overcoming barriers for international trade in an ecommerce world
DESCRIPTION
Cincinnati AMA International SIG Presentation by Chris Reighley. 12/2/2009TRANSCRIPT
![Page 1: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/1.jpg)
Overcoming Barriers to International Trade
For an eCommerce World
![Page 2: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/2.jpg)
TRADE
![Page 3: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/3.jpg)
Agenda•Identify the Global Opportunities
•Understand the Barriers to International Trade
•Overcome the Barriers to take advantage of the Global Opportunities
•An Action Plan to Go Global
3
![Page 4: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/4.jpg)
The Opportunity to“Go Global”
![Page 5: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/5.jpg)
Global Internet Population…The Opportunity
5
![Page 6: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/6.jpg)
July 2009 “Global Online Population Forecast, 2008 To 2013”
Asia Will Remain An Online Powerhouse…The Opportunity
6
![Page 7: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/7.jpg)
July 2009 “Global Online Population Forecast, 2008 To 2013”
Steady but Tempered Growth…The Opportunity
7
![Page 8: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/8.jpg)
Rest of
the Worl
d85%
USA15%
Percentage of World Internet UsersSource: Internet World Stats
Global Internet User…The Opportunity
8
![Page 9: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/9.jpg)
September 2009 “Tactics To Attract Recession-Weary Online Buyers Around The Globe”
Cross-Border Purchasing in Europe…The Opportunity
9
![Page 10: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/10.jpg)
21% 22% 23% 23% 24%26% 26% 27% 28%
32%
19%25%
0%
25%
50%
Books
CDs
Event
tick
ets
Appar
el
Train
tick
ets
Holid
ay a
ccom
odatio
ns
DVDs
Footw
ear
PCs
Compute
r per
ipher
als
Sporti
ng good
s
Consu
mer
ele
ctro
nics
Cross-Border Online Buyers…The Opportunity
Question: Which of the following products or services have you purchased online in the past six months? Select all: Products from a Web site in another country, books, CDs, event tickets, DVDs, apparel, train tickets, holiday accommodations, peripherals, consumer electronics, footwear, sporting goods, toys, PCs, and laptops
Perc
en
tag
e o
f C
ate
gory
B
uyers
Wh
o H
ave M
ad
e
Cro
ss-B
ord
er
On
lin
e
Bu
yers
Source: JupiterResearch Consumer Survey (9/07), n = 410 (cross-border online buyers, France, Germany, Italy, Spain, Sweden, and UK), n = 2,356 (online buyers who have not bought across borders, France, Germany, Italy, Spain, Sweden, and UK), n = 4,816 (overall online users, France, Germany, Italy, Spain, Sweden, and UK)
10
![Page 11: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/11.jpg)
11
Online Behavior in Asia…The Opportunity
50%
51%
52%
67%
79%
83%
China Hong Kong
India
China Mainland
Australia
Japan
South Korea
Base: 5,911 Asia Pacific adults who are online at least monthly(multiple responses accepted)
Source: Asia Pacific Technographics® Survey, Q4 2008
“Which of the following Web sites do you regularly visit? By regularly, we mean at least once a month.”
![Page 12: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/12.jpg)
Question: Again thinking of buying products and services online, which of the following statements are true? Select all: I spend more than €50 per month online; I spend more than €150 per month on high street; I am willing to pay more for higher quality or added convenience; I have bought products from a Web site in another country.
Source: JupiterResearch Consumer Survey (9/07), n = 410 (cross-border online buyers, France, Germany, Italy, Spain, Sweden, and UK), n = 2,356 (online buyers who have not bought across borders, France, Germany, Italy, Spain, Sweden, and UK), n = 4,816 (overall online users, France, Germany, Italy, Spain, Sweden, and UK)
Cross-Border Online Buyers…The Opportunity
Online Buyers Who Do Not Buy Across Borders
Characteristics Cross-Border Online Buyers
47% male Gender 62% male
45% Top household income segment 52%
22% Employed in managerial position 30%
75% Frequent Internet users 82%
49% 5 or more years’ online tenure 66%
57% Expect fastest access to any Web site 74%
12% Spend more than €50 per month online 33%
5% Spend more than €150 per month on high street 20%
13% Willing to pay more for higher quality or added convenience
34%
2.6 Number of categories purchased across (mean) 4.5
12
![Page 13: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/13.jpg)
13
Situation
• Only 4% of shipments are cross border, yet…
• 23.5% of Daily Unique Visitors are from outside the United States
Study
• Average Order Value is typically 40% higher than domestic orders
• Conversion Rate is typically ¼ of domestic conversion rate
• Add the ability to convert existing global DUV without added online marketing
• Opportunity to increase revenues by $4.2 million year one.
