exploreexport 2014 - ecommerce seminar

www.scottish-enterprise.com www.scottish-enterprise.com

ExploreExport

Murrayfield Stadium

Edinburgh

Monday, 10 November 2014

Develop Your International

Sales Online

Chris Elvery

Alan Linton

ICT Specialists

Scottish Enterprise

Question:

So what is International Ecommerce?

International Ecommerce

eCommerce…Internationally!

“The sale or purchase of goods or services, conducted over

computer networks by methods specifically designed for the

purpose of receiving or placing of orders”

It’s NOT just:

• Business to Consumer

• Physical goods

Source: OECD, ONS

International Ecommerce

Everything that is true of ecommerce,

is also true of international ecommerce,

………………only more so!

What are the challenges?

• Customer service (time of day around the world)

• Language

• Payment (Credit/ Debit card? Bank transfer? Payment on receipt?)

• Currency?

• Transport? Shipping? Returns?

• Legals?

• Seasons?

• Local customs/ culture/ design preferences

• Local Domains/ Search Engine Optimisation/ Social marketing?

• Brand recognition

• Will my products work?

• Trust?

• “It’s just too difficult!”

Image: http://activerain.com/blogsview/864127/turning-challenges-to-opportunities-will-rock-your-2009

What are the opportunities?

• The "internet economy" was worth £121 billion to the UK in 2010

equivalent to 8.3% of the UK economy, that’s more than £2,000 pp

• £221 billion by 2016 representing 12.4% of UK GDP

• UK exports £2.80 for every £1 imported.

• 730,000 people work directly in/or support the ecommerce industry

• Of Scottish businesses:

– 40% are selling products or service online

– 48% generate 20% of their sales online

– 29% generate over 50% of their sales online

Source: SE.com website and ONS

What are the risks?

• Going international before you’re ready

• Lack of planning

• Lack of execution

• Too much business

• Time spent on the wrong things

Image: www.integracore.com/atlanta/wp-content/uploads/2011/07/international-ecommerce.jpg

Where to get started

• Research

• Plan

• Get it right at home first!

• Develop a strategy (for each market)

“Thinking is the hardest work there is,

which is probably the reason so few

engage in it.”

Research

• Your target market

• Your target audience

– Keywords; behaviours; business

practices; preferences

• Google Global Market Finder

• Google Trends

• Consumer Barometer

http://www.consumerbarometer.eu/

“Speakers on a France and Germany panel at Multichannel Merchant’s recent Growing Global conference agreed that unlike other places like the UK and the Nordic countries – or the U.S., for that matter – consumers in France and Germany were more wary of ecommerce and thus merchants had to work harder to establish trust”. http://multichannelmerchant.com/ecommerce/france-germany-ecommerce-matter-trust-31072014/#_

Research

• UK Trade & Investment Website - provides guides for exporting to

Global markets including:

– Challenges

– Opportunities

– Growth potential

– Legal issues

– Tax & Customs

Source: https://www.gov.uk/government/collections/exporting-country-guides

Don’t make your customer think too hard!

• Acquisition: Get the right products/ services and the

right message in front of the right people, in the right

place, in the right way

• Persuasion: Remove the barriers: “I don’t

understand”; “I don’t like it”; I can’t find it”; “I don’t trust

it”; “I don’t get it”; “I don’t believe it” “I just don’t know”

• Conversion: Make the process to “purchase” from you

as simple and as uncluttered as possible

Image: Steve Krug – “Don’t make me think”

www.searchenginecolossus.com & www.thesearchenginelist.com

International Search Engines

What will customers think of your site?

Language

• Do you need a foreign language site? (imagery/ photography can go a

long way)

• Car Hire, Holiday, vs Auto Rental, Vacation

• To drive: mexican – manejar; Spanish – conducir

“Make sure your business finds the most talented people”

“Asegúrese de que su negocio se encuentra la

gente más talentosa.”

“Make sure your business the most talented

people are.”

Culture

• A picture speaks a thousand words!

• The left hand

• Cleanliness and purity? Or something else?

www.thumbsupworld.co.uk

Shipping

• Hidden delivery costs are the leading cause of

shopping cart abandonment

• 18% of abandonment due to delivery times

• Can you offer free shipping? Free returns?

• Can you consider local fulfilment?

• If you can’t, be VERY clear about shipping costs and

times.

• Businesses will expect and accept shipping costs;

consumers may not.

Payment preferences

Expedia (UK)

Expedia (France)

Expedia (Hong Kong)

Expedia (Japan)

It doesn’t have to be difficult!

