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Cross-Border E-commerce Guide

Insights On Top Marketplaces

E-commerce Bible by WebInterpret

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Germany

E-commerce Bible: German Marketplace

1. Germany: Biggest Online Market in Europe

2. General Information

3. What is the German Marketplace Like?

4. Online Sales: Basic Facts

5. Best-sellers

6. Shipping: Increasing Demand for Flexible Logistic Solutions

7. Buying Behaviour: Present & Future

Content

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It is said that Germans love rules, punctuality, efficiency, cars,

beer and sausages. They know how to work around their

schedules, but also how to play football and celebrate at

Christmas markets. Cliches aside, in the world of business,

Germans are associated with their national brand: the ‘Made in

Germany’ quality of products.

The perception of the German brand around the world matters.

So does the image of the German shopper who is smart, savvy

and well acquainted with online shopping.

GERMANY: BIGGEST ONLINE MARKET IN EUROPE

1

Here’s our comprehensive guide

to the German marketplace:

Check our facts, figures and

forecasts for the future.

2 GENERAL INFORMATION

Name Federal Republic of Germany

Capital Berlin

Currency Euro

Language (official) German

Time zone CET (UTC +1)

Internet country code .de

GDP (nominal) $3.88 trillion

GDP (PPP) $3.34 trillion

GDP growth 0.5%

GDP per capita (nominal) $47,893

GDP per capita (PPP) $41,248

Inflation 1.6%

Economy (2014)

Population 80.2 million

Regional rank 1st

Global rank 16th

Population growth rate -0.18%

Aged 0-14 years 13%

Aged 15-65 years 73.9%

Aged 65+ years 20.9%

Demographics (2014)

Mobile subscriptions 33.3 million

Mobile subscriptions rank 11th

Mobile penetration rate 41.0%

Mobile penetration rank 40th

Mobile (2014)

Internet users 68.3 million

Internet usage rank 7th

Internet penetration 84.0%

Internet penetration rank 22nd

B2C e-commerce digital buyers $44.40 million

B2C e-commerce market size $53.00 billion

B2C e-commerce market growth 9.4%

B2C average annual spend per user $1,306

E-commerce (2014)

3 WHAT IS THE GERMAN MARKETPLACE LIKE?

Germany is the 5th largest country online. It is also the 2nd

largest e-commerce market and most populated country in

Europe with over 80 million consumers. Distinctive qualities of

the German marketplace are the high Internet penetration rate

(83%) with 91% of the 30-49 age group purchasing regularly

online, but also slowing growth. Germany has a maturing e-

commerce marketplace with over 100,000 e-stores, yet its size,

infrastructure and advanced state of e-commerce are still

attractive to global sellers.

The special profile of the German buyer makes it necessary for

online sellers to treat local shoppers with special attention. For

instance, Germans have more private personalities than Brits, so

their level of trust in e-commerce is much lower. To illustrate

this, merely 20% of German consumers pay with credit cards,

45% preferring bank invoices for online shopping.

THE GERMAN MARKETPLACE & THE GERMAN ONLINE

BUYER

THE GERMAN LANGUAGE: German is spoken by 95% of

the local population. Generally, Germans don’t tend to buy

from foreign sites, so as a seller, you need to communicate

in the local language. In other words: when in Germany,

speak as the Germans do.

BIGGEST MARKET IN EUROPE: In terms of population,

internet use and total purchasing power, it is the largest e-

commerce market in Europe. In terms of spending, it is the

second largest online market in Europe, after the UK.

RELIABLE LOGISTICS & INFRASTRUCTURE: It is well-

developed with a concentrated network of logistic centres.

The need for efficiency, in this regard, has resulted in low

pricing for deliverables in Europe, comparable to the UK

and Benelux.

HIGH RETURN RATES: It ranges from 5-10% for

electronics to 70% for fashion in online sales. This relates to

the expected high quality of German products and the

consumer protection laid out by the local legislation. For

sellers, it is recommended that they have a local return

address.

TAXES: The standard VAT rate is 19%, which is lower than

in some other countries; for example the UK (20%). If you’

re a UK merchant selling in Germany, this difference can

increase your profit margin.

DEMANDING CONSUMERS: The German marketplace is

quite competitive, so buyers are free to be picky and

demanding in term of customer service and delivery

deadlines.