Results
A Study…The Opportunity
![Page 14: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/14.jpg)
Discussion Point
What is your organization doing to seize the global opportunity?
![Page 15: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/15.jpg)
Barriers to International Trade
•Consumer experience
•Quoting accurate prices and lead times
•Local compliance•Payment and fraud
![Page 16: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/16.jpg)
What is your biggest concern with international orders?• 50% - Customer Experience• 25% - Compliance /
Regulatory Issues• 17% - Unknown Cost• 8% - Payment Fraud
Do you provide any language translation on your web site?• 79% - No• 21% - Yes
Do you accept any “International” forms of payment on your web site?• 77% - No• 23% - Yes
Are you currently accepting international orders from your web site?• 57% - No• 43% - Yes
Survey Results…The Barriers
16
![Page 17: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/17.jpg)
17
March 2006, Trends “Multilingual Sites Drive Cross-Border Sales”
Less-Educated Consumers Need Language …The Barriers
![Page 18: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/18.jpg)
18
March 2006, Trends “Multilingual Sites Drive Cross-Border Sales”
Less-Educated Consumers Need Language …The Barriers
![Page 19: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/19.jpg)
•Shipping•Duty•Insurance•Payment and
collection▫Currency exchange▫Provision for fraud
•Regulatory compliance
How much is that again?…The Barriers
19
![Page 20: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/20.jpg)
20
![Page 21: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/21.jpg)
21
![Page 22: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/22.jpg)
22
![Page 23: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/23.jpg)
Discussion Point
What barriers did your organization have to overcome to Go Global?
![Page 24: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/24.jpg)
Overcoming The Barriers
![Page 25: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/25.jpg)
•Prioritized translation investment
•Localized pricing•Full landed cost•Include estimated
transit time
The Global Solution…The Solution
25
![Page 26: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/26.jpg)
• Deliver and maintain all harmonization / commodity classifications
• Provide full Landed Cost Quote that includes:▫ Cost of Goods▫ Transportation cost (and options)▫ Insurance▫ Duties▫ International Tax (VAT, GST etc.)▫ Clearance Fees▫ Disbursement
• Optimized Logistics Network
Accurate Landed Cost…The Solution
26
![Page 27: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/27.jpg)
•Offer the full spectrum of country-specific payment methods.
Global Payment Methods…The Solution
27
![Page 28: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/28.jpg)
•Maintain commodity classification•Maintain all import and export product
restrictions•Create all international documentation
for import and export compliance electronically filed with carrier
•Country independent▫Ship from any country
to any country
Compliance & Documentation…The Solution
28
![Page 29: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/29.jpg)
Action Plan to Go Global
29
![Page 30: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/30.jpg)
30
Action Plan to Go Global
• Test the water in different markets with limited investments
• Make selective investments in language translation
• Pay more attention to the “overseas persona” and use case
• Recast your online order processes to use deliver crisp pricing in local currency including all landed and delivery costs
• Understand local payment preferences and concern about fraud
• Meet your local compliance obligations• Have fun on your trip
Be a “Tourist before becoming a “Settler…Action Plan
![Page 31: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/31.jpg)
Discussion Point
What other Action Plan has your organization used to Go Global?
![Page 32: Overcoming Barriers for International Trade in an eCommerce World](https://reader035.vdocuments.mx/reader035/viewer/2022062513/554de3f3b4c905d10e8b58d0/html5/thumbnails/32.jpg)
Chris ReighleyDirector of eCommerceFillTek
[email protected](937) 302-7308www.tradeglobal.com
Cincinnati AMA International SIG Meeting12/2/2009