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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Ecommerce Report
 The Netherlands
      2018

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                   www.ecommercefoundation.org
Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Thank you for reading this report…

Thank you for downloading this report. We hope this report will help you take the next step in
selling online in the Netherlands.

The Ecommerce Foundation is an independent non-profit organization, initiated by worldwide                   Jorij Abraham
national ecommerce associations as well as online and omnichannel selling companies from                    General Manager
industries such as retail, travel & finance. Our mission is to foster global digital trade as peace is   Ecommerce Foundation
the natural effect of trade. By facilitating digital commerce we hope to make the world a slightly
better place.

We especially would like to thank our Report Partners: namely Mazars, Osudio, Arvato, SAP and
                                                                                                         Jorij Abraham has been active in
.shop. Without their support, this report would not have been created. Moreover, a great amount          the international ecommerce
of gratitude is extended to the Ecommerce Association of the Netherlands, Thuiswinkel.org, for its       community since 1997. He was
                                                                                                         an Ecommerce Manager at
support in data collection and promotion.
                                                                                                         Bijenkorf, TUI and Sanoma
                                                                                                         Media and Director of
If you like our reports, please visit our report page on www.EcommerceWiki.org. On this page,            Consulting at Unic.
you will find a large collection of Ecommerce Country Reports for free.
                                                                                                         From 2013 to 2018 he has been
                                                                                                         Director of Research & Advice at
Your feedback is also very much appreciated. If you would like                                           Thuiswinkel.org and Ecommerce
                                                                                                         Europe (the Dutch and European
to help us make the 2018 reports even better, please take our 3-minute
                                                                                                         Ecommerce Association)
survey here.

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
“Thuiswinkel.org strives to optimize this benefit and helps online shops”
                                      Consumers are more and more finding their way to online stores in the Netherlands. This was
                                      particularly noticeable last year, when Dutch shoppers spent €22.5bn online. As a result, the Dutch
                                      B2C ecommerce turnover grew by 13% in comparison with the preceding year.

  Wijnand Jongen
                                      The share of online shopping continues to grow and becomes increasingly important for the Dutch
CEO of Thuiswinkel.org
                                      retail sector. The main reasons for this growth can among other things be found in the recovering
                                      economy and the improving consumer confidence in the economy. It is nice to see that both online
                                      and omnichannel retailers benefit from this.

   Wijnand Jongen has been the        Thuiswinkel.org strives to optimize this benefit and helps online shops that sell products and/or
 CEO of Thuiswinkel.org since its     services, entrepreneurs and their employees to become more successful. In order to do so, we offer
 incorporation in 2000. Wijnand is
      also the Chairman of the
                                      relevant and practical solutions through advocacy, our B2C and B2B Thuiswinkel trustmark,
      Executive Committee of          knowledge and research. In addition, we organize several ecommerce-related events and projects.
Ecommerce Europe, the European
  umbrella organization with more
  than 25,000 (online) shops as its   We would like to thank the Ecommerce Foundation for creating this report. With the B2C Ecommerce
 members. In addition, Wijnand is     Country Reports being only one of their instruments, the Ecommerce Foundation aims
 the author of the book, ‘The End
  of Online Shopping’, which was      to strengthen the ecommerce community in several ways, and
   published in the Netherlands in    Thuiswinkel.org will continue to support them in doing so.
2016 and has been translated into
        English and Chinese.

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Mazars is an international, integrated and independent organization, specializing in audit, accountancy, advisory, tax and legal services. As of 1st
January, 2018, Mazars operates throughout the 86 countries and territories that make up its integrated partnership. Mazars draws upon the expertise
of 20,000 women and men led by 980 partners working from 300 offices worldwide. We assist clients of all sizes, from SMEs to mid-caps and global
players as well as start-ups and public organizations, at every stage of the development.

SAP Hybris is a business unit of SAP, providing omnichannel customer engagement and commerce solutions that allow organizations to build up a
contextual understanding of their customers in real-time, deliver a more impactful, relevant customer experience and sell more goods, services and
digital content across every touch point, channel and device. Through its state-of-the-art customer data management, context driven marketing tools
and unified commerce processes, SAP Hybris has helped some of the world’s leading organizations to attract, retain and grow a profitable customer
base.

.shop is a domain name for ecommerce. Short, meaningful and relevant, .shop allows ecommerce businesses to choose a brandable online address
that instantly identifies ecommerce websites to online shoppers around the world. A shop domain name can also help offline retailers and service
providers to be discoverable online. For businesses, short, memorable .shop domain names are a more powerful marketing tool and can be used to
distinguish their corporate website from their online shop, and provide an enhanced user experience for their customers.

Osudio is part of the SQLI group and one of Europe’s largest and most experienced e-business specialists. Having worked in e-business since the 90’s
we understand what works, what doesn’t and what drives growth. Many of our national and international clients are market leaders. Our goal is to help
them evolve their business model so they can excel in every market or channel. Osudio helps you reach B2B and B2C clients with a seamless
experience in every channel where they are active. Through our expertise in product information management, we can create the right fundamentals
for an omnichannel presence including print. This provides the ecommerce solution that enables brand experience and drives sales.

We are a leading global service partner in eCommerce fulfillment and integrated financial services for the eCom industry. Especially handling
consumers’ favorite invoice method ‘payment after delivery’ for the European market is one of our core businesses. This combined with our
customized Risk & Fraud and Collection Solutions, makes us Europe’s third largest integrated financial service provider. We manage around 10,000
customers in 22 countries for different industries: retail/e-commerce, telecommunications, insurance, banking and healthcare. We delivery value to
your customers!

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                                                  www.ecommercefoundation.org
Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
About Thuiswinkel.org                                  Thuiswinkel.org Members                                         E-commerce events
                                                                                                                         in the Netherlands
Thuiswinkel.org is the inspiring digital   Thuiswinkel.org has over 2,200 members that sell products
                                                                                                              January      WebWinkel Vakdagen (expo)
commerce      network     that    helps    and/or services online to consumers. They work in all kinds
companies, entrepreneurs and their         of branches, including home & garden, fashion, travel, IT,                      Thuiswinkel Webinar: Ready for
employees      to    become       more                                                                        March
                                           insurance,   consumer electronics       and sport/toys. The                     the new privacy legislation
successful. We offer relevant and
                                           combined        turnover          of        our          members
practical solutions through lobbying,
                                                                                                              March        Shopping Awards
the      “Thuiswinkel       Waarborg”      represents 75% of Dutch online consumer spending.
trustmark, knowledge, research and
                                           Naturally, international online shops are more than welcome        May          Digital Transactions
education. Our objective is to improve
trust in distance-selling and to make      to join Thuiswinkel.org, as long as they comply with the
                                                                                                              May          ShoppingTomorrow Kick-off
cross-border trading easier.               Dutch law and regulations.

                                                                                                              June         Thuiswinkel.org Member’s Event
                                                           Email: info@thuiswinkel.org
                                                            Telephone: 0318 64 85 75
                                                                                                              September    ShoppingToday
                                                            Twitter: @thuiswinkelorg

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Table of Contents

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                    38                                 65

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Introduction: The Netherlands

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
The Netherlands

      Area:       41,543 km2          Government:                        Constitutional Monarchy
      Capital:    Amsterdam
      Currency:   EURO (EUR)

                                      Internet users:                    96%

                                      Internet penetration growth:       2.39%

                                      URL country code:                  .nl

                                      Official language:                 Dutch

                                      Secondary Language:                Frisian

                                      Widely spoken foreign languages:   English, French, German

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Demographic Indicators
POPULATION                                                                                                AGE STRUCTURE
Total population, 2013-2018(f)                                                                            Age structure of the total population, 2017

                                                                                             17,084,459

                                                                         17,032,845
                                                                                                                                         18.73%             16.41%
                                                       16,979,729
                                                                                                                  0-14
                                     16,924,929                                                                   15-24
                                                                                                                                                                 12.07%
                                                                                                                  25-54          13.28%
                   16,865,008
                                                                                                                  55-64
 16,804,432                                                                                                       65+

                                                                                                                                                        39.52%

     2013              2014              2015              2016              2017             2018(f)

Population. Source: Worldometers, 2017. | Age Structure. Source: CIA World Factbook, 2017.

