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Did you know, global eCommerce sales are growing at more than 2x rate compared to physical stores? With projected sales of $6.3 trillion in 2024, global eCommerce presents a vast opportunity to expand your reach and increase revenue as an online business owner. You can also tap into new markets, reach diverse customer segments, learn how to sell globally, and build a strong global presence by leveraging an effective multichannel eCommerce strategy.
Imagine reaching customers eagerly awaiting your products, offering localized experiences that resonate deeply, and capitalizing on regions with less intense competition. International expansion can be a strategic move to diversify your revenue streams, mitigate seasonal fluctuations, and accelerate business growth. However, to thrive in this competitive environment, you need a multichannel eCommerce strategy.
Let this blog guide you through the process of how to sell on international marketplaces by developing a successful multichannel eCommerce strategy. Let’s navigate the complexities of global eCommerce and tap into the full potential of expanding your online business.
Understanding the Global eCommerce Landscape
The global eCommerce landscape presents both challenges and opportunities, as it is constantly evolving due to technological advancements that enhance online shopping. Let’s gain a deep understanding of global trends, and consumer behavior, before diving into a strategy.
Global eCommerce Trends
Characterized by rapid evolutions and shifting consumer preferences, these are some key trends shaping the global market today:
- Mobile Commerce: An increasing reliance on smartphones has transformed shopping habits, with mobiles becoming the primary shopping device for many consumers.
- Social Commerce: The integration of shopping experiences into social media platforms has created new opportunities for businesses to reach and engage customers. For a deeper understanding of social commerce, head here.
- Sustainable and Ethical Consumption: Consumers are increasingly prioritizing environmentally friendly and socially responsible products, driving demand for sustainable business practices.
- Voice Commerce: The rise of voice assistants is changing how consumers search for and purchase products, with implications for product information and search engine optimization.
- Augmented Reality (AR) and Virtual Reality (VR): These technologies are enhancing the online shopping experience by allowing customers to visualize products in real-life settings.
- Personalization: Tailored product recommendations and personalized shopping experiences are becoming essential for driving customer satisfaction and loyalty.
Additionally, these trends are being identified and captured on international marketplaces such as TikTok pioneering social commerce, Wayfair using AR to help users visualize products in their homes, and Alibaba exploring voice commerce options in the Chinese market.
Hence, when you sell on international marketplaces you automatically offer the best to potential customers!
Consumer Behavior
Moving onto the key driver of eCommerce, here are trends in consumer behavior for developing an effective multichannel eCommerce strategy:
- Research-Oriented Shoppers: Consumers are increasingly relying on online research before making purchases, emphasizing the importance of media-rich product descriptions.
- Price Sensitivity: Consumers are becoming more price-conscious, leaning towards discounted pricing strategies and combo deals.
- Mobile-First Approach: Consumers are increasingly using mobile devices for shopping, requiring optimized mobile websites and user experiences.
- Social Proof: Customer reviews, ratings, and recommendations have a significant impact on purchasing decisions.
A notable example is Amazon, which uses its A9 Algorithm to capture and target consumer behavior. Additionally, this algorithm ranks different product listings based on their relevance to user preferences. For a more in-depth understanding of how marketplaces rank product listings according to predicted customer behavior, click here.
Build a Strong Foundation for Global Business Expansion
Now that you’re caught up on the key trends and changes that have shaped global eCommerce in the past few years, let us explore how to plan and execute your foray into international marketplaces.
Here is an outline you can follow:
Market Research and Selection:
Thorough market research is the cornerstone of successful international expansion. It provides valuable insights into market potential.
- Identify Target Markets: Based on factors such as market size, economic indicators, consumer demographics, and cultural affinity, select potential target markets that align with your business goals.
- Conduct In-Depth Market Analysis: Gather data on consumer preferences, buying habits, and competition within the selected markets. Example: For a tech company targeting Japan, research consumer trends in electronics, identify key competitors, and analyze their market share.
- Evaluate Market Entry Barriers: Assess potential challenges such as tax policies, trade restrictions, and cultural differences that could impact market entry.
