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Ecommerce in France: the definitive guide

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Page 1: the definitive guide Ecommerce in Francepages.webinterpret.com/rs/658-RPA-926/images/global...straightforward process. Ecommerce in France: the definitive guide However, social customer

Ecommerce in France:the definitive guide

Page 2: the definitive guide Ecommerce in Francepages.webinterpret.com/rs/658-RPA-926/images/global...straightforward process. Ecommerce in France: the definitive guide However, social customer

PUBLISHED BY

WebInterpret, 6 Rue Soutrane, 06560

Valbonne, France

WebInterpret

Copyright © 2018

All rights reserved. May be shared

with copyright and credit left intact.

Webinterpret enables online retailers and

marketplace sellers on eBay and Amazon to

instantly expand worldwide and boost their

online sales. Through a simple Plug & Play

solution Webinterpret provides international

buyers with a comprehensive end-to-end

local shopping experience.

Cover photo © envato.elements.com / Givaga

Page 3: the definitive guide Ecommerce in Francepages.webinterpret.com/rs/658-RPA-926/images/global...straightforward process. Ecommerce in France: the definitive guide However, social customer

Content

1. France: Europe’s third ecommerce market

2. The French marketplace: general characteristics

3. Online buyer behaviour

4. Logistics, delivery & shipping

5. Payment methods preferred by ecommerce buyers in France

6. Mobile commerce in France

7. Cross-border shopping

8. Benefits of selling your products online in France

9. Challenges for French ecommerce

10. In a nutshell

Ecommerce in France: the definitive guide

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1. France: Europe’s third ecommerce market

What comes to your mind when you think of France? Is it the French snacking

on frog legs and snails and drinking loads of wine? Is it the Eiffel Tower and the

city of love and romance? Or maybe you imagine well-dressed men and women

who know what sophisticated fashion means?

Talking about fashion… As you probably realize, it’s a very popular product

category in ecommerce. It’s also the case in France ... and we’re not talking

berets here! The French consumer likes to shop for both chic brands and great

bargains.

Of course French online buyers like ordering items from many other product

categories, too. Sales potential is definitely there, especially considering that

with a turnover of over 65 billion euros. France is the third largest

ecommerce market in the EU and 6th in the world.

4

Ecommerce in France: the definitive guide

Image: envato.elements.com / sam741002

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Ecommerce sales per region (billions of euros)

United Kingdom

Germany

France

Russia

Spain

Netherlands

Italy

Denmark

Sweden

Norway

Turkey

Belgium

197

86

82

28

28

24

22

16

14

11

11

10

5

Ecommerce in France: the definitive guide

This is all great news for all international sellers interested in international

growth opportunities.

Here’s our comprehensive guide to the French marketplace: check our

facts, figures and forecasts for the future.

Source: Ecommerce Foundation, 2017

France: one of ecommerce

leaders in Europe

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2. The French marketplace: general characteristics

In general, the French marketplace can be characterized by high Internet

penetration, growing mobile services and a modern delivery structure. The

market is relatively mature, but still full of opportunities for online sellers.

Among other things, it can boast a large and diverse consumer base, high

purchasing power, reliable payment methods, great location and the

widespread use of the French language.

At the moment French ecommerce mostly consists of either large retailers or

small merchants, which contrasts with with the UK or Germany where

mid-sized sellers are more common.

Online sales are rising quickly in France, but physical stores still play an

important role in retail. Thus, many online retailers have physical shops, which

is helping them develop multi-channel strategies.

6

Ecommerce in France: the definitive guide

Source: Demandware

Digital Commerce Growth

20%

0%

25%

25%

19%

25%

FranceGlobal

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French ecommerce market in numbers

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Ecommerce in France: the definitive guide

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Top 10 ecommerce websites ranked by unique visitors (Q3 2017)

1. Amazon

2. Cdiscount

3. Voyages-Sncf.com

4. Fnac

5. Vente-privee

6. Booking.com

7. eBay

8. Groupon

9. Carrefour

10. E.Leclerc

8

3. Online buyer behaviour

Two-thirds of the French population shopped online in the last 12 months (as of

2016). Surprisingly, according to one study, most aren’t millennials as one might

suspect. The age of a typical ecommerce shopper in France is 35 to 49, followed

by 25 to 34-year olds.

