How High is the Summit of the e-Commerce Boom?

How High is the Summit of the e-Commerce Boom?

Peter Somers CEO bpost Parcels & International

Post-Expo 2012 – Brussels - 18th of September 2012

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e-Commerce is still growing worldwide

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19%

13,4%

Average growth per year

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But…, challenges ahead of us

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From double digit to single digit growth?

National and international challenges?

Changes in customer behaviour?

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Some mature markets & segments are facing already a single digit growth

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The lowest ever growth for the fashion sector

was recorded in April 2012

Growth in sales of clothing at 10% YoY compared to 28% LY

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The biggest markets (UK,FR,NL) are slowly showing signs of maturity Fe. B2C e-commerce growth in NL in 2011 was only 9,7%

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The whole world has become a potential market, but barriers

and challenges still exist for e-commerce activities

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National

Cross-border

Cross-continental

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National

Cross-border

Cross-continental

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The end consumer is not always at home when his parcel is delivered

Convenience by offering different delivery options

Barrier #1

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The consumer wants to decide when and where his parcel has to be delivered

• Home delivery 72%

• Pick-up point 10%

• Pick up in store 13%

• Packstation 5%

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Belgian consumers fe. request different delivery options

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Home delivery

Pick-up point

Packstation

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For the online customer: choose where you want your parcel to be delivered (at home, pick-up point, or packstation)

For the e-tailer: offer convenience, print labels, track & trace your parcels and manage different webshops via one platform

Integrated tools to support the convenience

But, is this what the consumer really expects from us in terms of optimal convenience?

Neighbour Delivery?

Time slot Delivery?

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National

Cross-border

Cross-continental

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Cross-border issues hinder full roll out of international e-commerce

Go step by step by starting with (a) test market(s)

Barrier #2

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Revenues could grow by 25% (or more) if e-tailers could sell both online and cross-border in Europe

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Technical & practical challenges

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Law regulations

Payment options

Marketing

Brand awareness

Currencies

Trust

Cultural differences Languages

42%

of all e-tailers identify market entry cost and compliance with consumer and fiscal regulations as the primary barriers to entrance into new markets

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Go step by step by starting with a test market

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Example BeNeLux

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Example Spain -> Portugal

Example Germany –> Switerland & Austria

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National

Cross-border

Cross-continental

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Taxes & duties hinder cross-continental e-commerce activities

Development of innovative solutions

Barrier #3

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Taxes & duties

47% of European customers consider

fraud and additional duties, taxes and fees at

delivery a significant concern

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is a shipping solution for international e-commerce that provides the consumer with true

landed costs: shipping costs, taxes and duties are guaranteed

A win-win situation for the e-tailer and his customer

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Barriers

Challenges

Innovation

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e-Commerce hasn’t reached its summit yet

Thanks to innovation and growing confidence

Worldwide number of e-shoppers will surpass 650 million in 2012

Increased offering as more and more retailers

go online

845 million Facebook users, up to 15% actively sharing

products or brands

Mobile internet will be over 50% of internet usage by 2015

The use of m-commerce is rapidly increasing

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However, we are not there yet!

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The customer behaviour is also changing

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& How!

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Logistics challenges due to change in customer behaviour

Combine innovative products and solutions with new services

Barrier #4

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• Visits physical store X to get more information on product A

• Checks prices online and orders at webshop Y

• Chooses for deliver of the goods at home

Customer 1

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• Visits physical store X to buy product A

• Wants product A in another colour (not available in store X)

• Product A needs to be delivered in physical store Xbis (near her office)

Customer 2

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• Buys product A in online shop X

• Buys product B in online shop Y

• Wants his products to be delivered at the same time

Customer 3

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One-stop-shop partner for all deliveries

We will unlock this habit change with 4 components forming a compelling eco-system

51 yy/mm/dd - title presentation - author - qualifier

The customer agrees a

delivery time with bpost

All purchases and parcels are

delivered together at that time

The customer can also return

goods (empties,

ironing etc.)

The customer pays for the

goods safely and securely by

banker’s card at

the time of delivery

To conclude

eCommerce keeps on

growing

still a lot of challenges and

barriers change in consumer behavior needs a

multichannel approach

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Thank you for your attention!

[email protected]