• Can set up an ecommerce quickly using an off-the-shelf service

• Can start off with using UK/ International market places (as much as

65% of shoppers prefer them) e.g. Amazon, eBay etc

• PayPal - An increasing alternative method for some markets

– Not currency dependent

– Provides automatic exchange process (if needed)

– Small transaction fee

– Has fast transaction times (mostly in minutes)

• Can use 3rd party logistics/ payment collection services

International Checklist

1. Research market (including your current analytics)

2. Understand your customers – do they shop online?

3. Understand your competitors

4. Does my product lend itself to online sales?

5. Get it right for home market first – but build for the future and budget

accordingly

6. Prioritise markets - Simplest “jump” first – English speaking country/

same SEO/ social landscape/ similar payments?

7. Don’t assume they’ll know your brand outside of Scotland/UK

8. Product/ image led site

9. Make it easy to communicate with you

10.Set realistic expectations for traffic and conversion to sale

Top 10 things to ask your developer

1. Previous eCommerce work undertaken/ retail sales experience?

2. Do they have any sectoral experience?

3. What eCommerce platform do they propose and why?

4. Their experience of international sites?

5. Their experience of XYZ country?

6. How will the website integrate with your other systems?

7. Will the site be mobile friendly?

8. Will they set up Analytics to allow you to monitor sales and conversion?

9. Will they agree Key Performance Indicators (KPIs)?

10.Will they work with you on an ongoing basis?

Image: www.houseplanology.com/blog/top-10-house-plans-over-2000-sq-ft-2013/

Scottish Enterprise support

• International eCommerce workshops

• Scotland IS master classes (www.scotlandis.com/ecommerce/2014-2015-

event-details)

– 19th Nov: Multi-screen/Multi-channel Ecommerce Strategy (Margaret

Robertson, European Marketing Director, Canvas Holidays/ Cat

Leaver, Head of Marketing, Alienation Digital)

– 29th January - Ecommerce Security and Legal (Matthew Godfrey-

Faussett, partner, IT and healthcare, Pinsent Masons/ Dave Stubley,

CEO, 7 Elements)

– 3rd February - Analytics keynote (Kitt Gilbert Scott, EMEA Manager,

Google Analytics/ John Cawdery, Account Director, Google)

Thanks!

Alan Linton Chris Elvery ICT Specialists Scottish Enterprise

Sarah Chanter

Director

eteaket

My story

Bill Gordon

Red Torpedo

My story

Poering POWERING EXPORT GROWTH

Poering

Est 2005

Maverick Male Underwear Brand

Rooted in Indie Music scene

Distribution biggest headache

Change of Strategy

Full blown Casual Wear Brand

Poering

UK Road Racing

High Octane niche market

Internationally known and revered

Hero culture

Affordable

Giving It Full Throttle

Poering

Web sales core distribution channel

Finding right platform

Keeping up with speed of development

Funding

Maintaining Growth

Social Media Explosion

Poering

Red Riders / Social media

Commitment

Quality not quantity

Drive connection with the brand

Drive awareness / profile / sales

C 30,000 2007 , now 900,000 plus

Poering

Seeding new markets

Prioritise USA , Italy , Germany , France

Maximise power of social media

Attend key events

Start the buzz

Poering

Developing Export Markets

Establish local fulfilment

Supply distributors / dealers

Use Social Media to fuel the story

Broaden Distribution Channels

Expand web offer in UK

Poering

Developing Export Markets

Establish local fulfilment

Supply distributors / dealers

Use Social Media to fuel the story

Build Wholesale and direct Distribution Channels

Poering

Maintaining web store as key channel

Redesign

Enhance Impact

Continuous improvement

Add complementary brands to extend offer

Stay on It !

Poering

Thanks for listening

John McIlvogue

Managing Director

Stevens & Graham

My story

Introduction

Brooks Brothers NYC

history

Social Media & Ecommerce

Get Social

engagement

the future

Panel Session

Book an appointment with an Export Advisor to get you started.

Email: enquiries@smartexporter.co.uk

Telephone: 0800 0191 953

Events: http://www.scottish.enterprise.com/events

Newsletter sign-up: https://www.scottish-enterprise.com/subscribe

NEXT STEPS – TALK TO SDI

End of seminar

Thank you!

exploreexport 2014 - ecommerce seminar

right people

true of ecommerce

wary of ecommerce

uk economy

dont knowconversion

uk international market

right products services

right message

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