. Generally speaking, people from younger age groups, with middle to upper class salaries, who have completed higher education, tend to consume more online than those from the opposite groups.

1. Three groups drive this growth in the number of online shoppers: individuals in the regions, especially in small towns, individuals with low incomes and individuals newly connected to the Internet.

Executive Summary


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According to various surveys, online shoppers most appreciate lower prices, easier comparisons and convenient delivery. Variations can occur depending on socio-geographic criteria. For example, more so than others, inhabitants of the capitals and the largest cities appreciate the time saving aspect of online shopping and the higher service level offered by online retailers, when it comes to delivery questions. Symmetrically, users are very sensitive to price and product information on the website, while pricing and delivery conditions are common causes of dissatisfaction. Trust is a key issue, with at least 30% of Russian Internet users declaring they never shop online versus 10% to 20% in most Western countries. 2.4. International comparisons In 2012, the sales volume of online retail in Russia was similar to that of Brazil, while significantly behind the USA and Western Europe. The share of online retail to total retail amounted to approximately 2%, compared to between 5% and 10% in the USA and most West European countries. In the UK, this share reaches 13%. Research by PwC in 2012 found that only 43% of Russian Internet users made frequent purchases online, meaning one or more purchases per month, compared to the international average of 60%.

Nevertheless, the low penetration of e-commerce in Russia is primarily due to the relatively low level of Internet penetration. If judging by the number of Internet users shopping online, the share of online retail sales in Russia is more or less comparable with the situation in Italy, Greece and the new EU members from Central Europe and the Baltic states.

Executive Summary

Online retail in Russia and other markets in 2013 (physical and virtual goods, not including games, in billion USD)

Estimates of Data Insight (Russia), eMarketer (other countries)

Market size Yearly growth

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3. Cross-border sales Foreign retailers’ online sales of physical goods to Russia have grown considerably over the last few years and reached an estimated $3 billion in 2013. Russian consumers appreciate foreign retailers’ diversified assortment and enjoy the virtually tax-free purchases. Although this market remains opaque, the following picture has emerged from our one-year inquiry:

•  International giants eBay and Amazon, as well as a number of Western fashion brands in the clothing segment, enjoy high trust and popularity among Russian customers, but Chinese retailers are currently gaining an even stronger traction, although in different product categories.

•  Apparel and accessories, consumer electronics and gadgets, as well as automobile parts are the most in demand product categories.

•  Besides common localization, marketing, and customer service issues, foreign e-merchants run into three key difficulties: customs clearance, delivery to the consumer, and payment process.

Executive Summary


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3.1. Market figures and trends With 38 million parcels delivered in 2013 (up from 22 million in 2012, according to the NAMO association), the market is developing fast and challenging the country’s transport and customs infrastructure. In the spring of 2013, Moscow airports were congested with up to 500 tons of parcels backed up at customs check points. A few months later, the Federal Customs Service pledged to add hundreds of new employees to help deal with the growing influx of parcels. In 2014, the Russian and the Chinese postal operators expanded their partnership to enhance deliveries.

Executive Summary

Source: EWDN

Source: Higher School of Economics

Average order value: Russian and foreign e-merchants compared (Q3 2013)

Clothing: Russian online

stores

Clothing: Foreign online

stores

Electronics: Russian online

stores

Electronics: Foreign online

stores

$115 $105 $455 $180

Sources: NAMO (Rutaobao, eBay, Aliexpress), Dostami.ru

Average order value from some significant cross-border retailers (2013)

Dostami.ru (ex-BayRu) Rutaobao eBay Aliexpress

> $400 $160 ~$40 $24

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Estimated Russian cross-border sales volume (2012-2016)

$2.5bn $4.2bn

$6.5bn $8bn

$19bn

$11.5bn

$6bn

$3bn $1.7bn


33% 28%

54% 55%

13% 17%

45,001-60,000 rubles

15,001-45,000 rubles

5,000-15,000 rubles

Executive Summary

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Russian audience for AliExpress and eBay (Sept. 2013 – Aug. 2014) CHART 2-1

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Source: Gemius

AliExpress and eBay audience share by income (August 2014)1

CHART 2-2

At 2014 average exchange rate: 5,000-15,000 rubles = $141-$423; 15,001-45,000 rubles = $423-$1,271; 45,001-60,000 rubles = $1,271-$1,695


The full version of this study includes a full set of data on the Russian audience of five top cross-border sites over the past two years, in partnership with research company Gemius.

Market growth benefits major international online retailers – first of all, Alibaba’s subsidiary Aliexpress and eBay – as well as many sites selling small quantities in niche segments. Some of them report their sales volume and order size from Russian customers are significantly larger than with any other country. However, since late 2013, some Western online stores have seen sales to Russia grow more slowly – or even stagnate or decrease in specific cases – while sales from China reached ever higher levels.1 3.2. Why Russians buy abroad Even taking into account delivery costs, many products are still cheaper if bought abroad than on the domestic market. Price differences may be even more considerable with some rare items.2

One reason for the price advantage in some categories is that parcels received by inhabitants of the Customs Union (including Russia) are not subject to customs taxation if they do not exceed 31 kg in weight and 1,000 euros in value per month, for each recipient.3

However, foreign Internet stores do not always have a price advantage over Russian ones, and often the advantage will not carry across all products the retailer offers. In the electronics segment foreign online stores, especially in China and Germany, offer more favorable prices for cameras, but have no clear price advantage for smartphones. Russian online stores show a wide range of prices for clothing and footwear and foreign stores are located within this price range.

