We hear it over and over again from businesses of all sizes: finding and attracting new customers is one of the biggest marketing challenges they face. The good news is that a world of potential customers is out there, just waiting to buy what you’re selling.
If you have any doubts that international ecommerce is a real opportunity for your business, just look at the numbers: a recent McKinsey study estimates that 1.8 billion people will enter the consuming class by 2025, annually spending $30 trillion or 50% of the world’s current consumption. And, with broadened internet availability, buyers in developing –– and even established –– markets will have better access to businesses all over the world. Businesses just like yours.
1.8 billion people will enter the consuming class by 2025, annually spending $30 trillion.
Click To Tweet
First Things First: Put a Plan in Place
Before you open your doors to the world, you have to put a plan in place. If you’re new to the game, you may want to start small by selling a few items in a few markets. Once you’ve tested some key products and markets and feel ready to expand, you can invest more heavily. Whatever your starting point, we’ve outlined three critical areas of planning along with helpful resources that can help you prepare.
1. Find Your Target Markets
Like any new venture, it pays to do your homework. Your first step is to learn about who your international customers are, what they buy and how they shop.
Gather Market Intelligence
Start by looking at your own internal data to see from which countries people are already buying your products. Try expanding your reach into these markets, even if only to test selling specific products. You can also leverage research tools available from government agencies like the U.S. Small Business Administration and Export.gov. Both agencies offer free business-planning tools and downloadable templates to help you find the best markets for your product, develop pricing strategies and more.
Research Demand for Your Product and Local Buying Trends
To help inform your target markets, research the top countries that have strong demand for your product and niche specialty. Is there demand, or a gap in the market, for your product? While you’re at it, try to learn as much as you can about consumers’ spending patterns and from which countries they typically buy. For instance, online shoppers from smaller countries are probably more likely to make international purchases, and they’ll likely spend in larger international markets like the U.S., Canada and Australia.
Online shoppers from smaller countries are probably more likely to make international purchases.
Click To Tweet
A helpful resource is PayPal’s PassPort site, which has a wealth of information about global buying trends for specific countries. For instance, PassPort breaks down, by country, the top shopping categories, how often shoppers purchase from countries like the US, their buying motivations and potential barriers. It also summarizes local customs, trends, taboos and even holidays of each country – so you sell the right products to the right customers, marketed in the right way.
2. Consider How Customers Want to Pay
With your initial market research out of the way, start thinking about how you’ll get paid. This is an important step because checkout is the point at which international shoppers tend to abandon their purchases – either because their preferred payment method isn’t available or because they don’t feel confident their payment will be handled securely.
Research Local Buyers’ Preferred Payment Methods
These vary significantly depending on the country, and it’s important to find out what’s best for the markets in which you’re selling. For example, in the Netherlands, 60% of payments are by direct debit; while in Germany 46% of payments are by online bank transfer.
In the Netherlands, 60% of payments are debit; In Germany 46% of payments are online transfers.
Click To Tweet
In general, people prefer paying in a familiar currency, ideally their local currency. Some payment providers will let you list products in a number of different currencies. If that’s a tool they offer, use it. If you’re not offering payment in local currency, make sure to give a currency conversion so customers can see what they’re paying.
3. Plan Your Market Entry
You have a couple of options for entering a new market – from starting small on an existing online marketplace, to optimizing your current website or setting up a local web presence in specific countries.
Start Small on an Existing Online Marketplace
Established sites like eBay can often give you better reach for lower cost. They allow you to test demand for your products before committing a large sum to re-developing your existing site. Also, consider other online marketplaces that may be popular in your target market.
Optimize Your Current Website
A slightly more advanced option is to optimize your current website for international buyers. You can start by simply highlighting your ability to accept international orders with information on countries served and the shipping costs. Once you have more experience, you can look into listing your products in local currencies for those with a non-U.S. IP address, and maybe eventually install a multi-language toggle for your website.
Create a Custom Website for Certain Markets
The most advanced option is to build a website designed to appeal to specific overseas customers. This can include investing in a local domain name. The products and strategies that work in the U.S. may not necessarily work in other countries, so a targeted website gives you full flexibility to test the best presentation of your items. If you take this route, just remember to test the experience, so you make sure that elements like text translation, currency conversion and calculation of delivery costs work correctly.
Your Future Customers are Waiting
Like traveling abroad, selling abroad is an adventure highly recommended. It has the potential to expose your business to new countries, cultures and, most importantly, customers. Use these tips to take your first steps across international borders.
Pieces of this blog post were taken from Inc.’s byline by PayPal’s Dan Leberman, The Biggest Markets You’re Missing – Think Global
These recommendations aim to promote ways for merchants to start selling internationally. The information it contains is offered as a guide only and should not be treated as a full statement on the subject.
Disclaimer: Links to third-party websites are provided for informational purposes and in no way represents an endorsement or approval by PayPal Inc.
The post 3 Tips to International Ecommerce Expansion for Your Brand appeared first on The Bigcommerce Blog.
