Globalization has paved the way for a lucrative opportunity in the e-commerce world: global e-commerce. With sales projected to surpass $6.33 trillion by 2024, the potential for growth and success is vast and at your fingertips. E-commerce businesses are in a prime position to expand their operations and tap into a thriving global market. While the journey may seem challenging, the rewards are worth the effort.
In this blog, we will delve into the fundamentals of global e-commerce and present ten strategies to boost your sales in foreign markets. To bring these strategies to life, we will share real-life success stories of e-commerce businesses that have not only implemented these strategies but have also witnessed a significant surge in their international sales.
What is Global E-commerce?
Global E-commerce, or international e-commerce, is the broad concept of selling products and services online to customers worldwide. Global e-commerce opens up opportunities for retailers to venture into international markets and connect with customers worldwide, unlike local e-commerce, which is limited to selling within the retailer’s home country.
Thanks to the many available e-commerce platforms, marketplaces, and digital solutions, merchants can now sell online without limits. That makes it easier than ever for businesses to expand globally.
Benefits of Global E-commerce
Businesses can grow revenue, reach more customers, and develop a more dynamic business model with the benefits that global e-commerce provides. It provides the following advantages:
1. Enhanced market reach
One of the main advantages of global e-commerce is reaching a larger audience. By selling online, companies can connect with clients worldwide and expand beyond the geographic restrictions of local stores. That creates new opportunities for growth by opening up new client bases and revenue streams To expand reach, e-commerce businesses can use Facebook’s advertising options; understanding the benefits of organic versus paid Facebook advertising can help determine the best strategy to engage a global audience..
2. Boosted revenue and sales
With access to new markets, businesses can significantly increase their sales and income. Worldwide e-commerce enables firms to enter developing markets and areas with a strong need for their goods. Diversifying their clientele can help businesses increase their total sales and potential revenue.
3. Market diversification
Saturated markets or economic downturns might make relying too heavily on one market dangerous. Global e-commerce enables businesses to diversify their market presence, reducing reliance on a single economy. However, expanding your business to multiple countries or regions has challenges and risks.
Each market has its economic conditions and consumer preferences, and navigating these differences can be complex. Diversifying income sources can mitigate the risks associated with local economic swings, but preparing for these challenges is crucial.
4. Operating 24/7
Since online stores never close, companies may run around the clock. Serving clients across multiple time zones is particularly beneficial.
A business accessible at any time of the day ensures potential clients can make purchases whenever convenient, increasing sales possibilities.
5. Cost effectiveness
Running an e-commerce company internationally is not just a smart move; it’s also cost-effective. It’s more economical than establishing physical stores in multiple locations. Businesses can distribute resources more efficiently without significantly investing in employees, utilities, or real estate.
For example, a business that sells physical products may need to invest in warehouses and distribution centers in each country, which can be costly. However, with global e-commerce, it can use third-party logistics providers or even dropshipping to fulfill orders, reducing its overhead costs and increasing its efficiency. Affordable methods to connect with and assist international clients include digital marketing and online customer service, making it a financially sound decision.
6. Recurring revenue
As the reach increases, so does the necessity for robust compliance, processes, and SOPs.
Global ecommerce brands enjoy massive customer bases and recurring revenue since they have volumes of orders to play with. Depending on the seasonality and requirements of popular geographical locations, the online stores earn recurring with repeated subscribers.
They need valuable subscriptions for the customers; like how Amazon does with Amazon Prime.
With this, global ecommerce brands require subscription management processes in place to help them automate and streamline time-consuming processes like billing, invoices, CRM, and so on.
Speaking of processes and best practices, let’s understand how to get started in this niche in the first place.
How to get started in Global E-commerce
Though it takes a lot of preparation and proper execution, breaking into the international e-commerce sector can be profitable. Here are some steps to get you started:
1) Research international market potential
Finding out the demand for your goods or services in the international market is the first step in your global e-commerce venture. Your offerings will have the most influence as you examine supply and demand in different areas.
- Demand Analysis: Look for areas with a high level of interest in goods similar to yours. Use market research studies, Google Trends, and industry-specific data to determine interests and buying patterns in various nations.
- Supply Analysis: This process allows you to assess competitors and current supplies in the target markets. It helps you find market gaps in which your product can fulfill unmet needs, enabling you to position it successfully in a specific environment.
- Keep an eye on what your potential customers and competitors say, and share feedback and sentiments on social media platforms, particularly those prevalent in your target countries. Various social media scheduling tools, such as SocialBu, Mention, and Hootsuite, are available.
- You can use online marketplaces like Etsy, eBay, Amazon, or Taobao to see how similar products or services perform in different countries. That includes checking their sales performance, reviews, and ratings.
To successfully launch your online business in a foreign market, you must understand the market’s characteristics, such as consumer preferences, cultural differences, and local buying habits. This understanding is not just a nice-to-have; it’s a necessity. Your research will allow you to adjust your products, services, and marketing strategies to fit the specific preferences of the foreign target market, making your business more appealing and accessible to the local audience.
