Simply Global

Discover a world of ecommerce possibilities with Digital River

With the world economy expected to grow by 3.9 percent each year over the next two years, we are in the midst of the broadest global growth upsurge the world has seen this decade.1

This, coupled with increased internet usage across the globe — recent reports2 show that 4 billion people, over half the world’s population, are now online — has created unprecedented opportunities for businesses to reach new customers, in both established and emerging markets worldwide.

THE GLOBAL ECOMMERCE OPPORTUNITY

INTRODUCTION

More and more, we’re seeing ecommerce break

down borders, allowing businesses to capitalise

on this global economic opportunity.

In fact, in 2017 alone, global retail ecommerce sales

reached $2.304 trillion, demonstrating a nearly 25%

increase year-on-year.3

What does all this mean for you?

Now is the time to think global. Expanding to more

markets around the globe puts you in a position to:

• Access a larger ecommerce opportunity

• Offset slower online growth in mature markets

with faster growth in emerging markets

• Diversify revenues

But, in order to successfully go global, you must

also go local, offering familiar experiences that meet

the expectations of your customers, wherever they

may be in the world. Global ecommerce can be

challenging and nuanced, and success requires

a thoughtful approach.

With nearly 25 years of experience ensuring risk-free

global ecommerce in 244 countries and territories,

Digital River is well positioned to help you on your way.

In this interactive guide, we’ve selected a few countries

and regions that our clients partner with us to sell in

and could be part of your ecommerce expansion plan,

and walk you through the considerations for your

global success.

Start exploring!

1 Source: https://www.imf.org/en/Publications/WEO/Issues/2018/01/11/world-economic-out-look-update-january-2018

2 Source: https://wearesocial.com/blog/2018/01/global-digital-report-20183 Source: https://retail.emarketer.com/article/global-ecommerce-topped-23-trillion-2017-emarketer-

esti-mates/5a6f89f5ebd40008bc791221

INDIA (BRIC)

CHINA (BRIC)

RUSSIA (BRIC)

SPAIN

UNITED KINGDOM

BRAZIL (BRIC)

MEXICO

UNITED STATES

CANADA

Click a location on the map to explore the opportunities different countries present for your business. Digital River’s experts will guide you on your way, highlighting the key opportunities, challenges and considerations for expanding your business into different markets worldwide.

BEGIN YOUR TRAVELS

NORWAY

FRANCEGERMANY

SWITZERLAND

OPPORTUNITIES

Business to Consumer (B2C) ecommerce is showing

strong growth across all countries, particularly in

Mexico, which is enjoying a sustained period of

economic stability. The ecommerce market in

Mexico is expected to reach $16.191 million by 2022.4

While the U.S. market is the most mature in the

region, there are still large competitive opportunities

for businesses entering the market — particularly

given that nearly half of small businesses in the U.S.

still don’t have a website. The same is true in

Canada and with ecommerce sales accounting

for less than 3% of total sales, there is plenty

of room to expand.5

Read on to find out more about the key North

American countries representing a significant

ecommerce opportunity for businesses looking

to expand into this region.

CHALLENGES

• Geography: A vast and diverse landscape makes

logistics a challenge.

• Varying expectations: There are very specific needs

in each country, from currency through to culture.

• Security & trust: Brands must focus on building

confidence, partnering with trusted suppliers, as well

as highlighting product return policies to alleviate

security concerns.

• Payments: Low credit card penetration

in Mexico.

4 Source: https://www.statista.com/outlook/243/116/ecommerce/mexico 5 Source: https://globalnews.ca/news/3929131/canada-online-sales-ecommerce/

North America accounts for over half a billion people across the United States, Canada and Mexico. The region is home to Google, Apple, Walmart and Amazon, some of the biggest brands in the world.

But, this is a huge geographical area with diverse socio-economic factors that influence different levels of technology and ecommerce adoption from country to country. If you can successfully negotiate these challenges, the profit potential in this region is great.

WELCOME TO NORTH AMERICA

UNITED STATES OF AMERICA

OPPORTUNITIES

Although a seemingly mature and saturated

ecommerce market, the US continues to

evolve, particularly in mobile commerce,

which is expected to account for 27% of

ecommerce retail sales by the end of 2018.9

Incredibly, 46% of American small businesses do

not have a website, so there is still plenty of work

to do to make sure they don’t miss out. Yet, the

overall ecommerce market is currently growing

at around 12% annually and is forecast to reach

over half a billion dollars by 2019.10

With 82% of online users accessing a mobile

device for online shopping 11 and 31% of the

population searching for products on their

mobile device at least once per week,12 mobile

shoppers are also driving significant ecommerce

growth in the United States.