Online spending typically rises at the end of the year, with around 20% of the

country’s total digital retail sales attributed to holiday shopping.

French online buyers are usually tech savvy and confident in online shopping.

As customers, they appreciate respect, politeness, clear information and a

prompt delivery of service.

Ecommerce in France: the definitive guide

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According to Mark Elis, Ecommerce Sales

Director at Webinterpret:

Fully localizing your products and / or website is

fundamentally important if you want to get the

best results. Localization is about overcoming

barriers for the buyer so that purchasing is a

straightforward process.

Ecommerce in France: the definitive guide

However, social customer service still seems to be in its infancy.

Price is a key factor for many French buyers, especially since the global

economic downturn. According to Euromonitor, 80% of French consumers

compare prices before buying non-grocery products. This has helped to fuel the

growth of flash sales. In fact, France’s vente-privee.com is the world’s biggest

flash sale site.

If you’re an international online merchant who wants to sell in France, it’s

important that you translate and localize your online store. It’s also important

to interact with French-speaking consumers in their native language.

Among other things, overcoming the language barrier will definitely make the

purchasing process more straightforward for French-speaking consumers.

There are further benefits. The French language, the sixth most widely spoken

language in the world, is used not only in France, but on five continents. This

can provide international online sellers with extra opportunities, e.g. the

possibility to reach millions of consumers in Belgium, Switzerland, Canada, and

in Francophone Africa.

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Average Order Value

Check the chart to below to see how much is spent in France. The chart

illustrates trends and changes quarter by quarter between Q4 2014 and Q4

2016.

Ecommerce in France: the definitive guide

Source: Demandware

Average Order Value

$0

$25

$50

$75

$100

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

Popular products categories

Among the top products purchased by French online buyers are

clothing/footwear, books, home electronics, cosmetics, haircare and skincare and

children’s items.

Which type of products have you bought online in the past year? (France, %)

47 (42)Clothing/footwear

Books

Home electronics

Cosmetics, haircare and skincare

Children’s items

Sports and leisure products

Toys

Food

33 (32)

33 (31)

28 (20)

20 (15)

19 (14)

17 (16)

17 (14) Source: Postnord

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And what do the French like to purchase from abroad? We have identified the

top 10 categories on the basis of thousands of international transactions on

eBay (the data comes from the first half of 2017).

Ecommerce in France: the definitive guide

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4. Logistics, delivery & shipping

New logistics approaches, e.g. free delivery and returns, unlimited delivery

subscriptions or pick-up lockers, contribute to ecommerce growth in France.

This is encouraging for cross-border retailers thinking of entering the French

market.

The preferred delivery method is home delivery (83%), followed by shipping to

a pick-up & go location (66%) and delivery in store (26%). Pick-up points close to

consumer homes are very popular among the French, e.g. at local stores, post

offices or in lockers at train stations.

The main postal service in France is called La Poste (historical postal operator),

Collissimo is used for parcels and Chronopost for express deliveries. La Poste,

Collissimo and Chronopost are recognized and trusted brands in France so it’s

recommended to provide French consumers with these delivery options on

your website. This way, they’re more likely to put trust in your business.

Ecommerce in France: the definitive guide

However, the French are

demanding when it comes to

delivery and they expect it to be

utmost convenient. Thus, retailers

should prioritize consumer

convenience when providing

delivery options. Offering a choice

is crucial here, along with reliability

and speed. Image: envato.elements.com / dolgachov

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According to UK’s Royal Mail’s research, reassurance about delivery, tracking

goods and receiving all the relevant information are very important in France,

even more so than in the UK. 85% of French would be happy to track every

order, rather than rather than just high-value items, compared with only 60% in

the UK.

One of the biggest challenges for retailers may be differing customer

expectations: some want one-hour delivery slots, others might want to have

their product delivered to a secure locker and so on.

