AGENDA
1 MARKET TRENDS
2 GET TO KNOW YOUR INTERNATIONAL CUSTOMER
3 HOW DHL EXPRESS CAN SUPPORT YOUR BUSINESS
3
EMERGING TRENDS
1.6billionshoppers online in 2018
900billion USDspent on cross-borderpurchases by 2020
3.4trillion USDestimated global e-commerce sales by 2019
Consumer behaviouris changing: They expect everything ‘on demand’, any time, any place and to buy anywhere
CANADA18 million online shoppers67% cross-border buyers
US205 million online shoppers
32% cross-border buyers
BRAZIL40 million online shoppers39% cross-border buyers
MEXICO19 million online shoppers50% cross-border buyers
AUSTRALIA12 million online shoppers69% cross-border buyers
NEW ZEALAND2 million online shoppers80% cross-border buyers
GERMANY47 million online shoppers23% cross-border buyers
POLAND14 million online shoppers54% cross-border buyers
JAPAN77 million online
shoppers14% cross-border
buyers
ISRAEL4 million online
shoppers82% cross-border
buyers
THINK OUTSIDE THE BOXNOT JUST THE OBVIOUSCROSS-BORDER E-COMMERCE MARKETS
PUBLIC
16
WHAT SELLS WELL…..
7
9
11
11
7
1416
19
43
13
9
10
21
40
Australia Austria Brazil China India Japan Russia USUK
12
1113
10
9
16
20
19
46
15
9
21
25
44
5
7
8
8
4
1515
19
19
11
14
15
15
36
5
3
8
6
35
78
42
13
19
12
13
14
36
5
5
4
10
6
812
15
29
7
6
6
11
32
0
5
7
17
11
1020
26
6
13
24
9
9
45
4
3
7
4
14
87
21
27
5
3
6
12
20
9
10
9
7
5
1720
21
9
8
17
17
18
51
7
7
6
99
11
15
14
22
8
86
16
31
Elec
tron
ics
7
7
9
8
6
1012
17
20
9
10
11
16
36
Global average
Implications for e-tailersType of product1
Example countries
Home and furniture
Digital cameras, and audio devices
Personal appliances
Mobile phones
Food
DIY tools and gardening
Automotive parts
Sporting goods
Gifts and flowers
Beauty and cosmetics
Toys
Fashion
Print, publishing, and media
Computer electronics
• Across countries fashion and electronics are the most popular cross-border shopping categories
• Country-specific selling opportunities exist (e.g., beauty and cosmetics in China, gifts and flowers in India)
SOURCE: The consumer barometer 2016; Google and TNS, N = 16,072
Global Product Reporting, Express Global Controlling, Bonn
17
GET TO KNOW YOUR
INTERNATIONAL CUSTOMERS
Better availability, broader product range and better product quality
More appealing offers and better conditions
Recommendations from others and generic trustworthiness of the webshop
WHY DO PEOPLE BUYFROM FOREIGN WEBSHOPS
Competition of local webshop with local pricing, local language and local payment methods
Concerns about extra fees (f.e. duties & taxes), long delivery times and higher transportation costs
Concerns about returns process and customer service
Lack of trust in foreign webshop
WHAT PREVENTS SUCCESSFULCROSS-BORDER TRANSACTIONS
91%of consumers look for the available delivery
options before reaching the checkout
56%of shoppers said
obtaining information in their own language is
more important than price
68%of millennials would
choose a retailer solely because of its
delivery options
30%of shoppers would
choose a retailer who offers a premium/next
day service
50%of shoppers abandon
carts because of limited shopping options
2xCustomers are twice as
likely to return to a retailer after a positive
delivery experience
66%of online shoppers check the retailer’s
returns policy before making a purchase
58%will abandon their
shopping cart because of higher-than-expected
shipping costs
70%of online shoppers
worldwide choose to prepay local duties and
customs at checkout
98%of shoppers prefer to pay
in their local currency
WHAT ARE CONSUMERS LOOKING FOR?The importance of logistics….