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Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
Dutch GDP grew by 2.98% in 2017
GROSS DOMESTIC PRODUCT
GDP & Growth Rate, 2012 – 2018(f)

                                           Gross Domestic
                                                                                                                 GDP per Capita
               Year                        Product (GDP) in                       Growth Rate YoY                                 Growth Rate YoY
                                                                                                                     (EUR)
                                            Billions of EUR

               2012                               €759,840                                 -7.25%                  €45,350.12         -7.59%

               2013                               €794,427                                  4.55%                  €47,274.84         4.24%

               2014                               €806,302                                  1.49%                  €47,809.16         1.13%

               2015                               €628,441                                -22.05%                  €37,131.10        -22.33%

               2016                               €697,219                                 10.49%                  €41,061.84         10.59%

               2017                               €718,020                                  2.98%                  €42,155.02         2.66%
             2018(f)                              €740,160                                  3.08%                  €43,323.58         2.77%
Gross Domestic Product. Source: Quandl; IMF Cross Country Macroeconomic Statistics, December 31st (each year).

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What    effect   do    current                 tax           “The Netherlands follow                                 Interview
                             systems/schemes        have                     on
                             e-commerce in the Netherlands?                             international taxation rules              However, if the distance sales threshold is
                             (i.e. equalization tax on turnover of digital
                             companies, taxing untaxed or insufficiently taxed           with respect to taxation of              exceeded, the supplier needs to VAT
                             income from all internet-based business activities)                                                  register in the country of its customer and is
                                                                                         e-commerce businesses.”                  due local VAT. The distance sales
                             Provided well-structured there is no need
                             for uncertain tax positions, equalization              The specific VAT rules for e-commerce         thresholds differ throughout the EU. At this
                                                                                    manage where the supply of goods or           moment, the EU VAT system (nor the Dutch
                             taxes   and     double    taxation.   The
                                                                                    services is VAT taxable as an exemption on    VAT system) know a simplification rule for
                             Netherlands follow international taxation
                                                                                    the general VAT rules. This is relevant as    these suppliers. This might result in an
  Eric Klein Hesseling,      rules with respect to taxation of
                                                                                    the VAT rates differ throughout the EU.       administrative hassle for those entities.
                             e-commerce businesses.
International Tax Partner,                                                          Performing VAT taxable supplies in a          Another disadvantage of the current system
Mazars in the Netherlands                                                           country might furthermore result in the       is the difference made between EU
                                                                                    (undesired) obligation to VAT register        suppliers and non-EU suppliers: the import
                                                                                    locally.                                      of goods from outside the EU into an EU
                                                                                                                                  member state is not liable to VAT if the
                                                                                    E-commerce supplies of goods are called       value of the good(s) does not exceed EUR
                                                                                    ‘distance sales’. Distance sales are          22. This means non-EU web shops can sell
                                                                                    supplies of goods from an EU country to a     goods free of VAT to customers within the
                                                                                    private individual in another EU country.     EU (if the value does not exceed EUR 22).

                                                                                                                                          “VAT rates differ
                             What are VAT-specific rules for
                             e-commerce        platforms    in the
                                                                                                                                        throughout the EU.”
                             Netherlands? Do extra VAT-specific
                             rules exist for the Netherlands?                                                                     Electronical services to private individuals
                             (in addition to EU rules)                                                                            are VAT taxable in the country of the
                                                                                                                                  private individual as well. This means that
                             The EU / Dutch VAT system knows some                                                                 the supplier needs to VAT register in the
                             exceptions for e-commerce platforms, i.e.                                                            country of its customer and is due local
                             entities performing electronical supplies of                                                         VAT. At this moment, a simplified system
                             goods and services (‘e-commerce’).                                                                   applies: the Mini One Stop Shop (‘MOSS’).
                             Difference needs to be made between                                                                  Via this system, the foreign VAT can be
                             supplies of goods and supplies of                      The EU supply of goods to private
                                                                                                                                  filed in the country of the VAT entrepreneur
                             services to private individuals (not being             individuals is in the general situation VAT
                                                                                                                                  and a local VAT registration is no longer
                             VAT entrepreneurs).                                    taxable in the country of the supplier.
                                                                                                                                  required for the electronical services.

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As of 2021, the EU will offer an extension of                                     It is in general advised to hire professional                  Interview
                                      the MOSS regime for other intra-EU                                                financial service providers to and in such
                                      situations and non-EU situations as well. All                                     case it should not be necessary to
                                      EU member states will apply a uniform                                             experience serious penalties (other than
                                                                                                                                                                        What are the three main tips you give to
                                      threshold of EUR 10,000 turnover (excl.                                           regular administrative fines for late filing
                                                                                                                                                                        foreign companies coming to the
                                      VAT) per year for cross-border supplies of                                        etc.).
                                                                                                                                                                        Netherlands? Specifically small- to mid-
                                      EU VAT entrepreneurs. If the threshold is                                         Would you say the Dutch tax                     sized companies?
                                      not exceeded, the VAT entrepreneur does                                           system/regulations are easy or difficult
                                      not need to VAT register in the countries of                                      for foreign companies to adapt to and           (i) For your first impression check with the
                                      their customers. The threshold of EUR                                             incorporate?                                    Netherlands Foreign Investment Agency
  Eric Klein Hesseling,               10,000 will apply as of 1 January, 2019 for
                                                                                                                        Out of 190 countries globally Netherlands
                                                                                                                                                                        (NFIA) in in your region (www.nfia.com) or
                                      electronical services. The import threshold                                                                                       (www.investinholland.com). (ii) No doubt that
International Tax Partner,            for VAT purposes of EUR 22 for goods from                                         ranks 20 on the ease of paying taxes,
                                                                                                                                                                        from a tax and business point of view the
Mazars in the Netherlands             outside the EU will expire. This means that                                       according to the World Bank doing
                                                                                                                                                                        Netherlands is a good choice for service and
                                      import VAT is due upon all imports into the                                       business guide (shown in figure below*):
                                                                                                                                                                                           distribution businesses and
                                      EU. Although the thresholds and VAT rates                                                                                                            especially for e-commerce
                                      differ per country, the framework of the                                                                                                             businesses.      Let     your
                                      regulations are the same in all EU member                                                                                                            choice to invest in the
                                      states.                                                                                                                                              Netherlands predominantly
                                      Are there penalties for companies who                                                                                                                depend on your business
                                      do not comply with tax requirements in                                                                                                               point of view: tax follows
                                      the Netherlands? If so, what are they,                                                                                                               the business (and not the
                                      and how much do they impact foreign                                                                                                                  other way around). (iii) Hire
                                      companies?                                                                                                                                           high quality service firms
                                      Penalties can be imposed up to 100% (in                                           Are foreign companies eligible to a             (audit, accounting, tax, legal) with experience
                                      case of fraud) of the additional imposed                                          refund for Dutch VAT? If so, what does          in international business and with good
                                      taxes. More in general the penalties amount                                       obtaining the refund entail? If not, how        language skills for your guidance.
                                      25% or a fixed amount in case of e.g. filing                                      can foreign companies become eligible?
                                      too late. They impact foreign companies
                                      equally compared to domestic companies.
                                                                                                                        Foreign entities can reclaim Dutch VAT
                                                                                                                        incurred if the conditions are met. Under the
                                                                                                                                                                          “…we notice that entities
                                                                                                                        condition that the Dutch VAT is charged            from outside the EU are
                                                                                                                        correctly. Within the EU, most countries
                                                                                                                        offer a VAT reclaim in their own country.        sometimes not familiar with
                                                                                                                        Non-EU VAT entrepreneurs can file a
                                                                                                                        request to claim the Dutch VAT in the              the Dutch VAT system…”
                             *Source: World Bank, http://www.doingbusiness.org/data/exploreeconomies/netherlands        Netherlands. Certain expiry dates apply.