Ecommerce in France: the definitive guide

Delivery-related online shopping attitudes and preferences in France

To be able to return items for free

Kept updated with the stages of delivery

Clear delivery information before I place my order

Sites that offer free delivery

Being happy with the delivery of my goods

Having a clear returns policy

Specify the day I want my goods delivered

To be able to specify delivery time slots e.g. 9-11am

A wilder range of delivery options

I can reserve an item online and collect it from the shop

Offered same day delivery options

If my goods were delivered in the evening

77%

75%

74%

70%

67%

60%

56%

48%

39%

37%

33%

23%

69%

57%

64%

49%

75%

61%

39%

37%

30%

36%

28%

26%

FRANCE UK

Source: Fevad, 2016

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Ecommerce in France: the definitive guide

Reasons for delivery-related buyer satisfaction in France

Item arrived in great condition

Item arrived when expected

The delivery was fast

I was kept informed of the status

The delivery was free

The delivery person was friendly

Dropped off somewhere convenient

Delivered by a carrier that I trust

67%

65%

53%

35%

43%

49%

14%

38%

72%

64%

55%

50%

33%

25%

25%

18%

FRANCE UK

Source: Fevad

According to Adrien Salvat, expert in international

shipping at Webinterpret, the cost of local shipping in

France is fairly high, compared to the UK or

Germany, especially for low-volume shippers.

It’s mostly due to the low competitiveness of the

market and the monopoly of the French post.

Thus, domestic shipping through Amazon FBA,

for instance, is generally more expensive in the

case of amazon.fr than for its peers in the EU.

Advice from our shipping expert

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Ecommerce in France: the definitive guide

Adrien would recommend shipping goods directly from the country of origin or

using marketplace fulfillment & logistics solutions, e.g. FBA. The majority of

standalone logistics companies are not able to offer competitive shipping rates.

A good alternative is fulfillment done by cDiscount, which enables you to fulfil

orders from any sales channel at an extremely low price. This marketplace also

drives very high traffic.

It’s worth noting that there’s a benefit to importing goods into France. That’s

because in some cases de minimis value (the threshold from which the

imported goods are subject to duties) can be higher than in other countries.

This facilitates importing higher value goods into France.

Image: envato.elements.com / Rawpixel

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5. Payment methods preferred by French online buyers

Ecommerce in France: the definitive guide

In France, credit and debit cards (57%) are the most popular payment method

for online purchases. They’re followed by PayPal (25%) and bank transfer (9%).

Over 50% of all online customers in France use Cartes Bancaires (payment

cards). Thus, if you want to sell in France and maximize your conversion rates at

the checkout, include Cartes Bancaires along with other popular payment

cards, such as Visa, Mastercard or American Express.

Online payment preference in France %

Source: Payvision

Credit and debit cards

PayPal Bank transfer

Other Cash

57%

25%

9% 7% 2%

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6. Mobile commerce in France

French consumers are comfortable using mobile devices, yet compared to

other market leaders, they seem to lag a bit behind. Currently, relatively few

retailers offer multi-channel purchasing solutions.

The mobile share of retail ecommerce sales in France amounts to 28%, which is

relatively low compared to the leader, i.e. the UK (52%).

It may seem surprising that although France is the third ecommerce market in

Europe, it ranks in sixth place when it comes to shopping on mobile. This

doesn’t mean, however, that online sellers can cut some slack when it comes to

mobile optimization.

Ecommerce in France: the definitive guide

Source: Statista

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Quite the contrary, the overall trend indicates a significant increase in the use

of mobiles for shopping purposes. Thus, retailers must make shopping smart

on mobile devices if they don’t want to lose a big proportion of potential

buyers.

Check the charts Source: Demandware

below to see which devices are used for online shopping. The charts illustrate

trends and changes quarter by quarter between Q4 2015 and Q4 2016.

Even though France may lag behind other market leaders when it comes to

mobile shopping, the charts above indicate the importance of shopping from

a mobile. Thus, ensuring proper mobile optimization and a great mobile buying

experience is a must for ecommerce sellers.

18

Ecommerce in France: the definitive guide

Source: Demandware

Traffic growth by device (France)

Order growth by device (France)

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7. Cross-border shopping

According to Postnord, 52% of French online shoppers order products from

abroad. Favourite online shopping destinations of French online buyers include

the UK, China and Germany.

France is conveniently located in Europe and it’s also situated between North

America and Asia. This strategic position makes it a very attractive destination

for online sellers.

Ecommerce in France: the definitive guide

Top countries French buyers purchase from

Source: Postnord

Image: envato.elements.com / vadymvdrobot

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8. Benefits of selling your products online in France

Ecommerce in France: the definitive guide

First, the French language belongs to those languages which are spoken all over

the world. This gives you an opportunity to access a big number of online

buyers that are located in many countries beyond France and continents

beyond Europe.

