Online Cross-border Sales in Europe Why is the issue of logistics so important?
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Online Cross-border Sales in Europe
Why is the issue of logistics so important?
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The issue of logistics is key element to selling cross-border,
because it helps to removes several challenges.
Why is the issue of logistics so important?
The importance of delivery - When a retailer sells products abroad,
delivery is a key aspect… but also a complex one.
Customer experience - You should do as much as possible to maximise
customer satisfaction and generate confidence in your brand.
Competitive Advantage - A well thought-out and well-managed logistics
plan can increase a retailers’ competitive advantage.
Why?
This lets them control and monitor all logistical elements, beit order management or financialaspects.
There are several ways retailers candispatch products.
Transport Networks
Some larger firms have createdtheir own delivery stucture.
For example: using large logisticsfirms such as Fedex which cantransport products all over the world, or using smaller, national postal services.
Delivery methods
Delivery is a prominent issue for retailers, because it has a significanteffect on customer satisfaction.
Delivery gives retailers the chance to differentiate themelves, improve conversion rates and generate customer loyalty.
of consumers would
like delivery options
to be more visible
(on the product page
for example).
of consumers would
choose to buy from
one shop over another
depending on
delivery options.
of people surveryed
said that they would
be willing to spend
more to receive a more
pratical and efficient
delivery service in return
66% 49% 83%
Click & Collect DesignatedDelivery Points (Point Relais)
Locker Office
National preferences
In Europe, as a general rule, online shoppers prefer home delivery.
However, there are certain national preferences. Retailers should takethese preferences into account.
What do the key players invest in?
One-day delivery is expected, especially in more mature markets.
Today, daytime delivery is usually only available via a premium account, but some key players are investing more money so that they can deploy thisoption to everyone.
This delivery method is still relatively complicated, and is not accessible to everyone, because to offer/benefit from one-day delivery, retailers have to have stock close to the client in question.
Although it seems like a minor detail, packaging plays a role in logistics.
The importance of packaging
Dimensions and weight have to be taken into account, so that deliverycosts are not too high for retailer nor customer.
The challenge is therefore lies in optimising packaging so that it is not too big or heavy.
Returns & Reimbursements
76% of consumers read up
on return policy before
completing a purchase.
Another important criterion is the
delivery country’s particular
legislation.
Customer protection laws are not
the same in all countries.
Therefore, retailers should adapt their
returns and reimbursement policy
to suit the country in question.
In a few figures…
51% of them will not order
something if the return policy is
too confusing.
How can you avoid returns?
Inform consumers in a clear and detailedmanner.
This means reading up on potential issues concerning translation, location and catalogue management : logistics have to be integrated into a retailer’s global strategy.
Returns & Reimbursements
Customs affect all international deliveries with a monetary value.
Duty prices are fixed locally.
Make sure to anticipate customs beforehand: if there are supplementary delivery costs, customer experience will suffer.
Best Practices :
- Add relevant documents
- Make sure you know the entry restrictions for certain types of product (such as food)
- Identify the product type and theirvalues
Risks
- Your merchandise may beconfiscated
- Heavy fines
Customs & Restrictions
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- Find a good trade-off between delivery time and delivery cost.
- Identify where and how products will be delivered.
- Know which delivery methods are available in each country.
- Take local consumer preferences into account.
- Ensure your chosen option is reliable.
Logistical factors to take into consideration:
What can be done to ensure successful logistics?
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selling cross-border in
Europe and the
accompanying
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