Top Tips for Cross-Border Trading

16 October 2013

Presented by: Suzanne Miglucci, CMO, ChannelAdvisor

Cross-Border Trade Complexities Global E-Commerce Highlights Top CBT Destinations Regional Opportunities How To Get There: Agile CBT ChannelAdvisor Overview

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Agenda

CBT Complexities

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Complexity vs. Opportunity

Hong Kong

Norway

Canada

Australia

Argentina

Japan

Brazil

China

Singapore

USA

India

France

UK Germany

South Korea

Global E-Commerce Highlights

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APAC

2011

LatAm US EMEA

$192b

$278b

$165b

$87b

2017

$379b $399b

$457b

$220b

Growth Rate

15% Growth Rate

20% Growth Rate

10% Growth Rate

30%

Source: Forrester

Global and CBT Market Size 2011 vs 2017

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E-Commerce Global Adoption

Source: United Nations

Top CBT Destinations

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Top CBT Destinations

Source: Nielson/Paypal Study from 2013

Top CBT Routes

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Location Number of Shoppers Shopping In US 16.7 million UK China 15.1 million US US 13.2 million China US 11.6 million Canada UK 11.1 million US China 10.4 million Hong Kong China 9.4 million Japan China 7.7 million UK China 7.0 million Australia US 6.8 million Hong Kong

Source: Nielson/Paypal Study from 2013

Regional Opportunities

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Regional Overview

Region Mix MP CSE Search

North America

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Europe (EU)

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APAC

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APAC

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LATAM

Agile CBT

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E-Commerce Market Entry – Traditional Approach

Heavy Investment

Transactional Website

Shipping/Reverse Logistics

Other CBT Challenges

Demand/Traffic Challenges Re-Investment

Minimal Organic Traffic

Price/Competitive Challenges

Site Conversion Hiccups

Increased PCC/CSE Spend

Site Overhaul

Big investment to get to first sale Long time before Revenue > Expense

Agile is a development model based on iterative and

incremental development, where requirements and solutions evolve through collaboration.

It promotes adaptive planning, evolutionary development and delivery via an iterative approach with rapid and flexible response to change.

We believe that many of the principles of developing large software projects are directly applicable to the challenge of selling internationally.

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Agile Development Defined

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E-Commerce Market Entry – The Agile Approach

Test Solve Minimum Challenges

Connect to Existing Demand

Fail Fast, Fail Small

Learn Iterate Understand Consumer Behaviour

Understand Competition

Fix What’s Broken

Take the Next Step

Integrate Leanings into Next Step

Repeat

Smaller investment to get to first sale Revenue > Expense quickly

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Agile CBT Stages

Passive Active Lite Site Full Site

Surface products on local marketplaces

Provide a better experience for existing traffic

Ship from home market

Low volume but low investment

List products directly to local marketplaces

Ship from home or local market

Provide content and support in local languages

Launch lite version of website locally

Engage in lower risk/rev share and retention marketing

Focus on service and reputation building

Provide full site functionality

Aggressively acquire customers via riskier marketing

Improved mobile experience

100% local experience

Solve challenges in stages Continually learn and iterate

Receive and react to demand feedback sooner vs. later Better alignment of costs and revenues = lower overall

investment Risk is dramatically reduced Allows you to ‘scale the CBT mountain’ one step at a time Early feedback allows you to course correct and pivot

when appropriate Test, Learn, Iterate!

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Benefits of Agile CBT

ChannelAdvisor Background

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ChannelAdvisor Overview

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ChannelAdvisor Connects Supply to Demand

Connect to Demand with ChannelAdvisor

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MARKETING

MERCHANDISING

CUSTOMER SERVICE

EXCHANGE RATES

EXPORTING

LEGAL

LOCALIZATION

ACCOUNTING

CURRENCY REPATRIATION

PRICING

PAYMENTS

RETURNS

TAXES/DUTIES

Find Solutions to Other Challenges

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MARKETING

MERCHANDISING

CUSTOMER SERVICE

EXCHANGE RATES

EXPORTING

LEGAL

LOCALIZATION

ACCOUNTING

CURRENCY REPATRIATION

PRICING

PAYMENTS

RETURNS

TAXES/DUTIES

Let’s Discuss CBT!

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Contact Information:

Suzanne Miglucci Chief Marketing Officer +1.919.439.8581 suzanne.miglucci@channeladvisor.com

Visit our web site: www.channeladvisor.co.uk

Watch our Cross Border Trade webinar series: http://go.channeladvisor.com/UKWebinarScotWingosGuidetoSmarterCBTSeries_LP.html

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