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Infrastructure and Logistics

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The Netherlands lags behind others in Internet Inclusivity
The inclusive Internet Index                         OVERALL INCLUSIVE INTERNET SCORE                        TOP THREE RANKED COUNTRIES GLOBALLY
                                                     Score 0-100, and global ranking 2018                    Global ranking, 2018
“The Index outlines the current state
of Internet inclusion across 86
countries, and aims to
help policymakers and influencers
gain a clearer understanding of the
factors that contribute to wide and
sustainable inclusion.“

         Availability
                                                                                                                                    1
         This category examines the quality and
         breadth of available infrastructure
         required for access and levels of
         Internet usage.
         Affordability
         This category examines the cost of
         access relative to income and the level
         of competition in the Internet
                                                                                                                   2                               3
         marketplace.                                                   83.4/100
         Relevance
         This category examines the existence
         and extent of local language content

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         and relevant content.

         Readiness
         This category examines the capacity to
         access the Internet, including skills,
         cultural acceptance, and supporting
         policy.

 Inclusive Internet Index. Source: Economist Intelligence Unit, 2018.

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Whilst availability is strong, affordability is a stumbling point
The Netherlands ranks 14th out of 86
overall, and 8th among 18 EU countries.
Availability is tied with Switzerland for               AVAILABILITY SCORE                                  AFFORDABILITY SCORE
4th place globally, buoyed by high fixed-               Score 0-100, and global ranking 2018                Score 0-100, and global ranking 2018
line broadband usage and good network
quality. But the country’s overall rank is
negatively affected by relatively low
Affordability and weak Relevance, partly
due to low e-Entertainment usage and
limited e-Health.                                                                      4                                                   31
         Availability
         This category examines the quality and                         84.4/100                                        83/100
         breadth of available infrastructure
         required for access and levels of
         Internet usage.
                                                                                    RELEVANCE SCORE                                      READINESS SCORE
         Affordability
         This category examines the cost of                                         Score 0-100, and global ranking 2018                 Score 0-100, and global ranking 2018
         access relative to income and the level
         of competition in the Internet
         marketplace.
         Relevance
         This category examines the existence
         and extent of local language content
         and relevant content.
                                                                                                                   27                                                   23
         Readiness
         This category examines the capacity to
         access the Internet, including skills,                                                85.8/100                                            76.2/100
         cultural acceptance, and supporting
         policy.

 Inclusive Internet Index. Source: Economist Intelligence Unit, 2018.

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The Netherlands ranks 5th in Logistics Performance
         Logistical Performance Index                                     Ease of Doing Business Index                                 E-Government Development Index
         The LPI overall score reflects perceptions                       A high ease of doing business ranking                        The UN’s E-Government Index provides a
         of a country's logistics based on, among                         means the regulatory environment is more                     comparative assessment of the e-
         other things, efficiency of customs                              favorable for the starting and operation of a                government development of UN Member
         clearance process, quality of trade- and                         local firm. The rankings are determined by                   States. Important factors contributing to a
         transport-related infrastructure and ease                        sorting the aggregate distance to frontier                   high level of e-government development are
         quality of logistics services.                                   scores on 10 equal topics.                                   concurrent past and present investments in
                                                                                                                                       telecommunication, human capital and
                                                                                                                                       provision of online services.

                               5th                                                            32nd                                                             8th

                     Logistics Performance                                                  Ease of
                                                                                                                                                       E-government Index
                              Index                                                   Doing Business Index

Logistcal Performance Index. Source: Worldbank, 2016. | Ease of Doing Business Index. Source: Worldbank, 2018. | E-government Development Index. Source: United Nations, 2016.

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                                                                                    www.ecommercefoundation.org
PostNL has the most service locations
LOGISTIC SERVICES
Numbers of logistical service locations, by parcel delivery company, 2016

         2,817

                                                                                                                                                 p  e r s tend
                                                                                                                               n  l i ne  shop           e l ev el
                                                                                                                            o                        t h
                                                                                                                     Dutch tisfied with ntly
                                                                                                                            sa                      re
                                                                                                                     to be andard cur elivery
                                                                                                                          of st             hi ch i s
                                                                                                                                                        d
                                  1,352
                                                                                                                           v i d e   d  (w
                                                                                                                                                      i n m  ost
                                                                                                                         o                        s
                                                                                                                       pr
                                                                                                                                i n    1 -3 d ay
                                                                                                                         wit h             cases
                                                                                                                                                  ).
                                                              775                                            836
                                                                                        620

       PostNL                 DHL Parcel                     DPD                       GLS              UPS Access
                                                                                                          Points

Logistic Services. Source: Statista, Autoriteit Consument & Markt, 2016. | Source: PWC, 2017.

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The Netherlands is ranked 3rd out of            The Netherlands is the new base for                              Interview
                                                137 countries in infrastructure; would          American companies that start their EMEA
                                                you say SMEs are benefitting/ hindered          base.
                                                                                                                                                  Both need to make a strategy, and
                                                by Dutch infrastructure?
                                                                                                What are the main challenges SMEs                 constantly look at the changes and new
                                                SMEs in the Netherlands benefit from            encounter when expanding cross-                   features they develop. The whole
                                                advanced      fine-meshed    infrastructure     border?                                           marketplaces development is still in its
                                                compared to the five big European                                                                 infancy.
                                                countries. Where these big players deliver      In the beginning I think IT infrastructure will
                                                same day, or even within two hours in big       be the biggest challenge. If you want to          How can SMEs be more transparent for
                                                cities like New York & Shanghai, this can       build a business abroad, you need to              customs? What are new technologies
  Hans Siebum, Managing                         become the future in all of the                 adjust to the local e-commerce culture. In        and/or challenges affecting customs
                                                                                                most cases that means local stock and             transparency for SMEs?
Director, Benelux SaleSupply                    Netherlands. The big players in the
                                                                                                local (native) customer care. These two
                                                Netherlands like Coolblue and Bol.com                                                             For online retailers, we see new software
                                                have a cut off time of 23:59 and 23:00 for      aspect you can be outsourced and are
                                                                                                                                                  on the market that can make cross-border
                                                delivery the next day!                          always depending on connecting with
                                                                                                                                                  shipments more transparent for customs.
                                                                                                partners. WMS for fulfilment and CMS
                                                                                                                                                  New Duty Management Systems are
                                                                                                API’s for a good overview and real-time
                                                                                                                                                  entering the market. and will be useful and
                                                                                                reporting in customer care.
                                                                                                                                                  affordable both for the SMEs as well as

Hans Siebum has been active in e-
                                                                                                 “you need to adjust to the                       big multinationals like nowadays.
                                                                                                                                                  What delivery times and methods do
commerce in various roles since 2007, From
2012 he is taking a peek in Europe finest
                                                                                                 local e-commerce culture”                        Dutch consumers prefer?
kitchen of e-commerce companies.                                                                                                                  In the Netherlands there are two major
                                                                                                                                                  players (Coolblue & Bol.com) dominating
Together with these companies, he makes                                                                                                           the market. Order before 23:59 or 23:00
goals and strategy to go cross-border. In his                                                                                                     and have it delivered the next day.
current role as Managing Director of                                                            How should SMEs prepare/defend
Salesupply Benelux he responsible for the                                                       themselves from giant internet retailers
sales and operations, concentrating on          How do you foresee the future of Dutch          such as ‘Amazon’ arriving?
Customer care and cross-border fulfilment.      logistics/warehousing with regards to           We need to make a difference between
Salesupply is located in 12 countries and       Brexit impacts?
empowering retailers and brands with
                                                                                                Resellers and brand owners. For resellers
                                                Not only in the future, but already at this     it is going to be a struggle between service
Customer care & Cross-border fulfilment
solutions to achieve a perfect customer         moment we see a growth of questions             and price. Brand owners need to make a
experience.                                     from the USA. Companies who would start         strategy between selling themselves and
                                                in the UK now come to the Netherlands           controlling their distributors on the big
                                                because of the uncertainties Brexit brings.     online platform(s).