CHALLENGES

• Delivery expectations: The U.S. is full of savvy

online shoppers with high expectations. U.S.

shoppers expect fast delivery times. Speed

is key and great logistics are essential for

maintaining a competitive edge.

• Price consciousness: U.S. shoppers are

inherently wired to shop around for the

best deals, making the market increasingly

competitive for ecommerce businesses.

• Geography: Markets vary from state-to-state,

covering vast distances, with some

more lucrative than others. For instance,

California alone is now the world’s fifth

largest economy 13, so there is a need to

prioritise markets based on fulfilment

capabilities. There is no one-size-fits-all

policy here.

KNOW BEFORE YOU GO

• Opportunity size: The world’s second largest

retail commerce market, only after China.

• Banking & credit: 94% of the population have

bank accounts, and 60% of the population

have credit cards.

• Market: $16.6T GDP. Internet penetration is

88.5% at 286.9m people. 83% of internet users

will use a mobile phone to go online this year.

The U.S. ecommerce

market in 2017 was $453

billion and has grown 16.4%

year-on-year for the first

quarter of 2018.6

As the world’s second largest retail ecommerce market, the U.S. has

witnessed a rapid evolution in shopping habits. A substantial majority

of Americans, around 80%, have made an online purchase and this figure

continues to grow.7 Those that shop online regularly are more likely to prefer

shopping online than in-store. With a population of over 326 million people,

there is clearly significant opportunity for businesses looking to sell online

in this market.

The average annual ecommerce revenue per shopper in the U.S. is

$2,012.8 With Millennials and Generation Xers spending an average

of six hours per week shopping online, this figure could rise significantly

over the next 12 months.

6 Source: https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf 7 Source: http://www.pewinternet.org/2016/12/19/online-shopping-and-purchasing-preferences/ 8 Source: https://www.statista.com/chart/3790/e-commerce-revenue-per-online-shopper/9 Source: https://www.invespcro.com/blog/mobile-commerce/ 10 Source: https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/ 11 Source: https://www.statista.com/statistics/809665/us-online-users-shopping-reach-by-device/ 12 Source: https://www.slideshare.net/wearesocial/digital-in-2018-in-northern-america-86863088?qid=866b1624-3af0-4f7f-bc55-061f788f057e&v=&b=&from_search=1713 Source: https://www.theguardian.com/us-news/2018/may/04/california-economy-uk-fifth-largest

OPPORTUNITIES

In this digitally savvy nation, it’s perhaps

unsurprising that 93% of shoppers search

for and research products online before they

purchase. With 52% stating they shop online

for lower prices and 39% shopping online so

they don’t have to leave the house, there are

clearly defined groups to target.

Interestingly, less than half of the country’s

businesses have a website, which presents

an opportunity for ecommerce businesses

entering this market who can provide a

localised experience.

Canada has good mobile penetration at

83% and mobile ecommerce transactions

will account for approximately 30% of retail

ecommerce and 2.6% of total retail sales

this year.16

CHALLENGES

• Geography: Given the size of the country, it’s

not surprising that click and collect, or pick up

in store, is gaining traction. Logistics are key

for any ecommerce business, and in Canada

this is amplified.

• Localisation: Canadians are proud

nationalists and with 60% of consumers

preferring .ca websites because they are

Canadian17, it’s vital for ecommerce businesses

to offer a fully localised experience, including

a localised storefront, transaction currency,

and both English and French languages.

KNOW BEFORE YOU GO

• Currency: Canadian Dollar (CAD).

• Banking & credit: 99% of the population have

bank accounts, and 73% of the population

have credit cards.

• Market: $1.78 trillion GDP. Internet penetration

is 88.5% with 32.1 million users, while mobile is

83% with 29.8 million mobile users.

Canadians are more active online than any other nation, with the average

user spending over 36 hours online per month.14 Digital buyers recently

became the majority in Canada (there are 22.1 million online shoppers in

a country of 36.6 million people), presenting a wealth of opportunity for

ecommerce businesses to reach Canada’s active online population.

