PFSweb’s End2End eCommerce® Solutions

® 2012 PFSweb Europe │ www.pfswebeurope.com

PFSweb - Booth S30

Do's and don'ts for cross-border e-commerce solutions

BrandUser experience

EmotionsTelling Stories

Communications

VAT

WarehouseLegal

Transportation

Custom boxes

Gift wrapping

Replenishments

Order Management

Customer Service

IT Systems

Fraud Management

Payment Processing

Web platforms

3rd Party Integration

e-Commerce Iceberg Concept

SPOB / Full service end2end e-commerce solutions

Who knows PFSweb?

But what about these brands?

Since 2008, there has been a quicker increase in the EU e-commerce sales than in the US

Between 2008 and 2011, the annual average gross rate was 10.3% in the US compared with 18.6% in Europe

E-commerce Sales in Europe vs. US

E-commerce Sales from 2008 to 2012

E-commerce Sales in Europe

Online Sales 2010 - 2011

10 Attention points

1. E-commerce platform

2. Legal

3. IT/system Integration

4. Fraud

5. Online Payments

6. Fulfillment

7. Transportation & Returns

8. Customer Care

9. IMS

10. What’s next ?

1.E-commerce Platform

An e-Commerce platform needs to comply with internationalneeds & requirements

- US Inhouse: « home made »- US as a vendor?- SME versus Enterprise?- Pan European / Localization- Global

- Terms and Conditions- Visibility on delivery options & returns- Period of withdrawal- Privacy & Safe harbor- Consumer protection law EU versus US- EU regulation vs. domestic execution - Next: cookies??

2. Legal (1)

There are simple things that need to be covered when running an (international) e-shop. For example:

- Regulation around product characteristics- Age verification- Hazmat- VAT rates for babies vs. other products- Invoicing requirements (Seq. Numbering /

country)

2. Legal (2)

And other specifications:

- Batch vs. real time APIs- Front office to back vs. back to back- Customization vs. standard integration- One partner vs. multiple partners - Filters…!

3. IT / systems integration

4. Fraud

% Revenue Lost to Online Fraud Source CyberSource

- Now we are using a combination of tools from payment service providers & internal tools that reduce drastically the number of fraud

5. Online Payments

- US payment provider versus European

- Activation based vs. Development

- Various payment methods vs. risk

Example: O’Neill available payment methods in 2011

BE, GB

AT, DE

NL

BE, GB

AT, BE, DK, DE, FR, IT, NL, SP & UK

AT, BE, DK, DE, FR, IT, NL, SP & UK

AT, BE, DK, DE, FR, IT, NL, SP & UK

Example: O’Neill payment methods in Germany

- End 2009 : Introduction of a new payment method Bankwiring- 2009 – 2010 : Increasing of orders volume (+108%)

5. Online Payments

- You can offer a lot of payment methods / country but you need to choose the right ones, not all are required

- By offering credit cards only (VISA, Mastercard, AMEX) you will miss for sure revenue opportunities

- On the contrary, adding a payment method like ELV can be dangerous because it is a direct debit card with higher associated risk

- Some payment methods also require more manual work on the back-office

- Conversion : A-B testing

5.Online Payments

6. Fulfillment

- Standard pick-pack-ship operations vs. highly customized online buying experience (engraving, special wrapping, gift card message)

-Same experience as in retail (increased expectations by both consumer and brand)

-“Hiding of brands on the outside”

7. Transportation & Returns

- B2B vs. B2C- Customer expectations by country (door-to-door, postal, drop point, time window

delivery)- Cost - Lead time- Pricing strategy

- Isolated destinations (remote areas) linked to business industry

- Cost of returns ( it is all about convenience!)

8. Customer Contact Center

- Very high expectations from luxury sector companies- Opening hours- Special languages- Dedicated vs. Shared- Native vs. Non native- Level 1 vs. Level 2 – 3- Brand representation- Integration with CRM and offline world

9. IMS

- Budget for IMS is mandatory

- Quality database / unique CRM

- Attracting - converting - nurturing

10. Next Steps…

Some trends:

- International / globalisation (US, Europe, Asia…)- Mobile / Tablet- Cross & Multi Channel - …

® 2012 PFSweb Europe │ www.pfswebeurope.com

Visit PFSweb @ booth S30

For more information about what we can do for you….