Going Global with eCommerce: Stats and Steps for International Growth
Thanks to the spread of telecommunications technology worldwide, buying and selling goods internationally now requires nothing more than an internet connection and a single click or tap. Sorry, Marco Polo.
For vendors, this means that international populations previously unavailable as customers can now be reached via eCommerce. China, in particular, has capitalized on the opportunities provided by these borderless marketplaces, accounting for 52.1% of all worldwide retail eCommerce. The US follows at 19%, and the UK at 4.8%.
Perhaps even more relevant are the individual companies dominating the international market. The largest is Taobao.com, which makes up 15% of market space; then TMall.com at 14%; then Amazon at 13%. You can see the rest of the pie here:
Source: Big Commerce
Notice that 37% of the global online market consists of “the rest of the web”, many of which are medium-to-small level sellers. These sellers testify to the potential for businesses of all sizes to participate in international eCommerce, and in this article, we’ll discuss the steps you can take to join them.
Finding Your Target Market
Just as you found your customer niche in the domestic market, so must you find the right base for your products or services in the international space. With a bit of research, you can identify this base and optimize your selling efforts to reach them.
Market Intelligence
If you already have a few foreign buyers, examine which countries or regions they’re coming from and consider expanding operations there.
Government agencies, such as the U.S. Small Business Administration and Export.gov also provide free planning tools to research the best markets for your products and develop the best pricing strategies.
Study Local Supply and Demand
You can also do your own research on which countries have a high demand for your items or niche, as well as those where you might find a gap in the market.
Different countries also exhibit different purchasing behavior. Buyers in smaller nations, for instance, tend to shop in larger international markets, such as the U.S. or Canada, due to domestic scarcity. Other countries, like China, India, and Brazil, prefer products with prices ending in 0 (i.e. $10.00), whereas prices ending in 9 (i.e. $9.99) tend to perform better in markets like the U.S. or Australia.
The more detailed understanding of how international communities approach to commerce, the better you’ll be able to situate your products in the global market.
International Payment Methods
Some payment methods are more accessible to customers of a certain region than others. Understanding payment accessibility is critical to ensuring that payment barriers don’t discourage international customers.
Research Local Payment Preferences
Naturally, then, you’ll want to know how customers prefer to pay in whichever region you plan to sell. For example, do German shoppers typically use direct debit or bank transfers? Should I list my prices in Japanese Yen if selling in Japan? Thinking along these lines will improve your eCommerce experience in specific international markets.
Ensuring Security
Expanding operations to international markets, unfortunately, exposes the transaction process to a broader range of cyber threats. Accordingly, make sure to use a payment facilitator with a reputation for security.
PayPal offers one of the strongest international commerce exchange platforms, by a measure of recognizability and protection.
Market Entry Planning
There are numerous options for establishing a presence in an international eCommerce space, each with its own set of benefits.
Optimizing Your Current Website
Optimizing your current website lets you leverage your existing online infrastructure without having to invest in or learn a new platform. Examples of optimization include expanding language options, adding currency options, or simply highlighting your ability to ship globally.
Using an Existing Online Marketplace
Sites like eBay and Amazon will let you list you sell your products through their platform, thus allowing you to take advantage of their existing worldwide reach.
You can also use this method to test demand for products before investing in a site update of your own.
Creating a Localized Website
If you have confidence in your ability to sell to a particular overseas market, consider investing in a website with a local domain to appeal specifically to its customers.
Encouraging Global eCommerce Trends
Now is the time to make your international debut, thanks to a few promising trends in the global eCommerce space.
Supply-chain Resilience – Supply-chain weaknesses exposed by COVID-19 have strengthened global procedures for shipping and managing inventory, with greater use of predictive analytics and machine learning at your disposal for meeting international demand
Shopping Across Borders – According to a survey of consumers across 40 countries, 32% reported an increase in purchases from foreign retailers in 2020, and over half plan to do more international eCommerce shopping in the future
China and APAC Market Expansion – The enormous growth of retail e-sales in the Asia-Pacific region (led by China) promises to expand commerce potential for global sellers through partnership opportunities with regional companies
Along with these trends, you should also note the importance of language accessibility. 40% of shoppers will not purchase from a website in another language, so accommodating the communication preferences of your target market is paramount.
Go Global
Global eCommerce will soon no longer be just an opportunity, but more so a necessity. However, there are now more avenues than ever before to expand online operations overseas, meaning that all businesses, including yours, can find a way to join the worldwide marketplace.