CROSS-BORDER MAGAZINE A Salesupply initiative All about international e-commerce, edition 5, spring 2018

GOOSECRAFT DEVELOPING A MULTI-CHANNEL BRAND: USING DATA TO DETECT CHANCES

SUCCESS STORIES GOOSECRAFT, GETIR, ISKN, RAJA // CASE THIS WORKS, JOSH V, SUCCESSFUL DELIVERY, THE CONSEQUENCES OF BREXIT TIPS & INSIGHTS WECHAT, THE GDPR, GETTING RETURNS RIGHT 3 ~ Welcome ~ FOREWORD

tion flawlessly on mobile, with professional videos and personal- ised content, have become essential for long-term success.

In 2017, 52% of users said that a bad mobile experience made them less likely to engage with a brand. Similarly, consumers have now become accustomed to being nurtured through the sales process, with 70% of consumers learning about a company through their online blog rather than ads. These preferences are just the tip of the iceberg.

In the last couple of years, we have seen Machine Learning and AI emerge as the driving force behind personalisation. Accord- ing to the E-tailing Group, omnichannel personalisation can increase overall consumer spending by up to 500%. We can expect that throughout the next year, omnichannel UX’s will be very high on lists of priorities for e-commerce businesses.

No less important that maintaining a solid UX is ensuring that your fulfillment infrastructure is properly optimised to reach customers. Last year, online sales were expected to reach more than $420 billion by the outset of 2018. 48% of retail CEOs have stated that they will be incorporating ‘buy online, pickup in-store’ services to increase their efficiency.

If anything is clear on the road ahead, it is that the world of e-commerce is going to undergo a massive transformation as UX mobile optimisation and omnichannel personalisation coincide with the push for fulfillment efficiency. Although significant aving been part of the e-commerce community for challenges lie ahead, this is an exciting time and there will be the past ten years, if there’s anything I noticed about plenty of rewards for those companies who take the time to H2017, it is that consumer expectations have reached listen to the needs of their customers. an all-time high. We live in a digital age where customers not only expect dynamic marketing, but websites with solid desktop I hope you enjoy this month’s issue, and I wish you all a success- and mobile user experiences, alongside fulfillment strategies that ful 2018. deliver products ASAP. Yours Sincerely, In this issue we are looking at UX and fulfillment, as the focus Conchi Garcia point of the next year. As leader of ClubEcommerce, I encounter an incredible number of decision makers relishing the challenge of optimising their UX’s for the coming year, and it is in this sense that we should view the massive transformations facing the industry as an opportunity to progress.

Last year, most brands started to go back to basics, cutting the extravagant web designs down and opting for minimalist designs Conchi Garcia is Co-Founder and CEO of ClubEcommerce, a with simple navigation. However, few of those brands managed private club for executives of major online shops operating or wanting to meet consumer expectations across the board. Sites that func- to operate in Spain.

2 3 ~ Cross-Border Magazine ~ ~ Founder ~ INDEX COLUMN

3 FOREWORD Setting standards for delivery 5 COLUMN JEROEN LEENDERS These days, everything is about customer experience. It is the consumer who is in 6 INTERVIEW: GOOSECRAFT charge and expects a high service level when he or she buys a product from your 10 CASE: A SUCCESSFUL DELIVERY online shop. You as a merchant must perform well to keep your customers satisfied. 12 COLUMN: WIJNAND JONGEN Smooth and fast delivery and an easy return process are key factors when it comes to INTERVIEW: RAJA 14 good customer experience. Big online players understand that and set high standards CONSEQUENCES OF BREXIT 18 for delivery. An example of this would be the website Amazon, who deliver next CASE: THIS WORKS 20 day and even same day (within one or two hours(!)) in big cities. Lots of companies INTERVIEW: RANPAK 22 are following this example, like the Turkish company Getir, who deliver food and CASE: JOSH V 28 beverages within ten minutes in every part of Istanbul. That becomes more incred- 32 INTERVIEW: ISKN ible when you realize Istanbul has 15 million inhabitants and the city is over 1600 36 A COFFEE WITH ALEXANDRA VARLA km2. They seem to have created a simple solution, working with small, local retailers 38 INTERVIEW: ECD divided all over the city. For them, the next step is to conquer other international 40 COLUMN: LORNA BEAMENT cities with this business model. 42 CASE: CROSS-BORDER FULFILMENT 46 INSIGHTS: HOW TO GET THE RETURNS RIGHT What does this mean for the future of e-commerce deliveries? First of all, the con- 48 INSIGHTS: A GLOBAL ECONOMY sumer is getting used to free shipments, returns and fast deliveries. So far, so good. 52 PANEL However, what do you need as a cross-border online company 54 INTERVIEW: GETIR when you see that this is becoming the standard in all the coun- 58 INSIGHTS: WECHAT tries you sell? 60 SPOTLIGHT ON: THE GDPR Sounds familiar? In your home market, you will be able to com- pete with your local competitors when it comes to fast delivery. COLOFON But what about cross-border? Imagine you are a UK based PARTNERS online retailer and you have to send your packages from the UK to Spain. You will not be able to deliver next or same day. That’s FOUNDER & PUBLISHER JEROEN LEENDERS without the consequences of Brexit being taken into account, as EDITOR-IN-CHIEF NICO HOEIJMANS they are unsure yet. At this time, costs are simply too high and standard deliveries are too slow. So, it is there you will lose track EDITOR PHOEBE HARDING with local Spanish players. GRAPHICS DESIGN & LAYOUT FEMKE HOOGLAND

Interesting case, right? I believe so and that is why we will pay special attention to the future of cross-border delivery in this issue of Cross-Border Magazine. As always, I will say “read and learn” to be prepared for the next step in international deliveries. WEBSITE: WWW.CROSS-BORDER-MAGAZINE.COM

If you are interested in learning more about sponsorship or advertising opportunities or you would like to discuss creating a customised plan to meet the needs of your company, please contact: [email protected] The Cross-Border Magazine is owned and published by Salesupply Holding BV. No person, organisation or party can copy or re-produce the content of the Cross-Border Magazine or any part of this Enjoy reading! publication without a written consent from the editor-in-chief or publisher. The publisher, authors and contributors reserve their rights Jeroen Leenders, with regards to copyright of their work. Founder Cross-Border Magazine [email protected]

4 5 ~ Goosecraft ~ DEVELOPING A MULTI-CHANNEL BRAND: USING DATA TO DETECT CHANCES

Text: Nico Hoeijmans // Photos: Femke Hoogland

Leather: a beautiful, natural product used by Goosecraft to create unique jackets. Each product is unique in its own way, making it a very fashionable product. Located in Amsterdam in a brand new office, this brand has been working on their cross-border expansion. We talk to Goosecraft’s Co-Founder, Vincent van der Weijden, and Rob van Gent, E-commerce Manager, about a multi- channel brand that focuses on using big data.

wholesale retailer stores is falling, online is getting bigger every day. Despite that, When Goosecraft was founded in 2006, it was a leather Goosecraft only recently opened a mono-brand store in Am- Abrand that wanted to distinguish itself from other, tra- sterdam, believing it to be an important physical contact point. dition leather brands. Up until then, most brands using leather “It operates as an extension of our web shop as well. Besides, in were founded from a product specialism, making leather jackets your own shop, you are really capable of showing what you have and selling them. “We wanted to work with leather as well, but it to offer; to show what and who you really are,” explains Van der had to be fashionable, unlike the traditional leather store. With Weijden, “We are currently trying to create our own community, our ambition and our unique view on fashion, we wanted to be The Hidden Rebel Society, which shows our image and who we available in the better denim stores and high-end boutiques,” want to be. A little rebellious and tough. Our own shop helps says Vincent van der Weijden. people to identify with our brand even more. When they do, the step to making a purchase is a lot smaller.” In the following years, Goosecraft developed itself into a well- known brand in the Dutch multi-brand wholesale market, Going abroad: steps beyond the Dutch horizon becoming visible in shops. As well as that, it hopped on the online For Goosecraft’s Co-Founder, going cross-border was a no-brain- train, getting their platform ready. “This was necessary as customer er. The brand started selling internationally at a very early stage, behaviour was changing. The whole customer process, from orienta- as it was growing with the upcoming importance of the internet. tion to purchase, was influenced by the growing online possibilities. “Naturally, we have made some errors with this, as when you are A whole new source of information was available and even with a passionate about what you do, you sometimes want too much all unique product like ours, consumers no longer needed to go to their at once.” However, the fact that the world got smaller and smaller local hero. It was no longer a necessity,” explains Van der Weijden. because of online developments presented lots of opportunities.

With an established name in the Netherlands, new business, in Aside from the online opportunities, Goosecraft focused on general, is generated online. As the amount of brick-and-mortar the B2B wholesale market at that time and started selling in

6 7 ~ Goosecraft ~

multiple countries. Here, mostly cultural aspects were challenges. enthusiastic about our product but in the end orders on Amazon, “These days, we only ship size XXS to S to Japan. Did we know that is fine by us. We reached this customer and he provided us from the start? Of course not - in the Netherlands we produce with some useful insights.” up to size XXXL! Another thing we had to deal with was the different trading culture in, for example, southern European A step-by-step approach countries. We had to get used to that,” says Van der Weijden. Currently, Goosecraft is focusing its expansion mostly on the “When we go abroad these days, we know what we can expect.” German market. “We have chosen one region to sell, to see what happens here and how sales are generated from other regions. Focus on B2C This way, we can predict our next move. Our turnover is mainly In the beginning, Goosecraft’s focus was mostly B2B, selling to generated through organic and social traffic, newsletters and paid third-party sellers. It has changed from a wholesale company to advertising. We know that there is search volume in the German a multi-channel organisation, focusing on B2C much more as market, which indicates that we will be able to sell here. We well. “One of the main questions was whether we needed a web have learned from campaigns we held in last year which makes it shop. How would we do possible for us to act faster that? What would be the and with less mistakes than impact on our logistics before. It is like piloting.” department? For us, it really meant we had to define “IT IS OUR GOAL TO TARGET “As the German market our customer’s needs and is eight times bigger than translate that to what our the Dutch, it is quite the developers should create,” OUR CUSTOMERS THROUGH A challenge for us. We have explains Rob van Gent. “As learned from rushing in the we were starting our B2C past, as we are taking things activities through our web CHANNEL OF THEIR CHOOSING, step-by-step now. Analys- shop, we needed to focus ing what we should do to on B2C logistics, which is keep things right. We have completely different from IN THEIR TIME, THEIR PLACE IN got all the data for it, a lot B2B. Besides, an online of companies do. For most shop requests a lot of at- brands, it is a matter of how tention from the available THEIR MOMENT” to collect, process and use it. personnel - it was all very The data makes it possible new. These days, we are in to make accurate predictions control and we can work on turnover, for example for on our content, making the online store a brand experience. We the coming year. It is great science,” says Rob van Gent. shifted from a wholesale brand to a multi-channel brand.” Vincent van der Weijden: “Besides expanding, our future will be Van Gent explains how he started using data to expand the more and more about creating a brand experience, it is no longer Goosecraft business. “Lots of fashion retailers might underesti- telling customers what a nice product you have. The entire ride mate the importance of data. They might not be as cross-border for the customer has to be covered. They should be provided developed as they think. Our cross-border online channel with content at any moment in time they wish, showing who provides us with data to expand cross-border as a multi-channel you are. That’s why we work with ambassadors, people who our brand. Currently, we focus on Germany, specifically on a few customers can identify with. Luckily, in the Netherlands, there regions. We hired a country manager who will be in charge of are some celebrities who like our products and wear them.” setting up our brand. Gathering data from this region will help us predict whether, and where, a brick-shop will be beneficial. One of the biggest challenges remaining will be keeping all these It will become part of our brand, just like our online channels, channels in the multi-channel environment in line with the brand outlet and every retailer that is connected to us.” story. According to Goosecraft, eventually everything will become “Data helps to detect chances; helps us decide where we should custom-made. “As you get to know your customers better and bet- invest first and how we should do it. Of course our web shop can ter, we will be able to provide our customers with a custom made perform on the side, in a supportive role. But it will be providing story,” says Van der Weijden. Van Gent ads: “It is our goal to target the brand experience more than it is a shopping platform. This our customers through a channel of their choosing, in their time, way, it might be the case that we expand in Japan in full focus on their place in their specific moment. It does not matter whether wholesale, while we will be a pure Amazon player in the USA,” that is in the Netherlands, Germany, Japan or the USA. It might Van Gent continues, “We have rebuilt our online channel for be difficult, but we will get there. It will all be about the user expe- this only recently. Our web shop runs on a Magento 2 platform rience, and the interpretation of available data will help us.” •• now. Its sole purpose is not to generate sales. If a consumer is

