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A few months ago we received an interesting piece of research from OC&C Strategy consultants which investigated how UK retailers are well placed to outperform their overseas counterparts in the battle for online supremacy.

It was estimated by 2020 there would be an incredible sevenfold increase in non UK sales.

Within the report, the ‘jewels of Britain’s retail e-mpire’ were highlighted. This was based on the volume of consumer searches from international territories.

A number of advertisers across the network were included on this list so we decided to take a look and see how the affiliate channel was aiding internationalisation in the ecommerce market

Global Coverage

The chart below looks at each of our advertisers included on the list and the countries where affiliate partners are generating sales.

The larger the dot, the greater the volume of sales (the UK has been excluded from this). It is evident that the affiliate channel is truly global, with sales spanning countries the world over.

 

We can break this down further to look at particular advertisers and sectors. An interesting point raised within the research piece was that it was cheaper to purchase a bike and have it imported from the UK than it was to buy from an Australian retailer.

Working with both retailers on the list within this sector, it was possible to see if this is a trend that is replicated across the affiliate channel. 

Advertiser A

For the first advertiser we do see a considerable volume of sales originating from Australia but this is eclipsed by the volumes that we have seen from Japan.

The chart below does indicate that there is considerable global demand for the advertiser. Consumers are purchasing across Europe while there are also transactions seen in the US and Canada.

 

Advertiser B 

We see a very similar pattern for the second advertiser with a significant volume of transactions originating from both Japan and Australia.

This advertiser has a stronger presence in Russia and Southern Europe, with sales in Spain and Italy particularly strong.

Domestic vs overseas publishers

Internationalisation is typically being driven in two ways: UK publishers are expanding their operations to focus on additional markets while we are also seeing a rise in publishers from overseas. 

By looking at where publisher applications are coming from it is possible to gain an insight into whether we are attracting more applications to join the programmes from the countries that are experiencing high sales volumes.

For each of the advertiser’s looked at above it is evident there has been a number of publishers signed up from Australia.

We have seen publisher sign ups span the globe and an increasing volume of sales are being generated by publishers within their local markets. 

Advertiser A

Advertiser B

  

Another interesting observation arises from one of the fashion brands included within the report. Scandinavia is of particular interest to them and sales from Norway alone almost outstrip those made in the UK.

When looking at the publishers that are driving these sales, there is a combination of UK based publishers generating sales overseas while there are also a number of Scandinavian based publishers promoting their goods in localised markets.

Consumer spending across the globe

It is also possible to gain insights into where the greatest amount of money is being spent globally. The chart below indicates the average order value across the advertisers included within the data set.

The larger the dot, the greater the average order value while the volume of sales is indicated by the colour of the dot - the darker the colour, the greater the volume of sales. 

Average order values across the network are fairly consistent from country to country. Mauritius generated the highest AOV but this is from a low level of sales whereas Japan and Russia have an almost identical AOV and volume of sales. 

Internationalisation is widely predicted to be a major growth area for UK retailers over the next few years.

We have certainly seen a rise in this across the network, both in terms of where publishers are signing up from and where sales are being generated. This is a growth trend that we will continue to monitor over the coming months.

You can read the OC&C research here

Matt Swan

Published 14 October, 2013 by Matt Swan

Matt Swan is Client Strategist at Affiliate Window and a contributor to Econsultancy.

25 more posts from this author

Comments (2)

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Joel Katz, COO at Ashford.com

can you please clarify the difference from Advertiser A to Advertiser B?

over 2 years ago

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Emily Brewer

There are some fascinating insights highlighted here. The immeasurable growth of online consumers worldwide is something not to be ignored. With updates from Google, enormous international competition and a shrinking SEO sphere, knowing how to identify quick wins and develop your search strategy in international markets is paramount for continued growth and success. For those interested in learning more about international digital marketing, Oban Multilingual and Econsultancy have partnered up to provide a bespoke International SEO / PPC and Digital Marketing Training course to help individuals who are looking to launch successful international digital campaigns or improve results significantly. Moreover, Econsultancy is offering a free report credit worth £450 from its site for non members... so essentially the course can almost pay for itself.

To find out about the programme and book your place please click on the link below. Thanks!

http://econsultancy.com/uk/training/courses/international-seo-ppc-digital-marketing#who_should_attend

over 2 years ago

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