Chris Masanto, the CEO and co-founder of PetLab Co., says, “For PetLab Co., researching international market potential was key to our global e-commerce success. Collaborating with local influencers and conducting surveys provided firsthand feedback, allowing us to tailor our products and marketing strategies effectively. This thorough approach ensured our offerings resonated with diverse audiences, enabling confident market entry and driving significant growth and customer loyalty.”
2) Research competitors
Creating an effective global e-commerce strategy requires an understanding of your competition. Examining other businesses will teach you what works and doesn’t in the markets you want to enter.
- Recognize Important Players: Search for domestic and foreign competition in your target markets. Examine their marketing techniques, price plans, and product offers.
- SWOT Analysis: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for every significant business to assess possible opportunities for differentiation. That involves identifying your business’s internal strengths and weaknesses as well as external opportunities and threats in the market.
- Client Reviews and Comments: Research consumer opinions and reviews of rival items. That could help you improve your own offerings by providing you with an understanding of what clients like and dislike.
The best way to research competitors is to use the right tool, like SE Ranking. The tool will help you understand the competition, reveal your competitive advantages and disadvantages, and detect potential opportunities and threats in a particular foreign market. Moreover, the tool gives you the bigger picture with historical data and analyzes any dynamics metrics.
3) Study your local audience
When doing business internationally, it’s important to remember that what works in your country might only work in some cultures or markets. That can make international business exciting, but it can also be risky. Understanding the fundamental aspects of a new market can save time and money and significantly impact your company’s expansion.
Study how consumers in your target markets make purchasing decisions. That includes preferred payment methods, shipping expectations, and customer service preferences. Understanding these preferences is crucial as it allows you to adapt your website content and product listings to local needs, making your business more appealing and accessible to the local audience.
To effectively enter a new market, you must understand the preferences and behaviors of your local audience. One helpful tool for this purpose is IPWhois.io, which helps detect the IP location of your target audience and understand competitors’ dynamics in a particular area. Using API, you can create personalized content based on a visitor’s location for your local business with these competitors’ data.
4) Find local partnerships
Developing regional partnerships can make entering new markets much more accessible. The networks and information that local partners can provide are essential to your success.
- Shipping Partners: Partner with regional logistics and shipping firms to guarantee prompt and affordable delivery of your goods. They can assist with optimizing the shipping process and navigating local customs laws.
- Advertising Agencies: Local marketing and advertising agencies can produce successful and culturally appropriate marketing strategies. They can help you understand the tastes and behavior of the local customers.
- Retail and Distribution Partners: Establish alliances with nearby merchants and distributors to reach a wider audience and raise market awareness of your brand.
- Research logistics: Different shipping choices have pros and cons regarding cost, speed, reliability, and scalability. Storing products locally and shipping globally leads to shipping costs but provides more control.
“Teaming up with local businesses and people can also help you handle legal obstacles, understand cultural differences, and gain trust with the market’s audience,” said Sam Meenasian, Founder of BISU Insurance. “These partnerships will help you understand local trends, how people buy things, and where products are sold.”
5) Build a multilingual website
Engaging clients in many locations requires a multilingual website. Showing respect for their language and culture increases their trust in your brand.
A website in multiple languages shows your dedication to helping local customers and makes it easier for them to understand what you offer. Most importantly, it improves the user experience, leading to more conversions.
Professional translation services can ensure the accurate translation of your website’s content. Avoid automated translation utilities, as they could lead to mistakes and misinterpretations. For example, Shopify allows the activation of multiple languages from the admin panel to make separate URLs for translated content.
Ensure that customers use a translated URL. Your store will show the translated version with localized Shopify product labels, descriptions, and other attributes, ensuring a smooth and localized customer experience.
6) Optimize your online store for Global E-commerce
Achieving global e-commerce optimization for your online business means ensuring visitors from other countries can easily access, use, and navigate your website. Search engine traffic can account for about one-third of the revenue of an online store. However, not all search engines have the same impact. Different search engines dominate in other areas because each uses its own algorithm.
Your main task in improving your SEO strategy is to research, understand, and adjust your website to meet the requirements of the specific search engines that are most important to your customers in particular locations. Begin with an SEO audit and optimize your e-commerce for global use.
Essential areas to concentrate on are:
- Website Design: Your website should be able to adjust to various screen sizes and devices. That is important, as mobile devices are the most common way for people worldwide to access the internet.
- Consider using a content delivery network (CDN) to speed up your website for international users. A CDN works by spreading content across different servers in various locations.
- Build an international SEO-friendly and people-friendly URL structure.