Global Product Reporting, Express Global Controlling, Bonn
21
HOW DHL EXPRESS SUPPORTS
CROSS-BORDER E-COMMERCE
1 Market Intelligence
2 Website Health Check
3 Partnering with Global-e
4 DHL Express Services
5 On Demand Delivery
22
HOW WE CAN HELP YOU…
PUBLIC
QUICK INTRODUCTIONPopulation:26.6 MCurrency: AUD (Australian Dollar)VAT: 10%GDP per capita: $55,215
E-COMMERCE ENVIRONMENTAustralia is known as the top country for cross border shopping. Brand Loyalty is decreasing to around 13%, and Australians simply will go for the best experience.
0
5
10
15
20
25
2012 2013 2014 2015 2016
E-CO M M ERCE SALES 2013-2016 (€, billions)
SHIPPING TO AUSTRALIATransit Time: 3 daysDe minimis value: $1,000 AUDDHL Service Points: 299ODD Options Available:
MOST POPULAR DELIVERY OPTIONS7% 3% 20% 47% 22% 1%
ALTERNATEADDRESS
NEIGHBOR DELIVERY
SCHEDULEDELIVERY
SIGNATURERELEASE
SERVICE POINT
DELIVERY
VACATION HOLD
AUSTRALIA & E-COMMERCE IN NUMBERS
85%Internet Penetration
65%Of the population shops online
63%Cross-bordershoppers
15.7%Growth E-commerce market
$ 1,833Average spend per e-shopper
80%say that tracking builds confidence in
shopping cross-border
MOST POPULAR
PUBLIC
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Books, CD's,DVD's, Games
Clothing &Footwear
DigitalCameras
Cosmetics HouseholdGoods
Gifts
Most Popular Purchases for Cross Border Shopping
TOP ONLINEPAYMENT METHODS
CREDIT- & DEBIT CARDS 60% E-WALLET (PayPal) 21% CASH ON DELIVERY 5% BANK TRANSFER 4% PAY AFTER DELIVERY 4% OTHER 6%
0% 5% 10% 15% 20% 25% 30% 35%
Worrying about paying in foreign currency
Worrying about customer service
Assuming returns are dificult/costly
Own country meets my needs
Not trusting foreign sites
Reasons For Not Buying Abroad
0% 5% 10% 15% 20% 25% 30% 35%
Trustworthiness
Better quality of products
Broader range of products
Better conditions
Appealing offer
Better availability
Reasons For Buying Abroad
SOCIAL MEDIAUSAGE
41 %11 %10 %10 %11 %
8 %OTHER
THE CONVERSION OF WEBSITE TRAFFIC
INTO POTENTIAL SALES
2,200ESTIMATED
INTERNATIONAL SALES2%
conversionrate to sales
$220KESTIMATED MONTHLY
SALES$100
average shopping
cart value
$2.64 MESTIMATED
ANNUALIZEDSALES
110,000TOTAL
VISITS FROMU.S.A.
PUBLIC
-
100.000
200.000
300.000
400.000
500.000
600.000
700.000
Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18
chanel.com gucci.com louisvuitton.com hermes.com kering.com
Business Proprietary & Confidential | 30
PUBLIC
Average Visit Duration
00:00:00
00:00:43
00:01:26
00:02:10
00:02:53
00:03:36
00:04:19
00:05:02
00:05:46
Desktop Mobile
chanel.com gucci.com louisvuitton.com hermes.com kering.com
Bounce Rate
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Desktop Mobile
chanel.com gucci.com louisvuitton.com hermes.com kering.com
Business Proprietary & Confidential | 31
Do you offer an easy returns solution?Is your Website available in multiple languages?Do you apply currency conversion?Do you offer localized payment options?Are delivery notifications mentioned on your website?
THE IMPORTANCE OF THEWEBSITE HEALTH CHECK
Do you mention on your homepage that you sell and ship internationally?Do you state your shipping options on your home page?Do you offer an express delivery option? Are your shipping charges clear and appropriate?Do you offer a Duties & Taxes Paid option for non EU?
