The world is getting smaller. By 2020 world trade will be double its value in 2010. And international e-commerce is picking up fast. In fact, cross-border sales have already past $300bn. By the end of the decade it’s predicted to grow fivefold in just seven leading markets – France, Germany, Netherlands, Scandinavia, the UK, USA and Oman. The numbers are impressive, but one thing is becoming clear: brands that stick within their own borders will miss out on growth. For retailers already wanting to expand overseas can be clever and use online sales to test new markets.
So, what sells well across borders?
For time being consumers are sticking to simple purchases that can be confident in, This may also include clothes and accessories, health and beauty products, personal electronics, computer hardware and jewellery but as shoppers get more used to buying internationally they are likely to get tempted by any product that they can’t easily get in the home market as long as they are attractively priced.
Every country has their own market which possess new opportunities and different threats:
1. What does the local competition look like?
2. How do you respond to language and cultural differences?
3. What about the rules around marketing?
4. The real crunch points of fulfilment and delivery which are harder to get right.
Here are a few points to bear in mind before going cross-border.
1. Address format differs from country to country.
2. Different regulations can govern what you can and can’t send through the post, some retailers need help in customs clearance and taxation.
3. Consumers increasingly expect a choice of shipping options.
4. The level of tracking information the consumers require will depend on the value of their order and how urgently they need it.
5. More and more retailers are providing free return, it can be costly to manage this on an international basis but it’s not something retailers can afford to ignore.
The world of ecommerce is huge, go and grab every opportunity. For more such small and interesting reads, follow us and register