NRF 2015 Global Ecommerce: It s a Small World After All

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1 NRF 2015 Global Ecommerce: It s a Small World After FitForCommerce is a consultancy founded to help online and omnichannel businesses figure out what they need and how/where to find it Team of former multichannel retailers, marketers, technologists and service providers, with hands-on expertise in ecommerce and mcommerce ecommerce Diligence is a philosophy and methodology based on diligent preparation and decision-making to ensure success Recruiting for strategic and senior talent that aligns with omnichannel strategy ecommerceknowhow.com is the first ecommerce knowledge base: Best practices, feature evaluations, expert advice and info on 100s of features, functions and topics 100s of provider and solution comparative info FFC Benchmarking are structured detailed benchmark studies Ecommerce, mcommerce and crosschannel capabilities and processes across competitive sets helping clients know where they stack up and prioritize investments 2 NRF2015- Big Ideas 1

2 Beyond our legacy in the mailing industry, Pitney Bowes is a marketleading vendor of software and logistical services that enable seamless domestic and cross-border delivery and tracking of international consumer purchases. Our cross-border e-commerce platform is currently utilized by over 150+ online retailers, enabling: Millions of domestic & international transactions Commodity classifications Total landed cost calculations Reliable parcel tracking Our solution takes the complexity out of your business by complying with country-specific import / export practices, restrictions, regulations and documentation requirements. 3 Global Ecommerce The Market NRF2015- Big Ideas 2

3 Asia-Pacific North America Western Europe Central & Eastern Europe Latin America Middle East & Africa FitForCommerce Global Ecommerce Growth o o In 2015, global B2C ecommerce sales is projected to be $1.77 trillion* Merchants are seeing ~20% of their online traffic coming from offshore IP addresses** $2,357.4 (in billions) $1,771.0 $2,052.7 $1,504.6 $1, Compound annual growth rate: 17.15% Sources: * emarketer ** Growing Global Conference Ecommerce Sales by Region $600.0 $500.0 $400.0 $ (in billions) $300.0 $200.0 $100.0 $ Source: emarketer 6 NRF2015- Big Ideas 3

4 Growth Rates by Region, % Asia & China Will Drive Global Growth 17.5% 11.3% 9.3% 10.2% 11.6% Asia-Pacific North America Western Europe Central & Latin America Middle East & Eastern Europe Africa Source: emarketer 7 Global Ecommerce What customers & retailers are doing thinking saying NRF2015- Big Ideas 4

5 Global Nuances: Top Purchasing Trends by Country 2014 Pitney Bowes Global Online Shopping Study Global customers who care about BRAZIL AUSTRALIA CANADA RUSSIA PRICE EASE & SPEED OF CHECKOUT PROCESS JAPAN CHINA RUSSIA INDIA S KOREA UK ACCURATE DELIVERY ESTIMATES CLEAR & EASY RETURNS INDIA 9 Global Nuances: Top Purchasing Trends by Country 2014 Pitney Bowes Global Online Shopping Study Global customers who buy RUSSIA S KOREA BRAZIL APPAREL BRAZIL CONSUMER ELECTRONICS INDIA AUTO PARTS RUSSIA INDIA CANADA INDIA BRAZIL CHINA JEWELRY, WATCHES, ACCESSORIES INDIA COMPUTER HARDWARE RUSSIA 10 NRF2015- Big Ideas 5

6 What Retailers are DOING FitForCommerce Global Ecommerce Study More than 50% already ship to Canada, Western Europe, UK and Australia What Retailers are THINKING FitForCommerce Global Ecommerce Study 75% expect further expansion over the next months 20% expect this to be in the next 12 months 83% expected to leverage some level of internal capabilities as sales grew Only 17% plan to outsource all activities 12 NRF2015- Big Ideas 6

7 What Retailers are SAYING FitForCommerce Global Ecommerce Study Retailers are flexible in how they plan to ship and open to options: Biggest hurdles to overcome: Taxes and Tariffs Technical Capabilities Language support Logistics Direct shipment Re-shipper Package forwarder 13 Shipping Models Carrier Only Software Only 3PL/Software Reshipper/Software NRF2015- Big Ideas 7

8 Shipping Options Breadth of Functionality Carrier International Shipping Software Provider 3PL/Software Provider Re-shipper/Software Provider Shipping Options Resource Intensity Carrier International Shipping Software Provider 3PL/Software Provider Re-shipper/Software Provider NRF2015- Big Ideas 8

9 Global ECommerce Growing Global Three Key Steps to Growing Global 1 Assess demand across different, specific international markets 2 Test the waters using low-risk, lowcost go-to-market options 3 Ensure your ecommerce solutions provide cost-effective quality service 18 NRF2015- Big Ideas 9

10 Growing Global: The Basics o Research your customers and your competitors by conducting an international market assessment o o o o Identify top channels Internet penetration, device usage Localize your website and products Competitive pricing in local currency o Investigate your site capabilities o Study regulations, customer privacy requirements, as well as customs and nuances of the market o Ship and/or fulfill internationally or do both Mastering the Basics 20 NRF2015- Big Ideas 10

11 Increase Sophistication o Vendor requirement compliance o Multi-lingual content and translation services o Local currency support o Optimize order history and order tracking for ease of use 21 Entering the Global Market: Methods o Established marketplace o Leverage established ecommerce player o Cross Border Service Provider o Quickly reach customers with low investment o Localized website o Keep brand and maintain control o Customized omnichannel experience o Local support o High investment RISKS TO CONSIDER: BRAND RISK, FINANCIAL RISK, OPERATIONAL RISK NRF2015- Big Ideas 11

12 Bernardine Wu CEO, FitForCommerce Booth: #2446 Craig Reed Senior Vice President, Global Ecommerce Pitney Booth: # NRF2015- Big Ideas 12

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