Welcome!

Mobile IoT Authors: Elizabeth White, Liz McMillan, Kevin Benedict, Yeshim Deniz, Pat Romanski

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
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
"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.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
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 ...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.