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This has become a goal for most e-              In the coming year, this will settle, but for                     Interview
                                                commerce players. Standard is next day          the near future I don’t think we will be using
                                                delivery and the struggle is to stretch the     brand names for payment methods
                                                cut off time in the evening. Delivery           anymore. Every bank/financial provider will
                                                                                                                                                 What customer service is most
                                                methods are delivery at home or a nearby        ensure that we can pay by phone or online        accessed by online consumers, and
                                                pick-up point. This has become became           wallet connected to bank accounts.               why? Do you expect this to change in
                                                the standard for de Dutch e-commerce            Payments stored through phones & online          the foreseeable future?
                                                                                                payments via wallet with authentication will
                                                What cross-border return policies do            be the most important developments.              If we look at customer service channels, e-
                                                online consumer prefer and why?                                                                  mail, chat and telephone are the most used
  Hans Siebum, Managing                         From the point of view of the end                                                                channels. Chat will be the biggest customer
Director, Benelux SaleSupply                    consumer domestic and cross-border                                                               service channel in the near future. The
                                                return procedures must be the same.                                                              same vision here as in the question about
                                                Retailer need to pick up the return at                                                           payment methods what I mentioned in the
                                                                                                                                                 question about payment, regarding the
                                                home or offer a collect point were the end
                                                                                                                                                 future is applicable here as well.
                                                consumer can bring it to.
                                                                                                                                                 The younger generation doesn’t choose
                                                “Online shoppers in Western                                                                      between phone, chat or WhatsApp. They
                                                                                                                                                 take the first messenger service that the
Hans Siebum has been active in e-
commerce in various roles since 2007, From
                                                  Europe like to pay with                       What estimated percentage of online              webshops or app will provide and demand
2012 he is taking a peek in Europe finest          cards debit or credit”                       consumers order internationally and/or
                                                                                                domestically, and what is their main
                                                                                                                                                 a high service and direct solution. I think the
                                                                                                                                                 difference will be that a messenger service
kitchen of e-commerce companies.
                                                                                                reason for purchasing internationally            will be the first line of contact and if it’s
                                                What payment methods do consumers
Together with these companies, he makes                                                         and/or domestically?                             necessary (in case of an RMA or
                                                prefer, and do you think it will change
goals and strategy to go cross-border. In his                                                   The percentage is different in each country.     guarantee) then shops will use the second
                                                in the next 2 years? If so, why/how?
current role as Managing Director of                                                            First, we need to make clear what is a           line channels, like email. I also see that in
Salesupply Benelux he responsible for the       Every county has its own preferred              domestic sale and what is an international       the cross-border market the native/local
sales and operations, concentrating on          payment methods. Looking          at the                                                         approach will be very important.
                                                                                                sale. For example, Zalando (a German
Customer care and cross-border fulfilment.      Netherlands, iDeal (a form of bank              Company) is doing very well in the
Salesupply is located in 12 countries and
empowering retailers and brands with
                                                transfer) is most popular. In general           Netherlands, They have localized in such a        “Chat will be the biggest
                                                Western Europe online shoppers like to          way that we need to question ourselves if
Customer care & Cross-border fulfilment
solutions to achieve a perfect customer
                                                pay with cards debit or credit. In China,       we are talking of a international sales. A       customer service channel in
                                                Alipay and Union pay are the rulers in the
experience.
                                                market. Stripe, Apple pay and PayPal are
                                                                                                research project headed by Jesse
                                                                                                Weltevreden, faculty of HvA (Hogeschool
                                                                                                                                                      the near future.”
                                                popular in the USA.                             van Amsterdam), displays these figures.

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E-commerce Landscape

                    20
        www.ecommercefoundation.org
Working in e-commerce for a long                What are the most common barriers                          Interview
                                              time, how have you seen the Dutch               for foreign retailers expanding to the
                                              market change over the last 5 years?            Netherlands? What are the best ways
                                              Has the Dutch market become                     to overcome these barriers?
                                              more/less open to foreign retailers
                                              looking to sell online?                         The Netherlands already have some very
                                                                                              good online players, such as Coolblue,
                                              The Dutch e-commerce sector has                 wehkamp and bol.com. Dutch consumers
                                              continuously improved itself over the last      can mostly find what they are looking for
                                              few years, as its turnover have increased       there, so it would be difficult for foreign
      Richard van Welie                       significantly every year. One of the main       players to get a market share from
  Senior E-commerce Editor                    reasons for this is the growing consumer        scratch. What is crucial for every new
       Thuiswinkel.org                        confidence, as people are more and more         player in this market is that they offer
                                              finding their way to the Internet for their     excellent service and proper pricing.
                                              shopping needs. This is also evidenced
                                              by the fact that they are shopping online
                                              in a wider variety of product categories        ”…Dutch consumers may
                                              than a couple years ago. As a result of
Richard is an experienced editor, both in
                                              this confidence, they are also looking          be a bit distrustful when it                  What      are     some      consumer
                                              across the border for products and
English and Dutch, with broad knowledge in
the field of e-commerce, content marketing,
                                              categories, but they are still a bit more            comes to foreign                         preferences/behaviors that are unique
                                                                                                                                            to Dutch consumers and should be
copywriting and language consultation. He
has been the Senior E-commerce Editor for
                                              careful in this regard, as they do not want
                                              to get scammed.
                                                                                                       players…”                            considered    by    foreign   retailers
                                                                                                                                            expanding to the Netherlands?
Thuiswinkel.org since 2014 and serves as a
curator on the Ecommerce Wiki.                                                                I think Dutch consumers may be a bit
                                                                                              distrustful when it comes to foreign          Delivery is a very important aspect in the
“Through sharing our knowledge we can all                                                     players, as they are already accustomed       e-commerce process. Dutch consumers
improve our businesses.”                                                                      to    a     well-developed    e-commerce      not only expect to be in charge of delivery
                                                                                              infrastructure in the Netherlands. In order   (they expect their orders to be delivered
                                                                                              to take away this distrust, foreign online    at the place and time they desire, they
                                                                                              shops should apply for a renowned             also want it for free). In general, pick up
                                                                                              trustmark, such a Thuiswinkel Keurmerk.       points are not very popular in the
                                                                                                                                            Netherlands. People still prefer their
                                                                                                                                            products to be delivered at home.

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Another important aspect is payment.                                                                       Interview
                                              Dutch consumers are used to being
                                              offered a wide array of payment options
                                              and one of them should always be iDEAL,                                                       Still, purchases through mobile devices
                                              as this is by far the most preferred                                                          are lagging behind some, perhaps
                                              payment option in the Netherlands. In                                                         because people are not yet convinced of
                                              addition, online shops are legally required                                                   the safety regarding paying through a
                                              to offer at least one payment method that                                                     mobile device. However, this will also
                                              allows consumers to pay for their online                                                      change in the near future, meaning that
                                              purchases after receiving them.
      Richard van Welie                                                                      “…more and more people                         the share of ordering products and
                                                                                                                                            services through smartphones and tablets
  Senior E-commerce Editor
       Thuiswinkel.org                                                                            are using their                           will increase significantly. In addition, the
                                                                                                                                            role of voice will become more and more
                                                                                             smartphones and tablets                        important in the Netherlands. Services
                                                                                                                                            and devices like Google Home and
                                                                                               in the e-commerce                            Amazon’s Alexa will eventually also
                                                                                                                                            conquer the Netherlands just as it has
                                                                                                    process…”                               already conquered the U.S.
Richard is an experienced editor, both in
English and Dutch, with broad knowledge in
the field of e-commerce, content marketing,                                                   How do you foresee new innovations
copywriting and language consultation. He                                                     and technologies impacting the Dutch e-
has been the Senior E-commerce Editor for                                                     commerce market? Which of these
Thuiswinkel.org since 2014 and serves as a                                                    technologies do you feel are most
curator on the Ecommerce Wiki.                The GDPR is another hot topic at the            important for SMEs to invest in the
                                              moment, as companies (including online          success in the Netherlands, specifically
“Through sharing our knowledge we can all     shops) have to comply with this new             for Dutch online shoppers?
improve our businesses.”                      European privacy law as of May 25, 2018.
                                              This law ensures that consumers control         At the moment, mobile is crucial, as more
                                              their own data and that they are better         and more people are using their
                                              protected in this regard. Webshops              smartphones and tablet in the e-commerce
                                              should therefore make sure that they            process, for instance to browse websites or
                                              comply as soon as possible with all new         find alternatives and best prices for the
                                              privacy regulations.                            products or services they want.

