The complete guide to developing your international ecommerce business

Developing your e-commerce activity internationally is tempting, it does not seem so difficult on paper. Think about the last time you bought a product on the internet. Was it a brand with a physical location in your country, or did you go further? If you have chosen the latter option, you are not the only one. Up to 70% of consumers have bought at least one product internationally online, proving that proximity and distance will not prevent consumers from buying what they want over the Internet. It is up to you to provide them with the means to purchase your product, no matter where they are.

The pitfalls of international e-commerce

If done correctly, your online store will experience even greater success globally when implementing your strategy. People all over the world will have the chance to buy products from your site, which will allow you to grow your business. But, like many other sales, marketing, and distribution strategies, there are some initial issues you need to address before you take charge of your business, including:

Logistics

Perhaps one of the most important things to consider if you want to expand internationally is logistics. After all, this is how your products reach a customer.

How will you deliver the products to overseas customers?

Will you be able to reduce the cost of shipping and delivering to your customers outside the country?

What is your strategy when dealing with customers who do not speak your language if they have concerns about your site or their orders?

These are just a few examples to consider before you jump into e-commerce - and you’ll need a solid plan of action to be successful.

Taxes

When doing business internationally, you should educate yourself about the tax laws of the country in which you work. Not meeting the requirements can lead to big problems. Income tax, import costs etc. could also play a role in your bottom line.

Local rules for foreign companies

Complicated regulations regarding selling in a foreign country only add to the headaches as you transition to international e-commerce. Knowing the different rules and regulations governing foreign businesses is essential, but always make sure you are legal. The regulations for running a business in a foreign country can change quickly. However, having a member of your staff take responsibility for following international law can help your business stay on the right side of the law.

Payment gateways

While processing payments is generally not an issue for customers in your country, be aware that you may experience abandoned carts and unfinished transactions if you don’t offer a variety of payment gateways. Credit cards may seem like the more classic and reliable solution because most buyers have a credit card and it is easy to use it to accept payment for their orders, right? Not necessarily. Some shoppers are picky about how they pay for their online purchases. 3D security issues associated with accepting credit card payments can be a problem for customers purchasing in a country that does not support this security. International customers may also wish to pay cash in their local currency, without their credit card (which automatically converts currencies). However, offering this payment option requires technical knowledge, not to mention the additional costs and fluctuations in exchange rates that come with it.

Confidence and security measure

People won’t buy from stores they don’t trust. However, since this is your first experience in international ecommerce, you will need to build a reputation for yourself. The people you target elsewhere may not have the same trust and relationship with your brand as native customers. Unless you’re running marketing campaigns to market your business to an international audience ahead of your launch, expect an uphill battle to get people to buy from your store.

Is international ecommerce a waste of time?

There are several logistical challenges you will have to face before you can sell your products internationally, but don’t let that put you off.

The international ecommerce market is bigger than ever. The cross-border B2C market is estimated for 2018 at 676 billion dollars, with 715 million consumers:

Considering the size of the international trade market, getting your store online is without a doubt one of the best ways to grow your business.

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5 strategies for your ecommerce business to perform internationally

Are you ready to take on your competition on a global scale and reap the rewards of international ecommerce? Follow this five-step process to begin your quest:

1. Prepare for your transition by starting small

While the move to selling internationally can bring enormous windfall, there are risks. We have already discussed how the process of globalization would present new challenges for your ecommerce business. But don’t be discouraged, knowing these dangers is important, but overcoming them is not as difficult as you might initially think. First, start your small scale expansion. For example: International shipping will disrupt your current workflow because it requires you to take new steps. It won’t be as easy as sticking a $ 1 stamp on a postcard, and it could take a few days to process a customer’s payment. Start by accepting a handful of orders each month and master the process. Not only will you have a rough understanding of your capabilities (e.g .: do you have enough staff to fill 20 orders?), But you will also gain a better understanding of the costs, fees, and taxes associated with each country you sell to. While starting small isn’t the most exciting way to expand your business overseas, it is the least risky way.