CONSUMER VALUES: Trust, loyalty, quality & security to

name the important few. To meet the expectations of

German customers, you must be reliable, fast, careful,

secure and knowledgeable of German laws.

TRUST, FAMILIARITY & LOYALTY: Germans prefer to deal

with trusted, recognised, local retailers. For this reason,

international sellers should aim for a localised website, with

the ‘.de’ domain if possible. Additionally, Impressum, a legal

statement confirming the owner of site, should be included

on websites.

QUALITY PROOF: Germans like to see quality seals of

approval, certificates, badges and symbols so their

presence on the main page is likely to attract German

shoppers.

SECURITY-ORIENTED: Germans want to avoid credit

cards or debt in any shape or form. Risk-averse Germans

prefer to pay through invoice, as opposed to paying

upfront. They also use debit cards, bank transfers and

PayPal. What is of utmost importance is a secure payment

system and constant reassurance in this regard.

RETURNS: Since Germans don’t like to pay upfront, the

return rate is higher there.

LEGISLATION: Before making a purchasing decision, 82%

of Germans read the terms & conditions of the sale.

According to German law, Germans can return their

purchases within 14 days with no need for explanation.

Generally, German shoppers are aware of e-commerce

legislation, like to compare products and prices and will

submit complaints if needed.

The platform with the greatest turnover is amazon.de (EUR

4.8 billion), followed by otto.de (EUR 1.7 billion).

As to cross-border shopping, German online shoppers

mostly buy from the UK (11.1 million), the US (8.6 million)

and China (6.2 million).

In terms of sales on international markets, German online

retailers mostly sell to France (5.9 million), Austria (5.5

million), Italy (5 million), Spain (3.9 million) and Scandinavia

(3.5 million).

By 2017, e-commerce is predicted to generate more than

half of Germany’s GDP.

Since the German market is a mature market, online sellers

planning on an expansion there should be aware a large

number of competing businesses. Therefore, for some

businesses, it may be a better idea to consider entering

emerging markets whose strength of sales lies in their large

populations, e.g. China or India.

4 ONLINE SALES: BASIC FACTS

5

The highest sales in e-commerce were generated in the apparel

category (EUR 11.9 billion), followed by consumer electronics

(EUR 5 billion) and books (EUR 4.1 billion). On average, Germans

spend 61% on clothes & shoes

and 56% on health

care & cosmetics.

According to research carried out by WebInterpret, if you are an

international retailer planning to sell in Germany, it is the top

market for selling items in categories such as ‘Clothes, Shoes &

Accessories’, ‘Vehicle Parts & Accessories’, ‘Home, Furniture &

DIY’, ‘Sporting Goods’ and ‘Computers, Tablets & Networking’.

BEST-SELLERS

With the national mail service (Deutsche Post) privatised,

Germany stands out from other industrialised countries.

Deutsche Post, whose subsidiary is the DHL Express, represents

10% of the total amount of packages shipped in the EU.

The e-commerce boom has created new challenges for parcel

service providers, In short, they must adapt more quickly to

changing customer demands and expectations, e.g. free or same-

day delivery. Companies are now testing new solutions, such as

click & collect or evening delivery options. The increased

B2C traffic means higher total shipment costs

and more decentralised deliveries. Since

companies have to invest in improving

their logistics networks and services,

prices are likely to rise.

6 SHIPPING: INCREASING DEMAND FOR FLEXIBLE LOGISTIC SOLUTIONS

How are products ordered?

75% from computers

14% from tablets

12% from phones

Source: https://www.demandware.com/shopping-index/

How is e-commerce traffic driven?

59% from computers

14% from tablets

27% from phones

7 BUYING BEHAVIOUR: PRESENT & FUTURE

Germany: Traffic by Device(Q1 2014 vs. Q1 2015)

PC Tablet Smartphone

81%75%

12% 14% 7% 12%

2014 Q1 2015 Q1

A FEW FACTS RELATED TO BUYER BEHAVIOUR

Mobile penetration in Germany is the largest in

Europe (139.7%) with many Germans having

more than one mobile, but smartphone

penetration is only at 51%.