The opportunity is growing fast, too. The ecommerce market was

worth $31 billion in 2017 and is estimated to reach $44.6 billion in 2020.

Retail ecommerce sales climbed an impressive 30% in 2017, on the back of

increased domestic ecommerce sites, as well as increased commitment by

multinational outlets to the Canadian ecommerce market.15

14 Source: https://cira.ca/factbook/domain-industry-data-and-canadian-Internet-trends/internet-use-canada 15 Source: https://www.emarketer.com/Report/Ecommerce-Canada-2018-eMarketers-Latest-Forecast-with-Focus-on-Grocery/2002204 16 Source: https://www.emarketer.com/Report/Ecommerce-Canada-2018-eMarketers-Latest-Forecast-with-Focus-on-Grocery/2002204 17 Source: https://cira.ca/factbook/domain-industry-data-and-canadian-Internet-trends/internet-use-canada

52% of Canadian shoppers

state they shop online

for lower prices, while

39% shop online to not

have to go out.

CANADA

MEXICO

OPPORTUNITIES

Mexico has the largest online Spanish

speaking population in the world and is one

of the top ten countries with the highest

number of internet users, at more than

85 million.20

Ecommerce is booming in this hyper-connected

country, with revenues expected to grow

more than 16% year-on-year, and likely to

reach U.S. $17.6 billion by 2020.21 Mobile

commerce in particular is a great opportunity

given the higher mobile than desktop internet

penetration figures. This, combined with

economic growth, makes Mexico an extremely

attractive market for businesses focused on

international expansion.

CHALLENGES

• Payment methods: Mexico has an average

of 0.8 credit cards per household, a figure

below many of its Latin American neighbours.

However, Mexico also has more debit

cards per household than most other Latin

American countries.22 Cash payments and

interest-free monthly payment instalments are

also popular options for Mexican shoppers.

• Immature web experience and logistics:

In addition to nuanced payment

considerations, in a study of Mexican online

retailers, A.T. Kearney found that factors

such as poor website experience and long

delivery windows were leaving Mexican online

shoppers dissatisfied.23 Offering a cohesive

buying experience from your website through

to purchasing and delivery will be key to

success in this promising market.

KNOW BEFORE YOU GO

• Currency: Peso (MXN).

• Banking & credit: 39% of the population

have bank accounts, and 18% of the

population have credit cards.

• Market: $1.21 trillion GDP. Internet penetration

45.1% with 58 million people. Mobile

penetration 86% with 106.8 million people.

Mexico is one of the top countries in the world for ecommerce growth.

To find the ecommerce sweet spot, look no further than Mexico’s growing

youth population. There’s an increasing number of young people buying

smartphones and making purchases online, stimulated by the stable and

growing economy (the Mexican economy will grow at around 2% in 2018

and 2019)18. In fact, online shoppers in Mexico are making more online

purchases via a smartphone than consumers in Brazil, United States,

Canada or Europe.19

Although Mexico is the second largest ecommerce market in Latin America,

it’s largely untapped, as Mexican retailers lag behind when it comes to

having an effective online presence.

18 Source: http://www.oecd.org/mexico/global-and-mexico-economic-outlook-2018.htm 19 Source: https://www.pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1520950836887-296 20 Source: https://www.statista.com/statistics/262966/number-of-internet-users-in-selected-countries/ 21 Source: https://www.eshopworld.com/blog-articles/mexican-ecommerce-insights/ 22 Source: https://www.atkearney.com/documents/10192/7376563/2016-The+Tipping+Point+for+E-Commerce+in+Mexico.pdf/f8b81c37-a042-454b-9a62-43140cf083a1 23 Source: https://www.atkearney.com/documents/10192/7376563/2016-The+Tipping+Point+for+E-Commerce+in+Mexico.pdf/f8b81c37-a042-454b-9a62-43140cf083a1

Mobile commerce

represents 24.5% of total

retail ecommerce sales in

Mexico, and is expected to

reach 35.4% in 2020.

