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WORKSHOP - SELLING ONLINE IN THE UK
BARCELONA, APRIL 15th 2016 – SaleSupply.es
Page  1
5.7 3 *
Entering the UK eRetail market
successfully
Frank van den Berg, MD Salesupply UK
The UK – e-commerce market
Page  3
 UK  Spain
5.7 3 *
The UK – e-commerce market
Page  4
 UK  Spain
3*shoppers, 3 times spent. Market 6.5 *
The UK e-commerce market
Payment methods
Page  5
 UK
 87% Credit/debit cards
 8% Micropayment services (incl. PayPal)
 5% Other
 Spain
UNITED
KINGDOM SPAIN
 37% Credit/debit cards
 23% Cash on delivery
 11% Other
 22% Micropayment services (incl. PayPal)
 7% Internet banking transfer
45% debit
The UK e-commerce Customer
1. Is experienced in buying online
2. Always looking for new things
3. Pays by card (so you have your money directly!)
4. Expects clear communication
5. Expects you to deliver on what you promise (so do not over-promise)
6. Expects quality customer service
7. Is willing to pay for extra services (24 hour delivery, etc)
Page  6
The UK – three myths and one challenge
Myth 1 – “Marketing costs are high?” (ALTERNATE UK FIGURES)
- Many advertisers might put the advertising cost up
- However, a much larger market with different characteristics
Page  7
UK Spain France Germany
Cost-per-click € 0.50 € 0.45 € 0.43 € 0.46
Conversion Rate 4.00 % 1.50 % 3.20 % 2.50 %
Avg. Order Value € 65.52 € 50.00 € 59.22 € 63.76
Avg. Cost Per Order € 12.50 € 30.00 € 13.44 € 18.40
Gross Profit € 53.02 € 20.00 € 45.78 € 45.36
Source: Adobe Digital Index 2014, Statistica
The UK – three myths and one challenge
Myth 2 - “The market is mature and competition is too strong?”
- The market is expected to grow by 15 to 20 % per year to 2020
- Yes, there are strong competitors in older segments
- The size and dynamics of the market mean that niches and new opportunities
open up all the time.
Page  8
- Customers are continuously looking for new products,
services and ideas !
The UK – three myths and one challenge
Myth 3 – “Transport is expensive?”
Page  9
- Transport costs for the UK are the same as France, Italy
and Germany!
The UK – three myths and one challenge
Challenge - Exchange rate fluctuations
- Can work in your favour and against you
- How to manage:
1. Have revenues and costs in the same currency (UK bank account)
2. Pay attention, adapt prices regularly
Page  10
1 GBP – Euro chart
1 GBP = 1.25 Euro
(April 2016)
ARE YOU READY? LONDON IS CALLING!
Page  11
UPCOMING SEMINARS:
- MAY 2016 – SELLING ONLINE IN FRANCE
- JUNE 2016 – SELLING ONLINE IN THE US
CONTACT US FOR A MEETING AT OUR BARCELONA’S OFFICE:
J.BASTIAANS@SALESUPPLY.ES
R.OLANO@SALESUPPLY.ES
+34 93 178 60 06

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SaleSupply.es: 4 myths about the selling online in the uk

  • 1. WORKSHOP - SELLING ONLINE IN THE UK BARCELONA, APRIL 15th 2016 – SaleSupply.es Page  1 5.7 3 *
  • 2. Entering the UK eRetail market successfully Frank van den Berg, MD Salesupply UK
  • 3. The UK – e-commerce market Page  3  UK  Spain 5.7 3 *
  • 4. The UK – e-commerce market Page  4  UK  Spain 3*shoppers, 3 times spent. Market 6.5 *
  • 5. The UK e-commerce market Payment methods Page  5  UK  87% Credit/debit cards  8% Micropayment services (incl. PayPal)  5% Other  Spain UNITED KINGDOM SPAIN  37% Credit/debit cards  23% Cash on delivery  11% Other  22% Micropayment services (incl. PayPal)  7% Internet banking transfer 45% debit
  • 6. The UK e-commerce Customer 1. Is experienced in buying online 2. Always looking for new things 3. Pays by card (so you have your money directly!) 4. Expects clear communication 5. Expects you to deliver on what you promise (so do not over-promise) 6. Expects quality customer service 7. Is willing to pay for extra services (24 hour delivery, etc) Page  6
  • 7. The UK – three myths and one challenge Myth 1 – “Marketing costs are high?” (ALTERNATE UK FIGURES) - Many advertisers might put the advertising cost up - However, a much larger market with different characteristics Page  7 UK Spain France Germany Cost-per-click € 0.50 € 0.45 € 0.43 € 0.46 Conversion Rate 4.00 % 1.50 % 3.20 % 2.50 % Avg. Order Value € 65.52 € 50.00 € 59.22 € 63.76 Avg. Cost Per Order € 12.50 € 30.00 € 13.44 € 18.40 Gross Profit € 53.02 € 20.00 € 45.78 € 45.36 Source: Adobe Digital Index 2014, Statistica
  • 8. The UK – three myths and one challenge Myth 2 - “The market is mature and competition is too strong?” - The market is expected to grow by 15 to 20 % per year to 2020 - Yes, there are strong competitors in older segments - The size and dynamics of the market mean that niches and new opportunities open up all the time. Page  8 - Customers are continuously looking for new products, services and ideas !
  • 9. The UK – three myths and one challenge Myth 3 – “Transport is expensive?” Page  9 - Transport costs for the UK are the same as France, Italy and Germany!
  • 10. The UK – three myths and one challenge Challenge - Exchange rate fluctuations - Can work in your favour and against you - How to manage: 1. Have revenues and costs in the same currency (UK bank account) 2. Pay attention, adapt prices regularly Page  10 1 GBP – Euro chart 1 GBP = 1.25 Euro (April 2016)
  • 11. ARE YOU READY? LONDON IS CALLING! Page  11 UPCOMING SEMINARS: - MAY 2016 – SELLING ONLINE IN FRANCE - JUNE 2016 – SELLING ONLINE IN THE US CONTACT US FOR A MEETING AT OUR BARCELONA’S OFFICE: J.BASTIAANS@SALESUPPLY.ES R.OLANO@SALESUPPLY.ES +34 93 178 60 06