Tag: ecommerce

Country Spotlight: Invest in Spain

E-Commerce, FinTech, payments, payza

 

Compared to other Western European countries, e-commerce in Spain has developed slowly. Held back by the challenges of recovering from the recession, digital investment has lagged within Spain and international merchants have overlooked the country. But today, Spain’s e-commerce market has grown to become the largest in Southern Europe and businesses expanding into Spain will find plenty of opportunities for further growth.

Spain is the fifth largest country in the EU by population and this country provides a key business market with an e-commerce sector recording the largest growth of any European country. The opportunities available for cross-border merchants to do business in Spain are due, in part, to the country’s underdeveloped domestic solutions. Three out of every five Spaniards regularly shop online and, most importantly, more than half of all online purchases made in Spain are made on e-commerce websites based outside of the country.

Unless otherwise noted, figures in this article are sourced from:
ecommercewiki.org/Global_Ecommerce_Figures/Europe/Spain
thepaypers.com/ecommerce-facts-and-figures/spain/8

Spanish Consumers
Total population: 47 million
Internet users: 32 million
Online shoppers: 17 million
E-commerce sales: EUR 18.2 billion
E-commerce annual growth rate: 11.6%

Post-SEPA, it’s simpler than ever to do business in Spain. The nation’s economic recovery in recent years has been impressive, with the GDP growth rate at 1.6 at its highest and the consumer confidence index reaching 90.6, so it’s a valuable market for online retailers to expand into no matter where they’re from. With an annual e-commerce turnover of more than €18 billion and double digit year-over-year growth, tens of millions of Spanish consumers are spending more online, averaging over €1,000 per year and growing.

Though the internet penetration is relatively low for a country in Western Europe, the proportion of internet users that shop online is quickly approaching 100% and at least half of those people shop using their phones. The Spaniards who spend the most online belongs to the 35-54 age group. Debit cards are the most popular online payment method, with 61% penetration, and the most popular e-commerce product category is Apparel and Footware. Holiday shopping contributes to roughly one quarter of each year’s e-commerce turnover and (like in Italy, the UK, the US and Canada) the biggest online shopping day is Cyber Monday.

Drivers and Barriers
Driver: Mobile
Spain is the leader in Europe in m-commerce, with half of all e-commerce shoppers in Spain having already made at least one purchase using their phone in 2017 (an increase of 15% compared to 2016). However, only 53% of online retailers in Spain are offering support for mobile payments, which gives a big opportunity for cross-border merchants to meet an unfulfilled demand in the Spanish market.
The popularity of direct carrier billing also contributes to so many Spanish consumers making purchases with their mobile devices. Direct carrier billing, which allows consumers to make a purchase using their mobile device and have the cost added to their phone bill, is seen as easier and more secure, which helps Spanish consumers feel more confident in m-commerce.

Barrier: Logistics
Though Spain is now a major e-commerce market, it was late to the game. One artifact of this delay is the country’s underdeveloped logistics industry. While this has a definite negative effect on local retailers, it can actually be seen as an advantage for cross-border merchants. Because of poor logistics, Spanish consumers are accustomed to longer delivery times, allowing international merchants to compete with domestic providers on convenience. On the other hand, consumers in Spain desire a strong, customer-centric returns policy, which can be costly for out-of-country retailers.

Driver: Language
After Mandarin, Spanish is the second most spoken language in the world. Savvy retailers can see the value of localizing their e-commerce website for the Spanish market because it also allows them to market to large Spanish-speaking populations in Latin America: a very populous and rapidly-emerging e-commerce market, and it can also increase the brand’s footprint with significant language minorities in USA, France and Portugal.

Barrier: Trust
Just because Spanish consumers want more options when they’re shopping online doesn’t mean that they’ll take anything they can get. Like in most European countries, recommendations from friends and colleagues significantly influence purchase decisions. Shopping cart abandonment is common in Spain – if retailers don’t provide enough detailed product information, a clear and flexible returns policy, and most importantly multiple payment options, they risk losing the sale. Offering Spanish-language customer service can also go a long way toward gaining trust and confidence from customers.