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Average spending per online shopper continues to increase
INTERNET PENETRATION (IN LAST 3 MONTHS) & ONLINE SHOPPERS                                                NUMBER OF E-SHOPPERS AND SPENDING
Internet penetration and number of online shoppers (of internet users), 2017                             Number of e-shoppers in millions and average spending per e-shopper 2014-2017

                                                                                                                                                                          € 1,697

       17,084,459                                                                                             € 1,150             € 1,090
                                                                                                                                                      € 1,242

             Total population

                                                                                  97%                                                                                   16.4mn
                                                                                                                                                     15.2mn
       16,401,081
                Internet Users
                                                                             84%
                                                                                                              12.7mn              12.9mn
       13,930,641
              Online shoppers
                                                                                                                2014               2015               2016                2017

Internet Penetration & Online Shoppers. Source: Statista, 2018. | Number of E-shoppers and Spending. Source: Thuiswinkel, 2018.

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Online purchases account for a quarter of the total market
TOTAL MARKET: ONLINE & OFFLINE
Percentage of online from total market, 2017

                                                                                                                                       utch
                                                                                           24%
                                                                                                                                 e   D               t o b uy
                                                                                                                   %    o  f th         e fe r red
                                                                                                                27
                                                                                                                         l a ti o n pr          b e h in d
                                                                                                                 popu This lags ations
                                                                                                                          e.                    n
                                                                                                                  onlin uropean
     Online share of total market
                                                                                                                     th e  r  E
                                                                                                                                        r m  a  ny
                                                                                                                   o             s   Ge             a nd
     Offline share of total market                                                                                         h   a              %   )
                                                                                                                    su c            U K (45
                                                                                                                                ),
                                                                                                                     (41% (35%).
                                                                                                                                   e
                                                            76%
                                                                                                                       F ra n c

Total Market: Online & Offline. Source: Thuiswinkel, 2018. | Source: PWC, 2017.

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The B2C ecommerce growth rate is forecasted to be ≈ 11%
B2C ECOMMERCE TURNOVER & GROWTH RATE                                                             E-GDP & GROWTH RATE
B2C ecommerce turnover in billions of EUR; Growth rate, 2013-2018(f)                             Ecommerce share of total GDP; E-GDP growth rate, 2012-2018 (f)
                                                 18.37%                                                                                    21.81%
                                 13.50%                          13.00%
                                                                                 10.87%
 7.77%                                                                                                                          16.11%
                 7.01%                                                                                                                                 14.94%
                                                                                  € 24.95
                                                                                                                                                                  10.87%
                                                                  € 22.50
                                                                                                    8.49%          7.48%
                                                  € 19.58                                                                                                         3.37%
                                                                                                                                                       3.13%
                                  € 16.07                                                                                                  2.81%
                                                                                                                                   2.56%
                  € 13.84
   € 12.88

                                                                                                    1.62%           1.72%

    2013            2014            2015            2016           2017           2018(f)            2013            2014           2015    2016        2017      2018(f)

B2C Ecommerce Turnover & Growth Rate. Source: Statista; Thuiswinkel, 2018. | E-GDP & Growth Rate. Source: Ecommerce Foundation, 2017.

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Total Spending in the Dutch Online Market
B2C E-COMMERCE TURNOVER: GOODS & SERVICES
Share of B2C e-commerce turnover in billions, goods & services, 2016 & 2017

                                                                                                                          12,740,000,000
                             Services
                                                                                                                       12,230,400,000

                                                                                                       9,770,000,000
                                Goods
                                                                                                      9,574,600,000

                                                                               2017      2016

B2C E-commerce Turnover: Goods & Services. Source: Thuiswinkel, 2018.

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                                                                        www.ecommercefoundation.org
Clothing is the leading category for products
LEADING PRODUCT CATEGORIES
Revenue of leading e-retail categories, millions of euros, 2017

                                            Clothing                                                                                                     2,293
                                                    IT                                                                   1,529
                                           Telecom                                                                       1,529
                                 Food / Nearfood                                                                 1,274
                  Shoes & Personal Lifestyle                                                             1,147
                                 Home & Garden                                                           1,147
                                                                                                                                             D u tch          ch
                                                                                                                                        o f           s e a r
                                                                                                                                 24% mers re
                                   Other products                                                 892
                                                                                                                                         u                 ir
                       Media & Entertainment                                                      892
                                                                                                                                  cons ts on the
                                                                                                                                      o d uc
                        Household Electronics                                            764                                       p r
                                                                                                                                             p h o n e.
                                                                                                                                            t
                         Consumer electronics                                  510                                                  s ma r
                                                Toys                     382
                            Sports & Recreation                   255
                                 Health & Beauty                  255

Leading Product Categories. Source: Thuiswinkel, 2018. | Source: PWC, 2017.

                                                                                             27
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Flights & accommodation are leading in services categories
LEADING SERVICE CATEGORIES
Revenue of leading service related categories, millions of euros, 2017

 Loose Airline Tickets & Accommodations                                                                                     3,395

                                            Insurance                                                       2,328

                                                                                                                                   u m e rs
                                 Package holidays                                                       2,134             o f  cons on their
                                                                                                                    16% reviews             d i ng
                                                                                                                          k              a r
                                                                                                                     chec hone reg ailer.
                                                                                                                           tp               t
              Tickets for Attractions & Events                                           1,552                        smar duct or re
                                                                                                                              ro
                                                                                                                       the p

                                     Other services 194

Leading Service Categories. Source: Thuiswinkel, 2018. | Source: PWC, 2017.

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                                                                              www.ecommercefoundation.org
Bol.com was the most popular marketplace in 2017
ONLINE RETAILERS: REVENUE RANKING
Leading online retailers based on revenue, in millions of euros, 2016

                       Bol.com                                                                                      950

                       Coolblue                                                           615

                      wehkamp                                                      540
                                                                                                                                            u m  e r  s a les at
                                                                                                                                       ns                                  an
                        Zalando                                                   530                                     Dutch co reased by more th
                                                                                                                                        inc                        lion.
                                                                                                                          Bol.com                     9 5  0  m  il
         Albert Heijn Online                                         400
                                                                                                                              0 0  m  illio n to €               u  m  ber 4
                                                                                                                          €2                   s ra n k   e d  n
                                                                                                                                 lb lu e   w a                      0 0 , an d
                        Amazon                         250                                                                 Co o                us Tw      in kle 1
                                                                                                                                     p r e vio
                                                                                                                           in t h e
                                                                                                                                                  s  in  t h e to p 1 0
                            H&M                    205                                                                                      be  r
                                                                                                                            other clim eijn Online
                                                                                                                                           tH
          Van Dijk Educatie                       197                                                                       are Alber
                                                                                                                                            M.
                  Media Markt                    190                                                                         an d H &
 Nextail (Blocker Holding)                      173

Online Retailers: Revenue Ranking. Source: Statista, 2017 | *Source : Twinkle100.nl, September 2017.