8 9 ~ Trusted Shops ~

Logistical challenges of furniture. Furniture is best shipped with other furniture; other A PERFECT SALE The supply chains of furniture companies are complicated and products tend to damage the goods and flat pack furniture allows extensive: retailers get their inventory shipped from the manu- to be stored in a way that the packages interlock, to prevent facturer to a warehouse or storage unit and then ship it out to shocks from bumps and fuel stops. “For the retailers who do not customers, involving (inter)national and local shipping com- ship their furniture flat packed like us, it is important to know INCLUDES A panies. Especially when shipping to customers abroad, retailers that furniture is best handled manually, as forklifts and cranes not only have to consider the practical implications of shipment, are likely to damage the furniture too,” states Hendriks. but also take legal implications into account. When shipping products cross-border, furniture companies have to abide by Logistical opportunities state laws, whether it be tax regulations, customs or packaging A successful product delivery is just as, if not even more, impor- SUCCESSFUL restrictions. Depending on political issues, retailers might face tant than good customer service. When the furniture has made disruptions in the supply chain like port- or airstrikes, which it through the entire supply chain in a perfect state, this logically likely disrupt the delivery process in the long-run, which results leads to more recommendations and positive reviews. Successful in late delivery or worse case, loss of goods. shipping results in increased consumer trust. The last part of the DELIVERY supply chain is also crucial for this positive customer experi- On the more practical side, retailers must ensure that products ence: the home delivery. Rivièra Maison offers, for instance, are shipped safely, so that the furniture arrives in one piece, the so-called white glove delivery service in the Netherlands. Text: Tim Heinen, Trusted Shops // Photos: Rivièra Maison without scratches, tears or dents. Sophie Hendriks, E-commerce The delivery experts handle all furniture manually, carrying the Manager at Rivièra Maison recognises these challenges, as furniture upstairs and placing the furniture on the desired spot they operate and ship internationally. Hendriks explains: “Our in the house. “Quality furniture should be handled by specialists handmade furniture is shipped internationally in its original throughout the entire delivery process. Our delivery experts are shape, from the supplier to our warehouse. Because our furniture trained to set up, level and maintain our furniture. We value our is not flat packed, it is shipped in large containers by boat. We customer’s enthusiasm and happiness,” concludes Hendriks. then ship it to the customer from our warehouse in Amsterdam.” Although a lot of furniture is made by real craftsmen who use Another opportunity to increase trust in the logistics process lies prime quality materials, the process of loading and transporting in offering customers the option of buyer’s protection. Buyer’s always involves a risk. Rivièra Maison has a fluent and well- protection from Trusted Shops provides extra security so, in case managed supply chain, but inevitably it has dealt with occasional something goes wrong with the logistics process and the parcel logistical challenges. “Our in-house designers once designed a does not arrive, the customer receives a new product or refund. beautiful wooden cabinet, which was literally one inch too large Online furniture retailers are likely to benefit from this extra to be shipped on a single pallet. It had to be shipped on two pal- security option. Customers tend to hesitate more when it comes lets instead, increasing the transport costs immensely,” explains to purchasing larger and more expensive goods like furniture. Hendriks. Trusted Shops’ buyer’s protection provides the extra insurance that the purchase is safeguarded. •• Logistical solutions Fortunately, most of these challenges are preventable. First and foremost, it would be advisable for smaller retailers to consider drop-shipping as a fulfillment model. Drop-shipping allows retailers to buy products individually from a wholesaler and ship them from the wholesaler directly to the customer. This shortens the total supply chain significantly and saves the small retailer from duties that are inevitable when holding inventory, such as keeping track of the inventory, stocking up and renting a warehouse or storage unit. For larger retailers, it may be more cost effective to manage the inventory themselves, especially when design and/or production is carried out by the company itself. “Although drop-shipping holds many advantages for other retailers, we manage our own inventory for two reasons. The first reason is quality control; we like to check the furniture before we ship it out to our customers and secondly, our products are Recent furniture fairs such as imm cologne and Stockholm Furniture & Light have inspired also sold by large resellers. These resellers also need to be able to access our inventory, without having to contact our suppliers,” many people to change their interior with new furniture. This furniture is often ordered explains Hendriks. online, and it is of great importance that all parts get to their destination damage-free. Al- though this shipping process plays a crucial role in the customer experience and therefore af- In terms of practical challenges, there are some rules of thumb that need to be taken into consideration to ensure safe shipment fects the webshop’s reputation, the logistical aspect of e-commerce is often forgotten about.

10 11 ~ Column ~ June 19 - 21, 2018

Queen Elizabeth II COLUMN Conference Centre, London

ARE WE READY FOR THE END OF ONLINE SHOPPING?

We can expect the next decade to be an important one for retail. The changes that are coming to the retail sector are unprecedented in its history. To understand these changes, we have to recognise that they are part of a wider pattern of transformation. Traditional retail business models and boundaries have begun to blur, and will disappear altogether in due time. Offline and online will become one with consumers both buying products and services online and online in store. With a term borrowed from the Italian philosopher Luciano Floridi, I call this onlife. RETAILERS GET 25% OFF ffline and online become onlife The blurring of boundaries between online and life, TODAY WITH Obetween offline and online and between work and home, make everyday life an onlife experience. The way we work, learn, DISCOUNT CODE: maintain our relationships, care for others, serve as politicians and even fight wars have all been altered profoundly. The onlification of society hugely impacts the way we shop. Retail is being transformed. ETUK18CBM Analogue becomes digital, vertical becomes horizontal, centralised becomes local, top-down becomes bottom-up and bureaucracies are replaced by networks. These are all manifestations of how the structure and the balance of power of retail are changing completely.

Onlife retail The retail and service sector will be swallowed up by onlife retail, a new economic order. Consumers will see shopping turn into a full-blown onlife experience, where it is no longer relevant that there are online and offline sales channels. For businesses, online and offline sales channels will merge as the boundaries between sectors and fields of business start to crack under pressure. All The Conference For eCommerce & Omnichannel Innovators the participants within retail — retailers, producers and consum- ers alike — will be enticed into new roles.

Over the next decade, millions of shops and service providers will change from traditional business into connected shops, serv- ing as places for inspiration, experiences, showcases and service centers. New 24/7 shop concepts and smart apps are going to provide the consumer with ways to scan and buy anything and everything they encounter in their everyday lives. At the same time, millions of web shops and online service shops will have to transform from old fashioned 21st century middlemen to In ‘The end of online shopping’, Wijnand Jongen describes the future of retail in a world that is shopping environments that provide added value to consumers always connected. This is the first of a series of columns for Cross-Border Magazine in 2018, where in their daily lives. Wijnand will describe four global retail trends. Wijnand Jongen (1959) is one of world’s foremost authors, speakers and futurists on retail and The instant consumers are able to complete the online retail experi- e-commerce. His book was nominated best management (2016) and best marketing book (2017). ence they started at home, on the road, in the shopping street and He is founder and CEO of Thuiswinkel.org and Chairman of the Executive Committee of Ecom- online in-store – that is when the end of online shopping is truly merce Europe. near. The big question is, are they – are we – ready for it? •• Register Today! 44 20.7368.9465 · eTailEurope.com · [email protected]

12 13 ~ Raja ~ THE POWER OF A SMART PLATFORM

Text: Nico Hoeijmans // Photos: Raja

As a retailer, you inevitably need packing materials for your products. Whether it concerns boxes, bags, tape or another kind of packaging, you cannot go without it. Raja, a French based company, provides packaging solutions in seventeen European countries to make sure you can ship all your products well. Emmanuel Faux, e-commerce and IT manager at Raja, speaks to us about their smart platform.

Catalogue Company Getting Sm@rt Raja was founded almost 65 years ago, selling cartons In the early days, the Raja site was not as developed as it is now. Aand other packaging solutions. With an eye for the B2B The online shop offered an online catalogue and the possibility to market, Raja created and distributed catalogues among prospects order online. As the international expansion grew, the shop ex- and companies that would, and could, be interested in their range panded with it, adding new languages and multiple new features. of products. Without the easy to go internet solution to present all available articles, this was a clever and inventive way of presenting “Our first platform was more of an online catalogue. As the B2B your collection of products. It was something that worked advan- market in general is slower at implementing demands and wishes tageously and generated sales. Since that time, a lot has changed. that are the norm in the B2C market, we developed later. Big These days, Raja is an international omnichannel retailer in online institutions, like Amazon, set new norms here. Since our first packaging materials, with a wide international presence covering platform, we have rebuilt it multiple times. We started the first real seventeen European countries via twenty-one subsidiaries, and is platform on an IPROX-solution. As offline and online expan- offering a wide range of over 10,000 products. With 190,000 m2 sion moved forward, we added more and more countries to the storage space and over 500,000 B2B customers in Europe, Raja is system solution. The platform got bigger and bigger and got a little one of the key players in the European packaging business. obsolete. We had to add each new country manually, as well as each feature - build it from scratch,” explains Faux, “Once our service As the importance of internet rose, Raja stepped into the online contract expired, we decided to start from the beginning. By that business as well. While in the early days, customers usually or- time, Intershop and its business partner Datasolution supported dered through the catalogue or by phone, this shifted to the online us and we decided to build the platform provided with software website. As the extensive range of products grew even more, the from them. It took us nine months to build the French version, and online platform was the easiest way to display all products. “These another nine months to deliver a solution for all other countries.” days, the e-commerce platform has become an important aspect of our business. Currently, direct sales from this channel are up to The biggest difference for the new platform, called the Raja Sm@ 40% of all sales, being about 30% of all turnover,” says Faux. rt-site, was the vision Raja developed using their old platform.

