BeCommerce Trends & Figures 2014

BeCommerceFigures &

Trends 2014ECOMMERCE IN BELGIUM

March 2014

About BeCommerce

BeCommerce is the Belgian association for companies active in e-commerce.

Through awareness raising, information, promotion, certification of e-commerce sites through

a quality label and its own code of conduct, BeCommerce encourages the further growth of

the eCommerce sector and the strengthening of consumer confidence in distance selling.

BeCommerce counts today 311 e-tailers and 42 business partners.

More info: www.becommerce.be

Belgian E-Commerce Organisation

In March 2014 BeCommerce ran a major member survey into the current situation

of e-commerce in Belgium and distance seller expectations for 2014. Focusing on

the expected growth of the industry, most sold products online, logistical services,

payment methods, mobile commerce and new this year, customer service.

I’m glad to announce that the Belgian e-commerce market is catching up with their

neighbours. But there is still much room for improvement and expansion. And this is

exactly where BeCommerce and its partners will provide the necessary support and

knowledge.

Patricia Ceysens,

President of the Board of Directors

Patricia CeysensPresident of the Board of Directors

Aim of the studyStudy of the current situation in the online distance selling market in Belgium as well as expectations and trends

Methodo Respondents from BeCommerce database (approximately 600 contacts) o Target group: Belgian organizations with distance selling activities o Fieldwork: 26 February – 12 March 2014

IntroductionAbout the study

Independent Belgian company

Subsidiary of Belgian company

Subsidiary of foreign company

Only distance sales

Both distance selling and traditional

B2C or C2C

B2B

Both consumers and businesses

1 - 5

6 - 50

50 +

66%

5%

29%

18%

82%

76%

0%

24%

24%

58%

18%

Legal profile

Target customers

Type of sales

Distance sales staff

General remarks concerning the researcho The figures in this report are based on an online questionnaire about

figures 2013 & expectations 2014, conducted in February - March 2014 during 2 weeks with all the BeCommerce members

o The figures relate to the sales results of Belgian companies, they are not consumer figures (consumers buy on Belgian and foreign e-shops)

o Yearly survey

IntroductionAbout the study

2007 2008 2009 2010 2011 2012 2013

26% 26%32%

38%

51%

67% 66%6% 4%

2%

5%

2%

0% 5%68% 70% 66%57%

47%

33% 29%

An independent Belgian company A branch / subsidiary of a Belgian mother companyA branch / subsidiary of a foreign mother company

Distance Selling ProfilesBelgian Company vs. Foreign companyWhat is the legal profile of your company?

Distance Selling ProfilesPure Player vs. Multichannel Player

2007 2008 2009 2010 2011 2012 2013

36%30% 34%

47% 45% 44%32%

64%70% 66%

53% 55% 56%68%

Pure Player (only online sales) Multichannel player (online & offline sales)

What is your e-commerce activity profile?

Distance Selling ProfilesShare of distance selling vs total turnover

What % was your e-commerce turnover vs. your total turnover?

2007 2008 2009 2010 2011 2012 2013

41%53%

24%

66% 58% 60% 55%

59%47%

6%

47% 42% 40%45%

E-commerce (distance selling) turnover non-E-commerce turnover

Distance Selling ProfilesB2C vs. B2B

2007 2008 2009 2010 2011 2012 2013

50%44%

62% 57%47%

56%

76%

6%13%

6%

2%

44% 43%32%

43%51%

44%

24%

Only consumers (B2C & C2C) Only businesses (B2B)

What are your company’s target customers for its e-commerce activities?

2010 2011 2012 2013 Expected 2014

73%

45%

50%

59%

50%

60%

32%

22%

12%

19%

24%19%

6%

12%

18%

11%9%

22%

12% 13%

0.25 0.24 0.25

0.002 0.004 0.002

Belgium Western Europe EuropeWorldwide Flanders only Wallonia only

Distance Selling ProfilesBusiness geography

Where are you selling online?

Distance Selling ProfilesExpected growth in e-commerceDo you expect your e-commerce business to grow?

2007 2008 2009 2010 2011 2012 2013

3%3% 3%

9%15%

5%3%

2%

22% 25%

22%24% 34%

16%9%

63% 60%

73%67% 64%

84%91%

3%

No opinion Completely disagree Rather disagree Neutral Rather agree Completely agree

Total E-commerce TurnoverTotal E-commerce turnover in Belgium

What e-commerce turnover do you make in Belgium?

2012 2013 Expected 2014

1.52

1.912

Bio €

Bio €

Record turnover growth of 25,66% in 2013 vs 2012, Expectation for 2014 are above 2 billion €.