Executive Summary

1. In July 2014, AliExpress became Russia’s most visited e-commerce platform and one of the country’s top 10 most visited website. http://www.ewdn.com/2014/09/09/chinas-aliexpress-breaches-russias-rankings/ 2. A bolo tie aficionado interviewed by EWDN says there can be ten-fold price difference between a local Russian shop and a foreign online retailer. 3. If weight or value do exceed these numbers, customs duty amounts to 30% of the value of the part in excess, with a minimum tax fare of 4 euros per kg. Russian authorities are expected to switch to a less liberal customs regime before the end of 2014. 21

Reasons for shopping in Russian vs. foreign online stores (2013)

Clothing: Favor Russian online stores

Clothing: Favor foreign online stores

Electronics: Favor Russian online stores

Electronics: Favor foreign online stores

• Faster delivery (49.2%)

• Ease of returns and exchanges (21.7%)

• Less risk of package loss (23%).

• Can purchase products not available in Russia (63.3%)

• Price differences (46.6%)

• Wider assortment (39.3%)

• Higher quality products (35.8%).

• Faster delivery (54.8%)

• Ease of returns and exchanges (28.1%)

• Less risk of package loss (27.8%)

• Product guarantees (27.8%)

• Can purchase products not available in Russia (61.4%)

• Price differences (48.5%)

Source: Higher School of Economics


Executive Summary

Additionally, a number of products are simply not available, or are hard to find, on the domestic market. This concerns not only obscure collectables, but other items such as a number of spare automobile parts and accessories, which when related to rare or little known car brands are virtually nonexistent in Russia, especially in the regions. BayRu has built its assortment of car parts by identifying the products that were most lacking on existing Russian online resources and offline shops. 3.3. What Russian consumers like – and fear Russian consumers have unique qualities that often necessitate specific merchandizing strategies to attract purchases. A website marketing template that successfully caters to Western audiences would not be as effective if simply transferred to the Russian marketplace. Local consumers require more guarantees and conviction in display content pre-purchase. Among their fears and expectations are the following:

•  Russian consumers are more distrustful of retailers and fearful of artificially high pricing. They must be certain a product is worth paying for, whether this is based on quality, warranty, brand recognition etc..

•  Unlike Western consumers, Russians are anxious in regards to international delivery and fearful of unscrupulous suppliers. High visibility and display of postage conditions is vital. For example, retailer Net-a-porter.com has a permanent banner and link across all its Russian-version site pages stating “Express delivery to Russia,” while the UK’s Next retail store assures customers of “quick and reliable” delivery on its homepage.

•  Russians love promotional offers and activities, especially those linked to their cultural and social habits. Frequent and catchy promotions and discounts are important to sustaining local consumer loyalty. However, Russian consumers also respond better to clearly stated links or “buttons”, which describe the promo in detail. For example, in May 2014 ASOS.com focused on the traditional May holidays in Russia with an offer on its Russian-version site that touched on the “dacha” (second home in the countryside). The promo read “20% sales + free express-delivery with promo code Dacha20”.

3.4. Customs clearance and shipment issues Occasional slowdowns at customs checkpoints and the slow service of the Russian Post create serious obstacles. However, a new generation of Russian and international delivery providers and cross-border operators are emerging, thus offering more choices to international players. Meanwhile, the Russian Post is progressively enhancing its capacities while the customs service is introducing simplified and faster procedures.

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Executive Summary

3.5. From cross-border sales to market entry Some foreigners assume that they can start selling significant volumes to Russian consumers by simply extending their existing businesses. This is possible, as shown by the experience of eBay, Aliexpress, Amazon, Asos and a number of other e-merchants. However, cross-border sales in large volumes are possible only if the foreign e-store or brand is perceived by local consumers as having significant and distinctive advantages (in terms of price and product assortment in particular) and adapted to the specifics of the Russian market and the expectations of local consumers. At a certain stage, a stronger local presence – or full market entry – may be required to tap the Russian market’s true potential. On the domestic e-commerce scene, four foreign companies – or Russian companies with foreign shareholders and management – are among the top 10 players (Otto Group, Ozon, Lamoda and KupiVIP). These cases show that foreign retailers can succeed on the local market at a significant scale when relying on a strong local team and taking into account local specificities – including, in certain cases, the development of their own local fulfillment capacities.

