Case Study: Case Study: CorreiosNet ShoppingCorreiosNet Shopping
The Brazilian Post eThe Brazilian Post e--commerce portalcommerce portal
Antonio BraquehaisAntonio [email protected]@correios.com.br
Head of Internet Business DepartmentHead of Internet Business Department
22
AgendaAgenda
eCommerce in BrazileCommerce in Brazil
Case Study DescriptionCase Study Description
CorreiosNet ShoppingCorreiosNet Shopping
Lessons LearntLessons Learnt
RecommendationsRecommendations
33
eCommerce TurnovereCommerce Turnover
Source: e-Bit – Feb 2007Growth 2001 – 2006 = 701%* 2007: forecast
0,55 0,85+55%
1,20
+41%
1,75
+47%
2,50
+43%
4,40
+76%
6,40
45%
2001 2002 2003 2004 2005 2006 2007*
eCommerce in Brazil - Retail Turnover (R$ billion)
44
Virtual ConsumersVirtual Consumers
2,53,3
4,8
7,0
9,8
2003 2004 2005 2006 *2007
eCommerce in Brazile-Consumers (millions of users)
33 million Internet
users
Source: e-Bit – Feb 2007* 2007: forecast
55
Consumer ProfileConsumer Profile
Age
Up to 171%
25 to 3432%
35 to 4938%
50 to 6414%
Over 642%
18 to 2413%
Less than 1,0006%
3,001 - 5,00028%
5,001 to 8,00017%
More than 8,00011%
1,001 to 3,00038%
Family income
Source: e-Bit – Feb 2006
66
BestBest--selling Productsselling Products
Average Ticket R$ 296.00 ~ US$ 140
Source: e-Bit – Feb 2007
15%
16%
17%
Electronic Goods
CDs and DVDs
Books, Mags &Newspapers
eCommerce in Brazil Best Selling Products - 2006
77
Consumer SatisfactionConsumer Satisfaction
• The surfing experience – usability and performance• Service• After Sales – packaging and delivery time Source: e-Bit – Feb 2007
eCommerce in BrazilConsumer satisfaction index
78,8%
86,0%84,6%
85,9%87,7% 87,4%
dez/00 dez/01 dez/02 dez/03 dez/04 dez/05
88
AgendaAgenda
eCommerce in BrazileCommerce in Brazil
Case Study DescriptionCase Study Description
CorreiosNet ShoppingCorreiosNet Shopping
Lessons LearntLessons Learnt
RecommendationsRecommendations
99
Case Study DescriptionCase Study Description
CorreiosNet Shopping is an eCommerce platform used by CorreiosNet Shopping is an eCommerce platform used by
the Brazilian Post and its customers to sell products and the Brazilian Post and its customers to sell products and
services via the Internet. It operates in three areasservices via the Internet. It operates in three areas
1010
CorreiosNet ShoppingCorreiosNet Shopping
Hosting of shops
Methods of delivery
Methods of payment
Sale of third party products
Shopping trolleyProduct catalog
Sale of own products
Order collecting shops
1111
AgendaAgenda
eCommerce in BrazileCommerce in Brazil
Case Study DescriptionCase Study Description
CorreiosNet ShoppingCorreiosNet Shopping
Lessons LearntLessons Learnt
RecommendationsRecommendations
1212
CorreiosNet ShoppingCorreiosNet Shopping
Sale of third party productsSale of third party productsCorreiosNet Shopping hosts around 500 virtual shops
Sale of own productsSale of own productsCorreios OnLine is the Brazilian Post’s virtual shop with over 300 products and 4 services available
Order collecting shopsOrder collecting shopsThe CorreiosLog shop is used exclusively for collecting orders through the site or the Customer Service Line (CSL), for the Integrated Logistics service
1313
CorreiosNet ShoppingCorreiosNet Shopping
The Brazilian Post’s eCommerce solution for hosting a virtual shop and carrying out secure transactions over the Internet
1414
CorreiosNet Shopping CorreiosNet Shopping
Comparison shopping tool in CorreiosNet ShoppingE-commerce platform with two types of shops
Hosted shopBeginning storekeepers$ 0,00/month + 3% transaction fee
Linked shopSenior e-storekeepersRemote freight calculationMonthly fees
New in 2007: Self-service hiring On-line payment by credit card or e-mail invoice bill
1515
Virtual store hostingVirtual store hosting
CorreiosNet Comparison Shopping
Brazilian PosteCommerce Solution
Virtual Internet shop
linked shop
hosted shop
1616
Major challengesMajor challenges
IT KnowledgeIT KnowledgeWorkforce sales team don’t know how to sell the virtual store hostingStorekeepers don’t know how to sell in Internet
EE--paymentpaymentSME have difficult to be attended by credit card companies
DeliveryDeliveryCostumers needs a quickly and cheap delivery. Tracking & trace and reverse logistics are mandatory to keep up the store credibility
AudienceAudienceSME need a measurable, effective and cheap advertising tools
ReliabilityReliabilityUsually SME start with no rating and unknown trend. How they could get credibility?