- Global SEO: International domains apply foreign SEO techniques, such as local search engine optimization for Baidu or Yandex and language and regional targeting. Track the latest trends and SEO best practices for your target areas to ensure efficient marketing that leads to conversions. For example, local SEO for lawyers in New York and London is different, starting with using different keyword terms and ending with content creation based on cultural differences.
7) Consider cart localization
Localizing your cart is critical for improving the checkout process and making it as smooth for international clients as possible. That involves adapting your shopping cart and payment gateway to the local language, currency, and payment methods. It also includes ensuring the checkout process complies with local regulations and security standards and providing clear and transparent information about shipping costs and delivery times.
When shopping online in China, it is essential to consider that it differs from shopping online in New York. Cart localization is one way to adapt to this difference and make the shopping experience smoother. Here are some things you should consider:
- Offer Different Payment Methods: To meet regional preferences, include a range of local payment choices. These may include Alipay in China, Paytm in India, or Klarna in Europe.
- Consider design elements and content: Formatting can impact dates, times, prices, and punctuation. Also, consider whether visual elements like graphics and colors are culturally appropriate.
- Leverage Currency Conversion: Display pricing in local currency on your website to reduce misunderstandings and increase openness. Include automated currency-converting tools.
8) Offer multilingual customer support
Multilingual customer service in foreign markets is crucial for establishing trust and guaranteeing customer satisfaction. Having trouble communicating, feeling misunderstood, or, even worse, feeling disrespected can ruin a person’s confidence in a brand. You can effectively handle local inquiries and quickly resolve issues by providing customer support in multiple languages.
You can set up a contact center that offers different ways for customers to get in touch. That means offering phone, email, live chat, and social media options. It’s essential to ensure that customers from different countries can easily reach out for help by communicating in their local language and during local business hours.
Using a Windows-based server for your website can help you. It allows you to manage all the integrations manually and has direct access to the customers’ data, which can be helpful for your analyses afterward.
9) Localize pricing
Adjusting prices based on IP addresses can improve conversion rates, especially considering the impact of foreign currency listings on online shoppers. This personalization could lead to better customer satisfaction and increased sales. Nearly half of all online shoppers say they will leave their cart without paying if the price is in a foreign currency.
Customize your pricing approach to each target market’s economic circumstances and purchasing power. Modify your pricing in response to the state of the local market, rivalry, and customer expectations. That could mean more expensive solutions in high-income nations, which might be outside of emerging markets.
To prevent clients from being surprised at checkout, clearly include all charges, including taxes, shipping expenses, and any possible customs duties. Historical data can help determine the busiest times, holidays, and local events. With this information, you can adjust your prices in the foreign market during these times to increase demand and attract more customers.
10) Leverage global reviews
Positive reviews boost sales—72 percent of online shoppers say they purchase only after reading at least one positive review—and provide valuable information. In foreign marketplaces, global reviews can significantly increase your credibility and reliability.
- Local Reviews: Promote reviews on well-known local review sites and e-commerce platforms, such as Flipkart in India, Tmall in China, and Amazon in the US.
- International Testimonials: Your website should feature testimonials from around the world. Highlight the kind comments and endorsements from clients in several areas. This social evidence may reassure potential customers about the quality of your offerings.
- Respond to Reviews in Regional Languages: Actively participate in customer reviews written in their local language to demonstrate your appreciation and commitment to improving their experience.
Place reviews in suitable locations and ensure your target customers can trust them. Also, actively request reviews from your repeat customers. The benefits of replying to reviews can enhance your reputation, demonstrate transparency, and encourage more reviews. When customers see you take the time to respond, it builds trust and credibility, increasing loyalty. Engaging with reviews creates dialogue and fosters a sense of community.
Pro tip: “Certain product or service categories are more sensitive to online reviews than others. For example, the US market is less likely to check for online customer reviews of legal or financial services before purchasing,” said Triump Curiel, Founder of Curiel & Runion. “The Hispanic market finds this practice prevalent to help their purchase decisions.”
Bonus tip: Comply with local laws and regulations
Taxes are just one aspect of local regulations that e-commerce businesses must adhere to. Online sellers may also need to comply with other rules specific to each country:
- Consumer Protection. Laws for customers differ from country to country. They usually require clear product information, fair pricing, and policies for delivery, returns, and refunds.
- Intellectual Property includes copyrights, patents, designs, and trademarks; regulations regarding these can vary between countries.
- Regulations for product quality and safety standards. Each country has its own list of dangerous and prohibited products.
- Data Protection and Privacy: Laws protect consumers’ private data online. The details may vary between countries.
Conclusion
Your business can find enormous growth prospects by joining the worldwide e-commerce sector. Building a solid basis for success requires conducting in-depth market research, understanding your local audience, and making your online business internationally customer-friendly.
Localizing everything, from the shopping cart and customer service to prices and reviews, guarantees a smooth and customized experience for clients worldwide. If you take a strategic approach and dedicate yourself to satisfying the demands of many markets, your company can prosper in the worldwide e-commerce environment.