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[email protected]

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I N T E R V I E W S & A N A L Y S I S

Interview | Alex Vasiliev (SPSR)

Alex Vasiliev of SPSR on cross-border sales: “Even a sharp increase in taxes would not be a problem if at the same time procedures are being simplified”

Responsible for the international activities and business development of Russian delivery service company SPSR, 32-year-old Alex Vasiliev personifies Russia’s new generation of internationally-oriented retail and logistics professionals. Before joining SPSR in 2011, he served Turkish companies operating in Russia in the bank card and logistics industries. In this interview with East-West Digital News, Vasiliev describes SPSR’s thriving e-commerce shipment business and shares his views on market prospects in the field of cross-border sales. – To begin with, please briefly introduce SPSR SPSR Express is the leading privately-owned Russian express delivery company, with more than 13 years of experience in the Russian market. It is second only to the Russian Post in terms of coverage, delivering to more than 6,000 cities, towns and villages across the country. We are the only express delivery company in Russia operating exclusively through its own network – which ensures better security and control over delivery routes. With more than 3,900 employees, there are no third parties involved in our operations. – What about your e-commerce cross-border shipment business? When we launched this activity in 2012, practically all cross-border shipments were handled by the Russian Post and its subsidiary EMS, leaving alternative providers – at the time mostly international companies – a negligible share of this market. However, there was growing demand for services superior to that of the Post. [Editor’s note: Mr Vasiliev is hinting at the slow and unreliable service of the national postal operator when it deals with e-commerce parcels.] On our side, we had strong assets – including customs expertise and a customs broker’s license – to launch such a business. This is how we became the first Russian alternative provider serving large foreign online retailers. We are still a pioneer on the market. We were the first to introduce an electronic customs declaration system two years ago. Today, Russian customs officials have introduced such forms largely inspired by us. It even became a template for some of our partners, like wnDirect, who used it as a model for other countries.

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Our international operations are managed and developed by a dedicated team of 30 professionals. The company’s couriers, meanwhile, operate with no distinction between domestic and international shipments. – Do you offer any services besides shipment itself? Sure. We have introduced a cash-on-delivery service for foreign retailers – once again pioneering the market. Returns may jump from less than 1% to 7-8% – but sales can double. We also position ourselves as a solution provider with a consulting offer for payment or marketing issues. Thus we have introduced some of our clients to Qiwi Wallet, and to banks for joint marketing actions, etc. – How does the cross-border shipment business look in terms of volume? The Russian Post still accounts for more than 90% of e-commerce shipments to Russia. For the remaining fraction, SPSR has established itself as a key alternative provider and the clear leader among Russian companies. In 2013, we handled about one million parcels, and expect that figure to double this year. Existing clients account for one half of this growth, while new clients account for the other. To date we serve more than 200 foreign online retailers – compared with 300 Russian e-merchants for domestic operations. We’re especially strong in the UK market with a near monopoly there. It was the first market where we landed important companies like ASOS and Next as our key clients. Now the UK accounts for approximately 40% of our activity. Another 40% is generated by US clients and 20% by other countries. We’re developing actively in Germany, France and Italy. We are more cautious about the Chinese market, where dubious practices with customs declarations are still widespread, not to mention the potential quality and legal issues with some of the products coming from there. If we take the market in general – putting aside SPSR’s activity – the split is a bit different. We estimate that US e-merchants account for about 40% of cross-border sales to Russia, with Chinese companies representing another 40%. At most 8% comes from the UK. – To what extent could the more restrictive customs rules – with the threshold of tax-free shipments lowered – affect cross-border e-commerce? It is hard to predict, as the new rules have not yet been adopted. However, since 76% of our parcels have a value of less than 150 euros, it seems that a significant portion of cross-border shipments will remain unaffected. Even a sharp increase in taxes would not be a problem if at the same time processes and procedures are being simplified. This is why we support and trust the state’s efforts to make cross-border sales transparent and simple. The introduction of electronic forms was an important step, and we believe the general trend is positive.


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One of the remaining difficulties lies in the fact that national postal services and alternative operators are subject to different customs rules and processes – and it is not always easy for online retailers to navigate between them. For example when we started working with ASOS they had to introduce specific standards for Russia, which was rather unusual for them. – How does your offer compete with the Russian Post, on the one hand, and with an international shipment company like DHL, for example, on the other? Our standard delivery time for shipments from the UK ranges from five to seven days, versus about 2-3 weeks via the postal service. In terms of tariffs, we are about twice as expensive as the Post for parcels larger than 2kg– with an even bigger premium for small packages. However, we are going to launch a budget offer called “Deferred Solution”, which will be much closer to the Post’s rates. In terms of delivery time, our offer for cross-border B2C shipments is more or less comparable to what DHL Express offers to global Internet stores selling on the Russian market. Regarding rates, we are significantly more affordable. – Some international shipment providers are very selective when delivering to Russia and certain other countries. Does SPSR have any selection criteria when working with online retailers? We prefer to work on an exclusive basis via partners like WN Direct in the UK or Borderfree in the US, who handle the first-mile operations, even though we still maintain direct contracts with online retailers as well. We welcome collaboration with everyone under two conditions: transparent processes and a rigorous approach to business. – Do you believe that cross-border e-commerce could suffer from the current international turmoil? I don’t think there’s any direct impact. Over the last few months people have actually bought more than we forecast. A potential concern, however, is the ruble’s fall [editor’s note: by up to 25% in one year]. This could affect demand, though we haven’t noticed any consequences yet.