1717
IT KnowledgeIT Knowledge
SolutionSolutionInternal education
CorreiosNet Shopping training for whole workforce team
E-commerce training for Regional managers
Client education
E-commerce Roadshow for Small and Medium Enterprises
E-commerce tips website
Commercial and technical guides
1818
Shops using CorreiosNet ShoppingShops using CorreiosNet Shopping
50 74
188
331
458
550
639
715
790
31 4283
133188
250303
366
450
jan/05 abr/05 jul/05 out/05 jan/06 abr/06 jul/06 out/06 jan/07
Active contracts Shops open
1919
EE--paymentpayment
SolutionSolutionCorporate agreement between Brazilian Post and Visa
Verified By Visa platform (+)
Major secure and used internet payment platform
Discount in transaction fee: 3%
100% discount in monthly fee
50% discount in subscription fee
Centralized application process
Bradesco (major private bank)Invoice delivery platform
On-line bank account debit
2020
DeliveryDelivery
SolutionSolutione-SEDEX
Parcel express service designed to e-commerce3 attempts on delivery, including night tryE-commerce tailored prices
Postal Service package for e-commerceNo flat feesNational and international; express and economic servicesOn-line tracking and tracing
Returning serviceOn-line e-ticket by e-mail
Home Pick-upShipping authorization for all Post Offices
2121
DeliveryDelivery
e-SEDEX Traffic
R$ 3,6
R$ 12,4R$ 15,6
R$ 21,3
R$ 35,7
R$ 51,1
1,2
3,03,3 3,5
4,0
5,2
0
10
20
30
40
50
60
2001 2002 2003 2004 2005 2006
Milh
ões
-
1
2
3
4
5
6
Milh
ões
Turnover in millions of reals (R$) Traffic in millions of units
2222
AudienceAudience
SolutionSolutionBy Brazilian Post
Brazilian Post Portal advertising (+)
Sponsored links at Google, Yahoo, etc (+)
By client
Bonus for using in BuscaPéMajor comparison shopping in Latin America
New for 2007: Bonus for using in Google AdWords
2323
AudienceAudience
CorreiosNet Shopping Audience
82.250
211.074
126.836
319.114
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
jan/06 fev/06 mar/06 abr/06 mai/06 jun/06 jul/06 ago/06 set/06 out/06 nov/06 dez/06
Unique users Amount of visits
2424
ReliabilityReliability
SolutionSolutionTrusted mark by BuscaPé
Trusted mark by e-Bit (+)
Delivery Guaranteed by Brazilian Post (+)
2525
AgendaAgenda
eCommerce in BrazileCommerce in Brazil
Case Study DescriptionCase Study Description
CorreiosNet ShoppingCorreiosNet Shopping
Lessons LearntLessons Learnt
RecommendationsRecommendations
2626
Lessons learntLessons learnt
1.1. Services based on new technologies still face a lot of Services based on new technologies still face a lot of resistance in the company and are difficult to resistance in the company and are difficult to commercializecommercialize
2.2. New digital services must primordially complement New digital services must primordially complement traditional services, potentializing their benefitstraditional services, potentializing their benefits
3.3. The virtual retail market still faces a lot of obstacles, The virtual retail market still faces a lot of obstacles, where the main ones are the shopkeeperswhere the main ones are the shopkeepers’’ lack of training, lack of training, the difficulty in products advertising, especially the difficulty in products advertising, especially SMEsSMEs, , and set up costs.and set up costs.
2727
AgendaAgenda
eCommerce in BrazileCommerce in Brazil
Case Study DescriptionCase Study Description
CorreiosNet ShoppingCorreiosNet Shopping
Lessons LearntLessons Learnt
RecommendationsRecommendations
2828
Recommendations Recommendations
1.1. Make pilots of the services for cases with higher Make pilots of the services for cases with higher transaction volumes to reach critical masstransaction volumes to reach critical mass
2.2. Take the services to where the consumers are: the Take the services to where the consumers are: the main content and eCommerce sitesmain content and eCommerce sites
3.3. Use technology to optimize operational processes, Use technology to optimize operational processes, facilitate service use and meet customer needsfacilitate service use and meet customer needs
4.4. Look for generating income with successful casesLook for generating income with successful cases
5.5. Build strategic partnership with the major players in Build strategic partnership with the major players in complementary areascomplementary areas
2929
CorreiosNet Shopping was launched in August 2003 as CorreiosNet Shopping was launched in August 2003 as
an eCommerce solution for hosting virtual shops for an eCommerce solution for hosting virtual shops for
micro and small companies. micro and small companies.
After two years of operation, CorreiosNet Shopping is After two years of operation, CorreiosNet Shopping is
now an eCommerce platform for its own and third party now an eCommerce platform for its own and third party
products through the Brazilian Postproducts through the Brazilian Post
To summarize...To summarize...
Case Study: Case Study: CorreiosNet ShoppingCorreiosNet Shopping
Thank youThank you
Shop well!Shop well!
Antonio BraquehaisAntonio [email protected]@correios.com.br
Head of Internet Business DepartmentHead of Internet Business Department
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