How to conquer Swiss eCommerce! An interview on buyer behavior, payment service providers and service expectations

Switzerland is one of the fastest-growing eCommerce markets in Europe and is therefore of interest to many retailers. But if you want to be successful in our neighboring country, there are a few things to consider. In this interview, our long-standing Swiss service partner Thomas Lutz explains which aspects German online retailers should pay particular attention to when entering the Swiss market.

JTL: Hello Thomas. Thank you for taking the time for an interview and giving us an insight into Swiss eCommerce. What makes you experts in this field?

Thomas: Hello Christina. You’re very welcome! We set up our first online store for digital photos and digital productions 20 years ago. And that was at a time when everyone was still using analog. Hence our company name photografix.

We started working with ERP 15 years ago. We were particularly enthusiastic about Eazybusiness, a software that – as not everyone knows – was later renamed JTL-Wawi. In terms of philosophy and innovation, it suited us and our work very well. Just one year later, we became a service partner and were probably the only one in Switzerland at the time. Since then, we have been able to implement many projects in Switzerland. From all kinds of industries. We have learned a lot from every project and now have over 2000 customers.

JTL: Switzerland is considered the big growth champion in eCommerce within Europe. Do you also feel this in your work?

Thomas: Yes, we can clearly feel that interest in eCommerce has increased. The current pandemic situation is acting as an accelerator here. Overall, we are also seeing a comprehensive generational change at large companies in Switzerland. And the successors are usually focusing more on online business. However, we are also seeing a concentration: large and traditional providers in particular have a fixed position in the market, making it difficult for new companies to secure a piece of the pie.

JTL: What characterizes the Swiss eCommerce market?

Thomas: There are a few special features here: The Swiss generally expect the same service in an online store as in a retail store. They love to receive comprehensive and personal advice. It is sometimes very challenging to provide this electronically and places high demands on the content and usability of an online store.

At the same time, the Swiss attach great importance to tradition and sustainability. If a product can be ordered regionally, this is usually preferred. In other countries, on the other hand, the purchasing decision tends to depend more on price.

There are also linguistic differences. Terms such as tax, right of withdrawal, payment, direct debit, etc. are unfamiliar to us and need to be translated. And our payment methods also differ fundamentally from those of other countries, which must also be taken into account in cross-border trade.

JTL: So price plays a subordinate role in Swiss online business?

Thomas: Yes. In Germany, there is a very high level of price awareness, sometimes at the expense of quality. In Switzerland, it’s exactly the opposite. The quality and origin of a product are more important than the price.

JTL: You just mentioned the consulting aspect that the Swiss expect when shopping online. What does that mean in concrete terms?

Thomas: Customer orientation is very important in Switzerland. Even if you ask an employee in a store and they don’t know the answer, they will try to suggest various solutions. It’s not easy to implement this level of service online and it means that service hotlines etc. have to be staffed by extremely motivated employees in order to meet the “Swiss standard”.

JTL: What technical requirements result from these special features?

Thomas: As already mentioned, payment methods differ fundamentally between Germany and Switzerland. While direct debit and PayPal are important in Germany, invoice and credit card are among the most important payment methods in Switzerland. As are Twint and PostFinance. To help foreign merchants take the right steps in Swiss eCommerce, our agency has created the multipayment platform WaWiPay. With its help, customers can offer their preferred payment methods in every country.

As the Swiss also attach great importance to appearance, the visual appearance of a webshop is important. We clearly advise against standard templates! The Company’s corporate design must reflect the products and their quality. And a recognition effect should also be created between the brick-and-mortar store and the web store.

And very important: the webshop and its databases should be stored nationally. The Swiss don’t like their data going abroad.

JTL: What measures do online merchants need to take to address the foreign currency aspect right from the start?

Thomas: In my view, the issue of foreign currency is hardly a challenge; it’s technically easy to solve. As I said, it’s much more important to offer all payment methods that are relevant in the Swiss market.

JTL: What about shipping? How do German merchants find experienced shipping service providers they can rely on?

Thomas: That is much more of a challenge. Swiss Post delivers around 80 % of all parcels in Switzerland. There are also DPD, DHL and FedEx. We already offer an efficient solution for DPD with our DPD Shipper.

JTL: What role do taxes and customs play?

Thomas: There are hardly any problems with tax. Company orders in Germany are usually exported with 0% tax, as they are exports. The tax is then offset by the shipping service provider. It is even easier with a ZAZ customs account.

The situation is different for customs or private deliveries. Here, retailers should check exactly how much customs duty is incurred and for what and inform the end customer accordingly. The better way here would be to seek individual advice or work directly with a fulfillment service provider. You can quickly find providers for the Swiss market via the JTL-Fulfillment Network.