For the future, German consumers are

interested in product information search (13%),

tapping smartphone at cash register to pay, e.g.

using NFC (13%) and scanning a barcode or QR

code (12%). They also want to order ahead, e.g.

food or coffee, using an app/browser (12%) and

compare prices whilst shopping in-store (11%).

Due to the increased chance of fraud, most

German prefer to use mobile devices for

entertainment rather than for shopping

purposes.

Of those consumers who have purchased via

both an app and a browser, apps are preferred by

40% of smartphone shoppers and 53% of tablet

shoppers. Apps seem more convenient (30%),

faster (23%) and the consumer can immediately

receive payment confirmation (18%).

German buyers most often engage in product

information search (30%) on their smartphones,

followed by browsing customer or user reviews

(23%) and scanning a barcode or QR code (21%).

They also look for information about stores and

businesses (19%) and compare prices while

shopping in-store (15%).


Italy

E-commerce Bible: Italian Marketplace

1. Italy: A Country with a Booming E-commerce Market

2. General Information

3. What is the Italian Marketplace Like?

4. Online Sales: Basic Facts

5. Best-sellers

6. Shipping


Content


FREE demo




Italy is the land of the Mediterranean sunshine, wine and

romance. It’s no wonder that a general holiday mood makes

vacations and travel tickets the best-sellers among Italian online

shoppers. The fact is that the e-commerce market in Italy is

thriving and there are gaps that can be exploited by international

sellers. Surprisingly, despite the financial crises that affected

Southern European countries, e-commerce is one of the few

areas that experienced a steady growth in the last few years.

Here’s our comprehensive guide to the Italian

marketplace: check our facts, figures and

forecasts for the future.

ITALY: A COUNTRY WITH A BOOMING E-COMMERCE MARKET

1


Name Italian Republic

Capital Rome

Currency Euro

Language (official) Italian


Internet country code .it



GDP growth -1.8%



Inflation 1.2%

Economy (2014)


Regional rank 6th

Global rank 23rd

Population growth rate 0.3%




Demographics (2014)





Mobile (2014)




Internet penetration rank 38th





E-commerce (2014)

3 WHAT IS THE ITALIAN MARKETPLACE LIKE?

Italy has had a few problems when it comes to economic growth.

The country has been put under a lot of scrutiny scrutiny by

financial markets due to high unemployment, high public debt

and corruption. Yet, in the face of all these challenges, the fact is

that the e-commerce market in Italy is booming and is expected

to surpass the European leaders in the coming years!

THE ITALIAN LANGUAGE: It is spoken by 93% of the

population and also spoken in a few other countries such as

Switzerland and Malta.

INTERNET PENETRATION: 60% of 60 million population

are Internet users.

PAYMENT: MasterCard, Visa and CartaSi are the most

frequently used credit cards for online shopping. Other

popular methods of payment are PayPal and cash on

delivery. Unlike other European countries, Italy seems to

be relatively cash-reliant and security is an issue for many

Italians when it comes to online payments, which may be a

bit challenging for online sellers.

RETURNS FOR ONLINE SALES: 5% for general goods, 15%

for electronics and over 40% for fashion. Offering easy

returns solutions, sellers increase their chances of

increased sales conversions immensely.

GROWING MARKET: Italy is one of the fastest growing

markets in Western Europe. In 2014 the record turnover of

24.2 billion euros was reached.

B2C COMMERCE: Zalando is the most popular e-

commerce website in Italy in terms of unique visitors per

month, followed by Amazon and Euronics.

DIGITAL MOVEMENT: Italy is going digital and this shift in

the mindset of the Italian consumer should be taken

advantage of by online retailers.

ECONOMIC CHALLENGES: economic instability and a

marked contrast between southern and northern Italy, the

latter being more prosperous.

MOBILE: In comparison to e-commerce leaders, Italians

seem to be lagging behind in terms of the use of mobile

devices. 42% of e-shoppers use their computers for mobile

purchases: tablets and mobile devices are too small and not

comfortable enough for the average Italian consumer.

Currently Italy ranks fifth when it comes to online retail

sales in Europe.

In 2013 online sales in Italy were estimated at EUR 11.2

billion.

By 2017 B2C e-commerce sales figures are expected to

grow to USD 23.53 billion.

