With the advent of the internet, e-commerce has become an established way for people to buy and sell goods. The convenience it offers us has transformed the way we shop and as global access to the internet increases, the number of people buying and selling online is also set to increase. In 2021, worldwide e-commerce sales totaled approximately $5.2 trillion dollars. This figure is predicted to grow by 56% over the next few years, reaching about $8.1 trillion dollars by 2026.
In today’s digital world, there are more opportunities than ever for businesses to trade beyond their country or borders. This is something many businesses are increasingly capitalizing on through cross-border e-commerce. In this article, we’ll explore some strategies that can facilitate success when it comes to cross-border e-commerce.
Research Local Markets
Before setting up shop in a foreign market it’s important to do some research to establish whether it is a viable business option. By gaining insights into the purchasing patterns and behaviors, consumer values, and the competitive landscape within the specific market you can assess how closely it aligns with the products or services you offer.
Assess the Competition
When delving into cross-border markets, it’s essential to carry out an analysis of your competitors. This analysis should include things like:
- Pricing analysis: This assesses the pricing strategies employed by competitors including any promotions and discounts. This will allow you to select an optimal pricing strategy that is competitive and profitable.
- Marketing: An analysis of competitors’ marketing strategies can shed light on effective channels of communicating with customers. Perhaps marketing is heavily social media-centric, or a mixture of paid searches and content marketing. Understanding the best way to reach your potential customers will ensure your marketing efforts succeed.
This information will help you understand the strengths and weaknesses in your competition and help you refine your own offering to gain a competitive edge.
Customize Your Website
When trying to reach potential customers in new countries, it’s vital that you speak the same language. In addition to translating your website to the local language, your e-commerce site should also be reviewed and adjusted to ensure it aligns with any cultural or geographic nuances.
For example, you may need to change some of the content or imagery to take into account cultural sensitivities and avoid causing misunderstandings or offense. This will not only ensure you do not alienate your target audience, but will also help in building your brand and a loyal customer base.
Integrating payment methods in the local currency into e-commerce websites also helps reduce cart abandonment rates, optimizing sales revenues. It is worth noting that non-U.S. residents selling products on U.S. e-commerce platforms, like Amazon or eBay, may need a non US resident LLC bank account to receive payments from these platforms.
Choose 3PL Services
To ease the burden of order fulfillment it helps to use a third-party logistics (3PL) service which will handle shipments, returns, and other logistics related to cross-border e-commerce. Choosing a specialist provider will free up time for your business to focus on attracting new customers and providing a better shopping experience.
By following these strategies, a business can ensure its success when venturing into cross-border e-commerce markets.