14 15 ~ Raja ~

They developed a broad idea of how they wanted to work with providing an excellent service. When you call us, we try to find a the new e-commerce platform - bringing stable architecture to solution for every possible packaging problem.” the main ‘blank’ version. Emmanuel Faux: “This way, adding new Another bestseller features only requires a developed core model. We can implement This is also why customers can order the way they prefer. Emma- this to the platform and adapt it for every country we manage. For nuel Faux describes that there are differences between customers: example, we could round prices the way customers in the United “E-mail is used more by our very big customers, with whom Kingdom are used to, which differs from consumers elsewhere in we have signed a contract. They are used to buying from our Europe. That’s the benefit of the core model, it allows us to add platform on a large and frequent basis. They trust us so much; for your shop: trust. specific services we can activate for specific countries.” an email is sufficient for them to place an order. New custom- ers in general come in through our e-commerce platform or call UX to gather information on the possibilities at Raja.” says Faux. The trust brand, eTrusted, off ers all the tools and services you need to boost Having such a modular version of the Raja Sm@rt-site comes “Other customers have tailor-made deals and wish to set up a with more benefits, for example when looking at User Experience connection between their own ERP (Enterprise Resource Plan- and show trust during the digital transformation. (UX). It helps developing what customers want. “As digitalisa- ning) and our ERP, or they prefer an own account manager. We tion is an ongoing process, this will never stop. Just look at new now are really flexible in offering these tailored solutions.” payment methods that can be added! We are running a chatbot- service at night in the UK and, becoming more popular every day, As the global market is growing and economic welfare is rising, are thinking about a required voice interface so our customers can the packaging market grows as well. European consumers buy Trusted Shops order their packaging solution through their Google Home de- more and more online, which makes the demand for Raja- vice. We do not know what is coming yet,” says Emmanuel Faux. products higher than ever. With Raja’s Sm@rt-site e-commerce The trust standard for European online shops thanks to platform, users become self-sufficient, making their only mo- the trustmark, customer reviews and the money-back Raja is working a lot with UX these days. “Paying attention to ments of contact the placement of the order and the delivery of the customer journey is what we are really trained to do now. it. What easier can it get? “We will follow new trends and will guarantee We can identify what our customers want. This way, we can see which are useful to them. The B2C market provides great build and implement features they want to use. You do not come insights. We’ll see what happens. Lots of great features are there to the Raja platform to buy an iPhone or look at clothes for a to make the lives of online retailers easier,” says Faux. •• whole afternoon - they differ from B2C features. Our customers Trusted Enterprise have specific needs and we must work with that. We work with the principle ‘What would make our user’s lives easier?’”. “Raja presented many complex but interesting demands Customised feedback solutions for large companies and for their B2B-webshop to us. Having over 500.000 institutions transcending the borders of conventional The future of packaging customers to serve, coming from 14 countries, buying As the international B2B customers are demanding more and well over 10.000 products it was clear to be a challenging e-commerce more, Raja has a domestic international strategy to provide and demanding project.”, says Toufik Boudellal, Coun- their service. Warehouses are stationed all through Europe and try Manager France of Intershop. “After a thorough call centres are mainly domestic. “To be competitive, Raja does selection process, we demonstrated that Raja and the Excellent not try to be the cheapest, we try to offer the best service. Our Intershop are a perfect match, mainly as a result of the Trusted Experts service is where we can impress our customers. Local support extensive standard B2B-functionality of our Commerce Standardised and customised solutions granting full and being close to the customer is what matters. It is when Suite and the ease to manage this centrally and expand our customers have a problem that we can help them most by to new countries easily.” legal security to companies of all dimensions 4.85/5.00

Certified website

Speak with our advisors without any obligation:

[email protected]

16 17 ~ Brexit ~

that you only pay import duties when the goods will ultimately possible to benefit from a duty exemption which is currently leave the warehouse for delivery. If goods are delivered from a available for shipments up to €150. However, from a VAT per- CONSEQUENCES customs warehouse in the EU, and ultimately go to the UK, pay- spective the question would be whether an import in the name ing import duties in the EU will be prevented. The same applies of the individual consumer (to which the €150 does not apply) to distribution from the UK. would allow for a refund of the VAT paid at import in the case of returns. Since this is unlikely, that would require the seller to Local Hero concept: import the goods and therefore to register in the UK. OF BREXIT FOR THE Maybe the most promising alternative is the Local Hero concept. In this concept, local network partners are linked to By extension it follows that it might be beneficial to start ship- Bleckmann, making it possible to make deliveries on time. ping from a warehouse in the UK – also to avoid increased lead Distribution is ensured from warehouses and delivery to the times. A separate (additional) warehouse location of course also LOGISTIC SECTOR final customer is in time. It is a solution in which you are not means additional costs, not only the location and its services, but bothered by the limitations that arise from Brexit. also related to the additional stock required and the consequenc- es of return shipments. Text: Marjolijn Uringa, Nico Hoeijmans // Photos: Stock E-commerce It is clear that the consequences of Brexit for the e-commerce Additional complexity on returns market could be substantial, as e-commerce is typically a high Within a single market or a customs union, return shipments The UK leaving the EU will have a big impact on many. This also applies to the logistics sector volume, low value business. A vast number of transactions are are not to be a major problem. Returns can be re-sold anywhere and it is important to keep a close eye on developments to prepare for what is coming. The most performed and, especially for garments, the level of return ship- within the single market without additional duties becoming ments is considerable. This is already an issue within the single due, making effective use of the available economies of scale. important thing for logistic companies is that the consequences that customers may face remain market of the EU and is expected to become even more cumber- With the UK becoming an own market, the EU market will as limited as possible. some for cross-border EU-UK trade. only become somewhat smaller and will still offer considerable economies of scale. However, the question is whether the UK The new year has only just started, and March 2019 still seems far away. However, Bleckmann As indicated before, the EU customs legislation which is likely to market would be large enough to offer this scale needed for and partners are already fully anticipating for the changes Brexit will bring. As a provider of full be copied in the UK after Brexit does not include an option for companies to operate profitably. Because of the decreased market refunds of duties paid other than situations where goods are defect size, prices are likely to increase in the UK, and in some sectors, supply chain management solutions, we understand the major consequences of Brexit for the or do not meet the contractual agreements. This means that once there may be a new focus on ‘homegrown’ for a number of cat- logistics process. The irreversible growth of e-commerce, the market (and customer) demands for goods have been customs cleared for free circulation and without egories that were previously imported from the EU. 24/7 delivery and service mean that it is time to take measures. a customs union in place, the goods will be subject to duties upon arrival in the UK again. For example, duties have been paid (a The impact on UK e-commerce business that do low value ship- common rate for this is 12%) for circulation in the EU upon arrival ments might be limited at the beginning due to the low value from the manufacturers in the Far East. However, there is no option import VAT (€22) and customs duties (€150) relief. However, as the hat are we dealing with? to claim these duties back when the goods are sold and shipped EU envisages abolishing the VAT exemption under its Modernising There will be important changes in law and regula- Within the EU, there is a customs system that does not allow a to customers in the UK. It means that these rates have to be paid VAT for e-commerce plans, this would only be a temporary relief. Wtions. Enforcing these new rules lead to uncertainty, refund of once-paid import duties (wrongly delivered goods exclud- again upon arriving in the UK, effectively another 12%. In order to both in terms of legal aspects and practical implementation. Is ed), so additional payments have to be prevented (goods returning avoid the initial duty payment at arrival in the warehouse, a customs Due to the added cost of customs declarations and additional time there sufficient manpower in the government services? Are there to the EU and UK and already paid duties). It is expected that the warehouse would be required. Even though a customs warehouse is required for goods to reach their destination, certain e-commerce enough physical accommodations available? In the UK the exist- UK initially will take over the EU customs legislation, as a result of merely an administrative process, it will result in additional compli- models which include the UK may no longer be viable. ing customs sites (i.e. Dover) were sold, this means that there are which this problem plays equally well with goods that are first im- ance costs. In addition, logistics expenses related to the export and currently no customs locations. That is an operational challenge ported into the UK. To ensure that import duties are not paid more import formalities and waiting time for customs clearance are to be This article was created with the help of Jos Verstraten, Senior for the UK. However, there are also challenges on the European than necessary (so only once), there are a number of possibilities. considered, not to mention the foreseen increases in lead-times and Director of Customs and International Trade at PwC. •• side, because for example in Hoek van Holland, the Netherlands, potentially associated decreased client satisfaction. there is no longer an active customs post either. Managing the logistic consequences of Brexit There are some ways to deal with the results of Brexit. In an effort to combat the fraud in e-commerce and pro- Customs controls by the authorities will have a direct impact on grammes for reduction of the administrative burden, the lead times. Now, logistic companies can accurately indicate a lead Inventory management, a local hub: European Commission has proposed a plan that combines VAT time almost up to the hour, checks and extra customs formalities A solution to keep lead times manageable is to create a local hub payments and a fast-track procedure for customs in a One-Stop- will lead to less grip on the supply chain. Checks will be time- in the UK. Investigating the possibility to arrange warehousing Shop system. This will ease some of the administrative burdens consuming and must be carried out directly at the border. As a in the UK and on the main land allows a quick, and efficient on the EU side post-Brexit. However, this proposal by the Com- result, the entire chain can suffer from this and speed will fall. delivery to e-tailers, retailers and wholesale. It would mean that mission still needs to be approved by the member states, after Supply chain consequences of Brexit The changes in the field of customs require smart solutions in the extra stock is in the books and research for a separate, local hub which implementation is only foreseen in 2021. • Customs controls instead of free circulation supply chain. The irreversible growth of e-commerce means that is necessary. You need to wonder whether there is enough critical • Possible doubled import duties (1x EU and 1x UK) a continuous flow of goods crosses national borders from and to mass to justify local warehousing commercially. For an e-commerce business, an additional aspect would be who • Increased logistic expenses and lead times the UK. Within the European Union, passing customs borders is to use as importer/consignee for shipments. If the importer • Profitability of reselling returns mostly a formality. With the UK leaving the EU, the free circula- Customs storage: would be the individual consumers, there would be a significant • Price increase tion of goods ends, and an extra customs border is added. The main advantage of storing goods in a customs warehouse is increase in declarations. However, in this scenario it may be

18 19 ~ This Works ~

Joe Fletcher is E-commerce Director at This Works, a skincare brand founded in the United THIS WORKS: Kingdom, providing intelligent, targeted skincare solutions that work with your body clock 24 hours a day. As the brand is growing fast and has an international focus, it deals with new FACING THE CHALLENGES demands from customers all over the world. How does This Works meet this increased demand OF A HIGH DEMAND IN and what are the main challenges This Works face in doing so?

INTERNATIONAL MARKETS his Works sells its product direct to consumer and getting the product to the end consumer. eShopworld helps to third-party sellers all over the world. With their us by providing us a checkout solution that removes difficulty Town web shop and the channels from these third- in different countries. Localising all these consumer touch- party sellers, expansion of the business goes fast. These days, points, for example in the field of pricing, currency, language, Text: Nico Hoeijmans // Photos: This Works the B2C channel approximately accounts for 25% of the total and address capture, makes it possible for our cross-border business. The other part is a combination of brick-and-mortar consumers to have a friction-free purchase. Removing these shops and retailers like John Lewis and FeelUnique. barriers to conversion for our international consumers was one of the key elements of our collaboration. This way, it Being able to sell cross-border isn’t always easy. “It is about is possible to have the local end-consumer pay with their understanding the needs of your consumers and meeting those relevant payment methods for example. From that point, we needs. What do they want?” explains Fletcher. “Our key drivers can build.” of growth today are the UK and the US. The UK accounts for 80% of turnover online. To continue to grow at this pace, it The Deep Sleep Pillow Spray was important to investigate international (e-)commerce. With Working with a partner offers This Works an opportunity to traffic on our web shop coming from over 130 countries, we reach a new international customer. Determining the potential can conclude there is a demand for our product.” value of a new market often comes down to testing and find- ing the appropriate routes to market. “Our Deep Sleep Pillow Entering new markets Spray is often the first to gain traction. We position it as the So, how do you enter a new market? Fletcher: “Our third- first step in a skincare regime and it has excellent cut-through party distribution and direct sales are growing significantly, for customer acquisition. Based on this product, we build our both in the UK and particularly overseas in this case. There is full 24hr skincare story. So, this product is a great way to get an opportunity for the direct channel to harness the grow- our brand in front of a new consumer whether in the UK or ing awareness. We are expanding into China, focusing on big internationally. The focus then shifts to how we meet that European countries, like France, with growing demand in demand, which can be more challenging internationally. That’s the Middle-East and into East Asia. Collected data from our where a solution like eShopWorld comes in. We are a problem- online channel and third-party sellers gives us valuable intel- solving brand, at least in the field of skincare, and this strategy ligence we’re able to use.” to enter new markets requires us to remain innovative across the business, from the science behind our products to the sup- On This Work’s channels, traffic is generated from over 130 ply chain and e-commerce technologies.” •• countries. Up to this moment, it hasn’t always been possible to provide the necessary services to meet the demand in these territories. “We currently still have too much of a one-size- fits-all model for that. To continue to grow, it is necessary to be able to deliver services in more countries.” says Fletcher.

