Global Brand Positioning on Social Media and Why It Works
Clarke Ricks School of Business,
Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
October 2, 2022
Strategies for Entering the International Market
If you have an ecommerce business, reaching out to the global market should be one of
your main goals. Customers from around the world are interested in buying foreign products.
According to a recent survey of consumers in the US, Australia, and the UK, more than half of
shoppers are willing to complete an online purchase from a foreign-based ecommerce shop.
While international ecommerce sales can provide endless opportunities, it also comes with
a unique set of difficulties. Overcoming these obstacles requires research and savvy marketing.
Review Shipping Options
If you want to expand your e-commerce firm, going global might be a wonderful next step.
However, you will need to figure out how to ship overseas. You will need a plan that works for
you and your company if you want to handle international shipments correctly. You do not
need to be an expert in shipping, but you do need to be aware of your options and choose a
strategy that will meet your demands in the long run. Before you ship any products overseas,
you must become familiar with regional and national charges. This includes local taxes, fees, or
tariffs.
Additionally, eCommerce goods shipped abroad do not only go one way. You must also
create a strategy to manage shipping costs for returns. This can be frustrating for customers, as
many shipping costs, such as customs and taxes are not refundable. In order to simplify the
return process for your clients, you must identify a local shipper that is willing to
implement reverse deliveries.
Otherwise, you will need to contract with a third-party return logistics operator. While this
is a growing business with many reputable companies, you may not have much choice in pricing
or terms. However, delegating return logistics to the customers can reduce repeat orders and
limit your international growth.
Translate Marketing Material
In order to effectively reach consumers, you must advertise your products in their native
language. This builds trust and ensures that customers understand what they are paying for.
Translating your website and marketing is part of a process known as localization. When visitors
from different countries visit your website, they will see the version of your page tailored to
their language preferences.
You can localize your advertising and website in several ways. You can use translation
software or a company that combines machine and human translations. You can start this
process by compiling all of the text from your site into a single, easy-to-read document. The
translation firm can then translate all of the text and return it to you on the same document.
This makes it easy to feed the translations onto your website or eCommerce shop.
If you have a smaller budget or are testing the viability of a market, you can install
automatic translation plug-ins on your website. However, these translations are often
inaccurate as they are not constantly reviewed by human translators. When you are localizing,
language is not the only consideration. Customers in different countries will need form fields
that reflect their writing standards. For example, customers will need to be able to input their
country without selecting a state or write in zip codes that include letters. If not, they will have
no choice but to abandon their cart. This means fewer sales for you.
Accept Multiple Currencies
One of the most complex aspects of international e-commerce is currency conversion.
Handling multiple currencies through an online payment system can lead to operational
difficulties or technological difficulties. Additionally, exchange rates fluctuate quite frequently.
This volatility can benefit you, but sometimes, it can benefit the customer. Exchange rates could
affect your profit margins if you do not address this risk adequately.
Further, banks and third-party processors may add foreign transaction fees. If you fail to
make these costs clear at the time of purchase, customers may not see the additional expense
until it appears on their credit card account. This may discourage customers from making
purchases from businesses abroad and reduce customer satisfaction.
If you want to accept purchases in multiple currencies, use an ecommerce payment
processing gateway that can support foreign transactions. These systems may give customers
the option of making payments in their own currency or in a reserve currency, such as US
dollars, euros, or British pounds. An international payment gateway can increase your
consumer base and makes it easier to accept payments from customers abroad.
Understand Export Laws
Many countries place limitations or regulations on the type of items that can be imported.
This affects your e-commerce business, as you are essentially exporting your products to
international customers. There are two main categories for export laws. Restricted goods are
regulated by a national agency. In order to ship restricted items to a country, you will need to
have special permission or licensing. You also may have to limit the volume of items you can
ship to a single customer, or to all customers in that country.
Some typically restricted items include pharmaceuticals, fresh produce, seeds, and
electronics. Some countries may also restrict certain items to protect local industries or due to
cultural reasons. Prohibited items cannot be imported into a country in any quantity. Even if
your product is legal in your home country, shipping these items to a nation that prohibits them
can put you in serious legal trouble. Include regulation compliance as part of your shipping
strategy to avoid problems.