International development is one of the trends driving e-

commerce in Italy. The market is booming.

The growing income disparity and the contrast between

the north and the south is likely to present opportunities

for online sellers. There is a big demand for cosmetic &

fashion brands, high-end products in particular.

The e-commerce website with the greatest percentage

value share is eBay (18.7%), followed by Amazon (9.2%) and

Esselunga A Casa (3.3%).


Cross border trade presents big opportunities due to the

lack of availability on the Italian domestic market. About

30% of the Italian population (16.8 million people) bought

products and services from non-Italian websites. In

contrast, exports do not match e-commerce import; only

one in four Italian sellers sell abroad, mostly to Germany,

Spain and the UK.

5

Among products and services sold and bought mostly online are:

holidays, travel tickets, clothing, consumer electronics, media

and groceries.

The top cross-border category for online shoppers in 2013 was

discount air tickets.

BEST-SELLERS

Italy lagged behind other thriving e-commerce markets for many

years, but this has changed immensely in the last few years. The

B2C delivery has been dominated by Poste Italiane, SDA and

Bartolini.

Over half of the Italian buyers are more likely to shop from an

online retailer if there is a possibility to collect the article in-

store.

6 SHIPPING

Of those consumers who have purchased via both an app

and a browser, apps are preferred by 53% of smartphone

shoppers and 44% of tablet shoppers. Apps seem more

convenient (43%), faster (29%) and innovative way to pay

(26%).

Italian buyers most often engage in product information

search (36%) on their smartphones, followed by looking up

information about stores and businesses (30%) and

browsing customer or user reviews (28%). They also

compare prices while shopping in-store (19%), download

shopping-related apps (16%) and purchase from their

smartphones at home (16%).

For the future, Italian consumers are interested in tapping

smartphone at cash register to pay (20%), ordering ahead

using an add/browser (17%), using an app to make a

purchase (15%) and comparing prices (13%).



The UK

E-commerce Bible: UK Marketplace

1. United Kingdom: e-commerce success story

2. General information

3. What is the UK marketplace like?

4. Online sales: basic facts

5. Best-sellers

6. Shipping: what do UK customers expect from delivery?

7. Buying behaviour: present & future

Content


FREE demo




Can the British weather be one of the main factors motivating

local buyers to do their shopping online from the comfort of their

sofas? After all, this seems a much more attractive option as

opposed to having to do your shopping spree dashing through

high streets on rainy days. So yes, it may often rain on British

high street retail, but the success of the UK e-commerce market

is due to other factors than the weather. So what has made the

UK the leader in Europe with 4 of the top 10 e-commerce sites

by sales volume?

UNITED KINGDOM: E-COMMERCE SUCCESS STORY

1


to the UK marketplace: check

our facts, figures and forecasts

for the future.


Name United Kingdom of Great Britain and Northern Ireland

Capital London

Currency Pound Sterling

Language (official) English

Time zone GMT (UTC +0)

Internet country code .co.uk



GDP growth 1.8%



Inflation 2.0%

Economy (2014)


Regional rank 5th

Global rank 22nd






Demographics (2014)





Mobile (2014)









E-commerce (2014)

3 WHAT IS THE UK MARKETPLACE LIKE?

The UK is the hub of internet shoppers. Even though it is a

smaller consumer market than the US, China or Japan, shoppers

spend more money per capita online than in other countries.

According to eMarketer, B2C e-commerce sales in the UK were

almost three times higher than in the second largest Western

European market, Germany. However, user growth is slower in

the more mature UK e-commerce market.

In short, the UK marketplace is competitive, customer-oriented

and has huge buying power. The UK boasts excellent digital

infrastructure, high population density and percentage of online

GDP.

According to research carried out by Channel Advisor, 95%

of mid-sized UK retailers are selling on marketplaces and at

least 15% of them are selling on emerging marketplaces.

The dominating marketplace is Amazon with 86% of UK

retailers selling their products there and 31% using FBA

(Fulfillment by Amazon).

54% of UK retailers are of the opinion that Amazon

provides the best opportunity to sell on international

marketplaces.

65% of UK sellers said that between 21%-30% of their

online sales come from international marketplaces.

73% of UK retailers use digital marketing and for 56% their

top digital marketing strategy is listing ads.