This Works started to work with eShopworld to make this possible. “We have all data available, both from our B2C channel and our third-party sellers, to decide what markets are currently interesting for us. What we learn from our third-party businesses is very valuable and makes it easier to decide to what new territories we want to expand. It would be foolish to ignore these opportunities. With the help from eShopworld, we can offer our products in these new markets without the need of having extensive resources and taking unnecessary risks.” says Fletcher. “They facilitate the trade with these new territories, the underlying infrastructure and

20 21 ~ Ranpak ~

THE STRENGTH OF PAPER: THE NEXT LEVEL OF SUSTAINABLE PACKAGING

Text: Nico Hoeijmans // Photos: Richard Driessen, Ranpak

Are you selling fragile products in your shop? Or do you have to ship larger, heavy products? How do you pack these products when a combination of the two types is ordered? Packaging isn’t as easy as it may seem. Andries Bolding, Key Account Manager E-Commerce and Erwin Methorst, Manager Packaging Engineering at Ranpak talk to us about the advantages of paper and the developments in packaging.

lastic Soup Ranpak differed from the start. The product that was used for Ranpak was founded in 1972 with the goal to create packaging should in the first place be useful, but just as im- Penvironmentally responsible packaging material. At that portant was to not harm nature. As the power of paper is not time, most materials used had proved to be useful as packaging commonly known, it has given Ranpak both advantages and materials but were harmful for the environment, examples of challenges. “People are so surprised to see how flexible paper which include polystyrene chips and plastic. The new packaging is and how well it performs that on first sight it is almost too material had to be the perfect cushion and protection for prod- good to be true. That can make it difficult to convince them to ucts during shipment and not harm nature. As discussions about choose this packaging solution. However, when they see how the plastic ocean and the environment continued, Ranpak de- well it protects, and that is something we can make visible, veloped a friendly packaging alternative: a paper solution. Ever they are most often quickly convinced,” says Erwin Methorst. since, Ranpak has developed its product to protect all goods that “People really gain insight into what wrinkled paper can do need to be shipped in an effective, environmental friendly way. for their products. Often a switch to paper and some simple packaging tricks improves a whole packaging operation, but The Power of Paper more importantly, the quality of the packaging.” For some, paper might not look like the strongest or safest way to pack products. There seem to be more typical solutions Ranpak invested in a packaging lab, to find the best balance be- like foam, (polystyrene) chips, or bubble wrap. The vision of tween performance and cost. “Here, we measure the protective

22 23 ~ Ranpak ~ Exceeding Customer Expectations performance of the paper cushion pads that we use, as we have Testing whether paper packaging is working well for a product different kinds of paper. We have developed so many package is important. As Methorst is explaining how drop testing designs that meet, or in most cases exceed, the set requirements, works – a small accelerometer is attached to the packed prod- Intershop’s Order Management System enables enterprise wide they can come at a lower cost.” uct and sends data of the impact of the shock to a computer – he points out that it is statistically proven that the bottom of visibility of inventories and omni-channel routing of orders. This The Test a box is usually its most vulnerable side. During the drop, the will result in the perfect omni-channel customer experience in all One of the most important accelerometer measures touchpoints. tests executed at Ranpak the force of the shock as is the drop test. The drop, well as the duration of the Intershop, the e-commerce pioneer, provides the highest rated and the impact it has on “RANPAK DEVELOPED shock. “The impact will commerce solution in the market. We advise and support busi- the packed products, is differ in relation to the measured. Imagine you are packaging material that is nesses in the digital transformation of their sales and transaction selling products like glass A FRIENDLY PACKAGING used.” processes. On the basis of our leading commerce suite and synaptic bowls. Fragile products, partner technologies we develop tailormade strategies and solu- often with unusual shapes As we test this with a that do not always fit into ALTERNATIVE: A PAPER headlight for a car and tions driving the online success of you and your business. any available box. Currently, two different packaging your first thought might be materials (foam and paper), to fill all empty space with- SOLUTION” the outcome is amazing. www.intershop.com/order-management  in the box so the object is The impact of the drop no longer able to move. This was much lower on the can for example be done with foam, chips, bubble wrap or plastic. package where paper was used. “This is a typical result when we A sustainable alternative is wrinkled paper and a simple technique do testing for our customers. Our paper solution does extend the that makes it impossible for the bowl to move. “When using a duration of a shock. This results in a lower impact on the packed simple trick to keep the product in the box still, placing the paper product. It creates a valuable buffer that other materials do not in a certain shape, for example a cross, means you need less filling provide in the same way,” explains Methorst. “We have provided material - while you get even better results,” says Methorst. solutions for many of our customers, from small and extremely

24 25 ~ Ranpak ~

fragile items like glassware, all the way up to heavy industrial unpacking experience,” says Bolding. products like pumps and drives. We even succeeded in finding a Changes in commerce perfect solution for a Porsche engine in paper.” As the online and offline markets are changing continuously, so is the business of Ranpak. “What we see is that e-commerce is Taking advantages to the next level stirring up the market, requesting quicker delivery every day. The The strength and buffer effect are only two of the advantages need to provide easy going processes and solutions is higher than How to send 323% more packages per employee? of paper packaging. “Paper in general is recycled up to seven ever. Especially the speed of packaging is increasing. This asks for times before it is disposed of. Paper is one of the first things to machines and automation processes we can provide,” says Bold- be recycled, ever since individuals began separating their waste,” ing, “Our machines have a high output, and we provide every Start your eCommerce success story this winter and says Methorst. As more retailers are aware of their environmen- new customer with decent training and setup of their packaging rely on the pixi* eCommerce WMS solution! tal footprint, they are looking for more sustainable solutions. “A department. This way, machines and materials are used in the great example of this is a big furniture company like a Swedish right manner. Most of the time they can speed up their processes furniture company,” says Andries Bolding, “When you take a and use less materials than they did before.” look at them now and a few years ago, they have changed a lot.” Explore the Flexible & Scalable Solution for Effi cient Order Processing in Before, they used a lot of plastic and foam packaging for prod- Another important aspect is the automation of certain processes. eCommerce & Omnichannel Retailing! ucts. As e-commerce got more important, delivery got quite a Packaging tables will disappear more to the background of boost for them and the need for a sustainable packaging solution companies. Boxes will be provided with less extra, empty space. became more valuable. “They have shifted almost completely to And while there will be less packagers, they will always remain using carton now.” connected to the process, guiding the machines to do their work Warehouse properly. “There will always be big boys who have the resources Another benefit from the use of paper is that it comes with a to go for full automation. But it is more likely a hybrid model Supplier Customer more natural, uniform look. “Bubble wrap for example has a kind will come up, where packing will remain the main focus,” con- Deliveries Pick Pack Ship Carriers / Routing of industrial look. It does not sparkle when someone receives cludes Andries Bolding. ••  a package this way. Paper is available in multiple forms and, if you wish, colours, giving you the possibility to give your package Returns a more uniform, less industrial, balanced look.” This is becom- ing increasingly more important for e-tailers. “It benefits the   API Messaging EDI

Orders

Channels ERP

Descartes pixi* customers achieve a ROI within 12 months or less. With Descartes pixi* WMS, you can grow without additional manpower, get ready for same day delivery, minimise error rates and scale your business for further growth in the domestic and international market.

www.pixi.eu/success

26  +49(0)89 961 60 61 -27 60  [email protected] ~ B2C Europe ~ B2C EUROPE THE PERFECT FIT FOR DUTCH FASHION BRAND, JOSH V

Text & Photos: B2C Europe

Dutch fashion and lifestyle label JOSH V was founded by Amsterdam-based fashion de- signer and entrepreneur Josh Veldhuizen in 2011. Josh launched the brand with the aim of producing highly accessible, yet still luxurious clothing that ‘make women’s hearts worldwide skip a beat’.

ver the past six years, JOSH V has become one of the ing a local returns address added to an already costly process. fastest growing fashion and lifestyle brands in Europe, Owith collections available in nine countries. While the Without the strong negotiating position which larger, more Netherlands remains the brand’s primary market, demand is established players enjoy, the JOSH V team needed to look quickly increasing, particularly in Belgium and Germany. elsewhere for bulk-buying power. E-business manager Bob Jaspers Focks said: “Our delivery partner at the time was The challenge failing to be cost-effective for us as a growing brand. We also To respond to the new interest from Belgian and German felt that we were unable to create a personalised experience consumers, JOSH V wanted a cost-effective way to ship an for our customers in each country using the services we had increasing number of parcels to these markets, as well as available. We wanted the last-mile courier to be recognis- to other European countries. As an e-commerce seller, the able to the recipient and to ensure that the returns address company initially struggled to make shipping across borders was a local one. Ultimately, we wanted to create a perfectly cost-effective. The brand simply didn’t take enough orders to localised experience for consumers in each country, at a make bulk deliveries feasible and the requirement of provid- reasonable price.”

28 29 ~ B2C Europe ~

JOSH V needed a specialist, adept at managing the vary- Full implementation of the service, which included a tracked ing levels of delivery-friendly infrastructures in place for service and returns services across Europe, was completed e-commerce in each region. Jaspers Focks continued: “Each within three months. country varies in terms of how customers want to receive deliveries, whether that’s collecting from a drop-off point or The benefits receiving their parcel at home. We needed a delivery partner JOSH V has benefited from the local power and presence who had experience and could negotiate these differences on of B2C Europe. The team no longer needs to be in contact our behalf.” with each of its local delivery suppliers to ensure parcels are delivered in each of their customer territories, freeing up time The solution as well as removing logistical headaches. JOSH V engaged with B2C Europe, following a review of JOSH V has also made significant savings through B2C’s the distribution services bargaining power to ob- provided by a number of tain good rates from sup- different companies. The pliers. These savings have fundamental reason be- “ULTIMATELY, WE WANTED been invested elsewhere hind JOSH V’s selection in the business to drive it was the framework of forward – helping JOSH warehouses and interna- TO CREATE A PERFECTLY V significantly increase tional delivery partners. the volume of parcels it This would provide the can manage. fashion label with a local LOCALISED EXPERIENCE hub in each country. Bob Jaspers Focks com- mented: “We have a Bob Jaspers Focks com- complete solution now. mented: “It was clear FOR CONSUMERS IN The service has matched that B2C’s international quality with affordability structure would provide and has been exactly what us with a cost-efficient EACH COUNTRY, AT A we needed to overcome solution and mean that the cross-border delivery we could provide a truly challenge we were pre- localised service for our REASONABLE PRICE” sented with as a growing customers no matter business. During peak where they are based. times, JOSH V now has What’s more, the European hubs and the vast number of days when thousands of orders are received. With the busi- carrier contacts available to the organisation means they’ll ness picking up, the JOSH V team is confident that we have a always find the right price and will deliver on exactly the solution that will scale up as we continue to grow and expand service we need. It was a straight-forward decision really.” internationally.” ••

30 31 ~ ISKN ~

TO THE DRAWING BOARD: EVOLUTION OF A KICKSTART- BRAND

Text: Nico Hoeijmans // Photos: ISKN

Clément Rosset is Head of Product at ISKN, a French-based tech company which created a product called the Slate, a drawing pad with which you digitally draw on paper. It is an ambitious project that is executed with a global view. Rosset talks to us about how ISKN was founded, how they target their audience and how ISKN is dealing with growing pains.

ickstart was launched to gather funds to make their dream-project real- ISKN was founded by Tristan Hautson, Timothée ity. While the initial goal was to gather $30,000, the campaign KJobert and Jean-Luc Vallejo. They met at the French raised almost $350,000 after its first month. Starting on Kick- research institute CEA-Leti where the idea for the technology starter was making an obligation to your investors; ISKN had to used in the Slate was developed. “They wanted to do something deliver a product to all people who contributed. with their idea, not just letting it remain a project forever,” says Rosset. Therefore, in September 2013, a Kickstarter campaign “That’s when we really had the urge to create our product, it is

