The e-commerce industry is developing dynamically, thanks to which entering new foreign markets is not as difficult as it might seem. Nevertheless, it is a complex matter, and sailing out into the wide waters requires good strategy and many important decisions such as communication methods or image campaign. So, how do you prepare for foreign e-commerce?
Market research
What is the first thing you need to do? Market research! Before you introduce your web shop outside of your country, you should first check the demand for your products in the given area. This information is crucial in order to avoid accidentally hitting a saturated market, and hence not be able to achieve success or break through the jungle of e-commerce. Such research will also be useful in order to set realistic prices and take glance into how it looks in other countries. Keep in mind though that the European Union prohibits price discrimination!
Define your budget
When starting the adventure with foreign e-commerce, one of the most important issues is to define your budget. Why? Depending on what funds you have, you need to decide whether you will use a paid upgrade of the online store (such as Open Source or invest in a SaaS store), or maybe due to limited budget, use selling platforms such as eBay or Amazon. Such platforms will of course charge high provision costs, but your cost of starting out on sites like this may be much smaller.
Language and culture abroad
If you think that it is enough to simply translate all into the language of the country you want to enter, unfortunately, you are wrong. It is important to find a translator who has some experience with copywriting. Why? Texts, especially the ones related to advertising, are not simply just translated. Especially not word for word. It is worth entrusting translations of advertising slogans or other descriptions in the online store to competent people who will not only translate them properly and with the proper meaning but will also adapt it to the culture of a given country. You must make sure that all translations are of a high standard!
Logistics is the basis
Another important aspect in foreign e-commerce, is the delivery. Going beyond the borders of your country is a bit more difficult than when operating in your own territory, but everything can be organized. When choosing the best shipping agent to cooperate with, you need to analyse issues similar to those that you used when choose the agent in your country. What are the prices for pickup or parcel insurance, the way of notification, the system of returns and complaints, or does a given company have parcel collection points? The parcel tracking system is also important because, for example, at DPD, tracking numbers change for packages that cross the border.
Payment methods
For payment methods, it’s a good idea to learn about shopping habits in the countries where you want to sell your products. According to a report issued by the Polish Post Office and the Chamber of Electronic Economy, the most popular forms of payment in international online stores include credit card and PayPal payments. You can’t forget about currency issues and accepting payments in local or EU currency. These prices should be competitive but take into account the higher costs associated with cross-border sales. Also remember not to convert them into 1: 1 currency, as this may result in very unnatural amounts of e.g. 43.57. You need to decide about rounding up or down the starting price.
Legal aspects
Legal restrictions related to selling abroad is an aspect related to e-commerce, which you must pay most attention to. It is also a relatively broad issue, but the knowledge of the most important legal aspects, is simply a necessity. Are there any universal rules that you can follow? In fact, local requirements and legal restrictions will differ, so it’s important to know the laws of each country where you plan to export products. For example, the EU has GDPR which must be followed and made visible in the proper way on websites. In China companies that do not have Chinese shareholders are blocked, and in Germany, each company’s website must contain sales information written according to a specific scheme. International sales are also subject to tax law and the obligation to pay VAT, so it is also worth familiarizing yourself with tax issues in the area.
Nowadays, entering a foreign e-commerce market is not as difficult and complicated as one might think. Nevertheless, it requires an analysis of several important aspects and carrying out key decisions related to foreign sales. However, everything is achievable and if this is your dream, then you should definitely try to give it a shot.