By 2016, online retail is expected to make up 23% of UK

retail sales, compared to 13.5% in 2010.


5

Take consumer tech from big brands, fashion items, accessories

and vintage products. These are the items that proved to be

extremely popular on eBay.

According to research carried out by WebInterpret, the best-

selling categories among British sellers selling internationally

are ‘Clothes, Shoes, Accessories’ (28%), especially popular with

German online buyers, followed by ‘Vehicle Parts & Accessories’

(27%) and ‘Home, Furniture & DIY’ (16%).

BEST-SELLERS

Accurate & clear tracking online

Proactive & efficient communication (text/phone/email

updates), especially when delivery issues occur. Generally

UK customers don’t want to make too much effort to stay

updated about the delivery status

Non-premium rate phone numbers to contact the courier

Retailers proactive in following up problems

6 SHIPPING: WHAT DO UK CONSUMERS EXPECT FROM DELIVERY

The B2B shipping landscape

in the UK is dominated by

former divisions of Royal

Mail (including Parcelforce &

General Logistics) and B2C

shipping outlets tend to use

contracted delivery couriers.


75% from computers

14% from tablets

12% from phones


42% from computers

22% from tablets

36% from phones


UK: Traffic by Device(Q1 2014 vs. Q1 2015)


62%

52%

22% 24%16%

24%

2014 Q1 2015 Q1

A FEW FACTS





faster (25%) and easier than using cash or card

(17%).

UK buyers most often engage in product



(19%) and looking for information about stores

and businesses (18%). They also compare prices

while shopping in-store (16%) and make

purchases while at home/work (16%).

For the future, UK consumers are interested in

accessing stored details on their smartphones,

such as loyalty cards or discounts (12%). They

also want to use an app to make a purchase/pay a

bill in a store or business (11%), compare prices

(11%) and scan a barcode or QR code (11%).


France

E-commerce Bible: French marketplace

1. France: 3rd Biggest Marketplace in Europe


3. What is the French Marketplace Like?

4. Online sales: Basic Facts

5. Best-sellers

6. Shipping


8. Sources

Content


FREE demo




You may associate the French nation with snacking on snails and

frog legs, drinking loads of wine and knowing well what

sophisticated fashion means. The fact that French women dress

well and are interested in fashion is common knowledge. In fact,

fashion is a very popular product category in the world of e-

commerce and we’re not talking berets here! However, fashion

is not the only type of product that is sold and bought online.

Here’s our comprehensive guide to the French marketplace:

check our facts, figures and forecasts for the

future.

FRANCE: THIRD BIGGEST MARKETPLACE IN EUROPE

1


Name French Republic

Capital Paris

Currency Euro

Language (official) French


Internet country code .fr



GDP growth 0.3%



Inflation 0.9%

Economy (2014)


Regional rank 2nd

Global rank 19th





Demographics (2014)





Mobile (2014)









E-commerce (2014)

3 WHAT IS THE FRENCH MARKETPLACE LIKE?

The French marketplace can be generally characterised by high

Internet penetration, growing mobile services and a modern

delivery structure. The most visited online store is Amazon with

more than 15 million unique visitors per month. The French

consumer likes to shop for both chic brands as well as bargains.

The local e-commerce market is the third largest in the EU and

6th in the world. The market is relatively mature yet it presents

sellers with many opportunities: a large and diverse consumer

base, high purchasing power, low distribution costs, location,

reliable payment methods and the widespread use of the French

language.

THE FRENCH MARKETPLACE & THE FRENCH CONSUMER:

THE FRENCH LANGUAGE: French is widely spoken on five

continents and is the sixth most widely spoken language in

the world. It gives online sellers an advantage to penetrate

other French-speaking locations, e.g. 360 million

consumers in Francophone Africa.

GLOBAL, GROWING MARKET: 56% of French retailers

have an international presence and another 14% plan their

global expansion already. The purchasing size is increasing,

as well, and should reach EUR 70 billion in 2015.

DEMOGRAPHICS: The French demographics are a source

of growth: 87% of 25-34 year olds have shopped online and

focus more on Cross-Border Trading.

THE FRENCH SHOPPER: They’re tech savvy, confident in

online shopping and feel comfortable paying online with

credit cards, which in 2011 constituted 80% of online

payments. It is also common for online shoppers to use

PayPal and physical cheques.