OPPORTUNITIES

The proportion of consumers shopping online is

highest in mature European ecommerce markets,

87% in the UK and 82% in Germany. However,

it’s worth keeping an eye on the wider region, as

the Netherlands and Italy are predicted to be the

fastest-growing ecommerce markets in Europe

over the next five years.24

Technology is driving growth in this region, with

mobile commerce sales in Western Europe predicted

to account for 42.6% of the region’s retail ecommerce

market by 2021.25

The EU’s Digital Single Market strategy is removing

barriers to online trade within the EU, with the EU

looking to create a digital version of its free-trade

single market, prohibiting price discrimination against

customers in different EU countries.26

Continue reading to discover the European countries

representing a significant ecommerce opportunity

for businesses expanding out of their home markets.

CHALLENGES

• Regulation: In May 2018, The EU’s General Data Protection

Regulation (GDPR) came into force. As these rules empower

digital consumers around the region to take more control

over the ways in which their personal data is used, the

implications for any organisation doing business in the

EU can’t be underestimated.

• Politics: The changing political climate, including ongoing

Brexit negotiations, threatens to impact the Single Market

trade and tax laws in the region.

24 Source: https://ecommercenews.eu/fastest-growing-ecommerce-markets-europe/25 Source: https://www.emarketer.com/Report/Western-Europe-Retail-Ecommerce-Update-

eMarketers-Estimates-Forecast-20162021/200218426 Source: http://uk.businessinsider.com/eu-set-for-impressive-e-commerce-growth-but-brexit-

challenges-loom-2017-6

European countries have been leading the way in shaping consumer ecommerce trends, with countries such as the United Kingdom, France and Germany home to booming online markets.

WELCOME TO EUROPE

OPPORTUNITIES

The UK currently has the strongest ecommerce

market in Europe and is predicted to grow to

the third largest in the world by 2021.30

This year, for the first time, digital purchases will

account for more than 21.2% of total retail sales

in the UK,31 which is almost double the average

for Western Europe.

For businesses looking to enter this market,

the profit potential is enormous, with online

shoppers in the UK spending more per

household than consumers in any other country

at an average of £4,611 (USD $6,597) spent

online annually.32

CHALLENGES

• Brexit: Brexit has caused instability and

uncertainty in the UK market, which

has resulted in slowed down growth.

The implications of potential Brexit-related

trade restrictions could have an impact on

domestic goods and services.

• High expectations: Although the demand for

ecommerce in the UK is huge, the maturity

of the market also means that customer

expectations are higher. UK customers tend to

know what they want, and often they expect

personalisation and free shipping as standard.

KNOW BEFORE YOU GO

• Market opportunity: Fourth largest

ecommerce market in the world after Japan,

China, and the U.S. – predicted to grow to the

world’s third largest market by 2021.

• Banking & credit: 99% of the population

have bank accounts, and 62% of the

population have credit cards.

UNITED KINGDOM Online sales per person are the highest in the UK compared to any

other country, with an estimated 87% of UK consumers shopping

online.27Already thriving, the UK ecommerce market is set to continue

to grow at a rapid pace in the coming years, across all devices.

There is strong growth in mobile, which currently accounts for over half of

all online purchases and is expected to reach 48.6 billion euros by the end

of 2018.28 Overall online sales growth is also strong, with sales up 13.9%

year-on-year in January 2018.29

27 Sources: http://www.bbc.co.uk/news/business-39655039; https://www.nasdaq.com/article/uk-online-shopping-and-e-commerce-statistics-for-2017-cm761063 28 Source: https://www.emarketer.com/Report/UK-Retail-Ecommerce-eMarketers-Updated-Estimates-Forecast-20162021/2002188 29 Source: https://www.imrg.org/media-and-comment/press-releases/uk-online-retail-sales-growth-up-in-january-2018/ 30 Source: https://www.worldpay.com/uk/about/media-centre/2017-10/uk-ecommerce-market-set-for-strong-growth-powered-by-rise-in-ewallets 31 Source: https://www.emarketer.com/Report/Western-Europe-Retail-Ecommerce-Update-eMarketers-Estimates-Forecast-20162021/2002184 32 Source: http://www.bbc.co.uk/news/business-39655039

Online shoppers in

the United Kingdom spend

more per household

than consumers in

any other country.

OPPORTUNITIES

Germany is a leading global economy,

with a highly sophisticated logistics

infrastructure — ranked number one

on the Logistical Performance Index —

meaning the country is able to manage

internal as well as cross-border sales and

transportation of goods and products.38

Germany has a regulatory and economic

foothold in the EU, which can make this strong

market opportunity all the more appealing to

businesses looking to expand into this country.

It also has a high percentage of English

speakers (64%).