(May 2014)


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Interview | Guzel Galeeva (Alibabab.com)

Alibaba project manager Guzel Galeeva: Why we launched a social network for Russian cross-border shoppers

In May 2014, China’s Alibaba Group launched the iTao project for Russian e-shoppers. The service is a mixture of social networks Pinterest and Instagram, with users able to share photos of their purchases and discuss them. CPU talked with representatives of service in Russia and learned about future plans iTao. In an interview given to Russian tech publication Siliconrus.com, project manager Guzel Galeeva explains the present strategy and future direction of the project.1

– What is the vision of the project, aside from its likeness to Pinterest and Instagram? iTao is a social network for shopaholics, in the best sense of the word. It is a platform where people can share photograps of goods purchased in various online stores, especially from foreign retailers. Not everyone is ready to purchase something online, especially from overseas. On iTao users share successful and unsuccessful shopping experiences, post product information (size, quality, and so on), as well as share tips with each other.

1. http://siliconrus.com/2014/07/itao/

30


– How do you plan to develop the platform further? The future for the site is to create an innovative network of live communications using a mature network of buyers across online stores worldwide. Visitors will have the opportunity to subscribe to their favorite authors, by products by photos, discuss the intricacies of buying abroad and even resell goods that did not fit. Furthermore, friends will be able to organize interest groups, as well as improve the photographing skills of end-users. – What are some of the key benefits that make you think the project will take off on the Russian market? The main one is maintaining communication through our mobile application, which we will begin to market and launch in August 2014. The most important advantage though is the huge user base of Alibaba Group. – Do you have any competitors on the market? There are no direct competitors on the Russian Internet. Of course, in terms of content someone might can compare iTao with Pin.me, while Kakao Talk is similar to us in the field of mobile apps. Perhaps, smaller sites that mimic the idea of our site are opening up regularly too. We did not want to take the path of banal imitation, but to deliver to the demands of Russian-speaking users. We noticed that they are already using social networks to publish their "khvastov" (Russian variation on the phrase "bragging rights") and exchange information, and decided to give them a more convenient platform to do so. – What are your goals for the end of 2014? We are very modest and at the end of the year we want to attract one million visitors a day to this new platform.

(May 2014)

Interview | Guzel Galeeva (Alibabab.com)


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Itella – eCommerce, logistics and mail servicesRussia | Finland | Scandinavia | Baltics

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Your gateway to the growing markets in Russia and Finland Whether you operate via web stores, physical stores or both, we deliver eFulfi llment services with optimal customer and consumer experience in the North East. As we do already for companies like M&S, Mondelez, Canon, Pfi zer, Whirlpool, and Sony.

Expert analysis | S. Manduro and N. Vedrenne: Russian consumers are not all fraudsters

Russian consumers are not all fraudsters By Steven Mandurano, Global Lead Marketing Communications & PR, and Nicolas Vedrenne, Managing Director, Merchant Risk Council Europe

Russian consumers are known to be unique in their purchasing patterns, especially online. Considering that Russian payments and fraud processes are geared specifically towards the Russian consumer, there are many risks that an outsider must understand. Many Russian consumers prefer the usage of localized payments, such as making an online payment in-person at a local cash-in kiosk, or through cash-on-delivery (COD) options. The Russian market is full of exuberance and Russian consumers are willing to spend. However, the Russian people, on a whole, are skeptical of Western companies and extremely private with their online credentials. These actions present e-commerce professionals with a number of issues when dealing with fraudulent behavior. “The Russian market is full of endless possibility. However, the main priority for any non-Russian company looking to penetrate the market is the ability to localize,” said Nicolas Vedrenne, MRC Managing Director of Europe. “Do not go at it alone; be sure to have an ally who is already established within the Russian market. They will be able to introduce you to the right connections and show you the ins and outs of Russian commerce,” he adds. In the USA or the majority of European countries, it is easy to call a customer and ask if certain purchases were made; solving many suspicious acts right there on the spot. However, do not attempt to contact a Russian consumer, especially if the person in the call center does not speak the language, to ask for any credentials on purchases made online. Russian fraud trends, although similar to those appearing within Europe and the Americas, need a little more attention. Although Russia saw a 35% increase in fraud attacks in 2012 from 2011, according to FICO, the fraud pressure rate is not listed as specifically higher than in other key markets. Card risks are limited for the merchant as 3DS is the accepted norm and expectation for online shoppers in Russia. Fraud issues have previously emerged where a customer’s credentials have conflicting information. No matter where in the world a company stands, there will always be payment refusals. In spite of widespread opinon, the Russian market is not that different than any other market when it comes to the card payments main indicators (risk, decline rate etc.). Foreign merchants testing the Russian market should turn on 3DSecure, which will give them a liability shift. The abandon rate with 3DSecure is 10%. This is significant, but not the highest compared with some other countries.

