Welcome!

Mobile IoT Authors: Mauro Carniel, Rostyslav Demush, Pat Romanski, Elizabeth White, Liz McMillan

Related Topics: @CloudExpo, Mobile IoT, Agile Computing

@CloudExpo: Article

American E-Commerce Napping | @CloudExpo #API #IoT #BusinessIntelligence

US e-commerce sites are starting to realize they need to compete globally. But are they ready for it?

Is American E-Commerce About to Be Caught Napping with Payment Methods

With a slow-growing domestic market and their own consumers increasingly shopping cross border, US e-commerce sites are starting to realize they need to compete globally. But are they ready for it? And are their payment service providers?

A.T Kearney´s "2015 Global Retail E-Commerce Index Report "put it in a nutshell: with the global explosion of e-commerce, being able to effectively sell across borders is going to be a key differentiator between the next round of online-retail winners and losers. By being good at selling across borders, the winners will be able to expand into new markets without the cost of having a physical footprint in those markets(1). This will give them the competitive edge over rivals still locked into just their domestic markets.

The challenge this poses is especially relevant to for US-based online retailers. According to eMarketer, in 2015 the total value of e-commerce worldwide was $1.67 trillion. US domestic sales accounted for around 20% of that figure. By 2019, the global value of e-commerce is predicted to rise to $3.5 trillion. But the US share will fall to just 15%. One of the main reasons for this is that by 2019 US-customers will only make up around 9% of the world's online shoppers(2).

Double your revenue by selling cross border
According to the recent study conducted by Ipsos MORI on behalf of PayPal, only 36% of US online retailers sell outside the US. And most of them only sell to Canada(3). The majority of US e-commerce sites still focus exclusively on their domestic market. This is despite the fact that, according to the PayPal study, the businesses that do sell cross-border report nearly double the sales revenues of those that don't.

Unsurprisingly, those retailers already selling cross border are keen to grow their international reach. And another 33% of US-based online retailers intend to start selling to non-US customers as soon as they can. But are American retailers really ready to keep pace with online sellers from other parts of the world?

One size does not fit all
One area in which US online retailers lag behind is in localization. Most European and Asian e-commerce sites offer a localized customer experience in each market. Many US stores, on the other hand, simply roll out their domestic shop unchanged to non-US customers. But one size does not fit all in global commerce and adapting to local market preferences is one of the key success factors in online retail.

This is particularly true for language. According to a study, fully and professionally localizing your website can help you increase conversions by up to 70%(4). But despite this proven benefit, Amazon - the standard-bearer for US e-commerce - has localized its site into just 8 languages. Its Chinese competitor AliExpress, on the other hand, has over 100 localized sites for markets around the world (though sadly, many of them have been machine translated to a relatively low standard).

When you look at the range of different currencies supported by US e-commerce sites, the comparison with international competitors is even bleaker. Most US online retailers do not support a wide range of foreign currencies and US merchants have yet to adapt to the reality that the credit cards they're familiar with from their domestic market, often do not have a large market share overseas.

In many countries alternative payment methods (APMs) - including real-time online banking payments, cash-based e-payments, direct debit- and invoice payment solutions - are an important and growing segment of the payment market. Any e-commerce site that only supports card payments, is effectively turning away many, in some markets most, of its potential customers.

A good example of this is the Netherlands, with its €18-billion e-commerce market(5) in which more than 60% of all transactions are made with an online-banking payment scheme called iDEAL. For any e-commerce site selling to the Dutch, it's actually credit cards that are the "alternative".

Nor is it only the Dutch who prefer trusted local payment methods. Studies show that almost 50% of customers say they may abandon a sale if their preferred payment option is not available(6). If US-based e-retailers ignore that fact, they will continue to lose market relevance globally. This is particularly true as, with so much competition, customers can easily just go to a different site and buy the product they want there. There's no need for them to compromise on non-preferred payment methods or waste their time entering their card details, when their preferred payment scheme is ready to use at the click of a mouse.

American PSPs and acquirers have to change first
If US merchants are to succeed on the global market, they need trusted payment service providers and acquirers, to support them. Those providers should be able to offer not just the best possible selection of local payment-schemes but also the knowledge and expertise required to implement those schemes in the way best suited to each market.

This is a challenge the large US payment providers will have to face quickly. If they don't there are new competitors, such as Stripe or Bluesnap, who will gain market share at their expense. There are also global players - many of them with roots in Europe, where APMs are already well established - that are already targeting US-merchants with an offer that includes a comprehensive range of local payment schemes.

Nor is the threat to US payment providers just in the APM-market. Once a merchant has decided to partner with a new payment provider - for instance Adyen, WorldPay or Ingenico/Globalcollect - in order to gain access to APMs, then it makes very good sense to reduce complexity by consolidating card payments with that provider too.

It is understandably difficult for many large American PSPs and acquirers to change. They are used to decades-long success based on card-processing alone and to nearly unlimited growth in their domestic markets. But there are already some PSPs that have recognized the need to adapt to these new challenges and have begun to invest into an e-commerce offering beyond just cards. Others will need to follow quickly in order not to risk losing their market power due to missing a trend, as many big players before did in other industries.

It is in the nature of Americans and American business to be able to adapt quickly to challenges. So it seems natural to assume that U.S. online-retailers and their current local payment partners will adapt this time, too. But one thing's for certain: the deck is being reshuffled right now. The question is: who will still be in the game once the hand has been played?

1) https://www.atkearney.com/consumer-products-retail/e-commerce-index/full-report/-/asset_publisher/87xbENNHPZ3D/content/global-retail-e-commerce-keeps-on-clicking/10192

2) http://www.emarketer.com/public_media/docs/eMarketer_eTailWest2016_Worldwide_ECommerce_Report.pdf

3) https://www.paypalobjects.com/digitalassets/c/website/marketing/global/shared/global/media-resources/documents/us-deck-paypal-merchant-insights-usa-report-2016.pdf

4) Localization Increases Conversion by an Average of 70%, Translate Media, 23 May 2013.

5) Edgar, Dunn & Company for PPRO, 2016

6) PPRO Group, 2014

More Stories By Frank Breuss

Frank Breuss is Director of International Payment Solutions at PPRO, where he focuses on customer and partner relationship management, as well as customer acquisition. Frank also is responsible for looking after the integration of products and services such as innovative payment methods for new countries and target groups. His mission is to systematically raise customer satisfaction ratings by constantly optimizing PPRO’s service portfolio. Before joining PPRO, he was Country Manager Austria and Sales Manager Europe at SafetyPay. He has also worked for switch energy GmbH, CyberTron Telekom AG, Amazon.de and Sodexo Motivation Solutions Austria, where he held the role of Director Sales, Business Development & Marketing for over six years.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.