4 TIPS
TO HELP SMALL BUSINESSES CONQUER INTERNATIONAL E-COMMERCE By using gradual expansion, geographic expertise, and international shipping best practices, sellers can minimize their risk and reap the rewards of new markets.
S
elling internationally is a real opportunity for small e-commerce merchants. According to Statistica, from 2014 to 2021, worldwide e-commerce sales will grow almost 246%, from $1.3 to $4.5 trillion. By opening up your business to new markets in other countries, you are able to experience some of that growth. On average, selling products internationally can boost a merchant’s sales by between 10 and 25%. However, it’s not necessarily all smooth sailing; there are many unexpected snags you can hit when selling globally. There are also many new challenges that must be addressed, including China’s dominance in the international e-commerce space, emerging cross-border issues, and last-mile challenges created by the
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increasing parcel volume. According to an International Parcel Corporation (IPC) survey, more than two-thirds of all international consumer e-commerce purchases are sent via parcel post. Your success depends on making smart choices on what to sell, which markets to sell into, the customer experience, and cost control. It’s not all that unusual for even those with thriving online businesses, including successful international sales, to run into new roadblocks as the global e-commerce marketplace evolves. To be successful, merchants need to fill in the gaps in their regional knowledge and build new international shipping skills. Here are four tips to help merchants dip their toes in internationally, while avoiding some common pitfalls, in order to start taking advantage of the booming international e-commerce market.
1
Know what products and business models are traditionally more successful internationally. There are many significant factors to consider, including whether there is a regional demand for a given product, a product’s profit margin, and if the expected demand per location will be enough to make your efforts worthwhile. Sellers need to: Try to avoid products that are challenging to sell in a global setting. For example, competing directly with China by selling low-price electronics with no brand recognition is a bad idea. Low margin, low-cost items of $25 or less or a low sales volume (10 items a week or less for sales out of North America) are usually not worthwhile. Profit is thin to begin with, and shipping is often too large a percentage of the total buyer-facing price.