1. In France for example, cross border transactions suffer a high decline rate: when French card issuing banks see a cross-border transaction, they prefer to decline it.

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After the initial test period, some merchants switch 3DSecure off. “We used to have 3DS on for all Russian payments but when we turned this off we experienced an increase in the success rate (approved transactions divided by total attempts) of about 10%, which for us is quite significant,” commented an MRC merchant. “Also, Russian transactions have an above-average success rate for us and perform well overall (with a global acquiring option). We have very high success rates on initial payments. However, recurring payment success rates can be significantly lower in comparison.”2

With its events and publications, MRC is a platform for industry players to discuss globalization and the best ways to partake in Russian e-commerce, among other topics. It is vital to not go at it alone; collaboration is the main way to succeed within the Russian market.

Expert analysis | S. Manduro and N. Vedrenne: Russian consumers are not all fraudsters


2. Usually, the rate of returning customers using the same card is high. Strangely, this is not the case in Russia. There are several potential explanations for this (which most often merchants cannot see). It could be because of shorter expiration dates, frequent change of limits by banks or low limits, consumers changing often of credit card or banks, consumers having a very irregular source of incomes and therefore with a lot of variations in their account balance, consumers "burning" their card limit every month, etc.

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Case study | eBay

eBay: Cross-border leader sees Russia as priority market but feels threatened by troubled international relations

Since it launched its first Russian version in 2010, eBay has asserted itself as a dominant player on the Russian cross-border e-commerce scene, with only one player – China’s Aliexpress – matching its sales volumes with an approximate 40% market share for each of the two giants. In a market almost doubling each year, the platform generated no less than $400 million in sales to Russia in 2012.1 By late 2013, the company was sending 90,000 of parcels into Russia daily, eclipsing all other western retailers, as it reached the mark of one million active buyersi the country.2 Some press sources have cited eBay as among the six largest Internet retailers in Russia, with average monthly turnover of around $63 million as of early 2014. Success is explained by eBay’s trustful brand, wide product range, low-cost offerings (especially by a growing number of Chinese retailers),3 continued site localization efforts, and close ties with Russia-focused mail forwarders. Yet there is still a feeling eBay is only beginning to unlock the potential of the Russian cross-border market. Company revenues exceeded $16 billion in 2013, of which around half originated outside of the USA. According to the Russian office of research firm IDC, Russia amounts to no more than 5% of eBay’s global audience and is not among the leading revenue-generating markets for the marketplace.4

§  Growing focus on new services and local logistical partnerships Having decided to localize, eBay has been busy throughout 2014 developing new services for Russian consumers – an approach stemming from eBay’s strategic drive to increase presence in emerging markets.5

After rolling out a Russia-based social network for eBay users, called "eBay Social," in July 2014 the company offered to provide local users with cash bonuses for recommending products on the network to members of the community.6

1. The company has not disclosed its 2013 figures. 2. Defined as making at least one purchase in the previous 365 days 3. These could represent up to a third of eBay trade to Russia, according to Head of NAMO Alexander Ivanov 4. http://www.kommersant.ru/doc/2530206 5. As stated in eBay’s Q2 2014 report: “The growth of Internet users is accelerating in some countries and regions where we do not have a significant presence (e.g., Brazil/Latin America, Russia, China and certain other countries in which we do not have a meaningful (or, in some cases, any) domestic business). If we are unable to establish our businesses and drive adoption of our services in such markets, our future growth would be negatively impacted. New users in such markets exhibit different behaviors than those from our more developed markets; including fewer interactions, lower levels of engagement, lower conversion and/or lower values of each interaction or conversion.” 6. http://lenta.ru/news/2014/07/18/ebay/