Spanish E-Commerce Facts
Largest e-commerce market in Southern Europe
Spanish consumers spend an average of €1,089 online per year.
55% of the e-commerce turnover is cross-border.
At least half of the online population shop with their smartphones.
The demographic that spends the most online is 35-54-year-olds.
Longer delivery times (3-5 days) are widely accepted.
Cyber Monday (the Monday after U.S. Thanksgiving) is the busiest online shopping day of the year.
The most popular payment method is debit cards, although credit cards, e-wallets and direct carrier billing are also popular.
The most popular product categories for online shoppers are Apparel & Footwear, followed by Food & Drink.

Spanish consumers are rapidly shedding their financial concerns, embracing impulse spending, and turning to their mobile devices for their online shopping. Building trust and organic brand awareness is key; while the market is far from crowded, for retailers to get the most out of Spain they must focus on customer experience and reputation. This becomes increasingly challenging the more saturated the market is, so if you’re looking to expand your e-commerce business, now is the time to enter one of the most attractive growing markets out there. Spain, with one of the most populous markets in Europe and who speaks the world’s second most common language, is hungry for cross-border e-commerce.

Expanding into a new cross-border market is always a challenge but can be very rewarding if done right. For the latest news and information about how to scale up your e-commerce enterprise into an international success, subscribe to the Payza Blog and follow us on Facebook and Twitter.

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Is Affiliate Marketing Right for You?

E-Commerce, FinTech, Firoz Patel

In most industries today, small business owners will find that e-commerce is the only true route to success. If you’ve already built your online business and are now struggling to turn a small but devoted customer base into a large and vocal fandom, maybe it’s time to recruit your customers to sell your product for you. If you’ve already come this far, maybe it’s time to look into affiliate marketing.

Affiliate marketing is often confused with multi-level marketing (MLM). In light of the recent Herbalife settlement, people are once again thinking of MLM as a bad word – just Google “MLM” and you’ll see that one of the first results is “Is multi-level marketing a pyramid scheme?” But that’s missing the point of the settlement, which we believe is actually a good thing for the industry.

In 2012 Bill Ackman, founder of Pershing Square Capital, a hedge fund, began a campaign against Herbalife, accusing the 35-year-old dieting supplement company of being a pyramid scheme. After a lengthy investigation, the company agreed to establish a $200M fund to reimburse distributors for lost wages and the Federal Trade Commission (FTC) found that Herbalife was operating legally.

This settlement is meaningful because, despite the fine, it reinforces that MLM is a fair and legitimate business model. In the words of Herbalife CEO Michael Johnson: “The settlements are an acknowledgement that our business model is sound and underscores our confidence in our ability to more forward successfully.”

While it shares superficial similarities with MLM, affiliate marketing is itself a distinct business model from both multi-level marketers and illegal pyramid schemes:

Pyramid schemes require that people pay to participate in the scheme and only profit when they recruit others to participate. The “product” is only redistribution of money pumped into the scheme: the business is built on recruitment. It’s a closed system and the money flows overwhelmingly toward the top. With no incentive to actually sell a product, those at the bottom of the pyramid eventually run out of new recruits and the pyramid collapses.

Multi-level marketing companies rely on the sale of real products for their cash flow. New recruits are brought on board and the company incentivises recruiters, but the profits at all levels still come from actual sales. Rather than profiting off fees charged to recruits, the company rewards recruiters with a percentage of profits based on sales. In other words, the product is everything.

Affiliate marketing is a single-tier system which rewards affiliates for each visitor or customer the affiliate directs to the business. The affiliate is not selling the product but is instead marketing the business and directing traffic to the company’s website.

Affiliate marketing is often overlooked by digital marketers. Though the methods are more or less identical – SEO, SEM, PPC, email campaigns, etc. – instead of coming from the business directly, the content is actually being promoted by a third-party “publisher” (the affiliate). This is a powerful tool for building trust in a brand; when somebody else speaks up for your product, it makes a greater impression on consumers than hearing it directly from the merchant.

The product is still everything, however. Some people get into affiliate marketing or MLMs because they seem like a solid, profitable business model, and then figure out what the “product” is later. But the medium is not the message. There is no product that is a poor fit for affiliate marketing as long as you’re doing it for the right reasons. Get your product right first – the best time to introduce affiliate marketing to your business is once you have a small but growing customer base, a group of potential brand ambassadors who can prove to you and others that you have a great product.