Bio €>

Opinions of the Belgian distant sellersThe internet will maybe become the main ordering method in the next 2 years

2007 2008 2009 2010 2011 2012 2013

6% 5% 5%

19%20% 11%

22% 32%26%

20%

16%20%

14%

5%

22%

48%

24%

31%

20%

25%

38%

23%

21%

34%

28%40%

45%

30%23% 22%

5%


Opinions of the Belgian distant sellersThe Belgian legislation prevents the growth of my distance selling activities

2007 2008 2009 2010 2011 2012 2013

3%

5%5% 4%

11% 9%

6%

10% 20%

14%

28%

21% 22%34%

25% 13%43%

32%31% 33%31%

30%32%

27%21%

21% 20%25% 20%25%

11% 11%5% 4%

10%5% 5% 4%

11% 10%


Payment methodsPure players

Bank-Branded Pay Buttons

American Express

PayPal

IDEAL

Maestro

Bancontact/Mister Cash

Visa, Master card

0%

59%

56%

58%

67%

80%

88%

5%

57%

43%

43%

57%

71%

86%

40%

34%

40%

40%

57%

79%

96%

2011 2012 2013

The share of each payment method is increasing. Bank branded pay button is not popular anymore for pure players.

Which of the following types of payment do you offer?

Payment methodsAll distance sellers

Bank-Branded Pay Buttons

IDEAL

American Express

Maestro

PayPal

Bancontact/Mister Cash

Visa, Master card

30%

43%

57%

60%

64%

86%

94%

31%

39%

50%

61%

61%

83%

94%

29%

62%

33%

57%

52%

81%

95%

2011 2012 2013

Which of the following types of payment do you offer?

Payment methodsAverage amount per order

2007 2008 2009 2010 2011 2012 2013

6% 5% 2%8% 4%

11%6%

6% 5%5%

11%

7%

6% 6%

19%

10% 18%

19%

4%

17%

28%

35%16%

8%

36%

22%

23%

16%20%

23%

27% 19%

22%

35%

25% 25%

27%

19%19%

22%

12%

9% 5% 11% 12%

0.027 0.06

n.a. < 15€ 15€ - 30€ 31€ - 50€ 51€ - 100€ 101€ - 200€ 201€ - 500€ > 500€

What is the average amount per order?

Payment methodsShare of distance selling turnover vs total business turnover

2007 2008 2009 2010 2011 2012 2013

13% 15% 16%24%

19%

33%29%3%

5%9% 7%

11%

6%

16%19%

5%

12%

13%5%

9%

5%2%

17%

11%22%

35%

20% 11%15%

17%

18%22% 13%

14% 4%

9%

20%

13%14%

11%

13%20%

13% 16%21%

6%18%

7% 2%

5%

6%

I prefer not to answer < 50.000€ 50.000€ - 125.000€ 125.000€ - 500.000€500.000€ - 1.000.000€ 1.000.000€ - 5.000.000€ 5.000.000€ - 10.000.000€ 10.000.000€ - 25.000.000€

6%

Payment methodsNumber of transactions in relation to orders

2007 2008 2009 2010 2011 2012 2013

22%10%

23%30%

19% 22%

6%

3%7%

6%

17%

6%

6%

10%

5% 5%2%

6%

5%

5% 5% 17%

11%3%

14% 8%11%

6%

6%

16%

25%

9%8%

13% 11%

18%

44%50%

39% 43%32% 33%

64%

I prefer not to answer < 500 500 – 1.000 1.000 – 5.0005.000 – 10.000 10.000 – 25.000 > 25.000

How many e-orders are placed?

Payment methodsNumber of transactions in relation to parcels

2007 2008 2009 2010 2011 2012 2013

25%15%

23%

38%

19% 22%

6%

3%

5%

9%

5%

12% 11%

18%

3%10%

2%

3%

2%9% 7%

5%19% 17%

18%

13%15%

5%8%

9% 11%

18%

47% 50%43%

38%28% 28%

35%

5%

11%3%

11%11%

6%

I prefer not to answer < 500 500 – 1.000 1.000 – 5.0005.000 – 10.000 10.000 – 25.000 > 25.000

How many e-parcels are placed?

Payment methodsOnline transactions

I prefer not to answer

< 500

500 – 1.000

1.000 – 5.000

5.000 – 10.000

10.000 – 25.000

> 25.000

6%

12%

0%

6%

6%

18%

52%

21%

16%

0%

5%

10%

16%

32%

20%

7%

2%

18%

11%

13%

29%

in 2011 in 2012 in 2013

52% of online transactions are above 25.000 in 2013

How many online transactions?