Product Localization:
Adapting products to meet the specific needs and preferences of different cultures is essential to gaining customer loyalty.
- Understand Cultural Differences: Research cultural nuances, tastes, and preferences to tailor product offerings accordingly.
- Language and Packaging: While product listing can often be customized with language services, ensure product labels & packaging are also translated accurately and culturally appropriate.
- Product Features and Functionality: Adapt product features to align with local needs and preferences. Example: A smartphone manufacturer might include dual SIM card functionality for markets where it is popular.
Brand Localization:
Creating a strong and consistent brand identity is crucial for building trust and loyalty among international customers.
- Brand Messaging: Adapt brand messaging to resonate with local cultures and values while maintaining core brand identity. Example: A fashion brand might emphasize elegance and sophistication in European markets while focusing on youth and trendiness in Asian markets.
- Visual Identity: Customize visual elements such as logos, color palettes, and imagery to suit local tastes and preferences.
- Local Partnerships: Collaborate with local influencers or celebrities to enhance brand visibility and credibility.
Mastering Multichannel eCommerce
To build a successful global eCommerce strategy, thorough market research is essential. However, to achieve sustainable growth and reach a wider customer base, you must implement a multichannel approach to selling. In fact, you can improve visibility, increase sales, diversify sales channels, and mitigate risk when you sell on international marketplaces.
Selecting the Right Marketplaces to Build a Multichannel Presence
Shoppers across the globe can discover your products where they spend their time if you build your brand awareness, and gather valuable customer insights in the right marketplace. Hence, choosing the appropriate marketplaces is crucial for success. Consider the target audience, product category, and platform fees when selecting channels.
Here are some key marketplaces you can explore, broadly classified under 4 major categories:
North & South America: Known for its early adoption of technology and digital trends, this region offers a mature eCommerce market with a high online spending capacity.
Europe, Middle East, and Africa: This region focuses on luxury brands and premium products, providing opportunities for high-value sales to a discerning customer base. Additionally, several marketplaces operate on the flash-sale model, incentivizing consumers and boosting profit volume for sellers.
Asia Pacific Countries: With rapid economic growth and a massive consumer base, along with high internet and mobile penetration, this region offers immense potential for market expansion and high sales volumes.
Australia & New Zealand: Known for its early adoption of online shopping and high disposable income, this region presents a stable and affluent market for eCommerce businesses.
While these are some of the most popular marketplaces, conducting thorough research is essential to identify marketplaces that align with your business goals and target audience, including those where you can sell on international marketplaces.
Integrating with International Marketplaces
Focusing on how to sell on international marketplaces in different regions offers several advantages when you want to expand globally. Here’s how selling internationally can help grow your eCommerce business.
- Targeted Markets: Capture untapped market segments by tailoring product offerings and marketing efforts to specific regional preferences.
- Reduced Competition: Leverage less saturated regional marketplaces to gain a competitive advantage and accelerate growth.
- Strategic Selling: Optimize product assortment and pricing strategies based on regional demand to maximize profits.
- Outsmart Seasonality: Sell products in high demand during different seasons across various regions to stabilize sales and reduce inventory risks.
- Localized Experiences: Deliver tailored experiences on these marketplaces, including locally trending products, in customers’ preferred languages and currencies, to build trust and credibility.
Moreover, you can create a more localized and customer-centric shopping experience, increasing sales and customer loyalty when you sell on international marketplaces catering to specific regional demographics.
Challenges of Multichannel Selling and International Expansion
While the possibilities of international marketplaces are endless, there are also some challenges you might encounter when expanding globally.
Key Challenges
- Inventory Management: Maintaining accurate inventory levels across multiple sales channels can be complex and time-consuming.
- Order Fulfillment: Efficiently order management & fulfillment from various marketplaces can be challenging.
- Pricing and Promotions: Ensuring consistent pricing and promotions across different channels while maintaining profitability can be difficult.
- Returns and Refunds: Managing returns and refunds from different marketplaces can be complex, leading to loss of customers.