Additionally, Germany is one of the world’s

strongest exporters, to countries such as the U.S.

and China,39 making the country both receptive

and able to facilitate global ecommerce.

CHALLENGES

• Tax: The country has high marginal tax

rates and complex tax laws.

• Regulations: Regulations often favour

established local businesses, which

ecommerce businesses should aim to

understand before entering the market.40

• High expectations: German shoppers have

high expectations of brands they buy from

online, with 77% expecting orders to arrive

between 3-5 days. With the highest product

return rates in Europe (50% on average),

German shoppers expect free returns as

a standard service.

KNOW BEFORE YOU GO

• Currency: Euro (EUR).

• Banking & credit: 99% of the population

have bank accounts, and 46% of the

population have credit cards.

• Payment preferences: German consumers

often prefer to pay by direct debit – not a

debit card, mind you, but a direct debit from

local banks.

• Market: $3.7 trillion GDP. Internet penetration

is 88% with 71 million people. Mobile

penetration is 117%.

GERMANY Germany is Europe’s largest economy, which in 2017 logged the highest

annual surplus since its unification in 1990.34 In addition to having one of the

strongest economies in the region, Germany boasts a growing population of

online shoppers. In fact, ecommerce is thriving, with 89% of the population

using the internet.35

The nation has a total of 51.6 million online shoppers, each spending an

average €1,157 (GBP £1,000; USD $1,430) per year.36 Ecommerce now accounts

for 14% of the country’s total retail sales.37 With the market valued at €58.4

billion in 2017 and growing at 11.6% annually, the opportunity for brands to

tap into Germany’s online purchasing power is significant.

33 Source: https://www.essentialretail.com/analysis/577d0c4f0cacd-retail-country-in-focus-germany/ 34 Source: https://www.dw.com/en/germany-confirms-2017-surplus-and-gdp-growth/a-42706491 35 Source: https://www.ecommerce-europe.eu/research-figure/germany/ 36 Source: https://www.ecommerce-europe.eu/research-figure/germany/ 37 Source: https://ecommercenews.eu/ecommerce-germany-worth-e58-4-billion-2017/ 38 Source: https://lpi.worldbank.org/international/global 39 Sources: https://eu.usatoday.com/story/money/2017/06/01/heres-why-germanys-trade-surplus-us-so-big/102349370/; https://www.cbs.nl/en-gb/background/2017/10/what-does-china-buy-from-us-and-our-neighbours- 40 Source: https://www.internations.org/germany-expats/guide/29458-social-security-taxation/taxes-in-germany-15969

Germany is known

for having one

of the highest

product return rates

in Europe, with estimates

at around 50%.33

OPPORTUNITIES

With over 80% of the population shopping

online, the French ecommerce opportunity

is strong for growth-minded businesses

considering this market. This figure continues

to grow, with ecommerce in France estimated

to be worth €100 billion by 2019.46

Brands looking to win market share in France

will need to focus on competitive pricing

and promotions to win over these shrewd

shoppers. In fact, a recent study found French

consumers among the most likely in the world

to be influenced by price or promotions, with

customers saying these were the factors that

drove their most recent product choice.47

CHALLENGES

• Payments: There are certain payment

nuances to consider in France, with popular

payment methods including Carte-Blue,

a debit card that can be used as a

credit card, as well as Visa.

• Declining order values: For the sixth

consecutive year, average cart value

declined.48 This is offset by purchase frequency,

which has increased over the last 3 years,

presenting a lucrative opportunity for brands

offering a seamless customer experience to

encourage repeat purchases.

KNOW BEFORE YOU GO

• Currency: Euro (EUR).

• Banking & credit: 97% of the population

have bank accounts, and 44% of the

population have credit cards.

• Market: $2.8 trillion GDP. Internet

penetration 86.4% with 55.8 million

people. Mobile penetration is 102.6%.