Affiliate marketing is not a “get-rich-quick scheme” and it’s certainly not a scam. It’s good business. If you know you have a great product and a great online business, affiliate marketing is right for you.
From the start, our mission has always been to provide freelancers, self-employed professionals, entrepreneurs and small business owners with convenient and affordable tools for growing their business. We believe in small business and want to do what we can to help improve the lives of your customers – check back often with the Payza blog for the latest tips and tricks on growing your online business, and be sure to follow us on: Facebook and Twitter

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7 Tips to Protect Your Business Against Cyber Criminals

cyber security, E-Commerce, Firoz Patel, Personal Finance News

Congratulations, you’ve made an effort and created a strong password for each of your online accounts. Now you can resume your daily routine, free from the worry that your business may be at risk of a cyber-attack.
Not so fast.

Although a strong password minimizes the likelihood of a security breach, it is not the be-all-and-end-all solution. Today’s cyber criminals are looking for various kinds of weaknesses in your organization. They need data, and will do whatever it takes to get it. Everything from credit card numbers, bank account information, Social Security numbers, email addresses, online passwords, and much more.

Unfortunately, small businesses and freelancers often dismiss the possibility that they could be targets of a cyber-attack. The truth is, cyber criminals consider your accounts to be easy targets. Without an information security officer by your side, they know your business is more vulnerable. The same holds true whether you are freelancing as a social media expert, taking online bookings for your next sight-seeing tour, or selling your ceramic coffee cups through your website. According to Symantec’s 2016 Internet Security Threat, 43% of cyber-attacks target small business because of their lack of knowledge and training on security. Just as the internet opens you up to new opportunities in e-commerce and freelancing, it also opens you up to new ways of being defrauded, scammed and robbed.

Don’t panic, though. There are some measures you can take to keep these criminals at bay and protect you, your business, and your customers from attacks.

Here are 7 additional tips to keep your business safe:

1] Make use of security certifications and encryption technologies that help protect sensitive data, and display any accompanying logos signifying that your website is safe. Immediately notify your clientele of any breaches in security. Protecting your clients’ information should be your top priority.

2] Learn as much as you can about how to avoid security risks and make the effort to participate in free webinars and reading online articles from trusted sources.

3] Get a good antivirus software, and keep it updated. IT security organizations like McAfee and AVG have loads of useful tips and tricks.

4] Always update your operating systems and web browsers.

5] Create and maintain internal and customer-facing risk management policies and procedures so your employees know what’s appropriate and what isn’t when working online. Establish clear Internet and social media usage policies as well as rules for using email safely.

6] Familiarize yourself with the contracts you have with your financial institutions and other business partners. Know your liability in case of losses through fraud and other security breaches.

7] As a freelancer, you must also protect yourself outside your home. For those times when you decide to work from a library or café, remember that most public networks tend to be unsafe and risky to use. Protect yourself using a Virtual Private Network (VPN); it will create an encrypted connection that acts like a tunnel between you and an outside server.

By following these tips, you are preventing yourself, your assets and your customers from falling victim to potential threats lurking online. Some of the most important changes a small business or freelancer can make to safeguard against data breaches are relatively simple and require minimal effort. Taking appropriate measures to ensure the trust of your current clientele is as important as making new ones. After all, your business depends on the trust built between you and your customers.

For more tips on securing your e-commerce business, visit the Online Security section of the Payza Blog and follow us on Facebook or Twitter.

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Increasing your SEO Score for More Online Visibility

E-Commerce, FinTech, Firoz Patel, Personal Finance News

Here we provide a strategy to ensure your customers will find
your online business when conducting internet searches.

Search Engine Optimization (SEO), a fundamental component of website building and digital marketing, has been around long enough that we in the business already look back fondly at the “good old days” of SEO. Once upon a time, getting your website to rank was as simple as cramming enough keywords into a page, a practice that now has the opposite effect. These days, SEO is a complex set of best practices that is constantly being changed and updated, so keeping your website optimized can be a full-time job.