- eCommerce International Shipping: Managing international shipping, customs, and duties can be costly and complex.
- Marketplaces’ Rules and Policies: Complying with varying rules and policies of different marketplaces can be confusing, creating a barrier to selling.
- Language and Cultural Barriers: Effectively listing on diverse marketplaces, and creating engaging product descriptions for customers can be difficult.
By acknowledging these challenges from the start, you can develop an effective multichannel eCommerce strategy to overcome them. This is where third-party integration services, such as CedCommerce, can help. Not only does it offer a comprehensive and innovative solution designed to simplify your operations, but it also enables you to seamlessly integrate with international marketplaces.
CedCommerce Marketplace Integration App Features:
Here are some features you can leverage to streamline your multichannel operations, improve efficiency, and focus on growing your business.
- One Click Bulk Upload: Effortlessly list your products across multiple marketplaces with just a few clicks, saving you valuable time and reducing errors.
- Automated Inventory Management: Maintain accurate inventory levels across all channels with real-time synchronization and threshold inventory settings, preventing stockouts and overselling.
- Simplified Product Listing: Optimize your product listings for maximum visibility and sales by utilizing advanced features like product categorization and keyword optimization.
- Advanced Category Template: Organize your product catalog efficiently by creating custom category templates tailored to different marketplaces.
- Near Real-time Synchronization: Stay updated with the latest order, inventory, and pricing information across all channels, ensuring seamless operations.
- Advanced Order Management: Centralize order management with a unified dashboard, streamlining order processing and fulfillment.
Additionally, the integration provides 24/7 human support for resolving any queries, repricing tools, multi-currency, and multi-language support for specific marketplaces. It also offers a strong technical infrastructure for listing products, synchronizing inventory between your store and the desired marketplace, and managing eCommerce international shipping.
Logistics and Fulfillment
Efficient logistics, fulfillment, and third-party integration are crucial for successful international expansion. Optimizing these operations can reduce costs, improve delivery times, and enhance customer satisfaction.
eCommerce international shipping options
Considerations you must undertake before choosing the right shipping method and fulfillment service to customers on time and within budget:
- Carrier Selection: Evaluate various eCommerce international shipping carriers based on factors such as delivery times, costs, and coverage areas.
- Fulfillment Options: Consider in-house fulfillment, third-party logistics (3PL) providers, and dropshipping to determine the best fit for your business.
- Shipping Methods: Offer a variety of shipping options to meet customer preferences and budgets, including standard, expedited, and economy shipping.
Returns and Refunds
Handling returns and refunds efficiently is non-negotiable for maintaining customer satisfaction.
- Return Policy: Communicate your return policy, including eligibility criteria, return shipping costs, and refund process.
- Reverse Logistics: Establish a streamlined process for handling returned items, including inspection, restocking, and refunds.
- Refund Processing: Process refunds promptly and accurately to maintain customer trust.
Note: While most marketplaces offer their fulfillment services in many regions, these may add to your costs. Factor in fulfillment rates before signing up for any services.
Additionally, you may also want to explore services like CedCommerce’s Amazon MCF Connector for eCommerce international shipping. By connecting with Amazon Multi-Channel Fulfillment (MCF), you can take advantage of Amazon’s extensive fulfillment network to manage orders from channels such as eBay, TikTok, and Shopify.
Conclusion:
Finally, expanding your online business to sell on international marketplaces is a transformative journey filled with both challenges and opportunities. In today’s interconnected world, the potential for growth in the global eCommerce market is vast. With the right approach and multichannel eCommerce strategy, you can tap into new customer bases, boost sales, and establish a formidable global presence. Don’t let the vastness of the global market intimidate you.
The path to global success is paved with strategic planning and execution. A well-defined multichannel eCommerce strategy with thorough market research, localized products, and innovative technology solutions can enable you to access new growth opportunities. Don’t let the vastness of the global market intimidate you. Take the next step towards global success. Contact CedCommerce today for a free consultation and discover how our solutions can help you expand your business into new markets.