e-Commerce Challenges
Robert HadzetovicCountry Manager Austria
July 2013
2
2
E-Commerce growth
M: $4.8 bn
G: 13% CAGR
R: $50 mnM: $40 bn
G: 15% CAGR
R: $417 mn
M: $365 bn
G: 12% CAGR
R: $3,810 mn
M: $286 bn
G: 8% CAGR
R: $2,982 mn
M: $39 bn
G: 12% CAGR
R: $405 mn
M: $296 bn
G: 19% CAGR
R: $3,091 mn
M: $11 bn
G: 13% CAGR
R: $113 mn
Data from Euromonitor International (2013)
3
European e-CommerceNon EU-member supports
own ecosystem
High execution quality, some
first mover advantage
To small to support own ecosystem, highly successful
for foreign entrants
Big potential, big risk, small
market
Biggest European players, but
lacks localization interest
Price leader
Slow adaption, very local
50% allegro, equal size with
Czech, will grow a lot
Non-existent
Severely affected by crisis
4
Brands, retailers and e-Commerce
Mission
5
The online payment process is broken
$2x bn
But only 33
finalize purchase on desktop
On smartphone it’s
even worse with
only 3 that finalize
purchase
100 people go to
the checkout
Proceed to checkout
Loss almost doubles by 2016
$x bn
Lost in sales each year
Q: How often have you terminated a purchase on
the Internet due to the following?
I was not able to pay the way i prefer
I did not feel safe
There were some technical issues in the checkout
There were too many steps in the payment process
I was asked to enter sensitive data
I did not have my credit card details available
71%
69%
59%
54%
46%
17%
Mission
6
Checkout abandon rate is a huge problem –But why do people drop out?
Lack of preferred payment methods
(Only 60% of Europeans have
VISA/Mastercard)
Lack of safety Too much friction
7
Wie würden Sie am liebsten bezahlen, wenn Sie im Internet
einkaufen?
Quelle: GFK Studie 2012 im Auftrag von Klarna
Frage: Wie würden Sie am liebsten bezahlen, wenn Sie im Internet einkaufen?
3%1% 3%
25%
Kredit-/
Bankomatkarte
PayPal
oder andere
Ewallets
NachnahmeDirektüber-
weisungenVorauskasse Andere
16%
3%
Rechnung nach
Warenerhalt
49%
8
Online-Einkauf abgebrochen bzw. die Website des Anbieters
verlassen
Quelle: GFK Studie 2012 im Auftrag von Klarna
Frage: Haben Sie aus den unten stehenden Gründen schon einmal einen Online-Einkauf abgebrochen
bzw. die Website des Anbietersverlassen?
Ich habe
mich nicht
sicher gefühlt.
Der Online-Shop
hat nur eine
Banküberweisung
im Voraus als
Zahlungsvariante
angeboten.
83%
Die von mir
bevorzugte
Bezahlart wurde
nicht angeboten.
74%68%
Ich fühlte mich
unsicher und wollte
meine persönlichen
Daten nicht
angeben.
57% 56%
Ich musste beim
Bezahlprozess
vom Anfang bis
zum Ende zu
viele Schritte
durchlaufen.
Der Shop hatte
keine
Bezahlvarianten
angeboten, bei
denen man nach
der Lieferung
zahlen konnte.
Ich hatte nicht alle
Informationen zur
Hand, die der Shop
für die
Durchführung des
Kaufs verlangt hat.
53%
47%
9
Mobile is the final frontier in online shoppingBuy when you want
Mobile traffic is increasingly pushing alternative payment methods,
since cards simply do not convert on the phone
Buying on mobile
doesn’t have
to be complicated
number of
smartphones
worldwide by
2016
10bn
e-Commerce
traffic through
mobile
in 2012
20% 3.5xincrease in
mobile
commerce
by 2016
+27%
MissionKlarna 2.0 = Checkout – Online payments solved!
+27%
Klarna 1.0 was only a payment method. With 2.0 - Klarna Checkout - we now offer the same great
experience for all the merchant‘s customers independent of their preferred payment method.
Klarna 2.0 adds much value to the merchants
✓ Reduce cost: One supplier,
one contract, one integration,
one payment, one currency, one
price and one set of rules
✓ Full global coverage
including local payment
methods
✓ Platform independent,
mobile, desktop and tablet
✓ Integrate once and still
benefit continuous
improvements
Klarna 2.0 further improves conversion rates and increases
sales
on existing merchants
10
11
MissionKlarna 2.0 is MOBILE and platform independent!
Klarna 2.0 makes
conversion on the phone as efficient as on
desktop!!!
More focus on our mobile KCO and communications
around mobile since this will be a key driver to acquire
merchants
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