PAYMENT: Over 80% of French users pay with credit

cards.

DELIVERY: 82% of online buyers request home delivery.

The French are very demanding in terms of delivery,

expecting it be utmost convenient.

RETURNS: The rate of returns is very low (10%), compared

to the UK (25%) and Germany (40%).

MARKETING: As opposed to the opt-in basis typical of

many European countries, in France the opt-out principle is

the role.

CUSTOMER SERVICE: Social customer service seems to be

in its infancy (lack of visibility and business models).

FUTURE SHOPPING: There is a lot of research and

experimentation when it comes to the shop of the future.

For instance, shopping spaces combined with cultural

places, 3D printing for buyers and shops as inspirational or

learning places are being explored.

MOBILE: French consumers use mobile devices, yet

compared to other market leaders, they seem to lag behind.

Also, relatively few retailers offer multi-channel purchasing

solutions. Compared to similar markets, customers in

France have the lowest percentage (2%) of users buying

through mobile devices.

25% of French websites generate 10% of their sales

internationally.

There seems to be international demand for French fashion

and beauty brands.

As to cross-border shopping, 19% of French shop across

borders. Their favourite shopping destinations are

Germany (41%), the UK (29%) and Belgium (15%).

In terms of sales on international markets, French online

merchants sell mostly to Belgium / Luxembourg (42%),

Spain (27%), Italy (26%), the UK (17%) and the US (6.9%).


5

In terms of products and services bought online, travel &

tourism, services, cultural products, clothing & accessories and

technical products lead the way.

Domestically, French online consumers prefer to buy products

and services in the travel category most often. On foreign sites,

they tend to buy technical products.

BEST-SELLERS

The French e-commerce logistics seem less complex than the

issues sometimes encountered entering the markets of other

countries and the distribution costs can be comparatively low,

too. Hence, many cross-border retailers are happy to enter the

French e-commerce market. The preferred delivery method is

home delivery (83%), followed by shipping to a pick-up & go

location (66%) and delivery in store (26%).

La Poste is the historical postal operator there and a recognised

and trusted brand in France. Hence, it is quite crucial that the

French consumers see the La Poste as a delivery option

on your website. By the same token, they are

more likely to put trust into your business.

One of the biggest challenges for retailers

may be differing consumer expectations:

some want one-hour delivery slots,

others might want to have their

product delivered to a secure locker.

6 SHIPPING: MEET THE FRENCH EXPECTATIONS


77% from computers

12% from tablets

11% from phones

Source: https://www.demandware.comshopping-index//


61% from computers

11% from tablets

29% from phones


France: Traffic by Device(Q1 2014 vs. Q1 2015)


83%77%

11% 12% 6% 11%

2014 Q1 2015 Q1

A FEW FACTS

French buyers want respect, information,

politeness and prompt delivery of service.





faster (20%) and innovative way to pay (14%).

French buyers most often engage in product



(15%) and looking for information about stores

and businesses (15%). They also scan a barcode

or QR code (14%).

For the future, French consumers are interested

in product information search (10%), tapping

their smartphone at cash register to pay (10%)

and scanning a barcode or QR code (10%). They

also want to compare prices (9%) and look for

information about stores and businesses (8%).


The USA

E-commerce Bible: US Marketplace

1. US: Global E-commerce Superpower


3. What is the US Marketplace Like?

4. Online sales: basic facts

5. Best-sellers

6. Shipping: Cross-Border Shipping Challenges


8. Sources

Content


FREE demo




The United States of America is associated with friendly, happy

people; they are confident, go-getting and aware of their

freedoms. The American Dream has become a synonym for

opportunity, equality and success. Just as America is the land of

opportunity, so is the world of e-commerce.

The USA has the world’s largest economy and the world leader

when it comes to cross-border e-commerce exports and imports.

It is the birthplace of e-commerce giants, such as Amazon and

eBay. While it may feature more mature

e-commerce marketplaces, whose growth

may potentially slow down in the coming

years, in terms of its sheer size and turnover,

the US is still the world’s largest

e-commerce market.

