Cross-border Strategy & Success Dr. Jesse Weltevreden, Sjoukje - - PowerPoint PPT Presentation

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Cross-border Strategy & Success Dr. Jesse Weltevreden, Sjoukje - - PowerPoint PPT Presentation

Mar 11, 2023 215 likes •581 views

Cross-border Strategy & Success Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA 1 Cross-border Strategy & Success 1. Drivers & Barriers 2. Localisation & Performance 3. Desk-research 2 2 Confidence in domestic

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Cross-border Strategy & Success

  • Dr. Jesse Weltevreden, Sjoukje Goldman MSc, Julia Keuter BA
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Cross-border Strategy & Success

  • 1. Drivers & Barriers
  • 2. Localisation & Performance
  • 3. Desk-research
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@jweltevreden

Confidence in domestic and cross-border online shopping among e-shoppers

Cross-border online shopping Domestic online shopping

_______________ _______________ _______________ ____ Source: GfK (2017)
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Most important concerns when shopping online domestically and in other EU countries

Domestic

  • 1. Misuse of personal data
  • 2. Wrong or damaged products
  • 3. Theft of payment card details

Cross-border intra-EU 1.High delivery costs 2.High return shipping costs 3.Difficult to solve problems if something goes wrong

_________________________________________________ Source: GfK Belgium (2015)
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Cross-border e-commerce

88% 77% 75% 55% 54%

Cross-border selling Only after contact by e-mail/phone Domestic selling

_________________________________________________ Source: Amsterdam University of Applied Sciences
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SLIDE 6 6 6 Cross border Web visitors Domestic Web visitors

Cross-border Web visitors

33% 31% 23% 20% 13%

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SLIDE 7 7 7 Cross border Web visitors Domestic Web visitors

Cross-border Web visitors

Top 3 Belgium Germany United States Top 3 Belgium Switzerland United States Top 3 Austria Switzerland United States Top 3 Netherlands France United Kingdom Top 3 United States India France

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Data

Online survey among online shops in 31 European countries Response: 430 European online shops

Owner Co-owner Director E-commerce manager Other Respondent’s role in company Northern Europe Eastern Europe Western Europe Southern Europe Region Less than 10,000 10,000 to 100,000 100,000 to 1M 1M or more Annual no. of Web visitors Cross-border Domestic Cross-border or domestic
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HELP!

We’ve got a foreign customer!

32%

  • f the online shops that say only to

sell domestically, offer the possibility to order from abroad

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Drivers & Barriers

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Drivers to further increase sales from foreign countries*

  • 1. Growth opportunities
  • 2. Foreign customer demand
  • 3. Good past experiences with selling online to

foreign countries

_________________________________________________ * Only cross-border online shops are included
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Barriers for (further) online expansion to other countries*

_________________________________________________ * 7-point scale, ranging from ‘Not at all’ to ‘Very much’

1 4 7 Foreign languages Foreign partners Risk of fraud Legal/Taxation Limited recources Domestic agenda Logistics Purely domestic online shop Cross-border online shop

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Cross-border e-commerce strategies

Growth orientation

  • Grow is necessary to succeed in the future
  • Company’s aims can only be achieved through further growth

Foreign market orientation

  • Knowledge about how to market products to foreign markets
  • Online sales strategy considers differences between the home

market and the foreign markets

  • Having people in the company with experience in foreign markets
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Localization & Performance

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Localization elements positively affect cross-border traffic!

But, to what extent do localization elements boost cross-border online sales and other KPI’s?

Cross-border E-commerce Success

shop.co.uk shop.fr
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  • 1. Conversion ratio
  • 2. Average basket value
  • 3. Online turnover
  • 4. No. of Returning customers
  • 5. Average return rate

5 KPI’s

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1 2 3 4 5 6 7

Relative performance measures: Was the average conversion ratio of foreign customers higher

  • r lower than the conversion ratio of customers from your

home market in the past 12 months?

5 KPI’s

Much lower Much higher Equal
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SLIDE 18 18 18 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No language switch Language switch

Effect of Language switch on cross-border performance compared to domestic performance

Much higher Much lower Equal

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Effect of offering English language on cross-border performance compared to domestic performance

Much higher Much lower Equal

1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No English language offered English language offered
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Effect of Currency switch on cross-border performance compared to domestic performance for specific KPI’s

Much higher Much lower Equal

1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No currency switch Currency switch
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Effect of Order information for foreign customers on cross-border performance compared to domestic performance

Much higher Much lower Equal

1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No order information for foreign customers Order information for foreign customers
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SLIDE 22 22 22 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No return information for foreign customers Return information for foreign customers

Effect of Return information for foreign customers on cross-border performance compared to domestic performance*

Much higher Much lower Equal

_________________________________________________ * Results are indicative, due to limited number of cases.
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Marketing activities by cross-border online shops to attract foreign customers

Do not conduct specific marketing activities to attract foreign customers

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SLIDE 24 24 24 3% 13% 14% 15% 17% 29% 42% 0% 10% 20% 30% 40% 50% Advertising in the foreign press and broadcasting media Affiliate Marketing Advertising on international online marketplaces like e-Bay or Amazon.com Bannering Advertising on (inter)national price comparison websites Search Engine Advertising (SEA) Search Engine Optimization (SEO)

Marketing activities by cross-border online shops to attract foreign customers

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Effect of SEO for attracting foreign customers on cross-border performance compared to domestic performance

Much higher Much lower Equal

1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No SEO SEO
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Effect of Affiliate marketing for attracting foreign customers on cross-border performance compared to domestic performance

Much higher Much lower Equal

1,0 2,0 3,0 4,0 5,0 6,0 7,0 Conversion ratio Online turnover Average basket value
  • No. of returning
customers Average return rate No Affiliate marketing Affiliate marketing
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Desk Research

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One week challenge: Cross-border e-commerce

Dimitri Arts – Under Armour Europe Erwin Hammers – Noppies Alvar Piepers - Paazl
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Desk-research

  • 1. Demand from the market
  • 2. Supply to the market (competition analysis)
  • 3. Online buying behaviour
  • 4. Search Engine: keyword research
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Advice to Under Armour about Lithuania

1. Transparency regarding return policies, product descriptions (the products are very innovative) and prices 2. Select the national postal service of Lithuania to partner with, to win the trust of Lithuanian people 3. Add delivery options: delivery at postal office and at parcel lockers 4. Add payment options: also cash-on-delivery 5. Offer free delivery 6. Use ratings from other e-shoppers, Lithuanian people like that 7. Promote the UA app: high rate of e-shoppers via smart phone 8. Focus on Facebook: 57% social media share in Lithuania

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@jweltevreden

More need for cross-border e-commerce data from Europe?

Make your own data selections using our free, interactive online dashboard!

www.cmihva.link/cross-border-EU

Cross-border e-commerce adoption Average cross-border traffic share Country of origin of cross-border traffic Localization features Drivers & Barriers Cross-border performance And more…

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Lack of ‘professionalism’ among many ‘cross-border online shops’ Online shops that are successful in cross-border e-commerce employ localisation elements Limited resources, domestic agenda and language issues are import barriers among cross-border online shops to further expand internationally Cross-border e-commerce is serious business that requires good strategy & planning

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Contact us for more information

  • Dr. Jesse Weltevreden

Professor Digital Commerce j.w.j.weltevreden@hva.nl +31 (0)6 10 15 32 68 Sjoukje Goldman MSc PhD Candidate s.p.k.goldman@hva.nl +31 (0)6 21 15 78 08 Julia Keuter BA Junior Researcher

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Thank you for your attention!