Second, France is Europe’s third market in value, just behind the UK and

Germany. With a turnover of more than 65 billion euros, France has a strong

online retail position. The growing popularity of ecommerce is opening the

country up to more competition, increasing opportunities for international

retailers.

Third, there are a large variety of marketplaces in France, e.g. Cdiscount,

RueDuCommerce (Carrefour), fnac.fr, Spartoo (shoes), PriceMinister (Rakuten)

and many more. These marketplaces are a good way to promote your products

at a relatively low marketing cost. There’s also a wide range of products that

can be offered to French shoppers, e.g. in fashion, furniture, travel, electronics

or high-tech categories.

Image: envato.elements.com / Rawpixel

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Fourth, France’s location is beneficial with regard to (international) trade. It’s

located in the heart of Europe and is also a natural crossroads for European

and global trade.

Further, the well-developed transport and technology infrastructure should

make your online sales experience a smooth process. France has one of the

best designed and most efficient transport networks in the world. For instance,

you must have heard about the high speed train networks, such as the French

TGV, offering super-fast journeys between France’s major cities and many

European capitals.

In addition to the advanced train infrastructure, there are also roads,

motorways and waterways, which facilitate domestic and international trade.

To add to this, French consumers are becoming increasingly connected. Mobile

commerce sales have recently increased by 30%, so tap into this growing sales

potential.

Finally, future shopping may offer some potential for all online sellers who want

to make creativity one of their unique selling points. There’s a lot of research

and experimentation. Some see the shop of the future as a combination of

shopping spaces combined with cultural places or inspirational learning spots.

Ecommerce in France: the definitive guide

Image: envato.elements.com / BrianAJackson

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9. Challenges for French ecommerce

Some French consumers would like to see a personalized interface and enjoy a

personalized user experience. This can be one of the main challenges for online

retailers. The main issues around a lack of time and skills can be remedied by

automated solutions.

Further, the three buying criteria (delivery, price and product) that French

consumers see as the most important can make it challenging for retailers to

provide the impeccable buying experience many French customers expect.

Additionally, it’s crucial to meet the delivery expectations of those French online

buyers who expect utmost convenience, speed, reliability and regular

reassurance about the whereabouts of their parcels. Due to differing customer

expectations, you’ll be probably required to offer multiple delivery options.

Ecommerce in France: the definitive guide

Image: envato.elements.com / maxxyustas

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10. In a nutshell

Doing business in France is worth considering for international online sellers.

This is a country with a convenient geographical location and a marketplace

where ecommerce continues to grow in strength.

Being one of the key ecommerce players in Europe, France is high on the list of

prospects for sales success. Healthy competition, good infrastructure and a

population that loves shopping all make it a promising destination for online

merchants.

The online sales landscape in France has a lot of things in common with other

European markets, so if you sell in Europe already, this should make things a

whole lot easier.

However, don’t overlook the many unique characteristics of the French

marketplace, especially in terms of consumer demands, price competition and

multi-channel retailing.

Plan your business expansion in advance and start selling online in

France!

Ecommerce in France: the definitive guide

Image: envato.elements.com / Prostock-studio

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Sources

Lengow Country Guide. 2016. France. Ecommerce Outlook.

Shopping index

Onlineretailing

E-commerce in europe 2015

Wearesocialsg

2016 digital yearbook

Factsheet France

2016 france ecommerce market

10 reasons to sell in france using online marketplaces

E-commerce in europe 2016

Most visited e-commerce websites in france

Ecommerce france facts figures 2016

Fevad

Vat registration threshold

Ecommerce in France

Images: Evato

Ecommerce in France: the definitive guide

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Our seamless Plug&Play solution gives Amazon and eBay sellers a worldwide reach. Our fully automated

solution takes care of translation, localization and international listing. Sellers can launch their stores in

new markets and double their international sales.

Webinterpret enables online retailers and marketplace

sellers on eBay and Amazon to instantly expand

worldwide and boost their online sales. Our simple

Plug & Play solution provides international buyers

with a comprehensive end-to-end local

shopping experience.

Instantly take your business worldwide

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