UNITED STATES: GLOBAL E-COMMERCE SUPERPOWER

1


to the US marketplace. Check

our facts, figures and forecasts

for the future.


Name United States of America

Capital Washington, D.C.

Currency US Dollar ($)

Language (official) English (US English, unofficial)

Time zone UTC -5 to -10

Internet country code .us



GDP growth 1.6%


Inflation 1.5%

Economy (2014)

Population 318 million

Regional rank 1th

Global rank 3nd





Demographics (2014)

Internet Users 254.3 million

Internet Usage Rank 2nd

Internet Penetration 81.0%

Internet Penetration Rank 28th

B2C E-commerce Digital Buyers 162.6 million

B2C E-commerce Market Size $395.30 billion

Ecommerce (2014)

Mobile Subscriptions 234.4 million

Mobile Subscriptions Rank 1st

Mobile Penetration Rate 74.7%

Mobile Penetration Rank 9th

Mobile (2014)

B2C E-commerce Market Growth 11.8%

B2C Average Annual Spent Per User $2,626

3 WHAT IS THE US MARKETPLACE LIKE?

US e-commerce sales still lead the Western world with a

projected USD 349 billion of annual revenue. In 2013, 75.8% of

the population were shopping online and the US is the world’s

largest consumer market. In 2015, according to A.T. Kearney’s

global e-commerce index, the US has overtaken China. Since

consumer confidence returns after the recession, Americans are

going back to shopping.

The US has many similarities with European marketplaces and

and European consumer behaviour.

THE US MARKETPLACE:

THE ENGLISH LANGUAGE: With English being the world’s

most popular second language and most popular language

online, makes English-speaking marketplaces the first

choices after a seller’s domestic market. However, bear in

mind that the way Americans communicate differs from the

Brits, and not only in terms of spelling. For instance, US

descriptions tend to be simple and devoid of idioms that are

more typical of the UK. Also, the differences in assigned

product names, e.g. trousers (UK) vs. pants (US), trainers

(UK) vs. sneakers (US), wellington boots (UK) vs galoshes

(US).

HIGH INTERNET PENETRATION: According to Pew

Research Centre, 87% of US adults use the Internet and

70% have access to high-speed broadband.

THE SIZE: The USA is the third largest country in the world

and twice the size of the EU, which means of volumes of

consumers.

TECHNOLOGY: The US market is the leader when it comes

to the latest technological releases and innovations. Also,

technology adoption is quick among the US population.

INFRASTRUCTURE & LOGISTICS: The USA is one of the

largest countries, characterised by a high-performance rail

network, air-traffic system, highway connections and

generally well-developed logistics market with strategic

centres in excellent locations. The biggest challenges

include the country size, the variety of landscape and the

uneven concentrations of population.

DELIVERY: Most US retailers offer free, and increasingly

same-day, delivery options. 80% consumers are more likely

to make a purchase when free shipping is included. Also,

64% of consumers are more willing to buy products that

offer free returns and exchanges.

PAYMENT: Preferred online payment methods are

credit/debit or gift cards, followed by PayPal, cash/cheque,

bank transfer and prepaid cards. Generally, US consumers

are multiple cardholders with nearly five cards per adult.

The US market is much bigger geographically in comparison

to the UK. Therefore, next day delivery is not as

commonplace as in Britain.

TAXES: Taxes in the US are complex with many different

state and local sales taxes. Also , some online retailers do

not show the tax owed until the buyer reaches the

checkout page.

AMERICAN CUSTOMER: America is comprised of savvy,

internationally minded consumers who know how to shop

online. Customer satisfaction and confidence in the US is

relatively high, but so are their expectations. The heaviest

consumption takes place over the holiday season.

Compared to the UK, the US customer spends an extra

hour or more shopping online.

MOBILE: The US is ahead of other countries in terms of

mobile commerce: 66% of their time spent researching

products is done via mobile devices. According to Deloitte,

94 of the top 100 retailers in the US provide mobile-

optimised websites and 78% offer dedicated mobile apps.

CHALLENGE: The US is perceived as a challenging foreign

market to enter. Its changing demographics, strong

domestic competition and rapidly transforming technology

require an extra effort that has to be made to keep up with

consumer expectations.