FRANCE France is ranked the sixth largest ecommerce market in the world and the

third largest in Europe, behind only the United Kingdom and Germany.42

France’s economy is expected to recover from a slow start to 2018 with

2% growth forecast for the year.43

French shoppers spend an average of €70 per order on online orders,

with 24% of shoppers making online purchases more than twice a month.44

These digital shoppers are active across a range of devices. In fact, France

is the fourth biggest m-commerce market in the world, with mobile

commerce representing around 32% of online sales and contributing

to the country’s overall ecommerce market growth.45

42 Source: https://ecommercenews.eu/ecommerce-per-country/ecommerce-france/ 43 Source: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-country/france/economic-forecast-france_en 44 Source: https://een.ec.europa.eu/sites/default/files/een_guide_ecommerce_2018.pdf 45 Source: https://ecommercenews.eu/mcommerce-uk-germany-france-e85-billion-2018/ 46 Source: https://ecommercenews.eu/ecommerce-france-will-worth-e100-billion-2019/ 47 Source: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/01/the-truth-about-online-consumers.pdf 48 Source: https://www.ecommerce-europe.eu/news-item/french-ecommerce-report-2017-online-sales-14-year-year/

80% of the

French population

shops online.

OPPORTUNITIES

Spanish consumers often find the best prices

online by searching across multiple sites (56%

choose to buy from a site based on price and

64% state free delivery is important).

In a bid to find the best deals they are not

afraid of sourcing products internationally.

In fact, of the 6.8 billion euros spent online by

Spanish consumers in the first quarter of 2017,

just over 55% went to Spanish online stores,

with the remaining 45% going to foreign

ecommerce websites.53 Understanding this

price-conscious market and catering to its

competitive expectations will fuel success

for businesses looking to capitalise on Spain’s

ecommerce opportunity.

Spain is considered to have one of the largest

smartphone penetration rates in Europe and

around 35% of shoppers made a purchase

using a mobile device in 2017. Therefore, it’s

vital to offer a seamless customer experience

that caters to these active buyers, no matter

the device.

CHALLENGES

• Abandoned carts: The main cause of

abandoned carts in Spain is a difficult

payment process. In fact, 41% of customers

would abandon their cart if there was a

charge for using their preferred payment

method and 39% would leave if their preferred

method wasn’t available.54

• Logistics: Spanish shoppers expect their

delivery in 3-5 days regardless of proximity.

Fulfilment must be a top consideration before

entering this market.

• Market maturity: Although the market

represents a wonderful growth opportunity,

the Spanish market is relatively immature in

relation to its Western European counterparts.

KNOW BEFORE YOU GO

• Currency: Euro (EUR).

• Banking & credit: 98% of the population

have bank accounts, and 54% of the

population have credit cards.

• Market: $1.4 trillion GDP. Internet penetration

82.2% with 37.9 million users. Mobile

penetration is 108.2%.

SPAIN The Spanish have the largest ecommerce market in Southern Europe, with the appetite for

online shopping growing — 28% of online stores in Spain participated in Cyber Monday last

year.49 Once you have established a local ecommerce presence in dominant European markets

like the U.K. and Germany, Spain is a strong market to consider as part of your expansion plan.

With an estimated 49.2% of the country’s population buying digitally in 2017 (compared with

78.1% of the population in the UK and 68.3% of residents in Germany), it’s clear that this growing

market is ripe with opportunity for businesses looking to expand their European footprint.50

Spain is expected to see economic growth of around 2.9% this year.51 As a result, there is

consumer confidence in the country, which is helping fuel growth in retail sales. The Spanish

ecommerce market is growing year-on-year, with ecommerce expected to account for 6.7%

of total retail sales this year.52

49 Source: https://ecommercenews.eu/47-5-spanish-online-stores-participate-black-friday/ 50 Source: https://www.emarketer.com/Article/Optimism-Ecommerce-Spain/1015722 51 Source: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-country/spain/economic-forecast-spain_en 52 Source: https://www.statista.com/statistics/379137/e-commerce-share-of-retail-sales-in-spain/ 53 Source: https://ecommercenews.eu/ecommerce-spain-grew-25-first-quarter-2017/ 54 Source: https://www.retail-week.com/analysis/how-to-guide-cracking-spanish-ecommerce-in-three-steps/7029063.article?authent=1

60% of the Spanish

population shop online but

this is mobile territory.

As you explore your options for ecommerce expansion in Europe, it’s also worth considering those countries that are situated outside of the European Union but hold strong trade opportunities for ecommerce businesses that are up to the challenge.

Here we give you a top-level overview of two of these countries worthy of consideration.

OPPORTUNITIES

The Norwegian and Swiss ecommerce markets are

growing year on year. In Switzerland, only 6% of

the population haven’t purchased online, while the

number of those who are shopping online is set to

reach 5.5 million by 2021.

