importance of e-commerce · importance of e-commerce peter somers managing partner –sks &...
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IMPORTANCE OF E-COMMERCE
Peter SomersManaging Partner – SKS & Partners
Iceland Post conference – 24th of February 2016
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1 Who we are
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My current activities
consulting
parcel lockers
logistics
web platforme-Commerce
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Who we are and what we do?
A network of independent consultants and interim managers
Focus on e-solutions for pure players, retailers, logistic companies and posts
Strong experience in Omni-channel and X-border solutions
A pragmatic team of professionals with multidisciplinary know how and track record in various industries
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2 The eCommerceopportunity
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The e-Commerce opportunity
Source: Global B2C E-Commerce report 2014
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China # 1
Source: Firstmark
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China: e-Commerce already 20% of retail
Source: Global B2C E-Commerce report 2014
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3 Technology and
E-Commerce
trends
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Big data
Source: Firstmark
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Cloud computing
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Mobile Commerce in Europe reaches 25%
Source: Twenga
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Internet of Things
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Social networks
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Uberization
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Omnichannel supply chain
Source: Firstmark
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Videos/smell are key for product sharing
Source: Twenga
A new alarm app by Oscar Mayer deceives you out of bed every morning to not only the sweet sound of frying bacon, but to the smell as well. A small gadget attached to your iPhone's headphone jack sends a bacon fragrance your way as the alarm sizzles. But, there is no bacon.
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Virtual Reality
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4 Importance of customers
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Consumer in the driving seat, rules are changing in Omni-channel
Source: Logistic Vibes
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21Source: Dutch Shopping 2020
70%
85%
100%
Importance(Influence on consumer satisfaction)
Perc
enta
ge (
very
) sa
tisf
ied
D
utc
h In
tern
et B
uye
rs
TransactionDelivery
Customer care
Selection
Orientation
LowHigh
Importance of ‘delivery’ in consumer satisfaction (example of The Netherlands)
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22Source: Last Mile report Culimino 2014
1st 2nd 3rd 4th 5th
Cost Speed Flexibility Reputation VAS
Appreciation of delivery aspects(UK e-buyers)
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5 X-border eCommerce market
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$328billion
X-border eCommerce market
World Mail & Express Americas 2016 - Miami
value of X-border online shopping in 2014 with 309 million consumers buying from overseas websites
20%expected growth pa of X-border eCommercefor the coming years
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popular markets
X-border eCommerce market
World Mail & Express Americas 2016 - Miami
to buy from are USA, UK, Germany, China, Hong Kong
BRICEU
X-border eCommerce into countries like China, India and Russia is seen as a huge opportunity
Intra (and into) Europe will get a boost as a result of EC measures to stimulate X-border eCommerce
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shippers
Forces driving the X-border eCommerce
World Mail & Express Americas 2016 - Miami
consumers
suppliers
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EU
World Mail & Express Americas 2016 - Miami
Retailers, brands and manufacturers are discovering X-border eCommerce as a very efficient way to grow their market, go international and compete with marketplaces and large e-tailers
Large marketplaces such as Amazon, Alibaba, Rakuten, … • See cross-border as a way to grow rapidly their market share• Open their platforms to smaller e-tailers, brands and manufacturers• Increasingly engaging in upstream and downstream integration:
web services, payment services, fulfilment and delivery
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motivations
Consumers buying X-border
World Mail & Express Americas 2016 - Miami
barriers
Price Availability of product in local market Broader selection Authentic products
High shipping costs Unknown fees: custom clearance, duties Long transit times No track & trace for low value shipments Difficult return process Limited choice payment/delivery options Fraud risk
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Huge choice of suppliers
X-Border eCommerce
Webshop, payment and deliverysolutions are increasingly offered toretailers and e-tailers as well integrated“software as a service” (saas) solutions
Cross border facilitators are offeringservices by which consumers can easilypurchase X-border.
Integrators/private logistical providersare offering X-border services, developdeferred parcel services with domesticoperators and/or via acquisitions.Posts are repositioning themselves as(domestic) parcels players
Marketplaces are offering webshop,payment, fulfillment and deliveryservices to smaller e-tailers
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Huge choice of suppliers
Shipping software Cross border facilitators
MarketplacesLogistical players
X-Border eCommerce
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6New challenges and opportunities for the logistics and postal industry
(not all of them are needed in the same market)
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Home Delivery of parcels with choice of delivery slot in the AM / afternoon / evening
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Home Delivery of parcels with guaranteed next day delivery
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Home Delivery of parcels with notification and/or predict of delivery time
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Delivery of parcels at workplace
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Delivery of parcels at safe place to avoid second or third presentation
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Home Delivery of parcels on Saturday
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Home Delivery of parcels on Sunday
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Same day delivery of parcels
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Drone Delivery of parcels
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Pick-up and drop-off parcel (returns) in Post
office (PUDO)
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Pick-up in store of retailer (Omni-channel)
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Delivery in parcel box at home (+returns)
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Pick-up of parcel in automated locker
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Pick-up of parcel in drive-through
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Delivery in the trunk of your car
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Delivery where you are
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Real time track & trace made available to ordering
consumers and/or link to a dynamic planning system enabling for accurate notification of delivery time
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WHO WILL WIN THE
E-COMMERCE PARCEL DELIVERY
BATTLE?
POSTS? INTEGRATORS? OR …?
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7 Delivery of food at home is the next big thing
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Online groceries
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Specialized delivery capabilities
Groceries
Health Care
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8 Take aways
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Nobody can ignore the reality of E-Commerce today
Traditional retailers/FMCG will need to figure out their E-Com strategy and keep in mind the changing technology, markets and behaviors of consumers
Logistic companies need to adapt their systems to the new normal: whatever, whenever, wherever
Logistics incl. delivery is important part of consumer satisfaction
Cross-border is important for you
Iceland Post will as the supplier of choice support you in this