37
Convert global shoppers with a localised experience
Local Currencies and Local PricingOptimised pricing, calibrated and rounded
according to local market practices; more than 95 supported currencies
37
Local Payment MethodsAllow shoppers to pay with their preferred
domestic payment method; over 50 supported methods
Guaranteed Duty and Tax CalculationCalculate duties and taxes for your
shoppers; allow prepayment at checkout
Multiple Shipping OptionsOffer a variety of international shipping
options at competitive rates
Convenient Returns PortalTransparent and easy returns process, managed through the Global-e portal;
pre-paid returns
Localised Welcome and Checkout More than 12 languages are available to create a local experience and increase
buyer confidence
38
Everything you need for smart global expansion
38
End-to-end operationsStreamlined logistics handled for you,
including checkout, delivery, and return
Smart Insights™Embedded international market insights
for optimised conversion rates
Risk-free expansionZero risk of international fraud and
currency fluctuation
Easy to start, easy to manageA quick and simple implementation and
fulfillment process
Pay as you go – and as you growScale your business in a risk-free manner
with no upfront investment
Global Product Reporting, Express Global Controlling, Bonn
39
DHL EXPRESS UNIQUE SERVICE PORTFOLIO
FITS EVERY TYPE OF SHIPMENT
TIME DEFINITE-SERVICES DAY DEFINITE-SERVICES GLOBALMAIL-SERVICES
Description Fast deliveries, anywhere in the world before the end of the next possible working day
For less urgent shipments delivered within a few days around Europe
Convenient & economical mail service for non-time critical items and low-value goods
Service DHL EXPRESS WORLDWIDEFast and reliable delivery to more than 220 countries and territories before the end of the next possible working day.
DHL EXPRESS IMPORT SERVICESImporting from 214 countries around the world with DHL Import Services
DHL ECONOMY SELECTIdeal for less urgent shipments to selected postcodes in 32 countries and territories throughout Europe
DHL IMPORT ECONOMY SELECTYou can import parcels and pallets from nearly every European country
DHL GLOBALMAILFor mail items up to 2kg when speed is not essential. Combines the strengths of DHL Express, DP and local postal networks for final delivery all over the world
CHOICE OF 3 SERVICE LEVELS:▪ PRIORITY: no T&T (mailbox delivery)▪ TRACKED: with T&T (mailbox delivery)▪ PLUS: with T&T & POD (sign for delivery)Registered Mail offering visibility & signature
Destination Netherlands, Europe and worldwide Europe Europe and worldwide
Weights Max piece weight: 70kgMax pallet weight: 300kg
Max piece weight: 70kgMax pallet weight: 1,000kg
Max letters dim: 381mm x 305mm x 30mmMax packets dim: L+W+H not over 900mm
Type of shipment Documents, parcels and pallets Parcels and pallets Documents and parcels
Delivery Lead times
Europe: 1 dayUSA: 2 days Rest of World: 2-4 days
Europe: 2-4 daysEurope: 3-6 daysUSA: 5-8 daysRest of World: 6-12 days
An appropriate service for every shipment
Global Product Reporting, Express Global Controlling, Bonn
41
DHL EXPRESS SERVES YOUR CUSTOMERS NEEDS
43
On Demand Deliverydelivery.dhl.com
DHL EXPRESS 9829289116from ABC SHOP is scheduledfor delivery TOMORROW.Signature is required.Manage your delivery at
Communication at every step of the delivery process ensures online shoppers are always kept up to date.
On Demand Deliverydelivery.dhl.com
DHL EXPRESS 9829289116from COMPANY X is scheduledfor delivery TOMORROW.Signature is required.Manage your delivery at
49%expect an online retailer to communicate the status of their new order.
PRINTDHL Return Label
(ship in box)EMAIL
DHL Return Label(via your customer service)
WEBDHL Online Services
(integrate DHL return portal on webshop)
From quick and easy totailormade solutions
1 2 3
Hassle free RETURNS
46Customer can schedule home pick up online or drop off shipment at DHL Servicepoint