Expanding your eCommerce business globally can be a game-changer in today’s interconnected world. With less than 1 percent of America’s 30 million companies exporting overseas, a vast untapped market is waiting to be explored. However, venturing into new territories requires careful planning and execution. Here are four essential steps to consider when expanding your eCommerce business:
1. Assess Channel Opportunities
Before taking your business overseas, it’s crucial to assess the various distribution channels available to you. Consider expanding to additional channels such as online marketplaces, social media platforms, brick-and-mortar stores, television networks, and more. An innovative omnichannel approach can boost brand awareness and product discoverability.
Online Marketplaces
Online marketplaces like Amazon, eBay, FarFetch, Joor, Lazada, Etsy, and Alibaba offer vast opportunities for reaching a global audience. These platforms provide convenience, competitive pricing, and a wide variety of choices for consumers. By leveraging online marketplaces, you can significantly increase sales volumes and expand your customer base without requiring extensive infrastructure investments.
Social Media
Social media platforms such as Instagram and Pinterest are powerful sales channels for eCommerce businesses. Instagram’s shoppable posts and Pinterest’s product pins allow users to discover and purchase products directly from the platform. Over 50% of companies using social media report increased revenue and sales, making it a valuable channel for expansion.
Brick-and-Mortar Stores
While online sales are booming, traditional brick-and-mortar stores still play a vital role, especially for particular demographics like Baby Boomers. Consider establishing a physical presence through permanent stores or pop-up shops. This lets you connect with customers face-to-face, showcase products, and build brand credibility. A strategic location with high foot traffic can increase sales and brand visibility.
Television and Digital Channels
Pay attention to the power of television networks and digital channels such as QVC, HSN, Apple TV, and Shark Tank. These platforms offer extensive reach and robust mobile and eCommerce capabilities. For example, QVC generated $4 billion in global revenue from eCommerce in 2016. By tapping into these channels, you can access a broad audience and drive sales.
2. Do Your Research
Expanding globally requires thorough research and understanding of your target markets. Before entering new territories, consider the following factors:
Consult with Market Experts
Partner with local experts to understand legal requirements, market trends, consumer preferences, and cultural nuances. Experts can provide valuable insights into creating new entities, tax implications, marketing strategies, and shipping logistics.
Third-Party Services
Utilize third-party services for translations, marketing, and regulatory compliance. Companies like AMZ Europe and Pan European VAT can assist with language translations, marketing campaigns, and navigating tax regulations.
Third-Party Logistics (3PL)
Consider partnering with a third-party logistics provider for efficient supply chain management. A reliable 3PL can help control costs and improve logistics for global expansion. They offer flexibility to test new markets without major investments in warehousing or staffing.
3. Regionally and Culturally-Relevant Marketing
Effective marketing in new markets requires a tailored approach that considers regional and cultural differences. Here are some key considerations:
Global-Friendly Website
Ensure your website is optimized for international audiences. This includes language options, currency conversions, and localized content. Platforms like Shopify are designed for global reach, allowing you to customize the user experience for different markets.
Understanding Local Culture
Hire diverse marketing experts who understand the local culture, consumer behaviors, and preferences. Tailor your messaging and branding to resonate with the target audience in each market. Consider cultural nuances, imagery, and language when crafting marketing campaigns.
Social Media Platforms
Research each market’s most popular social media platforms and tailor your strategy accordingly. For example, QQ/QZone is popular in China, while Taringa is widely used in South America. Engage with users on these platforms to build brand awareness and drive traffic to your eCommerce site.
Quality Assurance
Invest in customer support teams that can speak the languages of your global customers. Promptly address customer reviews and concerns to maintain a positive reputation. Quality assurance is crucial for building trust and loyalty in new markets.
4. Invest in Technology
Choosing the right technology is essential for scaling your eCommerce business globally. Here are some technology investments to consider:
Cloud-Based Systems
Invest in cloud-based systems, such as Qoblex, for streamlined workflows and scalability. A central dashboard can provide real-time insights into global operations, market intelligence, and demand forecasting. Cloud-based solutions offer flexibility and efficiency without the need for large infrastructure investments.
eCommerce Platforms
Choose an eCommerce platform that supports global expansion. Platforms like Shopify, Magento, and WooCommerce offer multilingual capabilities, currency conversions, and international shipping options. These platforms make it easier to manage multiple storefronts and cater to diverse markets.
Analytics and Data
Utilize analytics tools to track key performance metrics and monitor market trends. Data-driven insights can help you make informed decisions and optimize your global strategy. Invest in tools for customer segmentation, personalized marketing, and targeted advertising.
Conclusion
Expanding your eCommerce business globally can unlock significant growth opportunities. You can successfully navigate the complexities of international markets by assessing channel opportunities, conducting thorough research, implementing culturally relevant marketing, and investing in the right technology. Stay consistent in your efforts, adapt to local preferences, and continuously monitor and optimize your strategy for sustainable growth. With the world’s purchasing power outside the U.S. and the rise of online shopping, now is the time to consider expanding your eCommerce business globally.
About Qoblex
Since 2016, Qoblex has been the trusted online platform for small and medium-sized enterprises (SMEs), offering tailored solutions to simplify the operational challenges of growing businesses. Specifically designed for B2B wholesalers, distributors, and eCommerce ventures, our software empowers users to streamline operations from production to fulfillment, allowing them to concentrate on business growth. Qoblex efficiently manages inventory and order data across multiple sales channels including Shopify and WooCommerce, integrates with popular accounting systems such as Xero and QuickBooks, warehouses, and fulfillment systems, and boasts a robust B2B eCommerce platform. With a diverse global team, Qoblex serves a customer base in over 40 countries, making it a reliable partner for businesses worldwide.