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The strategy is focused on taking advantage of Russia’s strong social media scene, following the social media marketing operations of Chinese marketplace AliExpress – in particular, the iTao social content platform launched by AliExpress’ parent company Alibaba in May 2014 (see interview below). Another service introduced by eBay in the summer of 2014 was titled "Collections." This software tool helps classify goods by categories, giving consumers the opportunity to create a selection of products united by one idea or theme that is then available on their eBay homepage.7 Having already been launched in Western markets in 2013, the implementation of the service in Russia demonstrates the growing desire by eBay to integrate Russian consumers with its global offerings. On the logistics side, the online marketplace signed a memorandum of cooperation with the Russian Post in July 2014 in a bid to reduce the time of delivery of goods to Russia from the company's major markets.8 With the national postal operator responsible for nearly 95% of e-Bay’s shipment to Russia – and long delivery times one of the biggest complaints of Russian cross-border consumers – the partnership is an important step in improving service quality. The first joint project, christened ePaket, was set to be launch in August 2014, with customers able to send a parcel through eBay at an accelerated rate. The company will provide the operator with the necessary parcel information and the Russian Post’s database will be integrated with other systems used by eBay, such as Bitrix and CNS, with which the company has also signed partnership agreements. §  Ruble devaluation and Ukraine crisis providing obstacles to operations There is certainly plenty of motivation for eBay’s continued activity in Russia. Domestic e-commerce is expanding at a yearly average rate of 30%, while cross-border volume has almost doubled every year. However, the lucrative Russian market also offers significant challenges for the US giant. The ruble has lost up to one fifth of its value compared to the US dollar from early 2013 to early 2014, making foreign purchases for Russian consumers increasingly more expensive.9 eBay has responded with a campaign to offset the ruble’s fall, offering its Russian customers to return to the exchange rate of September 2013, which was more favorable to them. An issue that might be more difficult to circumvent is the political and regulatory fallout of the Ukraine crisis. The political standoff between the US and Russian governments has led to sanctions and measures that threaten to undermine the international payment processing capabilities of Russian consumers. 7. http://oborot.ru/news/14559/10 8. http://www.ewdn.com/2014/07/25/ebay-and-russian-post-agree-to-accelerate-cross-border-deliveries-to-russia/ 9. eBay’s 2Q 2014 report cites currency fluctuations as significant threat to its business model: “Our cross-border trade is also subject to, and may be impacted by, currency exchange rate fluctuations. To the extent the U.S. dollar strengthens against the Euro, the British pound, the Australian dollar or other currencies, cross-border trade related to purchases of dollar-denominated goods (or goods from those Asia-Pacific countries whose currencies tend to follow the dollar) by non-U.S. purchasers will likely decrease, and that decrease will likely not be offset by a corresponding increase in cross-border trade involving purchases by U.S. buyers of goods denominated in other currencies. Even if cross-border trade is not reduced, if more sellers who accept PayPal begin to offer their goods or services in multiple currencies, and to arrange for withdrawal of balances to local bank accounts in multiple countries, this could reduce PayPal’s revenues from foreign exchange fees.”

Case study | eBay

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Case study | eBay

With US payment operators Visa and MasterCard under pressure to suspend services to some Russian banks, President Vladimir Putin has signed a law obliging international bank card processing operators to pay a large security deposit to continue operations in the country. As of summer 2014, while Visa and MasterCard where still in discussion with the Russian authorities, the future of their activities in Russia still seemed uncertain. eBay harbors significant concerns that further international sanctions against Russia over its policy in Ukraine could result in major legal changes for international payment systems operating in Russia, which would have a sizable impact on eBay’s cross-border sales. The company, nevertheless, is reaffirming its strong commitment to Russia. "We said three years ago that the Russian marketplace is eBay's top priority in emerging markets. It was true then and it is true now," eBay Deputy Head Wendy Jones told a news conference10 following the release of eBay’s quarterly report. Something drastic would have to occur for eBay to re-evaluate its cross-border presence in Russia, where the company is investing in a sustainable relationship with consumers.

10. http://www.themoscowtimes.com/business/article/russia-still-top-priority-for-ebay-in-emerging-markets/503916.html


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Case study | Shoes of Prey

Shoes of Prey: Tailor-made Australian shoes for stylish Russians

Shoes of Prey, the world’s first online designer of women's shoes, provides "shoe-designing bliss" to customers with "the most vivid imagination." The site's artisans use "a suite of divine raw materials, including the softest leathers, snakeskin, fishskin, Italian silk and more in an array of candy store colours" to design unique, made-to-order pairs of shoes that they will ship anywhere in the world. The company launched in Australia in October 2009 with a mere $50,000 in capital; but in June, 2012, it raised $3 million from US venture capitalist Bill Tai, Silicon Valley blogger/investor Michael Arrington's Crunch Fund and Mike Cannon-Brookes, co-founder of the Australian-based global enterprise software powerhouse Atlassian. The company initially addressed only English-speaking markets. Later, they expanded by offering localized sites in Japan, Russia, and the Netherlands.

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§  How Shoes of Prey localized in Russia In February 2010, Shoes of Prey was featured as the Site of the Day on Rambler.ru, a major Russian Internet portal. That generated a lot of traffic from Russia but very few conversions. At that time, Shoes of Prey offered only an English language website and accepted only payments by bank cards or via PayPal (which is still the case in all markets other than Russia). "This level of interest demonstrated the potential of the Russian market as well as the need for a local presence," says Leighton Peter Prabhu, head of Interstice Consulting Russia, which organized the company's localization. The Russian version of the website launched in October 2010, with local online payment solutions enabled in the spring of 2011. Shoes of Prey also has a local team and office. Moscow-based customers can visit the office and try on shoes, see finished examples, and examine all the materials. This unique localized service – Shoes of Prey does not offer it in other countries of the world – "has made our business in Russia a lot more personal and consultative with customers," Prabhu notes. "We often meet with them individually, which is rare even in our Sydney head office." Localizing the business did not cost a significant amount, according to Prabhu. "There are few hard assets in Russia, mainly staff, office expenses plus event expenses. All supplier relations and fulfillment are handled by Sydney, and their technology team takes care of all Russian website hosting and functionality – we merely provide the translated text and multimedia content. Marketing expenses have been rather moderate since our online campaigns are very targeted and a large part of our promotion strategy takes the form of PR." However, the company understands the challenges of the Russian market. Speaking to EWDN, Prabhu said “Increasingly, the company's overriding priority is to significantly grow sales by focusing on developed markets in the USA and Europe, which have shown higher volume potential compared to Russia.” The company understood that, while the profit margins for Russian sales have always outpaced other international markets, the overall sales volume was not as strong. Partly, this is due to the fact that the company does not have suitable products for much of the year (they do not offer boots or other cold-weather footwear). Additionally, this has to do with Russia being an emerging market, with the reality that average incomes are still not on par with the USA and Europe. The company ceased support for a full Russian-language website and separate Russian blog. The site is now offered to Russian customers is in English, except for a lengthy but solitary Russian-language FAQ page. This was done primarily due to the need to re-prioritize limited technical resources (the site does not have a user-accessible content management system and all content updates require developer resources). The site is currently available in English, Spanish, German, Japanese and French.