BENEFITS: The size of the market, online savvy consumers,

high purchasing power, well-developed infrastructure,

political stability, the English language, advanced payment

culture are among the many benefits that compel many

foreign businesses to accept the challenges inherent in

entering the US market.

IMPORTANT DATES: It’s worth remembering the days of

the year that US businesses offer big sales deals, e.g. Black

Friday, Cyber Monday and holiday periods.

B2C e-commerce sales in the North American region

accounted for 34.9% of global B2C sales in 2013.

Retail e-commerce sales in the US amounted to over USD

305 billion in 2014, and by 2019, are projected to grow to

USD 548 billion.

In 2014, the top 500 e-tailers generated USD 296.52 billion

in online sales, growing by 15.74% compared in 2013.

According to Channel Advisor, 69% of US traders opt for

Amazon, the most successful e-tailer.

The ecommerce website with the greatest percentage of

value share is Amazon.com (16%), followed by eBay (5.3%)

and Apple (5.1%).

By 2018, US online retail sales will grow 57% to USD 414

billion, according to Forrester Research.


As to cross-border shopping, there over 34 million

American online shoppers who mostly buy from the UK

(49%), China (39%), Canada (34%), Hong Kong (20%) and

Australia (18%).

5

Apparel & Footwear, followed by Media products, Electronics

and Books belong to the most popular retail categories in the US.

As to international opportunities, ‘Clothes & Accessories’,

followed by ‘Health & Beauty’ are popular cross-border

purchases among US shoppers. ‘Jewellery & Watches’ and

‘Personal/Home Electronics’ are also worth considering.

BEST-SELLERS

UPS and FedEx are the preferred shipping options in the USA.

Additionally, small business may use the government run postal

system (US Postal Service). Generally, the American consumer is

more impatient than in other countries.

CROSS-BORDER SHIPPING CHALLENGES RELATE TO:

SECURITY, e.g. due to recent escalations in violence, the

direct routes to Texas and Mexico have become more

dangerous. Similarly, terror attack vigilance has made the

US extra careful when it comes to goods flowing in.

ECONOMIC, e.g. the impact of the recession

in the US has had a long-term effect by job losses

in manufacturing

REGULATORY, e.g. paperwork,

legislation, import/trade

restrictions. Restrictions

cover a number of products,

including medicines, cheese, alcohol, food or explosives.

6 SHIPPING: CROSS-BORDER SHIPPING CHALLENGES


69% from computers

13% from tablets

18% from phones

Source: https://www.demandware.comshopping-index//


50% from computers

11% from tablets

38% from phones


US: Traffic by Device(Q1 2014 vs. Q1 2015)


75%69%

14% 13% 11%18%

2014 Q1 2015 Q1

https://www.demandware.comshopping-index//

A FEW FACTS





faster (24%) and help the consumer avoid

carrying or pulling out a physical wallet (19%).

US buyers most often engage in product


followed by looking for information about stores

and businesses (27%) and browsing customer or

user reviews (27%). They also compare prices

while shopping in-store (21%) and scan a

barcode or QR code (19%).

Most popular cross-border shopping

destinations are the UK (49%), China (39%),

Canada (34%), Hong Kong (20%) and Australia

(18%), which shows the American preference for

English-speaking marketplaces.

According to eMarketer, in terms of spending

online, US shoppers fell in the 4th place,

following the UK, Australia and Norway.

For the future, American consumers are

interested in ordering ahead, e.g. food or coffee,

using an app/browser (15%), comparing prices

while shopping in-store (14%) and tapping

smartphone at cash register to pay, e.g. using

NFC (14%). They also want to scan a barcode or

QR code (12%) and access store details, e.g.

discounts or loyalty cards (11%).

SOURCES

Germany. Cross-Border Ecommerce Report. Critical Facts and Insights for International Expansion. The Paypers. 2014.United States of

America. Cross-Border Ecommerce Report. Critical Facts and Insights for International Expansion. The Paypers. 2014.

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http://www.thepaypers.com/cross-border-ecommerce/cross-border-ecommerce-report-Italy/cross-border-ecommerce/cross-border-ecommerce-download-confirmation

http://www.thepaypers.com/cross-border-ecommerce/cross-border-ecommerce-report-Italy/cross-border-ecommerce/cross-border-ecommerce-download-confirmation

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