International E-Commerce Offers Fast Retail Growth
A brand-new report into markets and products that offer the highest growth potential has identified cross-border e-commerce as one of the fastest growth opportunities in retail. The motivations and preferences of customers making international online purchases are taken into account, along with the success factors for online retailers hoping to expand abroad.
The report found that there are particular opportunities for premium products and services, with higher basket values accounting for a higher proportion of orders in cross-border transactions. With cross-border retail volumes predicted to increase, your business should be thinking about expanding overseas.
Benefits of Cross-Border E-Commerce
The main benefit to expanding your e-commerce retail business across borders is that it increases exposure to a much wider potential customer base. There may be untapped markets where the products your company offers are unavailable, helping you set up without the threat of direct competition.
Depending on the country or region being expanded into, it may have more favourable business and/or economic conditions that suit your online retail firm. Policies regarding industries may differ, even offering a more profitable opportunity. For any e-commerce retailer that is stagnating, expanding abroad can also rejuvenate its business.
Important Steps to Expand Abroad
In order to expand abroad you need to have a good strategy in place, backed up by plenty of market research into the new target areas. There will be different cultural, economic and governmental market conditions, which means you may not be able to simply use your existing business plan and transfer it overseas. This will include:
- Reviewing government and industry specific regulations, to ensure your products can be sold legally in the international market
- Localising products. Names, brand colours and logos may translate into something inappropriate in cross-border markets and require a change.
- Trademarking, as your products may not be legally protected in cross-border markets even if they are in the domestic one.
- Tax and financial considerations, especially on export and import duties.
When the logistics are all in place you can begin focusing on the promotional and marketing side of things to boost your international e-commerce retail business. Creating adverts and other marketing materials in languages of the target market and that reach out to the new customer base are a great way to start.
The report claims that e-commerce retailers that include a faster shipping option in their services saw their online stores grow 1.6 times faster on average than others. A fast and reliable international delivery service or partner is essential to succeed when expanding to offer products internationally.
At Whistl we provide a wide range of international mail, packets and parcel delivery services. This includes the services to get your products out to new cross-border markets, along with help and advice regarding VAT, customs and duty and much more. Whether you’re targeting an established or emerging market, these services will help you to grow internationally and make the most of such growth potential.
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