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                                                                                      www.ecommercefoundation.org
Working in e-commerce for a long time ,          The Dutch consumer is known to love a                           Interview
                          how have you seen the Dutch market               good bargain. Tip 2: Make sure your
                          change over the last 5 years? Has the            proposition has a good value for money.         Dutch people are quite entrepreneurial, we
                          Dutch market become more/less open               And last, but not least, of course I am a       have a large base of SMBs. Connect with
                          to foreign retailers looking to sell             little biased, it all starts with a great       this start-up spirit. And last, but not least,
                          online?                                          domain name. In the Netherlands, .nl is         stay real. Dutch don’t like plastic fantastic
                          The market has changed significantly over        the standard, but recently two new domain       smiles.
                          the last 5 years. Not only in volume of the      Extensions have been introduced in the             “Partner with Dutch
                          online sales that have increased each            Netherlands; .frl and .amsterdam. Having
                          year. But also the types of players              these domain names gives you a local            companies in the same field
   Joost van Rooy         competing in the online retail market            presence. Tip 3: Blend in and localize your
Chief Marketing Officer   space. From the US we have seen the rise         marketing efforts as much as possible.
                                                                                                                               [and] gain trust.”
     Mijn Domein          of Amazon in our market. And from Asia it                                                        What are the most common barriers for
                          is incredible to see how quick AliExpress is                                                     foreign retailers expanding to the
                          able to gain market share. In Europe we                                                          Netherlands? What are the best ways to
                          see players as Zalando in clothing and it is                                                     overcome these barriers?
                          great     to    see      a  Dutch     player
                                                                                                                           Partner with Dutch companies in the same
                          Thuisbezorgd.nl        that   is    growing
                                                                                                                           field to avoid classic mistakes, and gain
                          internationally with takeaway.com.
                                                                                                                           trust. Make sure your fulfillment is as good
                                                                                                                           as your marketing, otherwise the first
                             “The Dutch consumer is                                                                        growth will simply end in bad reviews.
                              known to love a good                                                                         Gain stamina, the world cannot be
                                                                                                                           conquered in one day, you will need a few
                                   bargain.”                               What      are     some        consumer
                                                                                                                           to make it happen.

                          Specifically   regarding  the    Dutch           preferences/behaviors that are unique
                          consumer base, what are 3 main tips for          to Dutch consumers and should be
                          success in the e-commerce market?                considered    by    foreign     retailers
                                                                           expanding to the Netherlands?
                          In order to be successful in the Dutch
                          market, your proposition needs to be super       ‘Gratis’, which means ‘free’ in Dutch, is our
                          clear to the consumer you have in mind as        favorite word. Since the introduction of 4G
                          your target audience. Tip 1: Decide to           unlimited bundles, mobile marketing has
                          become a super niche or a marketplace            become more and more important. Be
                          and excel in that, don’t get stuck in the        present and relevant at every step of the
                          middle.                                          customer journey.

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The number of B2C websites will increase by 11.30%
B2C WEBSITES                                                                                      B2C GROWTH RATE
Numbers of B2C websites, 2011-2018(f)                                                             Growth rate of B2C websites, 2012-2018(f)

                                                                                                                                     17.80%
                                                                                                     16.80%
                                32,160                  34,420

                                                                                                                    13.70%
                                                                                                                                                               11.30%
                  29,250
                                                                                  38,309
                                                                                                                                                9.05%

                     24,045                                                                                                                          6.57%
                                                               16,515
                                                                                                                           4.33%
                                   23,005          19,850

    2011        2012        2013        2014       2015        2016        2017      2018(f)          2012        2013     2014      2015     2016      2017   2018(f)

B2C Websites. Source: Statista, 2018. | B2C Growth Rate. Source: Statista, 2018

                                                                                                31
                                                                                    www.ecommercefoundation.org
“ABOUT YOU Mode” is the most popular shopping app
POPULAR SHOPPING APPS
Most popular mobile shopping apps, by number of downloads, October 2017

  ABOUT YOU Mode Online Shop                                                                                         91,789

            AliExpress Shopping App                                                               70,277

    Marktplaats - koop en verkoop                                    34,610                                                                                       s  g  re w     by
                                                                                                                                                tore sa       l e
                                                                                                                              O n l i n e    s
        Wish - Winkelen is weer leuk                                 34,546
                                                                                                                                        %     o   v e r  2016.
                                                                                                                              19.5                       l  re   tailers
                                                                                                                                                a n  n e
                                  H&M App                        30,049
                                                                                                                              Multich                         g   g  o o  d   s and
                                                                                                                                 e   t a i l e rs   sel l i n                  r n et
                                       Joom                  25,119                                                            (r                              t h e  I n te
                                                                                                                                  e   rv i c  e  s  o ve r                    n ess)
                                                                                                                                s                               ry  b u   s i
                                      HEMA                   24,792
                                                                                                                                        a    s e  c onda
                                                                                                                                 a s
                                                                                                                                                         n o  v  e r g  rowth
                                                                                                                                                       r
            Stocard - Klantenkaarten                    18,737                                                                   have a tu %.
                                                                                                                                                        22
    Zalando - Kleding en schoenen                      18,118                                                                     of nearly
 Zalando Lounge - Shopping Club                      15,566

Popular Shopping Apps. Source: Statista, 2017. | Source: Centraal Bureau Statistiek, 2018.

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Online purchases are well distributed among the age categories
ONLINE PURCHASE
Type of online purchases by individuals in the Netherlands, 2016

                                   1%                                              2%
                                                                                     2%                                   3%

                 11%        6%                                         9%    7%                                 8% 7%                                 7% 6%
                                                                                                                                                                4%
                                                                                                                                                9%
                                     15%                      12%                                      11%
                                                                                     14%                                   12%                                       12%
        13%
                                                                                                                                           12%                             1%
                                                           9%                                       9%                         3%                        65 +
                       12-25              6%                            25-45                                    45-65                                                     2%
                                                                                        4%                                     4%
       7%                                                                                                                                                             9%
                                         5%                                           7%                                       8%
                                                             12%                                      13%                                    14%
           9%                        7%                                            5%                                                                                6%
                                                                                                                          6%                                    7%
                5%              6%                                     10%   7%                                 9%   7%                              11%
                        9%
                                                                                                                                    Telecommunication services
        Food products, cosmetics, cleaning products                               Medication
                                                                                                                                    Financial products or services
        Film, music                                                               Books, magazines, newspapers
                                                                                                                                    Digital study or teaching material
        Household goods and appliances                                            Travel and accommodation
                                                                                                                                    Soft-/hardware and electrical appliances
        Other purchases                                                           Clothes and sports articles
                                                                                                                                    Tickets for events

Online Purchase. Source: Eurostat; Centraal Bureau Statistiek, 2016.

                                                                                               33
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Dutch online stores are still by far the most popular
CROSS-BORDER SHOPPING
Percentage of cross-border shopping in the country, in EU and abroad, 2016 & 2017

                       From national sellers                                              From sellers in the rest of the world (non-EU)

                                                 2016                                                                 2016
                               2017              95%                                                       2017      23%
                           95%
                           95%                                                                           29%
Cross-Border Shopping. Source: Eurostat, 2017.

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                                                                      www.ecommercefoundation.org
Sellers from other EU nations are 1/3 of online purchases
CROSS-BORDER SHOPPING
Percentage of cross-border shopping in the country, in EU and abroad, 2016 & 2017

                 Sellers from other EU nations                                                      Sellers with an unknown country of origin

                                                 2016                                                                            2016

                                      2017       33%                                                                 2017       2%
                                  95%
                                  34%                   95                                                          3%
                                                        %
Cross-Border Shopping. Source: Eurostat, 2017.

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                                                                      www.ecommercefoundation.org
Chinese retailers are the go-to eShop for Dutch consumers
CROSS-BORDER SHOPPING: MOST POPULAR DESTINATIONS
Leading foreign countries to shop online based on share of cross-border expenditure in the Netherlands, 2016

                      19%                                                                                         24%

                        6%                                                                                        59%

Cross-Border Shopping: Most Popular Destinations. Source: Statista; GfK; PostNL, 2016.

