How to grow your eCommerce empire internationally

Cross-border selling is a key growth engine for online retailers looking to successfully expand internationally, writes Shannon Ingrey, Big Commerce Vice President and General Manager APAC.

Making it even easier is the availability of an array of third-party cross-border technology solutions that can now recognise the demands of larger catalogues and SKUs (stock keeping units) alongside global payment logistics, marketing strategies and customer service, to name a few.

The prospect of scaling is an exciting one. However, cross-border selling strategies may require pivots along the way. To help navigate these pivots a tad easier, here are my top tips to consider.

How viable is your offering?

While opening to new markets means engaging with an unfamiliar customer base, it also means you need to get to know an entirely new group of potential shoppers. Even if your product has historically been successful in your original market, the nuances of an entirely new customer demographic doesn’t guarantee the same outcome.

When first assessing opportunities to expand internationally, there are two key questions to ask:

1. Is this market viable?

Dig into the business potential of a specific market by looking at the size, target audience and competition. Your goal is to weed out any markets that are too small, too competitive, or made up of customers that can’t or won’t pay your prices.

2. Is this product viable?

Throwing your product out there to see what sticks may seem like a good testing method, however, a more efficient way to minimise losses when testing new markets is by analysing how relevant and interesting the product will be to target buyers in-region. This will save you the effort of trying to sell a product that no one may want.

Getting to the root of your problem

If something is not working in your strategy as you expand, it’s shining a spotlight on an area that needs attention.

When expanding into new markets, there are four key considerations to help identify the root of the issue and pinpoint what needs to be reviewed:

1. Pricing

Pricing can be perceived differently in each market. Although there may be a sliver of difference between you and your competitor’s pricing, there are tactics used to make something look more affordable than it is. For example, in high-context countries like China, India, Brazil and Argentina, products sell better when prices end in zero (such as $10.00), and in low-context markets like the US, Australia and Norway, customers respond better to prices that end in 9 ($9.99).

Alongside this, ensuring that customers have flexible shipping options and transparent pricing is key to maintaining transparency.

2. Currency conversion

Currency conversion is another pain point to consider. Particularly with fluctuating exchange rates, many global retailers set a fixed rate, which helps ensure consistency in pricing. But leaving prices in AUD can lead to abandoned shopping carts and decreased conversion rates.

Thus, display prices in local currency, as this will provide a more consistent and positive shopping experience.

3. Payment methods

Payment methods such as credit cards and digital/mobile wallets are the most popular eCommerce payment methods, with year-over-year credit card payments having increased from 26 per cent in 2020 and 2021 to 39 per cent in 2022.

But customer payment preferences vary from country to country — so you can’t expect customers abroad to always pay with a credit card.

4. Communication

Consider preferred communication channels to improve customer service: does the local market prefer phone, email, live chat or in-person?

As part of this, it’s crucial to look into best practices for how processes like returns are handled. For example, many American stores have a no-questions-asked return policy; shoppers in France often assume that all purchases are final; and in Japan, many stores won’t accept returns for arbitrary reasons.

Your eCommerce platform is more than just a sales tool; it’s how you connect with your customers. As the global village becomes increasingly interconnected, international expansion has shifted towards being a necessity rather than just a dream.

It can be daunting and disheartening if something doesn’t go as expected in your plan. By remaining laser-focused on improving core aspects of the customer experience, retailers and merchants will gain extra insight to better tailor offerings and tighten up strategies to successfully enter new territories.

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.