Similarly, in Norway an impressive 93% of all internet

users shop online, while 4.65 billion euros were spent

on ecommerce websites last year.55

CHALLENGES

Trading separately to the Eurozone, these

countries present their own complex tax

and regulatory challenges.

Local knowledge is essential to navigate

the administrative landscape for any business

looking to pursue ecommerce opportunities

in these markets. This is where the guidance

of an expert partner can be invaluable.

WELCOME

Norway and Switzerland both have their own currencies,

which means their economies and GDP have been able

to maintain independent strength despite economic

uncertainty in Europe.

While the market opportunity for ecommerce is strong, it

also calls for an in-depth understanding of the complexity

of these countries, as they operate under separate free trade

agreements to their EU cousins.

55 Source: https://ecommercenews.eu/nordic-ecommerce-worth-e20-6-billion-2017/

COUNTRY SNAPSHOTS WELCOME TO NORWAY AND SWITZERLAND

NORWAY

Sitting outside of the Eurozone, Norway

has a strong and stable economy that

boasts almost 3.2 million online shoppers.

Thanks to high disposable incomes,

the average online shopper spends

more than $2,600 annually.57

However, it’s worth bearing in mind

that there are also complex tax and

regulatory requirements, which make

entering the ecommerce space in

Norway a difficult challenge.

SWITZERLAND

Like Norway, Switzerland sits outside of

the European Union, and has much lower

Value Added Tax (VAT) than other EU

member states.

By 2017, half of Swiss shoppers were making

an online purchase every month, with 18%

making an online purchase every week, and

4% every day.59

It’s important to note, that due to not being

part of the EU, Switzerland has its own,

highly regulated market. Domestic rules and

regulations apply, which can make it a complex

terrain to navigate.

NORWAY AND SWITZERLAND

56 Source: https://www.eshopworld.com/blog-articles/norway-ecommerce-insights-2018/ 57 Source: https://www.eshopworld.com/blog-articles/norway-ecommerce-insights-2018/ 58 Source: https://iceclog.com/swiss-ecommerce-experienced-record-growth-in-2017/ 59 Source: https://www.asendia.com/news-blog/the-swiss-e-commerce-trends-your-business-needs-to-know/

There are 3.17 million

online shoppers

in Norway.56

In 2017, the Swiss

ecommerce market grew by

10%, but 56% of consumers

seldom or never use

their smartphone for

online purchases.58

In addition to established global ecommerce markets, it’s worth considering emerging markets that hold a lot of promise for ecommerce expansion. Here, we give you a top-level overview of the BRIC countries, which are collectively expected to spend over $1 trillion on B2C ecommerce by 2022.60

OPPORTUNITIES

The BRIC countries are undergoing rapid population

growth, as well as fast paced economic development.

The targetable market within BRIC countries is

therefore ever increasing.

The rapidly growing middle classes in these countries

have seen disposable incomes rise significantly, as

Western appetite for their exports grows and, in turn,

boosts the BRIC economies.

CHALLENGES

The BRIC countries are characterised by rapid

development, yet their current socio-economic

statuses sit somewhat behind European and

North American markets. This can present a

number of hurdles for ecommerce businesses

looking to expand into these countries.

WELCOME

The so-called BRIC countries are made-up of Brazil, Russia,

India and China. They were originally grouped together for

economic reasons, as part of a Goldman Sachs economic

paper.61 The theory being that they had the potential to

change the world economic order.

And for good reason. After all, these countries jointly include

over 25% of the world’s land coverage, 40% of the world’s

population and hold a combined GDP of $20 trillion.62 For instance, poor infrastructure combined

with a lack of credit card penetration and

a desire for alternative payment methods,

such as cash-on-collection, can make

the purchase and delivery of goods and

services a challenge in the BRIC countries.

COUNTRY SNAPSHOTS WELCOME TO THE BRIC COUNTRIES

60 Source: https://www.statista.com/statistics/255268/bric-b2c-e-commerce-sales/61 Source: https://www.goldmansachs.com/insights/archive/archive-pdfs/ build-better-brics.pdf62 Source: https://en.wikipedia.org/wiki/Gross_domestic_product

BRAZIL

Brazil has the biggest and most developed

ecommerce market in Latin America,

accounting for 42% of Latin America’s

ecommerce.

