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XVII Targi eHandlu - MakesYouLocal - Donatas Gudelis - Cross border e-commerce. How to win clients abroad.
1. We work every day to ensure that our customers succeed in the world of e-commerce,
where European and Global players have a dominant and strong position
2. Ww
• 9 years with e-
commerce
• Founded MakesYoulocal
offices in Lithuania,
Latvia, Estonia and
Poland in 2014
• 6 years with 100% cross
border e-commerce
focus
• Helped more then 210
companies to expand
donatas@makesyoulocal.com
mobile: +370 (693) 37346
3. years old, established by senior
e-commerce specialists
we have launched web shops in
more than 15 different countries
employees, offices in Vilnius,
Copenhagen and Stockholm.
webshops operated across 13
countries
or more conversations handled
every week
9
15
40
114
5000
4. HOW TO SUCCEED
ABROAD?
Donatas Gudelis,
UAB MakesYouLocal
• Where to find the new clients
• 5 steps of export project
• What successful companies do
• Where to start
AGENDA
5. Baltics (6,3 mio. people)
• E-commerce is still in its early days, however, e-shoppers are very active.
• Easy to work in all three markets.
Sweden (10 mio. people)
•Biggest market in Nordics, Highest competition.
Finland (5.5 mio. people)
•Takes time to get trust from customers
•Finnish understands Baltics
Denmark (5,7 mio. people)
•International and open minded
•Price sensitive market
Norway (5,3 mio. people)
•Outside EU, custom handling is a challenge
•Customer service can be handled partly with Swedes
Germany (82,5 mio. people)
•Amazon leading the market
•Very strict process for legal documents
LOOKING FOR THE CLIENTS ABROAD
6. INTERNATIONAL E-COMMERCE
HOW TO SUCCEED ABROAD
• What will the Swedish customers (in general)
expect from a professional and trustworthy
webshop?
• Have a clear picture of the actions they need
to take during the following months, to be
ready for launch
7. ……IN THE BEGINNING OUR FOCUS WAS ON LOCALIZATION
(PAYMENT METHODS, TRUST MARKS, TRANSLATIONS ETC.)
8. decide
localise
optimise
grow
succeed
FIVE PHASES IN SUCCESSFULL
INTERNATIONAL E-COMMERCE
• Choose the right country
• competitive situation
• Roadmap
• Business case
• Localisation
• Trust
• USP’s
• Focus on conversion rates
• Understand the market
• Optimise processes
• Build volume
• Localise marketing
• Optimise processes based
on new volume
• Set new goals
9. A Local HeroTalks the language perfect, is a
native and an e-commerce
specialist
• Write texts as a native e-commerce
manager
• Being able to think like a local customer
• Know how things are done
(VAT, legals, returns etc.)
• Understand the small things
that makes the difference
What is it she can do?
10. Product and Prices
• Is your product needed?
• Does your prices match
the local level?
Budget
• What investments are planned?
• Plan the budget for localization
as well as operations and marketing
Ability to operate
• Will you be able to meet local
clients’ expectations?
• Will you be able to operate in a new
country as well as in home market?
Competences
• Do you have enough competences
to manage the project?
• Do you have right partners to do it?
When a customer is afraid to place an order, it is because the
answer to the following questions are unsatisfying
• Do I trust the shop enough to buy and pay for the products?
• Am I satisfied with the delivery time and delivery terms?
• Do I trust that the shop will refund me, if i regret my purchase?
• Is the return process convenient and fair?
11. WHAT SUCCESSFUL WEBSHOPS DO?
Competitive
advantage
• Brands
• Product range
• Price
• Financial solution
• Guarentee
• Consulting
• After sale services
• etc.
Zalando: Always free delivery and free return (Used to be)
12. WHAT DO SUCCESSFUL WEBSHOPS DO?
Competitive
advantage
• Brands
• Product range
• Price
• Financial solution
• Guarentee
• Consulting
• After sale services
• etc.
Seamless buying
experience
• Webshop usability
• Customer service
• Delivery
• Return handling
• After sale support
What is important when you order online
93% -> when will it be delivered
91% -> how will it be delivered
87% -> how to return
13. WHAT DO SUCCESSFUL WEBSHOPS DO?
Competitive
advantage
• Brands
• Product range
• Price
• Financial solution
• Guarentee
• Consulting
• After sale services
• etc.
Seamless buying
experience
• Webshop usability
• Customer service
• Delivery
• Return handling
• After sale support
Marketing
INVESTMENT
• Increase awareness
• Develop/localise
content
• Local marketing
specialist
14. WHAT DO SUCCESSFUL WEBSHOPS DO?
Competitive
advantage
• Brands
• Product range
• Price
• Financial solution
• Guarentee
• Consulting
• After sale services
• etc.
Seamless buying
experience
• Webshop usability
• Customer service
• Delivery
• Return handling
• After sale support
Marketing
INVESTMENT
• Increase awareness
• Develop/localise
content
• Local marketing
specialist
Stay updated on
competitors and
customers
• Follow competitors
activities
• Follow customer trends
• Understand market
changes
15. IF YOU DON’T HAVE UNIQUE
PRODUCTS, PRICES OR DELIVERY
OPTIONS
•The local competitors know the
country much better than you
•If you want to win customers
from them, it requires more
than "Adwords and a little
Facebook"
There are 15,000 shops in Sweden, then
there is probably someone who sells a
product that is the same or can do the same
as yours.
16. Where to start?
1. Do a Market scan
2. Compare IPO (Income
per order) between the
markets you consider
17. Market Scan
Insights you need to evaluate
the opportunities
- Competitor analysis
- Price comparison
- Estimate the CPO (cost per order)
- Marketing
- Customer expectations
- ... And follow up!
18. Count your IPO (Incomes per Order)
Per order value (EUR) Poland Lithuania Germany
Average order value incl. VAT 133 133 133
+ Shipping fees 3 3 3
- VAT 23 23 23
- Import taxes
- Shipping costs 3 5 10
- Cost of goods 60 60 60
- Packaging material 1 1 1
- Payment fees 2,5 1,5 3,5
- Warehouse costs 1 1 1
- Return handling 5 8
- Customer service 1 3 4
= IPO 44,5 36,5 25,5
19. IPO (Income per order) - can you actually make
money in the countries you are looking at?
Cost of setting up the webshop
- Local warehouse/shipment from existing warehouse
- Local entity and financial setup costs
- Localisation and translation of webshops
Fixed monthly costs due to new country
- Warehouse, local entity etc.
- Staff (customer service, marketing, warehouse)
Now you can calculate
-> Number of orders needed to break-even on
a monthly basis
-> Break-even point based on order forecast
Per order value (EUR) Poland Lithuania Germany
Average order value incl. VAT 133 133 133
+ Shipping fees 3 3 3
- VAT 23 23 23
- Import taxes
- Shipping costs 3 5 10
- Cost of goods 60 60 60
- Packaging material 1 1 1
- Payment fees 2,5 1,5 3,5
- Warehouse costs 1 1 1
- Return handling 5 8
- Customer service 1 3 4
= IPO 44,5 36,5 25,5
21. decide
localise
optimise
grow
succeed
FIVE PHASES IN SUCCESSFULL
INTERNATIONAL E-COMMERCE
• Choose the right country
• competitive situation
• Roadmap
• Business case
• Localisation
• Trust
• USP’s
• Focus on conversion rates
• Understand the market
• Optimise processes
• Build volume
• Localise marketing
• Optimise processes based
on new volume
• Set new goals
23. We work every day to ensure that our customers succeed in the world of e-commerce,
where European and Global players have a dominant and strong position