Switzerland:

The Ideal Location for the International Distance Seller

E-Tailing with Swiss Post International

Establishing your Business in Europe

• 27 European States

• 16 Countries = EURO (€ 1 = $ 1.36)

• 5 in Top Ten largest Economies

• Numerous languages

• Market of 500m People

• Total Distance Selling Market 09:

€ 154 bn

E-Commerce Conference Las Vegas 9-10th March 2011 Seite 2Alessandro Valdettaro

Distance Selling in the EU: Rapid Growth

Seite 3

Source: Emota

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Distant sales in Europe (growth at constant echange rate)

EU-Online Purchases

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Source: Eurostat

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

In 2010, 40% of individuals aged 16-74 in the EU27 had bought or ordered goods or services over the internet inthe last 12 months.

European Online Sales per Country

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Order intake in 2008 (* = 2007 data)(FR: mail includes phone

ES, GR, IT, NO, RO, UA, SE, HU = estimates)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DKSE*

FR NONL*

Avera

ge BE*FI* DE

CH SKAT*

UA ESRO HU IT GR

Other

Mail

Phone

Internet

Source: EurostatE-Commerce Conference Las Vegas 9-10th March 2011

Alessandro Valdettaro

Average share of internet in Total Distance Selling 2009 = 68

%

Type of Goods and Services bought over the Internet in 2009

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• Travel & hotel accomodation 19%• Clothes & sports goods

17%• Household goods 13%• Tickets for events 13%• Books & magazines 12%• Film & music 12%• Computer software 11%• Electronic equipment 10%

Source: Eurostat

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Why Switzerland?

Seite 7

Switzerland‘s geographic location

offers numerous benefits, including

close proximity to the European markets,

diverse cultures and multiple language

capabilities.

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Why Switzerland ?

• Located in the heart of Europe

• Easy access to all major markets

• High quality reputation

• LVCR to EU

•“Swissness”

•Low income tax rates: 25 %

(Germany: 38.6%)

• Low national VAT rates

(8%, 2.5%)

Seite 8E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Why Switzerland ?

• Outside scope of EC VAT (Offshore)• World renowned postal system• Speed of delivery – Swiss Post• Access to New Markets – Changing European buying

habits

• First-rate infrastructure

• A business-friendly government / moderate taxation

• Currency and price stability

• High productivity

• Social peace and political stability

Seite 9E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

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Facts

• A company incorporated under public law

• Owned by the Swiss Confederation

Figures (2009)

• 61’000 employees

• Ordinary operating income (turnover): CHF 8,709 billion (CHF 1.00 = $ 0.95)

• Group profit for the year: CHF 728 million

• 3’502 post offices & contact points

Swiss Post Group

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Swiss Post‘s Offering: Business to Consumer

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B2C is the product range for sending goods in the international distance selling sector to private or business customers.

• Letters : up to 2 kg

• Parcels : up to 30 kg

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

What is LVCR (Low Value Consignment Relief) ?

• VAT is a Consumer Tax

• “Low Value Consignment Relief” is the relief from VAT given to a private individual (non-taxable person) who imports items valued at less than 22 Euros from outside the VAT territory of the EC

• Established in 1984 as part of an EC VAT Directive

• Each EU member to sign up to exemption between €10 - €22 (UK £18) ‘intrinsic value’ of the product

Seite 12E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

VAT Rates / Standard Tax Exemption Limits

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Country VAT-rate Duty-Free limit for commercial goods

France 19.6% € 22

Germany 19% € 22

Netherlands 19% € 22

UK 20% £ 18

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

€ 22.00 = $ 30.00£ 18.00 = $ 29.00

Transit Times ex Switzerland

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Germany

J + 2-3 J + 4-8

France

J + 2-3 J + 4-7

United Kingdom

J + 2-3 J + 4-7

Netherlands

J + 2-3 J + 4-7

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Mail

Transit Times ex Switzerland: Priority

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Germany

J + 2-3 J + 2

France

J + 2-3 J + 2-4

United Kingdom

J + 2-3 J + 4-5

Netherlands

J + 2-3 J + 2-3

E-Commerce Conference Las Vegas 9-10th March 2011Alessandro Valdettaro

Parcel

Swiss Post‘s Value Proposition for Distance Selling

June 11, 2010 The Swiss day for distance selling into Europe Seite 16Claudia Patocchi

„Postal Delivery of the physical shipment will undoubtedly remain an important part of the Distance Selling Marketing Strategy. Swiss Post offers, along with its core competence, the integral extended Value Chain for the Distance Seller“.

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