Do you know, that global eCommerce sales reached $ 2.5 trillion in 2019 and are expected to cross $6.5 trillion by 2023? Hence it is already evident that international selling is no longer an impossible task. Consumers are willing to go behind geographical territories to get the product that solves their problems. If you think that your product/service can help millions of people irrespective of their locations, race, gender, or background, you should definitely go for international selling. Thanks to the advancements in technology, international eCommerce is made possible for everyone. You don’t have to be a large organization or have a million-dollar budget or a physical store to sell internationally. All you need is to analyze if your product is suitable for international selling, if yes, make a strategy and then sell seamlessly.
Reasons why you should consider international selling?
If your business is performing incredibly well in your home country and when you realize that your products/ services have the potential to sell without any geographical boundaries, it’s time for you to expand your business and go international. Shown below are a few reasons why to go for international selling:
- Expanding your customer base
- Opportunity to establish your brand internationally
- Accelerated growth in global markets
When you sell your products in the international market, there are several opportunities to expand your customer base significantly. Sometimes the products that undersell in the home country can perform really well in the international markets due to higher demand, larger population, etc.
Selling your products overseas means your gradually penetrating into their consumer market and converting foreigners into customers. When your brand connects to the culture, beliefs, and values of the international audience, it becomes easier to understand them well and serve accordingly. Happy and satisfied customers keep recurring again and bring with them new customers thus acquiring raining leads to your business.
According to the survey, by the end of 2022, cross-border purchases will contribute to 20% of the worldwide eCommerce. By expanding your business to international markets, you can reach more customers globally, and expand your business at a faster pace than that of the local market. What you should focus on is creating a strategy that lets you generate profits internationally and keeping the logistics costs down. In this way, there is so much untapped potential to become a successful eCommerce business internationally.
Factors to keep in mind before you start selling internationally
With risk, comes the reward. As much as the profits it can generate, international selling comes with a set of challenges and risks. Once you are aware of them and be prepared for the challenges, your business becomes unstoppable even in the international markets. Before making any strategy, you should perform a thorough analysis of the international market and find out if your product/service is eligible to sell internationally. Additionally, consider the following factors while you plan to expand your brand overseas:
- Assess the consumer behavior
- International pricing
- Payment options
- Laws and taxes
Each country will have different cultural norms and consumer behavior. A product selling well in one country may not be culturally or legally acceptable in the other country. Before you plan anything, find out whether the country you are going to launch into has the requirement for your product? Stay updated on the international product and market trends to make better decisions on delivering your products in other countries.
Some countries may have lower per capita income than your home country. If you want to sell your products in such countries, you will have to sell at relatively lower prices. As shipping costs for international selling are expensive, if the shipping costs of an item are higher than the price of the item, you are likely to have higher cart abandonments and higher bounce rates. You should assess the spending power of the customer in that country and keep an eye on your landed costs involving importing duties and shipping costs.
About 92% of shoppers prefer to make purchases from sites that allow payments in local currencies. 33% of shoppers are likely to abandon the sites which allow payments only in US dollars. Most countries have their own currencies. But not all the currencies are supported by the payment providers. The only way to receive payments from international customers is online. Credit cards are the most commonly used payment method. But to accept payments effortlessly, your store should support digital wallets and other payment gateways like Paypal, etc.
Some countries restrict certain types of products or even ingredients in them. Carry out thorough research on the laws, taxations, and import duties of the countries you are trying to sell and how much it costs. The international orders will be stopped at the customs upon entering a new country, some couriers will be handed over to their local carriers which can cause minor delays in transit. If the consumer is not aware of the additional duties he has to pay to receive the product, he may never claim it and you will be held liable for the packages as the owner of the business.
Tips to optimize your online store for international selling
Follow these tips to easily sell your products to an international audience. Though there are a few challenges involved, we help you overcome them with ease.
- Payment Provider
- Calculate the shipping costs
- Optimize your online store
The payment providers may have restrictions in the countries where you want to sell. If you are collaborating with any payment provider, make sure that it has good global recognition to gain the trust of the customers and let them make safer transactions. Some reputable payment processors like PayPal, Square, Visa, etc will tell where they accept payments. Perform meticulous research and choose the preferred payment methods in foreign markets.
International selling involves shipping costs, tariffs, and taxes making it relatively more expensive than local selling. To know if your products are feasible for selling in other countries, pre-calculate the shipping costs, fulfillment costs, and all other involved costs. It may help you find strategies to reduce shipping costs. you can also provide tailored methods to charge your customers for shipping based on their destination country.
No matter how many customers you have, always fill your store with unique products depending on the tastes of people from different countries. Use a multi-language translation tool to offer your services in a language that is understandable to them.
Conclusion
International eCommerce comes with its own benefits and challenges. But they shouldn’t stop you from trying in the overseas market. If you find an opportunity, go for it without any hesitation. But ensure to be ready with all the research and planning to avoid any further consequences.