                                                                                                36
                                                                                    www.ecommercefoundation.org
Interview
                                                Working in e-commerce for a long
                                                time, how have you seen the Dutch
                                                                                                     “[Consider] legal
                                                market change over the last 5 years?             entity/physical presence
                                                Has the Dutch market become
                                                more/less open to foreign retailers               in the Netherlands…”
                                                looking to sell online?                                                                                          Hoi! Hoe
                                                The Dutch economy is very open in
                                                                                                Specifically regarding the Dutch
                                                                                                consumer base, what are 3 main tips                              gaat het?
                                                general. Many retailers try to find ways to     for success in the e-commerce
                                                be successful in the Netherlands,               market?
           Victor Terpstra                      however people still buy often at local
            CCO, Osudio                         familiar brands. All these brands look          Exploitants should offer iDeal payment
                                                anxiously to the moment Amazon will             option, physical options to send returns,
                                                launch a full-blown Dutch version just as       Dutch product descriptions for search and
                                                                                                                                                            !
                                                                                                                                                     Goed
                                                Alibaba.                                        SEO purposes.

                                                                                                                                                           ?
                                                                                                                                                     En jij
Victor Terpstra is CCO of Osudio, one of the
leading E-business agencies in Europe.
Victor started his entrepreneurship in the
digital field as early as 1996. Starting with
Strawberries in 1999, Victor had his first
e-commerce experience in 2000. As an
entrepreneur during the last 20 years, he has                                                                                               What      are     some      consumer
been involved in numerous Dutch and                                                                                                         preferences/behaviors that are unique
International high-end E-business projects                                                                                                  to Dutch consumers and should be
including Goodyear, Shimano, Adidas,                                                                                                        considered    by    foreign   retailers
Intergamma, Carlsberg and Philips. Victor
has a passion for online retail and               “Offer iDeal payment                                                                      expanding to the Netherlands?
e-business. Victor holds a Master of Art in
Persuasive      Communication     from    the     option [and] physical                                                                     Payment with iDeal, legal entity/physical
                                                                                                                                            presence in the Netherlands (for trust and
University of Amsterdam (graduated 1998).
                                                 options to send returns.”                                                                  practical reasons – returns), Dutch
                                                                                                                                            language.

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Dutch Consumers

                 38
     www.ecommercefoundation.org
‘Digitieners’ use social networks more than any other generation
                                                     FACTS ABOUT THE ‘DIGITIENER’ GENERATION IN THE NETHERLANDS
                                                     Overall amount the generation shops online in percent (with most often bought items), percentage of generation who use the
                                                     internet on their smartphone and general trend of social network usage, 2017

         Age Category: 14-20

•      Visually Orientated
•      Social media habits follow
                                                                               2017                                         2017
       this visual habit (Snapchat,

•
       Instagram and YouTube)
       More of a focus on being
       individual
                                                                           84%                                          93%
•      Care less about privacy and
       how their data is handled
       compared to other                                             Shop online, mainly                            Use the internet on       Use social networks
       generations… but their                                        on books, games or                              their smartphone         more than any other
       concerns have risen greatly                                       CDs/DVDs                                                              generation (apart
       in the last year                                                                                                                         from Facebook)

    Facts About ‘Digitiener’ Generation in the Netherlands. Source: Ruigrok NetPanel, 2017.

                                                                                                          39
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‘Millennials’ love using the internet on their smartphone (90%)!
FACTS ABOUT THE ‘MILLENNIALS’ GENERATION IN THE NETHERLANDS
Overall amount the generation shops online in percent (with most often bought items), percentage of generation who use the
internet to shop on their smartphone and general trend of social network usage, 2017

                                                                                                                                     Age Category: 21-35

                                                                                                                               •   Online activities are
                                                                                                                                   integrated fully into their lives
                           2017                                          2017                                                  •   Millennials try to find a

                      53%                                           90%                                                            balance between work and
                                                                                                                                   leisure, and therefore can be
                                                                                                                                   less risk adverse
                                                                                                                               •   Less visually orientated than
                                                                                                                                   Digitieners
                 Use the internet on                           Use the internet on                           Active use of     •   They often have a media-
                 their smartphone to                            their smartphone                         Facebook has fallen       streaming device and use it
                         shop                                                                            from 85% in 2016 to       to watch online movies and
                                                                                                             77% in 2017           listen to music

Facts About ‘Millennials’ Generation in the Netherlands. Source: Ruigrok NetPanel, 2017.

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73% of ‘Generation X’ uses social networks daily
                                                    FACTS ABOUT THE ‘GENERATION X’ IN THE NETHERLANDS
                                                    Overall amount the generation shops online in percent (with most often bought items), percentage of generation who use the
                                                    internet on their smartphone and general trend of social network usage, 2017

         Age Category: 36-55

•      They are behind the fast-
       paced trends of technology
       usage. E.g. their love of
                                                                              2017                                     2017                           2017
       tablets, which have fallen
       out of favor with younger
       generations.
                                                                          32%                                      64%                            73%
•      Hearing Instagram from
       younger relatives has
       increased uptake in this                                     Use the internet on                        Use the internet on            Use social networks
       generation.                                                  their tablet to shop,                         their tablet                       daily
•      Half look at paid services                                   with only 28% using
       such as RTL XL or Netflix                                     their smartphone

    Facts About the ‘Generation X’ in the Netherlands. Source: Ruigrok NetPanel, 2017.

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‘Babyboomers’ are using smartphones more and more
FACTS ABOUT THE ‘BABYBOOMER’ GENERATION IN THE NETHERLANDS
Overall amount the generation shops online in percent (with most often bought items), percentage of generation who use the
internet on their smartphone and general trend of social network usage, 2017

                                                                                                                                    Age Category: 56-71

                                                                                                                              •   Go along with trends, but
                                                                                                                                  mainly in their areas of
                         2017                                                                                                     interest
                                                                                                                              •
                     57%                                                                                                          Almost all venture onto social
                                                                                                                                  media, as this is an easy way
                                                                                                                                  to keep in touch with family
                                                                                                                                  and friends
                                                                                                                              •   They can be skeptical about
                 Watch online TV,                             Over the last year,                        Use of Instagram         the online world and the
                online TV and films                          use of smartphones                           and WhatsApp            dangers it can bring
                                                               have increased                           increased from last
                                                                                                               year

Facts About the ‘Babyboomer’ Generation in the Netherlands. Source: Ruigrok NetPanel, 2017.

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WhatsApp is leading in social media/messaging apps
SOCIAL MEDIA USAGE
Percentage of online (active) usage including 2016 percentage if relevant, 2017: all age groups, 18+

                                                                        2016                            2016          2016    2016
                                                 2016
                                                                        42%                            27%            21%     28%
                                                79%

                                                                      45%                              30%           25%     21%

           75%                         74%

                                                                                                               10%

                                                                21%                        18%

Social Media Usage. Source: Ruigrok NetPanel, 2017.

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Social media penetration is growing ever so slightly
SOCIAL MEDIA PENETRATION
Social media penetration in percentage of population using social media sites/apps, 2014 - 2018(f)

                                                                                                           62.64%

                                                                                  62.14%                                                             e c  l i n e in
                                                                                                                                       h e fi rst d            ren d
                                                                                                                                  w   t              h i s    t
                                                                                                                              sa                .T
                                                          61.57%                                                       2 0 1 7 o k u sag e n n i al s an d
                                                                                                                               o                  lle
                                                                                           ½ of Gen
                                                                                                    eration X           F aceb i ven b y Mi i l st u se
                                                                                          Baby Bo              and
                                                                                                                                r                   h
                                                                                                                         was d ation X’, w ers is
                                                                                                   omers In
                                 60.93%                                                   users us          s ta
                                                                                                   e the Soc gram
                                                                                                                                 r                  m
                                                                                                                          ‘Gene Babyboo .
                                                                                          Network           ial
                                                                                                   daily.
                                                                                                                                  g                   g
         60.26%                                                                                                            amon increasin
                                                                                                                                   lly
                                                                                                                            actua

           2014                    2015                     2016                    2017                   2018(f)

Social Media Penetration. Source: Statista, 2018. | Source: Ruigrok NetPanel, 2017. | Source: Ruigrok NetPanel, 2017