32 33 ~ ISKN ~

why ISKN was founded,” comments Rosset. After working for work, sales are rising. The popularity of the Slate is growing. This more than a year, at the end of 2014, all Kickstarter-contributors comes with several, practical challenges. For ISKN, the biggest got their first product. challenge was dealing with the logistic department. “As demand was pretty high, and we shipped all our products from France, we After this successful start, ISKN continued with the development could not always deliver to the expectation of the customer. In and optimisation of the Slate. Initially, production took place 2017, we changed our fulfilment strategy. We decided to create lo- in France, but as the demand of the product grew and certain cal stock in Europe (France), the USA and China. These changes fabrication components were harder to get, production was moved in our supply chain gave us multiple advantages. Firstly, shipping to China. Here, these components were available. “For us, it was stock to the USA is faster and cheaper than it is to ship every- great that we met a French manufacturer who produced in China. thing to Europe. Secondly, we can ship orders in China and Asia It was very convenient for directly from our warehouse us to move to China with in China. Finally, during him, while there is a big peaks, like the holiday difference between Chinese period in November and and European manage- “FACEBOOK MARKETING December, pressure on our ment. This way, we would logistics department is di- be dealing with a European vided among the warehous- management while our IS BIG BUSINESS” es where we keep stock.” production costs and times were reduced when produc- B2B ambitions ing in China,” says Rosset. While ISKN is growing rapidly and will always be active on the B2C market, the compa- “Upscaling in production made it possible for us to start selling ny will focus itself more on the B2B market too. Rosset: “We are through more channels. We started selling worldwide, which currently selling the Slate 2+. We will develop this product even is necessary with a niche product like ours.” In 2016, the Slate further, launching new generations. But we have other ambitions was available in retail for the first time. “We started collabora- as well. Recently, we have started to sell through Amazon, which tions with retailers like Moma design store, FNAC and Saturn,” is a delightful surprise. We even implemented an Amazon but- continues Rosset, “It resulted in a change in sales. In the early ton into our UK website, as we noticed that most customers in days, about 90% of all turnover came in through online sales. In the UK buy on Amazon anyway. We’ll be starting with Amazon 2017, this shifted to about 70% online and 30% retail. Our early USA soon. Besides that, one of the projects we will be working adapters, mostly artists and people who are looking into new on focuses more on the B2B market. Our technology lends itself tech, functioned as ambassadors for our products as well. That well for educational purposes and we are starting up an innova- definitely helped and helps selling our product.” tive project in China.” ••

Facebook conversion As a target group may be large, it is always a quest to look for those consumers who are interested in buying your product. ISKN started with advertising on a few different platforms. “For us, Google Advertising didn’t live up to our expectations. Facebook marketing however, is big business. When people have visited our site, we can specifically target our ads to them and to people like them. Based on the principles of awareness, consid- eration and purchase we sent different commercial messages to our target groups. Conversion is really well.”

“For us, this means that in the first step, awareness, we really show our product. This way, we aim to get the interest of the consumer. Once he or she has seen the video, or at least a large part of it, we show them another video. This video goes deeper into the product, explaining more about the technical aspects of the Slate. This way, in step two, consideration, people really start to think about the product. For our product, it is a great tool,” explains Rosset.

Fulfilling challenges As the concept of the Slate and the marketing strategy of ISKN

34 35 ~ Coffee Corner ~

Coffee or tea? When and how? How do you know you are all set for the new regulation? Black coffee. First thing in the morning to kick-start a produc- 100% compliance with the GDPR is one challenging (if not tive day. unrealistic) task. In any case, compliance with the regulation must commence long before this May’s deadline. Businesses Why are retailers and SMEs struggling with (imple- must firstly conduct a data-flow mapping which must illustrate menting) new regulations like the GDPR? in detail the processing and its purposes, and then perform a gap The General Data Protection Regulation (GDPR) will analysis which allows for pin-pointing the parts of the process- overhaul how businesses process and handle their data. For ing which do not comply with the regulation’s requirements. the purposes of complying with the new data protection Following the gap analysis, companies must work on integrating regime by this May’s deadline, organisations are struggling to policies and implementing specific measures and procedures for integrate policies and initiatives to safeguard the individuals’ the purposes of complying with the new provisions. The afore- data and prevent information getting into the wrong hands. mentioned process, to be carried out by the coordinated work of This has not been without its challenges. The GDPR is more the legal, IT and business team, is an ongoing task, as the data than just conforming to certain rules and obligations. It is processing conducted by a business must comply at all times about a shift of mindset and radically changing the company’s with the requirements introduced by the GDPR. mentality and strategy for managing and handling personal data, which represent the businesses’ core and principal source Who will benefit most from the new regulation, and of income. how? The most obvious answer would be the data subjects, as they are What are the consequences of the GDPR? placed at the centre of attention and their rights are significantly In an increasingly data-driven world, the GDPR introduces reinforced. However, it will give businesses the incentive to a new set of rules which will undoubtedly affect all busi- ensure better visibility of data storage and management, enabling A CUP OF COFFEE WITH… nesses that collect and process EU citizens’ personal data – i.e. them to better handle and (legitimately) exploit their data. practically every company in the world. The GDPR require- Alexandra Varla, Associate at Zoulovits-Kontogeorgou (ZK) Law Firm ments will force all companies to change the way they process, Important features regarding the regulations that store, and protect customers’ personal data. The regulation is should not be forgotten? undoubtedly set to form a new data protection landscape in Europe, one that seeks to strike a delicate balance between the • Broader territorial scope We like to have inspiring discussions about cross-border e-commerce over a nice cup of coffee (or necessity of protecting the individuals’ rights and the chal- Contrary to the existing regime, the regulation is applicable to tea). This time we talk about the General Data Protection Regulation (GDPR) with Alexandra lenges and opportunities introduced by the current digitally any organisation or entity that collects, holds or processes the enriched environment. personal data of EU citizens, irrespective of their geographical Varla, Associate at Zoulovits-Kontogeorgou (ZK) Law Firm, a team led by the pioneers Mina location. This is particularly interesting for non-EU businesses Zoulovits and Penny Kontogeorgou, specializing in the field of e-commerce, IT & Innovation, What are the most important changes for retailers and that are involved in cross-border e-commerce, as they un- Digital Transformation and Data Protection. SMEs? doubtedly target, inter alia, EU consumers and will, therefore, An important change brought on by the GDPR relates to mar- fall under the GDPR scope. keting and commercial communication which targets consumers and particularly profiling, which is now specifically addressed by • Reinforcement of the data subjects’ rights the regulation. In conformity with one of the core objectives underpinning SUBJECTS’ RIGHTS: the GDPR, i.e. enabling data subjects to take control of their Retailers and SMEs obtain personal information about consum- own data. The regulation has granted a new set of rights, ers from a variety of different sources: buying habits, internet which re-balance the interests in favour of the individuals: THE RIGHT OF ERASURE (“RIGHT BE FORGOTTEN”), browsing, lifestyle and behavior data collected from social media, the right of erasure (“right be forgotten”), the right of data mobile and IoT (Internet of Things) devices. Such information portability, the right of data rectification, the right to object to THE RIGHT OF DATA PORTABILITY, THE RIGHT OF is analysed to classify consumers into distinct groups or sectors. automated individual decision-making, the right to object to The analysis identifies the links between different characteristics processing, the right to restrict processing, the right of access and behaviours, in order to build consumer profiles. and the right to be informed, thanks to an enforced principle DATA RECTIFICATION, THE RIGHT TO OBJECT TO of transparency. Although profiling can be beneficial to both the businesses AUTOMATED INDIVIDUAL DECISION-MAKING, and consumer, as it allows for better market segmentation and • Penalties tailored services, it may involve significant risks for individuals, To ensure compliance with the legal framework for data THE RIGHT TO OBJECT TO PROCESSING, THE who might not be aware of the profiling and might as well be protection and the implementation of the new provisions, the restricted into specific categories and preferences. Such risks are regulation has introduced an enforcement regime of heavy acknowledged by the GDPR, which introduces new provisions financial sanctions to be imposed to violators, up to 4% of the RIGHT TO RESTRICT PROCESSING, THE RIGHT OF to address the caveats arising from profiling and automated annual worldwide turnover of the business, or €20,000,000 – decision-making and ensure that profiling does not have an whichever is higher. •• ACCESS AND THE RIGHT TO BE INFORMED unjustified impact on consumers.

36 37 ~ Tradebyte ~

arketplaces are facing revolutionary transitions at the brands. With our standardised and scalable solutions, our routine moment. The marketplace as a place for contempo- and expertise, we dare to claim that we are a reliable partner for TRADEBYTE Mrary retail business is reinventing itself with breath- all retailers who are thinking about starting a digital platform. taking velocity. When defining a marketplace ten years ago, the whole industry only spoke about “Amazon” and “eBay”. The How does Tradebyte connect marketplaces to vendors, fundamental principle of connecting third parties to trade au- brands, manufacturers, etc.? What is Tradebyte’s role in tonomously and directly with consumers (D2C) has since been this process? absorbed by the entire e-commerce business. A lot of new digital We provide the relevant systems and offer standardised or (ECD) platforms like ABOUT YOU, Otto, SportScheck and Zalando, customised interfaces to the relevant IT systems of our cus- to name just a few, have evolved and redefined the characteristics tomer, for TB.One and TB.Market. TB.One has fully integrated of a marketplace business. By the way, it is an utterly successful interfaces to over eighty attractive channels. So, once connected Text: Nico Hoeijmans // Photos: Tradebyte development – we assume that a relevant part of the total turno- to Tradebyte, a brand or vendor can open up a D2C business ver in retail will be generated through such digital platforms. simply by connecting their own brand shop to TB.One. Our out-of-the-box-solutions open the world of e-commerce with an Alexander Otto is Head of Events and PR at Tradebyte and oversees the ECD. He coordinates, So underneath this general evolution, there are some major extremely short time-to-market. creates and communicates about topics connected with the ECD and its related topics like trends that are preoccupying brands, vendors and retailers right Our whole network of channels, over 650 vendors and partners, now. Be it the growing verticalisation amongst vendors of mar- is called the Tradebyte ecosystem; this is where it starts to get re- marketplaces, digital transformation and so on. Tradebyte plans to further develop the ECD as ketplaces or the increasing number of features and opportuni- ally interesting. With our partner network within the ecosystem, an independent power brand for platform stories. He talks to us about the dynamics of e-com- ties for optimising and really steering business. Some years ago, our clients do not have to worry about the implementation of merce and the added value of the ECD. being on a marketplace just meant ‘sending offers and receiving SAP or Salesforce systems, fulfilment or content creation. And orders’. Now it’s a whole lot more and business is becoming for those who strive to start a platform themselves: Once con- more and more demanding and complex – for both sides of this nected to Tradebyte, we bring over 650 vendors to them just by growing industry. being part of our ecosystem.

What is the future of marketplaces? The ECD is a congress organised by Tradebyte, focus- Marketplaces will have to revive and refresh themselves con- ing on vendors, brands (retailers) and marketplaces and tinuously, providing connected vendors and brands with more platforms. What is the main objective of this congress transparency and features. Today, marketplace business in most and why should people attend? cases is still a black box; brands are missing relevant informa- Our solutions connect vendors with marketplaces. The ECD tion to really steer business and understand their consumers. For modifies that approach a little – by connecting vendors and mar- example, the brand doesn’t know anything about the customer ketplaces in person. The ECD humanises the technologically- (besides the address), doesn’t know about the background, basket driven e-commerce business. We create a space for people to talk sizes or conversion rates of the article detail page. So, the tech- about themes and topics, or even to do business in our meeting nological challenges will increase almost infinitely. Marketplaces lounge. The ECD is kind of the analogue touch in a growing THE DYNAMICS OF E-COMMERCE AREN’T GOING must define even more precisely what they offer their clients and digital business world. vendors. This has to correspond to the brand’s image and vision – which makes it a highly strategic issue. Topics like the trans- The ECD stands out as a networking event as you TO SLOW DOWN ANY TIME SOON. WHAT IS YOUR parency of the D2C channel of commerce, processes for faster mentioned. What is the biggest benefit of getting in time-to-market and the opportunities of marketing promotions touch with merchants/marketplaces (whichever side and brand storytelling will be crucial factors for the success of a you are on)? OPINION ABOUT MARKETPLACES AND WHAT ARE platform. That, in turn, requires highly developed technological It is the exchange of knowledge and best practice from one expertise and a well-defined set of processes and strategic steps. person to another. We consider e-commerce to be a huge lab. Everything we all do is new – we are all pioneers, digital pio- THE CURRENT TRENDS THAT YOU SEE? What is the added value of Tradebyte in this respect? neers. There is no standard way to succeed like there may have Tradebyte is the only integrator which has been offering solu- been in commerce business for a long time. So, we bring those tions for both sides of the marketplace business for years. On pioneers together to talk and use synergies. For this we have a the one hand, we provide a solution for vendors and brands to meeting lounge with more than sixteen cabins where guests can connect to channels which is called TB.One. On the other hand, arrange 30-minute one-to-one-meetings. Brands are able to get we enable retailers to establish a digital platform via TB.Market. in touch with many relevant stakeholders on the marketplace Working on both sides and covering the process “end-to-end” side. Without the ECD it would probably take more than a year represents the major benefit. to have all these appointments. •• Since we have known the marketplace business from its very beginning, we consider ourselves as early adopters and specialists in this field. We detect trends before they spread and are able to implement them into our solutions from an early stage. As early as in 2016, we started the first ship-from-shop pilots with major

38 39 ~ Lorna Beament ~ COLUMN

MARKETPLACE SELLERS – WHO ARE THEY?

