Unlocking new markets: Mastering eCommerce sales for explosive growth

Cross-border commerce has become increasingly popular in recent years, with the rise of online shopping and the globalisation of businesses. In fact, Australian merchants are now selling to an average of ten international markets, reaching 92 million international shoppers. However, selling internationally comes with its own set of challenges and considerations that must be considered, explains Shaun Broughton, Managing Director, APAC & Japan for Shopify.

Benefits of selling internationally

Expanding into international markets can provide businesses with numerous benefits, including increased sales and revenue, access to new customer bases and diversification of revenue streams. In fact, recent data from Shopify found that international customers drive 30 per cent of online store visitors to Australian merchants, and that Australian merchants on Shopify generate 16 per cent of sales from outside Australia.

In addition to increased revenue, selling internationally can also provide businesses with valuable insights into global markets and consumer behaviour. By expanding into new markets, businesses can better understand what products and services are in demand in different regions and adapt their offerings accordingly.

Challenges of selling internationally

While selling internationally has many benefits, it’s not without its challenges. The world of international commerce is full of red tape, fluctuating currencies and cultural differences that can trip up even the most experienced businesses.

Shipping and customs regulations can be a maze and each country has its own set of rules. Obtaining the necessary licences and permits to sell in foreign markets can be an additional headache. Currency fluctuations can wreak havoc on a business’ bottom line, and keeping up with exchange rates is a full-time job. For small businesses, this can be a daunting task.

And let’s not forget about language and cultural barriers. It’s not enough to have a great product — it must resonate with customers in their local context. Effective communication is key, but language barriers can be a major hurdle.

Despite this, there are tools to help businesses troubleshoot and navigate these challenges.

Conquering cross-border selling

In today’s uncertain economy, retailers can feel overwhelmed by rising inflation and the lasting effects of the pandemic. However, with preparation and flexibility, times like these can be an opportunity to strengthen market position and broaden reach to an international market.

To do this, retailers should have a strong customer focus, understand consumer preferences, collect feedback, and conduct research. The PESTEL framework (Political, Economic, Sociocultural, Technological, Environmental, and Legal) can help evaluate macro-environmental factors relevant to the business venture. Developing a strategic plan tailored to meet local preferences and expectations is also important.

Language barriers can be a significant hurdle for eCommerce businesses, but offering translated product descriptions, customer service and checkout pages can help overcome this barrier. Different countries also have different payment preferences and currencies, so businesses should be prepared to offer a variety of payment options and currency conversion tools. In addition, complying with legal and regulatory requirements is crucial to avoid legal issues and penalties.

In addition, brands should also not forget to offer excellent customer support. Offering multilingual customer support will help build customer loyalty and reputation in a new international market.

Expanding into new markets can help businesses navigate seasonal fluctuations and country-specific conditions. Retailers should also optimise costs by negotiating with suppliers, exploring new suppliers that provide cost benefits, and buying larger quantities to retain margins. While supply chain delays are inevitable, setting clear, transparent, and realistic delivery expectations with consumers can help manage their expectations, especially ahead of the holiday season.

Shopify Markets can also help brands expand by translating online stores into multiple languages, defining order routing rules by market, offering local payment methods, collecting duties and import taxes upfront, and customising product publishing by market.

Be patient. Selling internationally can take time and effort, and eCommerce businesses should be prepared for a learning curve. It’s important to be persistent and open to adapting strategies to meet local market demands and challenges.

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