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Since the online designer is quite visual, the decision to stop a full Russian site did not have an immense impact on conversions. In fact, it was an opportunity to emphasize the opportunity for Russian customers to interact more personally with the Russian team, through telephone, Skype and in-person consultations. In the summer 2012, the Moscow office of Shoes of Prey moved into a larger and more comfortable showroom space and this has had a positive impact on conversions. However, as a result of Shoes of Prey Australia's focus on developed markets, the paid marketing budget for Russia has been eliminated. The focus is now on earned media and other BTL marketing initiatives. Shoes of Prey Russia continues to be regularly featured in leading Russian media, including television. The company is also building partnership relationships with local communities and companies. Some recent new partners include the International Women's Club in Moscow and the Expat in Russia Club. The firm runs events, such as the arranging shoe design master-classes to familiarise potential customers with online designer technology (in early 2014), cooperation with fashion designers such as the Jesofa design studio for the Estet fashion week in Moscow in April 2014, and supporting charity events. §  Organizing cross-border operations

•  Delivery: Currently, there is no price differential to Russia; the pricing for shoes is the same in Russia as in other countries. Shipping costs though depend on the country. International delivery to Russia is more expensive and takes longer, so Shoes of Prey started by managing expectations, especially for customers in the regions. In general, the company ships by DHL from its overseas workshop to Moscow, then uses a Russian courier within the country. This combination was chosen because DHL takes just a couple of days to deliver to Moscow, compared to as long as a couple of weeks with EMS, the subsidiary of the Russian Post specializing in international delivery. There are exceptions, however: if a customer lives in Vladivostok, EMS would handle the parcel from the workshop to the customer directly, without the involvement of the Shoes of Prey Moscow office, as the internal courier expense is prohibitive.

•  Payments: Initially, most customers were paying by cash. Generally, the site’s

Russian customers have bank cards; the issue was more a lack of trust in divulging bank card data to a new company. "Now that we are more established, we see a trend where more of our Russian clients are paying online with bank cards," says Prabhu. "The evolution of payment methods continues, with recent experience showing roughly 80% of customers choosing to pay online via credit cards.”

•  Returns: Shoes of Prey offers the same return policies in Russia as internationally: "100% satisfaction, or we remake the shoes or refund the money." This guarantee is valid for 365 days, as long as the shoes are unworn. The retailer's return rate in Russia is lower than its global return rate, because many Russian customers come into the Moscow office to make certain of their size and to see the quality of the final product.

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CROSS-BORDER E-COMMERCE THROUGHOUT EUROPE:

The freshest figures and facts by the leading market experts

To receive your free copy, please contact [email protected] or go to

http://www.thepaypers.com/cross-border-ecommerce


A B O U T T H E F U L L V E R S I O N


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About the full version 8 C H A P T E R S

150 PAGES 15 CASE STUDIES & I N T E R V I E W S 50 PARTICIPATING C O M P A N I E S

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•  The latest market evolutions: How the market skyrocketed in

2013, why some Western e-merchants are recording slower growth in 2014, and what to expect next;

•  Russian consumers’ preferences and fears, how to inspire their trust and turn them into loyal consumers;

•  Why and how international online stores and PSPs should integrate localized payment methods;

•  How to optimize shipments to Russia and get through the Russian customs seamlessly;

•  How to fight fraud, and how to increase payment acceptance rates when working with Russian card holders;

•  How to comply with the Russian legislation – from forbidden goods, to IP protection requirements, to personal data collection, storage and use.

