Ecommerce Report The Netherlands 2018 - www.ecommercefoundation.org - Safeshops
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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. 2 www.ecommercefoundation.org
“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. 3 www.ecommercefoundation.org
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! 4 www.ecommercefoundation.org
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 5 www.ecommercefoundation.org
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 8 www.ecommercefoundation.org
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. 9 www.ecommercefoundation.org
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). 10 www.ecommercefoundation.org
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. 11 www.ecommercefoundation.org
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. 12 www.ecommercefoundation.org
Infrastructure and Logistics 13 www.ecommercefoundation.org
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 14 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. 14 www.ecommercefoundation.org
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. 15 www.ecommercefoundation.org
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. 16 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. 17 www.ecommercefoundation.org
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). 18 www.ecommercefoundation.org
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. 19 www.ecommercefoundation.org
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. 21 www.ecommercefoundation.org
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. 22 www.ecommercefoundation.org
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. 23 www.ecommercefoundation.org
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. 24 www.ecommercefoundation.org
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. 25 www.ecommercefoundation.org
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. 26 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 www.ecommercefoundation.org
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. 28 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. 29 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. 30 www.ecommercefoundation.org
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. 32 www.ecommercefoundation.org
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 www.ecommercefoundation.org
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. 34 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. 35 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. 37 www.ecommercefoundation.org
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 www.ecommercefoundation.org
‘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. 40 www.ecommercefoundation.org
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. 41 www.ecommercefoundation.org
‘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. 42 www.ecommercefoundation.org
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. 43 www.ecommercefoundation.org
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 44 www.ecommercefoundation.org
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.” 45 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. 46 www.ecommercefoundation.org
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. 47 www.ecommercefoundation.org
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. 48 www.ecommercefoundation.org
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