Welcome to another episode of our “Give me 5!” Series.
This video features Laurentiu Ghenciu, VP of EMEA Sales at 2Checkout, who will talk about how to successfully expand an online business globally.
Engaging in global commerce is a great way to boost your business, but it’s not as easy as publishing one website and expecting it to work in every market. Localization includes – ideally – tailoring every aspect of your business to the cultural, linguistic, currency, geographical, and compliance particularities of markets worldwide. In practice, that requires a lot of time and effort, so you should take it step by step.
Here are 5 things to consider when building global commerce in local markets:
1. Consider Market Size, your Niche and Popular Products
Going after larger markets can help build sales faster. However, demand for particular products or services is not the same across the world.
For example, China is the world’s number one eCommerce market, but the United States top the market for software sales, with China lagging behind. However, privacy software is the top category for software sales in China, so if you sell that, leaving China out may not make so much sense for your business.
Knowing not only the size of a market but also what people want to buy there can help you become more successful in global commerce.
2. Adapt to Local Payment Methods and Preferences
Although Visa, Mastercard and PayPal are the most popular payment methods globally, some local payment methods dominate certain markets.
In the Netherlands, for example, iDEAL is the leading payment method. In Brazil, consumers are very accustomed to paying in installments, so paying upfront feels odd to them. And something as simple as showing prices in the local currency can make a big difference – as 13% of shoppers will abandon a purchase if the price is shown in a foreign currency. In addition, offering local payment methods and currencies in your shopping cart can improve authorization rates by up to 25%, while using local payment processors in specific markets can increase them by up to 40%.
3. Explore Other Regional Strategies
In addition to languages, payment methods and currencies, buyer preferences can be very different in different markets. Different shopping cart formats or flows, different product packaging and different form lengths can work differently in different countries. For example, tests have shown that shoppers in the US preferred a shorter purchasing form, while buyers in Europe preferred a longer form, so make sure to test everything locally for the best results.
4. Make the Most of Indirect Channels Around the World
As you grow your business globally, keep in mind that you don’t have to do it alone. All over the world, there are resellers, distributors, e-resellers, VARs and affiliates ready and willing to help you sell. The channels you choose may have as much to do with your internal resources as anything else. It’s up to you which one works best for your business.
5. Get the Basics Right, Wherever You Go
It’s easy to get excited about selling internationally and jump into fun promotions worldwide. However, don’t forget the basics. Providing localized support is a must to keeping customers happy in local markets, as is complying with local regulations regarding sales taxes, refunds, privacy and customer communication. Get these elements handled before you go too far down the path of online sales.
Thanks for watching, we hope you enjoyed this video! Watch the previous episode of the series, where we talk about how to successfully transition your business to SaaS & Subscriptions here. Feel free to share any suggestions in the comments below!