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How    would   you    say    customer             To provide exceptional customer service                      Interview
                                               engagement is changing in the Dutch e-            and individualized customer journeys,
                                               commerce space? Both the needs of                 brands need to make effective use of data      Brands must acknowledge that the right
                                               consumers,   as   well    as   retailer           and     intelligence. The     plethora  of     technology is not only instrumental but
                                               techniques to adapt and meet those                information gathered from various tools        strategic in engaging their customers. The
                                               needs.                                            needs to be converted from data into           trend is about moving away from
                                                                                                 actions, in which brands deliver marketing     disconnected, legacy solutions toward
                                               The customer journey is more complex
                                                                                                 in the moment to each individual.              building a true partnership with a vendor
                                               than ever. Quite simply, it is no longer
                                               possible to refer to a single customer            How do you avoid getting entangled in a        that is able to manage the whole of the
                                               journey. Consumers dash all over the              web of marketing tools?                        processes related to the customer journey,
        Mark de Bruijn                         place, online and offline, and expect a                                                          from marketing, to CRM, to e-commerce,
   VP, Head of EMEA & MEE                                                                        Marketers have a whole range of tools to       down to customer service. This integrated
                                               personalized approach from brands across
                                                                                                 provide optimum service to customers.          approach becomes even more critical with
    Marketing, SAP Hybris                      the entire omnichannel journey.
                                                                                                 Ironically, however, those solutions can       regards to the data protection regulation
                                                                                                 also lead to new problems, such as data        and the ability to have one single view of
                                                                                                 silos and an inconsistent customer             the customer across every touchpoint.
                                                                                                 experience. The success of data-driven
                                                                                                 marketing stands or falls with a clearly       For foreign retailers wanting to expand
                                                                                                 structured data landscape. Organizations       to the Netherlands, what are the main
                                                                                                 often have vast amounts of data at their       barriers? How do you combat these,
                                                                                                 disposal, but have yet to extract any useful   and what are your top 3 tips for
                                                                                                 insights from all that data.                   success?
Mark is a modern, data-driven marketer with                                                                                                     One of the most harshly fought
a passion for digital, innovation and          The connected customer of today uses
everything related to customer experience.     multiple channels, and makes their own          “The success of data-driven                      battlegrounds is that of providing a
                                                                                                                                                seamless omnichannel experience to avoid
For the past 8 years, Mark has taken on
various roles in marketing, business
                                               decisions as to when and how they contact      marketing stands or falls with                    losing customers to competitors who offer
                                               a brand to purchase their goods or                                                               a better customer experience. In the digital
intelligence and predictive analytics. In      services. The days of generalized                a clearly structured data                       age, consumers expect top-notch customer
addition, he was affiliated with Avans         customer profiles are numbered. As
University as a lecturer. Mark’s greatest      customers       speak    up,   marketers                landscape.”                              service, and the ability to buy what they
pleasure is sharing his vision and knowledge                                                                                                    want, anywhere, and anytime, through
                                               increasingly gain more insight into                                                              various channels, offline and online.
with others, as he is a regular speaker at                                                       New technology gives marketers more
events across the world.
                                               customer preferences. Customers expect a
                                                                                                 options than ever to retain customers.
                                               personalized customer journey, in which
                                               they have control over when and how               More isn’t always better, though –                “A seamless omnichannel
                                               interaction takes place.                          especially when it comes to tools.                 experience is essential.”

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                                                                                www.ecommercefoundation.org
The majority of online research today              Only a handful have an effective road map
                                                                                                                                                                Interview
                                               occurs on mobile, and on mobile,                   in place for the digital age. These next
                                               consumers are often more task-loyal than           twelve months, organizations will focus on
                                               brand-loyal – they want to solve their need        increasing profits, building customer trust,
                                               quickly. With brick-and-mortar stores              and      providing    excellent    customer
                                               seeing fewer and fewer purchases while             experiences. However, they usually lack an
                                               online sales continue to enjoy meteoric                                                           AI can quickly analyze and accurately
                                                                                                  effective road map to achieve these
                                               rises, retailers must face the music, and it’s                                                    predict which customers are more likely to
                                                                                                  objectives. In order to retain and improve
                                               a whole new dance card. A seamless                                                                make a purchase, and how you can best
                                                                                                  customer loyalty, it is essential that these
                                               omnichannel experience is essential as                                                            engage with them.
                                                                                                  objectives remain top priority. A plan for
        Mark de Bruijn                         today’s demanding customers expect a               making that happen is the basis for
                                               personalized customer journey, regardless          effective action. Technology offers a
   VP, Head of EMEA & MEE                      of where they interact with the brand.             supporting tool to execute this plan.
    Marketing, SAP Hybris                      Retailers can only meet those expectations
                                               by integrating all channels.
                                                                                                  Regarding machine learning – How can
                                                                                                  investing in and utilizing machine
                                                                                                  learning positively impact foreign
                                                                                                  retailers expanding to the Netherlands?

                                                                                                  In the past, Customer Relationship
                                               Social media is increasingly acknowledged          Management (CRM) heavily relied on
Mark is a modern, data-driven marketer with    as a review platform. Over 50 percent of           people to collect and analyze data. Today,
a passion for digital, innovation and          consumers use social media to submit               we are seeing a paradigm shift in sales
everything related to customer experience.     complaints to companies, or post reviews           from being reactive to proactive, and from
For the past 8 years, Mark has taken on        and responses. Social media is a quick and         instinct-driven to data-driven.
various roles in marketing, business           easy     way     to    announce     customer                                                      With machine learning, your advanced
intelligence and predictive analytics. In      dissatisfaction to the rest of the world. Due                                                     cloud CRM solution can learn over time to
addition, he was affiliated with Avans                                                                                                           forecast and score deals with greater
University as a lecturer. Mark’s greatest
                                               to the increased use of social media, the
                                               time-honored principle of word-of-mouth               “Only a handful have an                     accuracy, making it easier for sales teams
pleasure is sharing his vision and knowledge                                                                                                     to reach their numbers and help the
with others, as he is a regular speaker at
                                               advertising has grown into an enormously
                                               influential factor in the world of retail. For
                                                                                                       effective road map in                     company       increase      revenue  goals.
events across the world.
                                               retailers, it is important to find out what           place for the digital age.”                 Ultimately, AI can assist with the entire
                                                                                                                                                 customer journey, from prospecting to a
                                               customers are sharing on social media
                                               about their brand, and to try and have a                                                          sale, to service after the sale.
                                               positive influence on it.

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35 – 44 year olds spend the most via social media
SOCIAL MEDIA PURCHASES: WILLINGNESS                                                                      SOCIAL MEDIA PURCHASES: MAXIMUM SPENDING
Share of respondents willing to purchase something through social media,                                 Maximum amount willing to spend on purchase through social media,
by age group, 2016                                                                                       by age, 2016

                                                    25%                                                                                    € 78.00
                                                                           54%                                                                             € 73.00

       16-24                           35%                                                                                                                           € 60.00   € 61.00
       25-34                                                                                                               € 55.00
       35-44
                                                                                                            € 44.00
       45-54
       55-64                                                                   38%
       65+                                33%

                                                            33%

                                                                                                             16-24          25-34          35-44           45-54     55-64      65+

Social Media Purchases: Willingness. Source: Statista; Censuswide, 2016. | Social Media Purchases: Maximum Spending. Source: Statista; Censuswide, 2016.

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Social media advertising is growing the fastest
ONLINE ADVERTISING                                                                                                 ADVERTISING REVENUE
Percentage growth in 2017, compared to the first half of 2016                                                      Share of revenue via different forms of advertising in the Netherlands, 2017

       45%
                             42%
                                                                                                                                                               12.37%        13.46%

                                                   32%                                                                                                                                 6.01%
                                                                                                                       Banner Advertising
                                                                                                                                                     19.02%
                                                                                                                       Video Advertising
                                                                         18%                                           Search Advertising
                                                                                               13%                     Social Media Advertising
                                                                                                                       Classifieds
                                                                                                                                                                            49.14%

 Social Media           Online Video             Mobile                 Search               Online
  Advertising           Advertising            Advertising                                 Advertising

Online Advertising. Source: Interactive Advertising Bureau, 2017. | Advertising Revenue. Source: Statista, 2018.

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