Before we go any further, to understand SEO we need to understand how search engines work. Basically, Google, Bing, etc. send robots all around the internet that “crawl” every website they can find. They pull all the data from these sites and, using a very large set of complex algorithms, attempt to identify which ones have the most valuable information for their users.

For example, when you type “e-commerce” into Google, it attempts to sort the search results in order of what you are most likely to find useful. The problem with this is that robots are not that good at deciding what is and isn’t useful to humans.

The practice of search engine optimization then is to find ways to tell those robots that your website is the one people are looking for. But this comes with a problem as well, which is that even poor or spam websites can still have good SEO, and so Google, etc. have to constantly improve their algorithms in order to filter out the sites that are trying to “trick” them into thinking they’re useful and return only the best possible results for their users.

So as search engines get smarter, SEO practices have to get more sophisticated. Let’s have a look at some of the key elements of SEO and how you can use them to increase your online visibility.

Terms you need to know

Keywords: Keywords are the terms or phrases browsers are searching for. Search engines catalog the keywords you’ve incorporated in your website and use them to rank your site appropriately in their results pages.
In-bound and out-bound links: Search engines consider how many other websites link to yours, as well as which websites you link to, to measure the legitimacy of your site. The quality of the in-bound and out-bound links will also influence your score.
UX: User experience is a broad category of its own which includes ease-of-use, intuitive navigation and quick loading times. Search engines consider how pleasurable it is to use a website when ranking them in their results pages.
Bounces: When someone clicks through to a site only to discover that it is not what they were looking for, they will hit “Back” to return to the results page. This is called a “bounce” and it signals to search engines that your site is not what visitors are looking for, so they will rank it lower in future search results.

Tips to get you on track

Don’t Get Comfortable

If you haven’t updated your SEO practices in the last year they’re at least partly out of date, but there’s another reason why you need to be constantly tweaking and maintaining your website. Search engines rank websites lower if they appear stagnant – if the content of your website is updated infrequently, it may do damage to your SEO score.

Understand Your Audience

The main function of SEO is to leverage keywords. By modifying the structure and content of your website, you can incorporate keywords that are relevant to your products and that your target market is using to search for similar products on the web. However, it’s important to focus on target keywords very specific to your potential audience. Popular search terms are a double-edged sword – avoid common keywords unless they’re definitely favored by your specific audience, otherwise you risk a high bounce rate.

Use Analytics

Analytics can help you keep it fresh. By keeping a watchful eye on your website analytics you can identify which of your SEO campaigns are performing well and how to deploy your resources most effectively. Pay attention to your bounce rates, paid vs. organic traffic, brand vs. non-brand keyword performance, and long-tail vs. short-tail traffic.Search engines also use analytics to identify the legitimacy of a website. If you can increase the average time your visitors spend on your website, search engines will see that as a vote of confidence that your website is indeed useful to their users.

Optimize Your Site

There are a few ways to optimize your site:

Pages more than three levels deep into your website are rarely going to be seen by a human being, so keep all the important information close to the surface. If users have to click more than twice from your homepage to get to the information they’re looking for, most of the time they will go looking for it somewhere else.
Trimming unnecessary pages from your site and eliminating duplicate content can increase your score since both of those are interpreted by search engines as spam.
Search engines consider loading times and broken links when ranking sites, so make sure your site is running smoothly at all times.

Leverage Marketing and Social Media

Good customer service never goes out of style – it’s even more important to the overall success of your business than SEO. In the age of social media, a bad review can spread like wildfire and severely impact your ability to reach new customers. Social media is a boon to SEO practitioners for its utility in link building, user-generated content and reputation management. Signals from social media, including the number of followers, community engagement and content sharing tells search engines that your brand and website are valuable to their users.
More traditional forms of marketing can be effective as well, such as email marketing, maintaining a local physical presence, and getting your business reviewed by popular blogs and news outlets.

We are far from the age of “If you build it they will come”, especially not in the crowded and competitive online retail industry. Search engine optimization is the key to standing out in this market –9 out of 10 consumers use search engines to make purchasing decisions, and SEO is the way to compete for their attention. If you have any further questions about implementing good SEO practices for your website, leave a comment below, and keep visiting the Payza Blog for more tips and tricks to help you get the most out of your e-commerce business.

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