Every day, the number of brands populating the ecommerce world is multiplying relentlessly. The sharp penetration of the internet and the expanded adoption of social media throughout the world has demanded the development of ecommerce businesses cross-border. Indeed, in the 21st century, adaptability is imperative, irrespective of the form of businesses. A recent study revealed that cross-border ecommerce is estimated to reach a whopping $424 billion by 2021 that sums up to 15% of overall online business. The same study predicted a 20% cross-border ecommerce by the end of 2022. Cross-border ecommerce has today become the key to the dynamic growth of online businesses.
The global ecommerce sales are ascending year after year. Converting your regional and national online strategy to a cross-border ecommerce strategy may look like a painful task to pull off. Thankfully, newer technologies and innovations have led to the success of ecommerce expansion. Cross-border ecommerce can establish brand awareness while bringing in new and loyal customers. With the motto of digitization in almost every type of business, the way ecommerce businesses function has completely changed. The Indian Ecommerce Businesses have experienced multiple economic and digitization waves that helped them cope with the lowest as well as the highest internet penetration. In this blog, we will be discussing the ways to expand an ecommerce business cross-border. So, shall we begin?
What is Cross-Border Ecommerce?
Cross-border ecommerce can be implied to ecommerce services done beyond the international borders. When customers from other countries and jurisdictions can place orders and purchase from your ecommerce store, it can be stated as cross-border ecommerce activity. Remember that the buying and selling of goods and services between the consumers and the merchants who speak the same language live in the same borders, and use the same currencies are not considered as cross-border ecommerce by the consumers.
Ways to expand an ecommerce business cross-border
Did you know that in India and China alone, there is more than half a billion online shoppers’ surf the internet to find the best deals? A global ecommerce presence can help the retailers with innovative business ideas to overcome the challenges enforced by serving multiple sets of audiences with fluctuating customer requirements, language barriers, and upfront solutions for a profitable cross-border ecommerce solution. The COVID-19 havoc has demanded businesses on a global scale to become proactive as well as flexible like never before, in order to keep thriving and succeeding in these unprecedented times.
With the global ecommerce market right at our fingertips, there’s probably no excuse to not spread your ecommerce wings into the global market. According to a 2016 report, more than 57% of online shoppers purchase products from beyond their home countries. With this stat in place and the increasing stats for cross-border ecommerce, we must understand that this trend is not fading any sooner. The quicker you adapt to this trend, the higher are your chances to get an advantage over your competitors. Since we know the difficulties you might face in the process, we have listed down the ways by which you can expand your ecommerce business cross-border:
Identify the potential markets
To start with the process, begin with searching for some emerging markets abroad that can perfectly fit your products as well as your audience. List down the countries that you think would be the perfect fit. Our expert team suggests starting bit by bit by gradually covering regions and countries, instead of trying to sell everywhere at once. A great way to start is by checking your country’s commercial guidelines. Also, locate the areas with validated demand for the products you sell, determine the culture, assess the climate, and evaluate the competition in those markets. You may also find many online sources that help you with finding potential buyers and collecting all essential customer details or help you discover new markets based on your current selling patterns.
Determine each country’s rules and regulations
Like you cater to the rules and regulations set by your home country, every country has its set of guidelines for trade and commerce. Once you have determined the places in which you will be servicing, you need to determine each country’s rules and regulations. Some countries may not allow a few goods you sell and you should be aware of the restrictions imposed on the types of products that are allowed to be sold by foreign sellers in the country. Also, the mode of communication and culture may vary in different countries, and therefore, you must have a detailed understanding of all the guidelines and be sure to follow them. You must also watch out for the tax and charges imposed by the countries for shipping your products as well as the tax to be paid by the customers to the store. Whatever your services and charges are, you must be transparent with your customers to let them know that you are not a fraudulent business and that they can securely invest their money with you.
Go easy at first
Going global is as time-consuming as it sounds. To start with expanding your reach to the global market, you can consider going easy at first by investing in ready-to-use online selling marketplaces. It is known without saying that a few ecommerce giants are ruling the global ecommerce market such as Amazon, Etsy, eBay, or Alibaba. Not only is this step cost-efficient but also a smart way to start right, establish global recognition, get potential customers from across the globe, and start selling in the global markets without making hefty investments and spending on huge investments.
Speak the customers’ language
Language in an ecommerce store can make or break your customer base. Experts suggest that customers shopping across the globe do not prefer getting services in a foreign language. For retailers who are planning to sell globally through their personal website, many online tools and platforms let you integrate all the languages native to the countries you are selling. The online marketplaces already have a global reach and the reason they are loved equally by people from all countries is the option to switch languages based on different countries. When retailers speak the languages of the customers, they are a step closer to earning their trust and getting sales from them.
Provide local payment options
Usually, ecommerce businesses looking for global expansion have their websites in place. However, the key to sell successfully in global marketplaces and win foreign customers’ heart lies in providing local payment options. It is proven that the businesses that provided multi-currency options have experienced increased sales as compared to the ones that didn’t. Getting the local payment options not only builds trust in potential customers but also reduces their fear of fraudulent services. Moreover, you must consider showing the prices of the products in the local currency in order to be transparent and trustworthy for your potential audience. You do not have to spend another set of days finding the right payment gateway for each country and learn ways to integrate them into your website. Builderfly Ecommerce Platform is a complete ecommerce solution that lets you create a beautiful online store, build native mobile apps, and choose from a wide range of integrated and in-built payment as well as shipping options.
Partner with third-party logistics
Managing orders and fulfilling them for your international customers can be a complicated process that may even impact your domestic sales. Therefore, our experts suggest you partner with third-party logistics services to keep off the burden from your shoulders. Moreover, partnering with such third-party logistics services may even help you save a few bucks and enable you to focus on attracting new customers, bring them to your product checkout page, and motivate them to complete the purchase from you. Once you start learning the process of attracting customers and leading them to become your customers, it would become a cakewalk. However, the actual trial is to keep your customers satisfied with on-time delivery and prime customer support. Since different countries have different shipping requirements, partnering with third-party logistics services will help you serve your customers better.
With the global markets becoming more accessible to the retailers as well as the consumers, it has become more than easy to sell as well as purchase across the global markets. The continuously improvising technologies and innovations have opened doors for cross-border ecommerce. While it could have been a challenging task for you, our expert suggestions can ease the process for you. Try out these steps and grab the opportunity to broaden your client base, boost your ecommerce sales, and earn global recognition for your ecommerce brand. Also, do not forget to check the world’s best ecommerce platform. Even if you have an ecommerce website, once you check out Builderfly’s exclusive features, you may want to transfer your store data at the earliest. As mentioned earlier, cross-border ecommerce is going to stay for long, are you ready to expand your business in the global market?