Via postal services Courier (e.g. UPS, TNT, DHL, …)

Through pick-up points (e.g. Kiala,

Mondial Relay, …)

Through a private transport service

Other None of those

65%

55%

35%

20%

0%

10%

73%

46%

30%

23%

0%

9%

65%

38% 38%

19%

3%

16%

60%

45%

32%34%

11%9%

63%

37%

42%

16% 16%

10%

71%

41% 41%

18%12%

12%

2008 2009 2010 2011 2012 2013

Delivery methodsDelivery to the end user

3%

Which delivery methods?

Pick-up points are gaining more attention in the last two years

Delivery methodsLogistics service providers

Other

Mondial Relay

DHL

UPS

DPD

TNT PostPakketService

Kiala

Bpost

18%

14%

12%

12%

24%

12%

39%

59%

16%

10%

10%

21%

21%

21%

37%

58%

21%

13%

15%

9%

19%

21%

26%

64%

2011 2012 2013

Bpost is still most used logistics carrier

Which logistics carriers did you work with?

Delivery methodsTime slot delivery

Via locker network

Via Pick-up points

Via Delivery at Home

No Time slot delivery

6%

12%

22%

60%

0%

16%

21%

63%

2%

13%

17%

75%

2011 2012 2013

Do you use Time Slot delivery? Which do you offer?

The locker network is coming up next to Pick-up points.

none needed

> 10 working days

5 working days maximum



The day after the order

Same day delivery

12%

6%

13%

13%

6%

44%

6%

2013

Delivery methodsFastest delivery timeWhat is your shortest offered delivery timing?

Half of the delivery times happen on either the same day, or the day after the order has been placed.

2013

17%

33%

50%

This year Later Never

Delivery methodsTrack & Trace Service

2013

62%

38%

Yes No

Offer Track & Trace service Introduce Track and Trace service

Delivery methodsFree Delivery Policy for Physical Products

2013

84%

16%

Yes No

Offer a free delivery service

2013

100%

This year next year

Introduce free delivery service

Delivery methodsFree Return Policy for Physical Products

2013

62%

38%

Yes No

Offer free return policy

2013

40%

20%

40%

This year Later Never

Introduce a free return policy

2013

38%

23%

31%

8%

This year next year Later Never

E-Customer ServiceChatbox service

2013

19%

81%

Yes No

Offer a chatbox service Introduce chatbox service

2013

10%

60%

30%

This year next year Later Never

E-Customer ServiceFree Helpline

2013

38%

62%

Yes No

Offer a free helpline Introduce free helpline

Communication mixAll distance sellers

0.17650.28

0.3529

0.11760.1765

0.1176

0.1765

0.2353

0.05880.1176

0.1765

0.1765

0.0588

0.05880.2353

0.1176

0.1176

0.1765

0.2353

0.12

0.1765

28%

35%

29%

53%59%

18%

5%

35%41%

41%

24%

47%

6%

29% 29%

6% 6% 6%11%

18%

29%

12%

12%

12%

29%17%

12%

Not applicable Not very important Not important Neutral Important Very important

Communication mixSocial Media All distance sellers

Facebook Twitter Pinterest Other

12%

18%

6%18%

12%

18%

18%6%

29%

29%

29%

34%35%

23%18%

0.12

12%

35%24%

Not applicable Not very important Not important Neutral Important Very important

The importance of social media keeps growing with Facebook being the most important channel

5%

DIY

Foods & Drinks

Books, E-books & magazines

Telecom

TV's

Games

Financial services

Tickets:

Health & beauty

Garden utilities

Office supplies

DVD's/ Bluray's

Tourism including airline tickets

Software

Kitchen appliances

Toys

Multimedia & hardware

Home décor

Clothing & accessories

6%6%6%

8%9%

12%12%12%

14%15%

16%17%17%

19%20%

23%24%

30%35%

5%5%

6%6%

21%21%

13%13%

21%21%

16%21%

19%26%

21%32%

26%36%

37%

2012 2013

Top products2013

Which of the products/services below did your webshop(s) sell?

The top 5 products:1: Clothing & accessories2: Home décor3: Multimedia & hardware4: Toys5: Kitchen appliances

No plans to start with mobile selling

> 1 year

< 1 year

< 9 months

< 6 months

< 3 months

18%

27%

37%

0%

9%

9%

36%

18%

27%

9%

0%

9%

48%

28%

10%

5%

8%

3%

2011 2012 2013

Mobile commerce2013

2011 2012 2013

15%

42%55%

85%

58%45%

Yes No

Engaged in Mobile Commerce?

When are you planning to start with mobile selling?

2013 is the breaking moment: 55% of webshops are engaged with mobile commerce. This is almost 4 times more than in 2011.

Mobile commerceReasons not to start with m-commerce

Other

Too expensive

Too early

No particular reason

Other priorities

9%

0%

18%

0%

73%

0%

9%

9%

18%

45%

13%

3%

25%

13%

55%

2011 2012 2013

Non-m-commerce users mainly still have other priorities

Why didn't you start yet with m-commerce?

