Cross-border E-commerce provides incredible opportunities for a business to unlock exponential growth. However, building a global marketing strategy that helps you reach overseas customers isn’t a piece of cake, because you must understand the potential of different markets and figure out what you need to make cross-border selling successful right from the beginning. This is key in avoiding costly mistakes.
The cross-border E-commerce market is booming, as statistics show it is expected to reach $7938.01 billion USD by 2030. So, you likely don’t want to miss out on such a great chance to achieve more success in your business. If you find it challenging to break into international markets, we’re here to offer the best tips to ensure your venture reaches new heights.
The Benefits of Cross-Border E-commerce
Cross border E-commerce has a lot of potential to make your business more profitable by providing numerous advantages, such as:
It expands your venture
Cross-border E-commerce is beneficial for sellers and brands alike, offering access to new markets. Your sales volume may be healthy right now, but you can increase it even higher with cross-border selling. This is because it allows you to make your products accessible even to those who wouldn’t otherwise have the chance to purchase your products.
It boosts your sales
One of the reasons why companies embrace cross-border E-commerce is the potential for higher revenue. Taking a venture global allows you to position it to increase your customer base – if more individuals know about your products, the demand for them will grow.
It enhances brand visibility
Brand awareness is another significant benefit of cross border E-commerce. By providing high-quality products that meet the needs of shoppers beyond your country, your business will become recognizable globally.
How to Succeed in Cross-Border E-Commerce
Buyers are increasingly indulging in cross-border E-commerce: stats show that compared to 2022, 80 million more people are buying online, representing a 3.1% increase. The number of online shoppers is expected to rise to 2.71 billion in 2024, translating into massive potential for an ecommerce store. Therefore, it only makes sense to invest in cross border marketing for your business to ensure you successfully enter international markets.
Do your research
Conducting market research is an essential step in winning at cross-border E-commerce. You want to identify the foreign markets with high demand for your product. When doing this, you need to take a look at your foreign competitors and what prices they offer for their products. It is recommended to expand gradually into foreign markets instead of trying to go global right away. This way, you can ensure you understand each market before you enter it, improving your chances of success.
Consider how your product would fit into a specific culture, and inform yourself about that country’s regulations and laws. In order to scale your venture to international markets, you must localize your message based on each culture, and tailor your social media strategies. Since it can be difficult to understand the dynamics of each market, you should consider working with a cross border agency to guide you on the right course of action and help you achieve your goals.
Understand consumer behavior
Before creating a market entry strategy, consider the best practices that apply to each country. Customers in different cultures have a unique driver that gets them to buy a product, so you must take the time to understand their behavior, such as commodities preferences and online payment options.
Depending on the country they live in, consumers can see a product from a whole different perspective, and that’s because they have different needs and don’t perceive value in the same way. For instance, in European countries, individuals prefer purchasing high-quality products that are durable even if they cost more.
This is because they consider that price influences quality, a belief that strongly impacts their buying habits. This step can determine whether your marketing strategy is successful, so make sure to consider cultural differences.
Conduct user testing
Before stepping into foreign markets, it’s a good idea to perform user testing. After all, there is no guarantee that your products will be a global hit only because they are successful in your country. Expectations and cultural differences can pose challenges, and it may be necessary to adapt your online store before considering cross-border E-commerce.
Think of Amazon: the company had to shutter operations in the Chinese market because it couldn’t compete with ecommerce marketplaces that the population was familiar with. So, it only makes sense to move forward with your product launch only after conducting user testing.
Have a repeatable strategy in place
When entering foreign markets, having a repeatable strategy in place can save you money and time. Every country you target will require the same level of effort, and it’s not like you will reinvent the wheel – although there will be different particulars, the fundamentals will be the same.
So, focus on creating a coherent plan that includes information on pricing, searching for in-country partners, and complying with laws and restrictions in each country. Once you have this information written down, you can return to it whenever you want to explore a new international opportunity. However, a good strategy won’t be enough if you don’t also focus on online reputation management. In the online space, your reputation can be easily damaged, influencing customers’ buying decisions, so you must push down all the negative news about your brand to create a positive online perception.
Consider logistics
Shipment and delivery are a challenging part of cross border eCommerce, so consider looking for a third-party logistics provider to relieve the stress and save you some cash. Delivering an order to San Francisco is different from ensuring the goods arrive efficiently in Singapore.
Therefore, it’s essential to simplify your shipping operations as much as possible, and a qualified 3PL service can be of great help. They will handle the order fulfillment process efficiently, and answer questions related to product restrictions and taxes, helping navigate international markets easily.
Takeaway
Cross-border E-commerce can be a challenging pursuit, but it’s indeed profitable if you execute it properly. If you don’t want to miss out on international markets’ opportunities, use our tips above to kickstart your business expansion strategy.