With 61.1 million online shoppers currently, and

set to rise to 94.6 million by 2021, there is an

enormous opportunity for any business looking

to expand their footprint into this region.64

Yet, Brazil is a complex country to begin

selling in; lack of visibility and slow shipping

speeds, as well as tax and regulatory

requirements can present challenges

for businesses entering this market.

RUSSIA

In the first quarter of 2017, Russians spent 106%

more in foreign online stores than the previous

year. In 2016, 80% of Russia’s cross-border

orders came from China.65

Ecommerce is a fairly new concept within Russia,

yet with the largest online audience within

Europe, currently set at 102 million, ecommerce

is a trend that is set to grow.66

There is huge profit at stake for any ecommerce

business looking to expand into this region.

But be aware, Russia’s vast geography and

sensitive political climate can make navigating

this country challenging for businesses entering

this region for the first time.

BRAZIL AND RUSSIA

63 Source: https://www.statista.com/statistics/251659/number-of-digital-buyers-in-brazil/ 64 Source: https://www.eshopworld.com/blog-articles/brazil-ecommerce-insights-2017/ 65 Source: https://bearmarketbrief.com/2018/02/12/crouching-bear-hidden-dragon-china-and-the-future-of-russias-e-commerce-market/ 66 Source: http://blog.webcertain.com/the-most-popular-russian-search-engines/02/03/2018/

There are 73 million

online shoppers in Brazil,

reaching 87 million

by 2020.63

46% of online shopping

in Russia came from

25-54 age category.

INDIA

Ecommerce is accelerating at a rapid rate

in India, but there is still plenty of room for

growth. It’s currently estimated that only 14%

of India’s internet users are shopping online,

with these numbers set to skyrocket in the

next five years.

In fact, Morgan Stanley predicts that the number

of online buyers will exceed 475 million by 2026,

from 60 million in 2016.

With more of the population shopping

online, as internet penetration and access

to smartphones rises, India is becoming an

increasingly attractive market for ecommerce

expansion. However, this can be a complex

market to enter, with cash-on-delivery still

being the most popular payment method, and

government regulations limiting the penetration

for international ecommerce businesses.

CHINA

Ecommerce is booming in China, with 40%

of global ecommerce spending coming from

the country, and the outlook is that it’s only

set to increase.70

The Chinese government now facilitates

favourable economic trade conditions

for international merchants, meaning the

opportunity for ecommerce businesses looking

to expand globally into this region has never

been so timely.

Before thinking about entering the Chinese

ecommerce space, be aware that localising

content and shopping experience is very

important to the Chinese and is essential in

gaining consumer trust.

INDIA AND CHINA

67 Source: https://www.export.gov/article?id=India-e-Commerce 68 Source: https://qz.com/1089559/morgan-stanley-explains-why-indias-e-commerce-market-is-a-hot-investment-opportunity/ 69 Source: https://www.indez.com/blog/sell-products-china-using-ecommerce/ 70 Source: https://www.export.gov/article?id=China-ecommerce

Ecommerce in India is

growing at an annual

rate of 51%.67

China’s ecommerce

market is expected

to reach $1.6 trillion

by 2019.69

How do you create a localised storefront in Spanish or manage product fulfilment while protecting against fraud and adhering to complex local tax rules? Expanding out of your home market to capitalise on the global ecommerce opportunity can be a complicated business, with a number ofnuanced regional considerations.

From payments and logistics to language and laws, no country is the same. Each region has its own risks but also opportunities. Understanding how to mitigate the risks and take full advantage of those opportunities is the challenge, which is why Digital River, with expert local knowledge across Asia, Europe and North and South America is an ideal partner to help you on your journey.

Digital River is a global leader in providing comprehensive ecommerce solutions and is a trusted partner to top enterprise software, consumer electronics and digital game brands. Our agile, always-on cloud-based systems are designed for speed to global markets. Able to transact in 244 countries and territories, we are more than just a global partner, we are also your local ecommerce guide. We take care of your local banking relationships and act as your Merchant and Seller of Record. We absorb your risk and we ensure that your entire customer payment experience is fully localised. Wherever you are looking to take your business, Digital River can support you.

In short, Digital River helps you break down the barriers of global ecommerce, taking care of the “how” so that you can get on with trading, wherever you are in the world and wherever your potential customers may be.

DIGITAL RIVER HELPS YOU GO GLOBAL AND ACT LOCAL

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