Unless you have managed to live in a world without internet for the last twenty years, you’ll have heard of the marketplace giants Amazon and eBay. There are now over 400 marketplaces globally and with 40% of all global e-commerce estimated to take place on a marketplace by 2020, it is not surprising that marketplace sellers are on the rise.

t would seem ‘How to sell on Amazon’ is now more Growers typically start offline, like a family business, popular than the previous Google search for ‘How to get but recognised marketplaces could help them reach Irich quick’. We are aware of the urban myths of ‘sofa new customers and reinvigorate their business. CEOs’ - making a fortune by selling goods online or reselling cheaper products bought in China. However, the reality of Pioneers have lots of experience using marketplaces, being successful on online marketplaces is not that simple. but use them selectively based upon product type.

So why does GS1 UK care about online marketplaces - we’re Leaders were the smallest group and these might be just the barcode guys, right? large omnichannel businesses but despite their size, marketplaces still represent an important channel, We have seen a 300% year-on-year increase in members especially as they represent opportunities to sell internationally. joining GS1 UK, just to trade on online marketplaces. Given that our history comes from the more traditional retail and supply chain side, we decided to take a deeper dive into this emerging sector. Our market research also highlighted that while online mar- In 2017, we conducted some market research and the out- ketplaces provide opportunities for businesses to sell, grow come was the discovery of six distinct types of online sellers and expand, there are also many challenges, and these will be – contrary to the belief that a marketplace seller is likely to be different for each of the six groups. someone working from a bedroom stocked high with boxes of stock and a daily post office run. For example, Creatives need to seek out advice on how to best use marketplaces, such as listing items, and require guidance We found they all have different strategies and reasons they on marketplace regulations and barcoding. In comparison, the use marketplaces, along with different needs to help take the Leaders require a bespoke product management system that business to the next level. Let’s take a look and get to know sits across all sales channels to drive success and overcome them all better: challenges.

Creatives tend to operate from home, and have Online marketplaces also offer an opportunity for businesses Delivering on your promises since 1862 turned their hobby into a business and focus on a to access international markets. These are typically businesses single marketplace. with larger revenues and tend to have their own websites. Once a transport supplier in the textile industry, we have evolved into a world class partner of choice by continuously developing However, their needs are complex, and they require integra- supply chain innovations for world-leading fashion and lifestyle brands. The dynamic environment of our customers and their focus Traders have an eye for the latest product trends and tion with existing software. They will have to be compliant on e-commerce activities require very agile, fl exible and fast solutions. We enable them to fulfi l their customers’ needs by providing crazes, which they buy in bulk and sell quickly using wherever they are selling in the world and will be sensitive to multiple online marketplaces challenges around the international supply chain. omni-channel fulfi lment services. Whatever the market, whatever the channel and whatever the services, we deliver. .

Innovators focus on a niche idea or a smaller range, Lorna is an experienced ecommerce professional working for GS1UK, the standards organisation often invented by themselves, and start online, behind the barcode. She managed multiple marketplaces for several global brands over the years looking to increase awareness. giving a well rounded background in international and cross-border trading before moving to a non for profit to focus on helping SMEs to grow their businesses through online channels.

Multi-Modal Transportation Warehousing Customs Omni-channel Distribution Management & VAS Solutions Management

40 www.bleckmann.com41 CROSS-BORDER FULFILMENT

ACHIEVING PERFECT DELIVERY EXPERIENCE FOR INTERNATIONAL SELLERS

Text: Nico Hoeijmans // Photos: Devlinn van Loon

Competition from local sellers: it can be a pain for cross-border sellers all over the world. Unless you have a unique product, which almost doesn’t exist, you have to deal with this local competition. How do you cope with competitive shipping rates and, more important, competitive delivery times?

Henning Heesen, Chief Product Developer at Salesupply, talks to us about the importance of international fulfilment and how the Salesupply Fulfilment Solution was created to provide cross-border merchants with the possibility to fulfil internationally at a local level.

elivery Experience as key driver to online sales “This immense pressure on the delivery experience will kill These days, it is essential to focus on a perfect cus- cross-border merchants who deliver internationally in the fu- Dtomer experience, and this includes a perfect deliv- ture. For obvious reasons, local merchants deliver faster; there ery experience. Customers is no way international have been spoiled with retailers can compete faster and faster deliver- with these expectations,” ies and now they are “CUSTOMERS HAVE BEEN Heesen notes. demanding it. A couple of years ago, it was common The battle of the cut-off sense that you had to wait SPOILED WITH FASTER time for two or three days for The acceptable time be- something ordered online. tween customers’ demands These days, the cut-off and getting the product is and delivery time makes AND FASTER DELIVERIES” decreasing massively. Logi- or breaks the conversion. cally, the alternative is to Big online players like go to the city and get the Amazon have raised the bar to a very high level - Amazon product yourself right away. However, that comes with the hassle Prime made sure any product would be delivered the next day, of driving, parking and even the possibility that the product is Amazon Prime-Now tops even that. Consumers can schedule not available. their own delivery, the same day.

42 43 ~ Cross-Border Fulfilment ~ 10% DISCOUNT Code: CBM10 “In a couple of years,” says Heesen, “this latter problem will be from a local hub to a local customer. Domestic shipping in solved when retail stores on a big scale start connecting their Germany and France is somewhere from around €3. Cross- checkout systems to local city marketplaces. But for now e- border deliveries in Europe demand a line haul that will raise commerce retailers can and should have the answer for that.” those prices up to €5 - € 9. • Lower return costs: local returns are cheaper then shipping Henning Heesen strongly believes the answer lies in the cut-off them cross-border. Return handling can be quicker as well. Future Retail time; the latest time a customer can order for a next day, same • Lower costs in customer service: shorter delivery and returns day or time scheduled delivery: “This battle between retailers refunding time will decrease customer service inquiries as there that is already going on and will continue in the next couple of is a smaller time frame to ask them. Conference 2018 years, will be that of the cut-off time to fulfil customer’s need of getting the product as fast as possible to the demand,” he states. According to Henning Heesen, these advantages have one very important thing in common for cross-border activities: cross- July 3rd + 4th, 2018 “In the Netherlands this is already happening. Large players like border fulfilment is creating a growing and competitive business Bol.com, Wehkamp and Coolblue offer customers a next day model for the future. “Cross-border fulfilment is nothing more Estrel Berlin delivery when ordering before 23:59h. As this is a standard offer, than a better customer experience. We call this the Delivery a standard service, this is the benchmark for all retailers, includ- Experience, accompanied with lower costs. Salesupply developed ing international players.” a technology platform that makes it possible to get connected with our multiple warehouses. Integrating a new warehouse is The need to stay on top of the game often very difficult, so we created the technology to make this a The Salesupply Fulfilment Solution is an answer to remain com- fairly easy process, accessible for any merchant.” petitive, but also international. “In the last two years, we have 2 100+ 150+ 3000+ set up a network of warehouses in eight countries. With hubs in Big Data the USA, the United Kingdom, China, Germany, France, Italy, What does the future hold? “The fulfilment program will be Days Exhibitors Speakers Attendees the Netherlands and Spain, we make it possible for international optimised and our warehouse density in the current markets merchants to store their product internationally on a local level.” we offer this solution for will be higher. A commonly trend is that 50% of American retailers are already using more than two GET YOUR TICKET NOW: K5.DE/CBM This service comes with multiple strategic advantages for cross- warehouses to provide a next-day delivery service in high-den- border selling merchants: sity regions. The next step will be the data development part, so • Faster delivery: having local stock offers the possibility to we can provide our customers with more information regarding deliver faster. fast- and slow movers and what stock to put where.” •• • Lower shipping costs: in general, you can save money sending K5 2018 THE leading e-commerce • join the K5 community, • gain insights of Top Speakers conference in DACH • and enjoy an excellent networking atmosphere!

Recurring Attendees Recurring Exhibi tors Focused on the german-speaking Area

83 % 76 % German y

Switzerlan d A u s t r ia

95 % of the attendees come from the DACH-region 33 % C-Level 27 % Head of

Cost-Effectiveness Attendees' Development Structure of Attendees

17% others 23 % Manager 90% 5 0 0 7 0 0 2 5 00 3000+ of comparable events are Networking with the movers and shakers of the e-commerce industry more expensiv e 2011 2014 2017 2018

44 45 ~ Pixi ~

ow to Get Returns Right 4. Use automation In addition to providing a personalised return slip and Two areas where retailers can speed up the returns process HOW TO GET Ha prepaid return label when the shipment goes out using automation are reimbursement and inventory manage- to the customer, here are five tips from Descartes pixi* online ment. After a return is processed, the amount owed to the retailers need to consider to reduce the friction of their returns shopper should be automatically reimbursed or credited to process, as holiday returns begin to escalate. the credit card or PayPal account. Also, new inventory should be updated immediately via a warehouse management system RETURNS RIGHT - 1. Make the return process as transparent as the order process in the online store and all sales channels to establish the op- Even today, there are still e-commerce players who make the portunity for the next sale. return process as difficult as possible for shoppers by hiding (or not even listing) their return policy for orders, not provid- 5. Consider returns as an important customer service practice TIPS AND TRICKS ing status updates immediately by email, or not notifying One could argue that the ‘return burden’ has been lifted from the customer when the returned goods have been received. consumers’ shoulders. Today, it’s become the responsibility of Customer service cannot be deliberately neglected, and con- the retailer to offer convenient and simple return options for Text: Gregor Walter // Photos: Pixi stant communication of status should be on the forefront of customers. The bottom line is that customers care about re- retailer’s minds, no matter what stage the order is in. turns. Retailers that provide a complete end-to-end customer service experience incorporating flawless returns processing 2. Speed up your return processing are more apt to see repeat customers and increased revenue. Returns are a fact of life in e-commerce. Despite that, many retailers are still not putting To build confidence and rapport, the shopper should be in- enough emphasis on developing and implementing efficient return strategies. A customer’s formed immediately when the returned item has been received. More information regarding returns can be found in the Com- return experience is as important as their sales experience; today’s customers expect flexibility, Speed is on the side of the retailer as well; goods need to be plimentary e-book: Countering the Cost of Ecommerce Returns seen as available in inventory and approved for sale to generate convenience, and transparency in their returns. revenue. The quicker the returned item is checked for integrity The piece includes an overview of returns trends by the numbers, and re-introduced into the system, the faster sales soar. hot topics including customer-driven disposition management, how to avoid unsorted returns piling-up in the warehouse and Return policies are no longer just part of a company’s back-room logistics strategy—they’re now 3. Keep goods handling and customer service separate why it’s critical to use technology to manage the flow of infor- a valuable lever for brand equity. Amazon and Zalando are largely known for leading the way If most returns are managed using a standard process, they mation and returned product. •• with return policies that are as simple as their purchase process, and shoppers have taken notice. won’t need to be reviewed by a customer service agent. The small number of returns that do need special treatment can In today’s highly competitive retail market, hassle-free return policies and quick processing are then be kept separate for customer service attention. By Gregor Walter, Vice President, Product Management essential to win over new customers, keep existing ones loyal and, ultimately, turn a profit. splitting the returns process this way, most returned goods As VP Product Strategy eCommerce, Gregor Walter guides Descartes’ strate- can be put back into inventory much faster, and even shipped gy for its suite of eCommerce WMS and fulfillment solution on the Descartes more quickly if ordered by another customer. For example, Logistics Technology Platform in the German and European market. Gregor by providing an online portal where consumers can initiate Walter is a featured speaker on the topics eCommerce strategy and technology. a return, the retailer knows from the moment the return is created what items to expect to receive and when. www.pixi.eu/en/returns