2. Determine the regions in which you should sell

As you expand into the global market, you need to do your research. You can’t just pick regions and countries just because you had your best vacation there. Your plan to set up in a new country must be made explicit. You need to make sure that you have a target market there. Take China, for example. Choosing them as one of your top destinations for international ecommerce seems like an easy decision, right? Its electronic economy is worth nearly $ 60 billion, the largest in the world:

Chinese consumers themselves are taking advantage of international e-commerce to bypass regulations for the international purchase of items. As a result, China plans to establish tough rules that will make life for e-commerce site owners operating in China much more difficult. In other words, it’s not as easy as just choosing the biggest market. You need to think through your decision to be able to profit from setting up your store in this country. When choosing a location to develop, consider:

The language: Is it a French speaking country? English-speaker ? If not, do you at least master their language? Or do you need to hire more people who can make the transition easier for you?

Payment Methods: Do most customers pay in local currency that your site does not support? Is it worth adding their preferred payment gateway to your system to enable their purchases?

Cultural norms: Do customers exercise norms and customs that do not reflect your company’s views and values? What are the usual shopping habits for someone in this country?

The answers to these questions determine whether the country you are exploring will be a good fit for your international ecommerce strategy. Remember: while it is a hard job to smash a high-risk foreign market, there are cases where the potential gains are large, and the risk of language barriers and difficulties in payment methods will be worth it. . Do your due diligence and be thorough in your market research to find the best solution for your business.

3. Localize your ecommerce site

To make sales, you need to welcome people from the area where you have built your online store. Your existing site, which is only for your original customers, will not be enough. You dYou can develop and publish a local version of your site for your new audience. Why ? Because you want foreign visitors to feel welcome and to trust your website. The first thing to consider when building a local version of your ecommerce store is the language of your target customers. If the country you are growing in is comfortable speaking English, your transition will be much easier. However, if your audience prefers to use their native language, your entire site will need to be completely redesigned if you want to communicate with them. You will also need to create what meets their sensibilities. Knowledge of their national holidays, their culture and their general disposition can help. For example: can you offer additional discounts during their national holidays? On your social networks, can you engage local customers to celebrate their cultural identity? By communicating with them at a level they understand through your website and other online resources, you can build trust with potential buyers and thus enjoy more sales.

4. Develop your payment gateways

Whichever payment gateway you use to process payments online, you will need to grow as you cross borders. You can’t just follow a payment gateway you’re comfortable with, you have to respond to your new potential customers. Why ? The answer is simple: if they can’t buy from your site using their preferred payment method, they’ll go to another site. Setting up different payment gateways allows you to be flexible and increase your conversion rate while reducing cart abandonment. Payment gateways like Stripe, PayPal, and Payza can handle international transactions, but be sure to verify which one you select in the region you are in. For example: Brazil has exclusive payment gateways, such as PagBrasil and PrimeiroPay. Do your local customers prefer (and trust) these payment gateways over Stripe? If so, consider using it at your local site. You can also consider WorldFirst, which offers fast exchange rates and transfers, making it a great choice for international e-commerce businesses that don’t want to be limited by lengthy payment processing.

\5. Store your inventory in a warehouse

If you are selling products online, local distribution will be one of your main concerns. You will need to determine how to move your products from your company headquarters to another country (potentially halfway around the world). When working on this topic, you have two goals: to reduce shipping time and costs, and to deliver the best products to local buyers. For this, you can rent a warehouse in the region where you have settled, so that you can store everything locally. But before committing to a 10-year deal, you need to:

Operate in a low risk country.

Carefully read the terms and conditions of your rental contract.

Understand the most purchased products so you can stock your inventory and don’t run out of stock for your key items.

Conclusion

Taking your online store to a global level is not something that every site owner can do. It takes a lot of hard work, intensive market research, and a little luck. However, like most opportunities to grow your business and make more money in the long run, you can’t pass up the chance to start selling your products in a foreign market. If you’re serious about branding on your site, make international ecommerce a strategy. Use the five strategies we have seen previously to avoid going into collision and to put the odds in your favor.