Mobile commerceMobile application vs. mobile website

Mobile application Mobile website

29%

86%

38%

88%

50%

100%

2011 2012 2013

Do you have mobile application(s) and / or a mobile website?

Every webshop engaged with mobile commerce owns at least a mobile website. In addition half of them own a mobile application.

Windows

Android

iOS (Apple)

33%

60%

66%

0%

38%

75%

0%

50%

100%

2011 2012 2013

Mobile commerceSupported Operating Systems for mobile applications

Android and Windows are seriously challenging iOS for the first time.

Which Operating Systems does your mobile commerce applications support?

Mobile commerceReason to start with mobile commerce

We wanted to be the first on the market (innovation)

We wanted to prove real added value to our customers

To generate additional e-business

To provide an additional service to our customers

33%

66%

50%

66%

0%

25%

50%

75%

14%

43%

71%

43%

2011 2012 2013

Which is the most important reason to start with mobile?

Additional service and real added value to customers are the main reasons to enter mobile commerce.

Mobile commerceIT development & Results

2011 2012 2013

43%

75%

16%

57%

25%

84%

Internal IT developmentExternal IT development 2011 2012 2013

57%

75% 75%

43%

25% 25%

Yes No

Mobile commerce maintains 75% satisfaction among the webshops.

Internal vs. external IT development

Are the results of your M-commerce satisfying?

Mobile commerceTop products 2013

Books, E-books & magazines

Garden utilities

Kitchen appliances

Tickets

Financial services

Multimedia en hardware

Health & beauty

Toys

Tourism including airline tickets

Home décor

Clothing & accessories

2013

Which of the products/services below do you sell on mobile?

The top 5 products:1: Clothing & accessories2: Home décor3: Tourism including airline tickets4: Toys5: Health & beauty

Mobile commerceSmartphone mobile payments 2013

Diners

Paypal

American Express

Mastercard

Visa

17%

33%

67%

67%

83%

2013

Which types of mobile payments do you offer on smartphone?

Mobile commerceMobile Advertsing

Other

Offline TV

Offline In store advertising

Brand Bannering

Offline Radio

E-mail campaign

Public Relations

SEO

Offline Print

SEA

Social Media

3%

8%

11%

12%

17%

24%

28%

36%

50%

52%

62%

2013

For the launch of your mobile commerce activity, which advertising did you use?

Top 3 advertising methods for launching mobile commerce:1: Social Media2: SEA3: Offline Print

Mobile commerceMobile turnover vs e-commerce turnover

2012 2013

49% 50%

17% 17%

17%

33%

0-4% 5-10% >10% No turnover

17%

What % of your total e-commerce distance selling turnover is your Mobile turnover?

Mobile commerce turnover above 10% is 2 times higher than in 2012.

Mobile commerceShare of tablet turnover vs smartphone turnover

2012 2013

28%35%

72%65%

Smartphone Tablet

What % of your total mobile turnover is your tablet turnover?

The smartphone’s share increases by 7%.

1 2 TO 5 6 TO 10 11 TO 20 21 TO 50 51 TO 100 101 TO 250 251 TO 500 > 500

13%

27%

11%

22%

9%

4%7%

2%4%

0%

43%

11%

5%

16%

3%

14%

3%

5%

12%

37%

7%

21%

7%9%

5%2%

0%

11%

21%

26%

21%

11%

0%

5%

0%

5%

0%

27%

20%

33%

7%

13%

0% 0% 0%

2009 2010 2011 2012 2013

EmploymentNumber of people per company active in e-commerce

How many people in your company are working for your online business?

Top employment categories: 1:11 to 20 people engaged in e-commerce2: 2 to 5 people3: 6 to 10 people

EmploymentNeeded profiles

Online marketers IT specialists Customer service Logistics operators Photographers Others

49%

32%

19%

5%

27%

70%

41%

26%

4%

19%

60%

32%

11%

0%

11%

73%

47% 46%

20%

2010 2011 2012 2013

87% of the distance sellers has plans to hire new employees this year.

Top 3 categories: 1: Online marketers2: IT specialists3: Customer service

In which department are you planning to hire people this year to boost your e-commerce activity?

Germany

France

Wallonia only

The Netherlands

Flanders only

Belgium

5%

5%

8%

13%

19%

51%

2013

EmploymentEmployment geography

Where is your whole e-commerce team located for your Belgian sales?

78% of e-commerce employment is active in Belgium.

Never

Later

Next year

This year

We already have a team in Belgium

12%

0%

6%

13%

69%

2013

EmploymentEmployment movement

When are you planning to move part of your team to Belgium?

Already 69% of the e-commerce players have a team in Belgium and 13% plan to start with a Belgian team this year.