46 47 ~ PayPal ~ FOSTERING A GLOBAL ECONOMY AND CROSS-BORDER TRADE

Text: Bill Ready, EVP, Chief Operating Officer, PayPal // Photos: PayPal

Small businesses play a critical role in the global economy, contributing to economic opportunity, diversity and the overall health of our communities. If current trends continue, however, we may soon wake up in a world where many of these businesses have closed and only a few of the very largest players remain open. This could have a dramatic impact on innovation, jobs, the widening income gap and communities around the world. If, however, we partner together across the public, private and social sectors, we can provide access to affordable tools that will enable businesses of all sizes to grow and thrive, fostering a vibrant, global economy.

ommerce is consolidating globally these businesses account for 60 to 70 percent of jobs in most We’re already beginning to see consolidation of com- OECD (Organization for Economic Cooperation and Devel- Cmerce in the form of businesses closing storefronts, cut- opment) countries and a disproportionately large share of net ting workforces and filing new jobs. In India, the 46 for bankruptcy – unable to million micro, small and compete in this new com- medium-sized enterprises mercial environment. “WE COULD ROUND PRICES (or MSMEs) report- edly account for nearly 30 This trend is impacting percent of the country’s markets globally. In the THE WAY CUSTOMERS IN total employment4. And U.S., it’s estimated that recent studies show that about 10,000 retail jobs in China, MSMEs make are lost monthly1 and THE UNITED KINGDOM ARE up 97 percent of all more than 8,600 stores businesses, 80 percent of closed their doors in 2017 urban employment and – the highest number USED TO” 60 percent of total GDP5. on record2. And a recent The success of these busi- study by The Economist3 nesses is critical for the found that nearly two-thirds of the 900 sectors covered by the economic health of their communities. economic census were more concentrated in 2012 than they were in 1997. Countering these forces with technology and partnerships This consolidation has hit small and medium-sized busi- Several factors have contributed to this consolidation, includ- nesses particularly hard, which is troubling considering that ing economies of scale, often technology driven, that allow

48 49 ~ PayPal ~ The Paper Packaging Experts™

a few of the largest businesses to have offerings that smaller trade associations can invest in educating local entrepre- players simply can’t match. But there are two key areas in neurs about the importance of digitizing their businesses which we can innovate and partner to help support a diverse and selling internationally. Local businesses looking for set of businesses: ways to grow, impact investors interested in financing so- cial good projects, and fintech companies that can provide 1. Democratize access to mobile technology and seamless the needed technological and financial tools, should work commerce tools together to expand access to these capabilities. This will One important factor leading to the consolidation we’ve help drive commerce to millions of the small and medium seen in recent years is the rapid rise and adoption of mobile sized businesses that are responsible for so much economic technology. Consumers are turning to their mobile devices growth and employment. as their primary channel for engaging in commercial activ- ity. This shift to mobile is happening all around us – from We have the opportunity to build a more vibrant economy Kenya, where more than half of the population6 reports – one that inspires entrepreneurs to get started and supports having used their mobile phones to make a payment, to small businesses as they grow. •• Sweden, where the country is rapidly converting into a cashless economy6. As smartphone adoption continues to drive increased internet connectivity and usage, this trend will only accelerate7. Over the next several years, this shift to mobile will be responsible for increasingly larger percentages of com- merce globally. Mobile is unlocking new opportunity and enabling businesses and consumers to connect at the point of discovery. But it is also consolidating commerce in the hands of a few who have the resources to build seamless commerce experiences on a global scale. As business shifts into new contexts – from mobile to social, to things like virtual and augmented realities – this consolidation will likely only increase.

Companies like PayPal and Facebook, for example, are partnering to enable digital commerce in new contexts, like on social media. Through partnerships like these, even the smallest of businesses can open their doors to global consumers in the new contexts in which commerce Sources: is emerging. 1: http://www.businessamlive.com/emerging-markets-next- e-commerce-frontier/ The Eco-friendly and compact wrapping 2. Help small businesses transform into cross-border busi- 2: https://www.fastcompany.com/40491567/the-future-of- nesses retail-in-the-age-of-amazon Brick and mortar businesses today are limited in the 3: https://www.economist.com/news/special- solution for your webshop customer base they can reach. Yet reports show that people report/21707838-dearth-competition-among-firms- increasingly want to shop across borders to find unique helps-explain-wage-inequality-and-host-other feami WrapPak is the combination of a patented die goods and competitive prices. According to Forrester, 4: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/03/ cross-border shopping will make up 20 percent of all The-new-wave-Indian-MSME.pdf cut kraft paper with a tissue interleaf. ecommerce7 within the next five years. 5: http://www.oecd-ilibrary.org/industry-and-services/ financing-smes-and-entrepreneurs-2016/china-people-s- Despite this, the World Bank reports that only about nine republic-of_fin_sme_ent-2016-12-en The feami WrapPak EX Mini is a disposable carton box percent of small businesses and 16 percent of medium- 6: https://www.nytimes.com/interactive/2017/11/14/busi - sized businesses8 in low-income countries sell online. Even ness/dealbook/cashless-economy.html?rref=collection%2Fsec that expands the die cut paper into a 3D honeycomb in upper-middle-income countries, less than 30 percent of tioncollection%2Fbusiness-dealbook&action=click&content structure. In combination with the tissue interleaf it small businesses and less than 40 percent of medium-sized Collection=dealbook®ion=rank&module=package&vers businesses sell online. ion=highlights&contentPlacement=8 provides a unique wrapping product. 7: http://news.ihsmarkit.com/press-release/technology/more- STOP USING PLASTICS! Small businesses need access to digital tools that open up six-billion-smartphones-2020-ihs-markit-says their businesses to global audiences. The financial, techno- 8: http://documents.worldbank.org/curated/ logical and logistical tools that can help small businesses en/896971468194972881/pdf/102725-PUB-Replace- enter global markets, exist today. The public sector and ment-PUBLIC.pdf

FOR INSPIRATION, VISIT #packedwithgeami www.ranpak.com

50 51 ~ Opinion ~

Tophatter Many marketplaces focus on a buy-now experience where shoppers come to search for par- ticular items. This means, instead of browsing or window shopping for items, they typically default for a search-driven experience that focuses on one or two items. On Tophatter, the user experience is all about discovery -- and closer to an Instagram feed, where approxi- mately 100 products are being auctioned at the same time. Each auction is fast – about 90 seconds – creating the fun and engagement of a mobile game. By combining shopping with a gamification experience, Tophatter is targeting the Zeitgeist audience of a mobile-enabled PANEL shopper demographic. It offers experience and excitement – both things that are in short YES supply over and above the other more ubiquitous and utilitarian platforms.

Malcolm Scovil – Director of Marketing at Tophatter. Malcolm Scovil is an entrepreneurial leader with 12 years of experience in technology start-ups, venture capital and finance. He founded two revenue-generating companies, built a team of 25 and raised multiple rounds of capital. He is passionate about discovering and implementing “Marketplaces offer a compelling route to market, innovative ways to help individuals and companies grow. especially into new markets” ePrice “Developing cross-border is critical to growing and diversifying revenue streams for online business. Traditionally the route to market involved a considerably higher level of invest- ment and risk on the ROI of that spend. Market research was undertaken over a lengthy period and when demand in a region was potentially clarified the whole process of localisa- tion began to bring the product to market. Marketplaces, like ePrice, with their no fixed cost YES model ensures the level of financial risk and investment is minimal and can be increased &NO when there is a confirmed level of GMV being driven from a given region.”

Anthony Meierruth - Sales Manager at ePrice. As Sales Manager for ePrice’s Marketplace, Anthony Meierruth manages a team of more than 10 direct reports. He takes care of all the commercial and operational aspects for the business unit. ePrice Marketplace was shaped in 2015 and is now growing triple digits and rising.

TradeME Breaking into a new market is never easy. Time and investment needed to establish your brand can quickly escalate. Marketplaces offer cost effective access to large volumes of instant traffic. Moreover, marketplace customers are most comfortable when shopping on a platform they understand and enjoy. Paying for goods online is still a sensitive area and being present on a reputable marketplace gives consumers confidence to complete transactions. From a cross- border perspective marketplaces are a no brainer. Apart from instant access to audiences, they allow you to leverage cross seasonality, reducing the need to discount goods coming out of sea- son in one market by selling them in another. Any reputable marketplace should provide you YES with in country customer support providing access to data and assisting you to optimise yours.

David Swift - Global E-Commerce Manager at Trade Me. Trade Me is New Zealand’s most popular online marketplace, focused on making life better for Kiwis through online experiences they love. David Swift works with international retailers providing integration, cross-border trade and specialist marketplace advice to ensure they maximise the growth potential of expanding into the New Zealand market.

Newegg “For one thing, managing a marketplace is more cost effective since a majority of the ser- vices offered are bundled into commission rates. Essentially a commission is taken out only when a sale takes place. Aside from cost, marketplaces’ customer base are accustomed to purchasing online regularly. They begin their search via online or social channels and within a short time frame, purchase an item without leaving their doorstep. Convenience is what they value more, and so marketplaces are heeding that call.” YES

Gareth Lloyd-Jones - Head of Europe Acquisition at Pivot. Gareth Lloyd-Jones is a proven leader having been both a Sales and Publishing Director for two of the leading Lifestyle Publishers in the Middle East. He has worked for globally recognised brands such as Time Out, Hello, OK! and Women’s Health. Latterly he has moved towards a digital focus and with digital media, content marketing, e-commerce and project management skills, as well as being a Google partner with inbound marketing and AdWords certifications he is now empowering the growth of Pivot as the Head of Acquisition across our Marketplace Channels.

52 53 ~ Getir ~

Are you hungry? Ordered food has been a successful business for a long time. Tuncay Tütek, co-founder at Getir, takes this business model to the next level. Getir is selling Fast Moving Q&A TUNCAY TUTEK Consumer Goods (FMGC) in Istanbul, Turkey, through the Getir app, delivering them in 10 minutes to their customers. Ice cream anyone?

