Most Danish e-tailers dream of expanding internationally, but many confine themselves to neighbouring markets. However, Xspance, a Danish start-up provides the infrastructure to link webshops up to international e-commerce giants like Amazon and eBay. But while software is one thing – selling and distributing goods internationally is another, because it requires reliable logistics solutions. For this, the company teamed up with Asendia Denmark.
The international markets are alluring to any e-tailer today, and most Danish e-tailers have either already established themselves abroad or are planning to do so. However, expanding your webshop to serve other countries is a challenging process. This has held many back in their international endeavours with most Danish e-tailers focussing any eventual international expansions on ‘the comfort zone’ – the neighbouring markets. But a new collaboration can supply access and delivery to far greater new markets.
In 2010, Christoffer Jørgensen and his two partners, Andreas Garnaes and Nicholas Moeller, founded Xspance with the purpose of offering clients exactly that – international expansion.
The small Danish company provides the entire setup required to connect a webshop in e.g. Denmark with major international online marketplaces such as eBay and Amazon, etc. This includes everything from the infrastructural connection to the marketplace to translating product descriptions and offerings. Most recently, the company also started connecting companies to the Polish equivalent of eBay, Allegro, thus providing an entrance to the quickly growing Eastern European markets for Danish clients.
The system is designed to be affordable to everyone. Approximately 30 per cent of all European e-commerce takes place on marketplaces like Amazon and eBay – with a potential customer base of 500 million people. Furthermore, 25 per cent of the sales on Amazon are products, which are not even in the top 100,000 of the most sold items. This means great potential for all e-tailers selling with niche products, which can benefit from the so-called long tail effect, which breaks away from the notion that best-selling blockbuster products make up the majority of sales.
Amazon - a great potential for all e-tailers selling with niche products.
“Many Danish e-tailers consider entering international markets, but the hazzle of custom-making webshops for each new country has a deterring effect on many, because there are no guarantees of success once you launch in a new market. What we provide is access to the world’s largest online marketplaces, which is a great platform for boosting turnover rate as well as for testing your product range, if you plan on expanding your webshop to new markets,” says Christoffer Jørgensen, CEO and co-founder of Xspance.
Since the launch in 2010, Xspance has seen steady growth. “It seems Danish e-tailers find that we may have a free market in name, but not yet in effect, and therefore they are still a little risk-averse,” Christoffer Jørgensen says.
It is one thing to optimize a webshop and enable sales through Amazon or eBay. Physically completing the sale and handling distribution, taking care of customs clearance and knowing the import/export regulations is another. And this is where Asendia steps in.
Xspance can manage all aspects of the international online sales for the clients. Consequently, there was also a need to find a reliable logistics partner to deliver and distribute packages around the globe. And with a wide range of different clients and things the key requirement for the logistics partner was international expertise, local presence and flexibility.
Taking care of customs clearance and knowing the import and export regulations is where a strong partner is needed.
“We have many small and medium-sized clients, selling many different things of many different orders of magnitude. Therefore we needed a logistics company that could handle the diversity of our client portfolio. And that is exactly what we have found in Asendia,” says Christoffer Jørgensen.
Asendia offers the clients of Xspance a fixed fee for a certain number of packages, in order to provide new Xspance customers with a point of reference. But naturally, the scope of the logistics services required varies significantly between customers depending on amount, destination, etc., and consequently Asendia always aim to find the best distribution solution in cooperation with the clients.
Location of company: Denmark