èPreparing or beginning operations on the Russian e-commerce market èDeveloping and optimizing an existing business èPreparing or fine-tuning a business plan èDefining a fulfillment strategy or optimizing an existing fulfillment approach èPreparing marketing campaigns and optimizing related costs è Choosing and managing payment solutions and providers è Adapting to Russian legal requirements (including legislation on personal data, marketing practices, and consumer rights) è Analyzing the market, setting benchmarks and international comparisons

THIS REPORT IS MOST USEFUL WHEN:

Intended for practical use by online retailers and service providers, this research study – the first of its kind – sheds full light on cross-border sales to Russia. Based on interviews with 50 top market players and experts, this study provides fascinating data and insights about:


About the full version

Introduction: Cross-border sales throughout Europe

By E-Commerce Facts Chief Editor Janine Nöthlichs

Part 1: The domestic e-commerce scene

§  Europe’s largest Internet market §  The Russian online retail market: Key facts, figures and trends §  Segment analysis §  Market growth forecasts §  International comparisons

Part 2: Figures and trends

§  Market size – Exclusive data from the Russian Post, key market players and shipment companies §  Analysis by inbound parcels; product categories; average order value; countries of origin; region of destination in Russia. §  Market forecast: Pessimistic and optimistic growth outlook

Special insight: Is market growth coming to an end? -  Why some Western e-merchants have recorded slower growth in 2014, and what to expect next

Case studies: -  Chinese giants make their move into Russia -  E-merchant interviews about Chinese cross-border B2B

Part 3: Cross-border consumers

§  Where do they live? §  The capitals vs. the regions §  Who are they? §  Why do they buy abroad?

Interviews: Four Russian e-shoppers share their experience with Western and Chinese sites

Part 4: Merchants

§  How many players? §  Foreign vs. Russian players §  Main exporting regions: USA, China and Europe §  Notable cross-border players

Case studies: -  How AliExpress became the number one e-commerce site in Russia -  Affordable fashions from the UK – ASOS comes to Russia -  eBay – cross-border leader sees Russia as important market but with some caution -  iMall.eu – bringing European luxury to Russia effortlessly -  Sendmebox, a next-gen cross-border marketplace -  Shopotam – from selling notebooks on eBay to an international mail-forwarding network

Special research project in partnership with Gemius: Exclusive data on the Russian audience of top international online retailers: Traffic, socio-dem and revenue indicators from 2012 to mid-2014

Contents of the full version of this research study

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Part 5: Customs clearance and shipment §  Customs clearance: A detailed analysis of existing processes and expected changes §  Customs taxes: From "duty free e-commerce" to the new taxation rules §  Delivery: issues, providers, options §  Recommendations for foreign online retailers

Interviews: -  Aarnio Heli, Itella Senior E-Commerce Development Manager -  Stuart Hill, wnDirect Managing Director and Co-Founder -  Michael Poetschke, Arvato Russia General Manager -  Alexander Stsekotin, Omniva International Post Coordinator -  Alex Vasiliev, SPSR International Development Director

Part 6: Payments

§  The Russian payment scene §  Bank cards §  Electronic currencies §  Cash payments §  Payment refusal and security issues §  PSP and aggregators

Special insights: -  How international online retailers and PSPs have integrated Russian local payment instruments -  Exclusive data on the use of local and international payment methods in cross-border transactions -  New approaches to cross-border payments: Purchase on credit; Recurring payment; Cash-on-

delivery. -  Virtual payment cards: A new generation of payment method in Russia

Interview: Elena Orlova, PayU Russia General Manager

Expert analysis: -  “Russian consumers are not all fraudsters,” by Stephan Manduro and Nicolas Vedrenne of the

Merchant Risk Council -  "Fighting against fraud" – A few facts and recomendations, by the PayU expert team Part 7: Cross-border marketing

§  The challenges of site localization §  Russian online marketing specifics §  Marketing channels: SEO; contextual advertising; advertising and affiliate networks; marketplaces and other offer aggregators; social networks; cash-back platforms; mobile marketing; offline marketing, email marketing and CRM

Case study: Shoes of Prey – Tailor-made Australian shoes for Stylish Russians

Interview: Guzel Galeeva, Project Manager of Alibaba’s iTao social network

Part 8: Legal aspects of cross-border sales

§  Forbidden goods §  Legal restrictions in cross-border payments §  Intellectual property issues affecting cross border sales §  Cross-border personal data management: the current rules, the potential legislation changes, and how to get prepared for them

This section was prepared in partnership with Ernst & Young Russia and Borenius-Attorney at Law 10 Dos and Don'ts for foreign e-retailers selling to Russia

This section was prepared by market entry consultant Leighton Peter Prabhu

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KEY INDUSTRY EVENTS

The Club E-Commerce Cross Border Conference Barcelona, Oct. 22-24, 2014 http://crossborder.clubecommerce.com

Swiss E-Commerce Conference Trafo Baden, Switzerland, Nov. 27-28, 2014 http://e-commerceconference.ch

Chinese Cross-Border E-Commerce Conference and Exhibition Shanghai, Nov. 27, 2014 http://www.crossborder-e-commerce.com

E-Commerce & Omni-Channel: Supply Chain & Fulfilment Congress 2015 London, Jan. 28-29, 2015 http://www.ecommerce-supply-chain.com Global E-Commerce Summit Barcelona, June 8-9-10, 2015 http://www.e-commercesummit.com eTail E-Commerce & Retail Events Denmark, Germany, France, Singapore, UK, North America, Latin America, Asia www.wbresearch.com

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Ewdn cross-border summary

Retail

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domestic ecommerce market

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priority market

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