ütek spent his career at FMCG companies like P&G wants to order ice cream online and wait two days to consume and PepsiCo, where he learned that a direct touch and it. People rather want to order it and get it delivered right then Tfeedback mechanism with consumers is vital. When and there. GETIR starting Getir, it was a must for him that there would be such a mechanism available. “It is a way for customer to directly What is Getir’s place in this FMCG market? contact us,” he says. Getir is an experience that starts by using Getir is actually creating a new market for the consumption BEAT THAT! A 10-MINUTE DELIVERY the app and that extends of FMCGs because of itself to the moment you our one-of-a-kind model are using the FMCG that currently doesn’t exist product you ordered. “We “WE TRAIN OUR COURIERS, anywhere in the world. Text: Nico Hoeijmans // Photos: Getir train our couriers, as they Now, there’s a completely are an important extension different way of getting from our company. We AS THEY ARE AN FMCGs at unprecedented think that the way you sell speed. As a tech-company, something is crucial. We our infrastructure was believe that with about IMPORTANT EXTENSION built so that it could be 1000 items in the Getir used around the world. app, there are more than Technology isn’t limited 1000 reasons to use it.” FROM OUR COMPANY” to only the user’s experi- Tütek gives us an insight ence, but to the logistical of the success of Getir, side of Getir as well. Our how it was created and what its place in the market is. machine-learning algorithms make sure the right FMCGs are available at the right quantity and quality at all times. Where do you believe the Turkish online market cur- rently stands? Could you tell us something about the Getir concept? While e-commerce is arguably crowded, a new market is It’s benefit and how it works in Istanbul? emerging in the form of ‘m-commerce’, which we are pioneer- What Getir actually sells ing. There are many ‘brick and click’ players that deliver in two is time. Our product is days or more. While it may seem like the market is crowded, ‘10 minutes’. Every- e-commerce and m-commerce still has a very small market thing that comes along share. Mobile penetration and credit cards are commonplace the core product of 10 but mobile payment still has room to grow. Considering there minutes is actually a side are few deep-pocketed international e-commerce players in the product. We are ‘almost Turkish market, local players have the potential to start and scale now’. Cities like Istanbul localised businesses. are great, but they have their challenges. Time is What is the role of Fast Moving Consumer Goods in the most valuable thing the market? in high-tempo cities. The Before Getir, the most common players either delivered hot benefit of Getir is that food or more conventional e-commerce items, such as cloth- it saves consumers time. ing and electronics, which at best they deliver next day. Thus, They don’t have to spend FMCG does not constitute a considerable share because when their time on shopping, people need something, they need it at that moment. With going to a shop, picking Getir, FMCG became a much more important part of the mar- a product and going back, ket because we deliver in an average of ten minutes. No-one but can spend it elsewhere.

54 55 ~ Getir ~ May 3, 2018 – WAPPENHALLE MUNICH GET YOUR TICKET NOW!

For retailers and marketplaces: Get in touch with merchants and brands.

We provide a seamless experience because we have our own in- Getir is a success in Istanbul, Turkey. Can you tell us ventory and we monitor it through technology. Great technology what plans for the future hold? For brands and online-shops: results in optimal stock accuracy and minimum waste, which is Istanbul was just the beginning. Once you experience ten minute Discover new sales opportunities and expand the company’s benefit, allowing us to reach our users at near- delivery of FMCG items, it becomes a habit and you want it market prices. wherever you go. Cities throughout Turkey are already demand- your marketplace network. ing that we start service in their cities! We believe that when a city has a large population and life isn’t that easy, time becomes valuable. Getir is thus valuable for people who opt to pay for time. This is why we are interested in tech-savvy cities like Lon- ECD’18 Sponsors “OUR COURIERS ARE don, New York, Shanghai, and Dubai. •• THE SMILING FACES THAT REPRESENT US AT PEOPLE’S DOORSTEPS”

How important are small warehouses and carriers in the Getir concept? Getir is made possible because of proximity. Small warehous- es are intelligently placed across the city according to location data by our users. We are basically an arm’s length away. Our couriers are not fast by any means, it is rather our system that is fast because of short trips to the customer and back. Our couriers are the smiling faces that represent us at people’s doorsteps. They all undergo safety and sensitivity training during their orientation. hosted by www.ecd.de

56 57 ~ WeChat ~ SPAIN 2018 6, 7 and 8 de March | Barcelona 5th Edition

WHAT YOU NEED Where worldwide companies talk about business TO KNOW ABOUT 2416 ONE2ONE FUN NETWORKING 142 DIGITAL SOLUTION MEETINGS ACTIVITIES PROVIDERS WECHAT 25 CASE STUDY 138 C-LEVEL 200 MERCHANTS Text: Joanna Perry // Photos: WeChat EXECUTIVES & COMPANIES

WeChat is part of daily life for more than 700 million Chinese consumers. Global digital strategy consultancy Practicology explains how the mobile app is increasingly a sales channel for forward- Solutions: [email protected] thinking Western brands too. Shops: [email protected]

Social commerce is still very much in its infancy in the West, but • Link to your JD.com store: WeChat’s alliance with the second Chinese consumers’ shopping habits are changing quickly, and largest online retailer/marketplace in China – JD.com – one of the most interesting trends is shopping via the mobile means you can link your OA with your JD.com store if you phenomenon that is WeChat. already have one.

The app is a mixture of Facebook, WhatsApp, ApplePay and Uber, The functionality of the app allows brands to market themselves providing its users with messaging, content, mobile payments and through paid in-app advertising, and to drive customers from digital coupons among its many functions. It’s also a marketing offline marketing to their OA using iBeacons and QR codes. and sales platform, allowing brands to directly engage with their Many brands also choose to work with bloggers and other social customers and even build an online store within the app. influencers – or Key Opinion Leaders as they are known in China – who tend to have their own Official Accounts and can 31% of users say they are happy to make purchases through the drive huge volumes of traffic to a brand’s OA. app, and iResearch estimates that the gross merchandise value of items sold through WeChat will hit $147 billion a year by 2019. Illustrating the success of this strategy, items sold via WeChat So how does it work? during the past year with the assistance of bloggers include 100 MINI Copper cars, and 80 special edition Givenchy bags (which For brands who want to use WeChat as a sales or marketing sold out within 12 minutes). channel, it’s crucial to establish an Official Account (OA) – the WeChat equivalent of a Twitter or Facebook verified account. To understand more about selling online in China and how WeChat This gives brands more visibility in search results, allows them to could help you reach Chinese consumers, you can download Practicol- make use of functionality such as WeChat Pay, and even build an ogy’s China Report at: https://goo.gl/gjvTr9 •• ecommerce store within their account.

There are three different options for creating a WeChat store: • Build a store within your Official Account: you can create a simple html-based webstore within your OA as a complement or alternative to a Chinese-localised mobile site. • Build a store within a Mini Program: Mini programs are simple apps within the app (and named Mini Programs as Ap- ple will not allow WeChat to become an app store in its own right). They allow a business to create a store with additional functionality and have been adopted by several high-end Western brands including Longchamp, which created a Mini 48hrs with TOP digital decission makers in the world Program to allow Chinese consumers to order customised bags. Access only for C-level Executives. Send a request to participate now

58 59 ~ Spotlight on ~

silence, pre-ticked boxes or inactivity do not represent valid Non-EU businesses consent. Furthermore, digital operators should avoid mak- Under the GDPR, many non-EU businesses that carry out ing user consent to processing a pre-condition of a service. processing of personal data subject to EU privacy law are Moreover, withdrawing consent must be made easy as it is to required to designate a representative in the EU. Spotlight on ... give it. Data portability Children’s personal data Data portability is the new right of users who have supplied The minimum age for providing lawful consent to the pro- a data controller with their personal data to receive a subset cessing of personal data in relation to online services is now of such personal data and/or to have it transmitted to another set at sixteen. When a child is below that age, personal data controller without any hindrance. processing will be lawful only if parental or guardian consent is given. The GDPR enables EU states to lower such age Privacy by Design threshold, but only down to a minimum 13 years. The GDPR postulates that data controllers must implement appropriate technical and organisational measures (pseu- Right to be forgotten and right to the restriction of donymisation, etc.) designed to implement data-protection data processing principles, both when they determine the data processing WAITING FOR… The GDPR has acknowledged the right of data subjects to tools and when they subsequently process personal data. In have their personal data erased or their processing restricted doing so, they should account for the nature, scope, context at specific conditions - in essence where the processing activi- and purposes of data processing and the risks that data pro- ties fail to meet the requirements of the GDPR. cessing activities pose.

Breach notification: Automated decision-making When any data breach is likely to “result in a risk for the As already under the Data Protection Directive, the GDPR rights and freedoms of individuals, the data controller’s includes restrictions on decisions based only on automated notification to the national supervisory authority becomes processing (including profiling or not), when the decisions THE GDPR mandatory. produce legal effects (or similarly significantly effects) that- af fect the data subject. Automated processing is allowed when: Data Protection Officer (DPO) • necessary to enter into, or to perform, a contract between Under the GDPR, organizations are called to designate a the data subject and the controller; or DPO in in three specific cases: • authorised by the applicable law; or Text: Alan Rhode, Co-Founder Taxmen 1. if the data processing is carried out by a public authority/ • based on the individual’s explicit consent. body (regardless of what personal data is being processed); 2. when one or more of the organization’s core activities Automated decision-taking based on sensitive data is further require regular and systematic monitoring of data subjects restricted and it may only take place: on a large scale; • with the individual’s explicit consent; or rom 25 May 2018, a single body of European privacy Extended territorial scope 3. when one or more of the organization’s activities consists • where the activities are necessary for substantial public rules will replace the current patchwork of 28 national EU privacy law will now expressly concern the processing of of processing on a large scale special categories of data interest reasons and on the basis of the applicable law. Fprivacy laws. On that day, indeed, the General Data personal data by all EU-organizations - regardless of whether (sensitive data) or personal data relating to criminal con- Protection Regulation (GDPR) will replace the current the processing takes place in the EU or not - and the process- victions and offences. Failure to comply with the new legal framework may prove Data Protection Directive and become directly applicable in ing of data by non-EU organizations, when relating to the of- rather costly and detrimental for businesses. First, any person all EU states, without the need for implementing national fering of goods and/or services to EU-based individuals and/ Even when the GDPR does not require to appoint a DPO, suffering damages caused by a GDPR-infringement holds the legislation. or the monitoring of their behavior, as long as such behavior organizations can opt to designate it. In this case, yet, the right to receive monetary compensation from the controller takes place in the EU. same strict requirements governing the activities of manda- or the processor, businesses should ensure to be GDPR-com- The GDPR introduces various, important changes regard- tory DPOs will also be applicable to the voluntary DPO. pliant. Furthermore, GDPR infringements may lead to the ing the protection of personal data (the latter meaning any Increased information duties application of administrative fines of up to €20,000,000 or, in information relating to an identified or identifiable living Under the GDPR, digital operators will have to inform the Data Protection Impact Assessment (DPIA) the case of undertakings, 4% of global turnover (whichever is natural person). concerned individuals about the envisaged personal data In those cases when processing activities are “likely to result the higher) by the competent supervisory authority. retention period (or, if this is not possible, at least about the in a high risk” to data protection rights, the data control- Under the new legal framework, thus, it has become even criteria used to determine the retention period), the right of ler will be now mandated by law to carry out a preliminary more important for businesses to verify whether their privacy users/customers to “being forgotten”, to restrict data process- assessment of how the envisaged processing operations may policies, contractual arrangements with partners and organi- ing and to lodge a complaint to the competent supervisory impact on persona data protection: this is the DPIA. zational practices are consistent with EU privacy law. In most authority. Other information duties do apply. cases, changes to the organization’s policies will be needed. A DPIA is a fundamental tool to comply with the require- Consent ments set down by the GDPR. Accordingly, many businesses Alan Rhode is a co-founder at Taxmen, the one-stop-shop for In a nutshell, here is an overview of the main changes The GDPR sets a higher standard for data subjects’ consent. have already completed a DPIA in cases where it is not legal and tax services to the e-Commerce industry. brought in by the GDPR: Consent shall be given under a clear and affirmative act: compulsory.

60 61 BECOME A PARTNER

The Cross-Border Magazine is a Salesupply initiative which is carried out as a joint project with our valued partners; PayPal, Intershop, Ecommerce Europe, eShopWorld, Bleckmann, eTail and many more.

The magazine can only exist if we can rely on strong partners who like to share their experencies and know-how about cross-border topics. Sharing knowledge is key for helping e-merchants become more successfull abroad and will directly effect the growth of their business.

JOIN US ON OUR JOURNEY TO BUILD A COMMUNITY OF CROSS-BORDER EXPERTS, SUPPLIERS AND BRANDS TO CONTINUE MAKING THIS MAGAZINE AN INVALUABLE SOURCE OF CROSS-BORDER INSIGHTS AND INSPIRATION!

GET IN TOUCH: [email protected] WWW.CROSS-BORDER-MAGAZINE.COM

62 63 Your growth: Powered by Salesupply empowering retailers and brands with global logistic and customer care solutions to achieve a perfect customer experience

3