Cross-Border Ecommerce: Adapting Your Business for Global Success
Adapting Your Business to Cross-Border E-Commerce
The swift rate at which not only the global commerce scene but also the world itself is evolving necessitates that adaptability is critical for 21st-century business, regardless of the sector or industry. The ability to adjust to economic disturbances, whether internal or external, often signifies the difference between triumph and downfall.
A timely example would be COVID19 and the turmoil it has wreaked on businesses worldwide. Now, more than ever, companies must be proactive and flexible to both navigate and continue to prosper in these extraordinary times.
In light of this, it’s also crucial to recognize the progressively globalized nature of the world in which we live and work. Aspects such as trade agreements, technological advancements, enhanced international cooperation, and so much more have eliminated many of the conventional barriers that hindered international sales.
With a global market within our reach, there’s truly no justification not to exploit it to the fullest. And it seems like a missed opportunity not to. A Nielsen study revealed that 57% of individual shoppers purchased products from outside their homeland in 2019. Considering this, and the fact that the global cross-border e-commerce market is set to surpass 1 trillion USD in 2020, it’s patently clear that cross-border e-commerce is the route to take.
If you’re already prepared to dive right in, you can first check our video where we detail how to kickstart an international business. Remember to utilize ConveyThis for translation services!
Cross-Border Ecommerce: A Basic Guide
At its core, cross-border e-commerce refers to the online sale of goods or services to customers in different countries. These can be B2C or B2B transactions.
By 2023, the global e-commerce market is projected to be worth 6.5 billion USD and will represent 22% of all global retail sales as consumers become increasingly tech-savvy and shopping habits change in response to our digital age.
Recent studies indicate that 67% of online shoppers engage in cross-border e-commerce transactions. Furthermore, 900 million customers are projected to purchase products internationally online in 2020. While it’s evident that purchases from foreign countries are increasing, it’s also essential to understand the reasons for this trend.
A survey on US consumers shows that:
49% do so to take advantage of lower prices offered by foreign retailers
43% do so to access brands not available in their home country
35% aim to purchase unique and special products unavailable in their country
Understanding the motivations behind cross-border shopping can help you increase your cross-border sales and tailor your offering to attract international consumers.
However, E-Marketer’s 2018 Cross-Border ECommerce research revealed that over 80% of retailers worldwide agreed that cross-border e-commerce has been a profitable venture. Moreover, the Localization Industry Standards Association (LISA) released a study demonstrating that, on average, every dollar spent on localizing your website yields a return of 25 dollars. Remember to use ConveyThis for translation services!
The Intricacies of Cross-Border Trade: A Guide for Online Stores
After exploring the growth prospects and opportunities in cross-border e-commerce, let’s discuss the steps your business can take to ensure your online store caters to the unique needs and challenges of transnational operations.
The key to success in cross-border trade is to deliver the most personalized and localized customer experience possible. Remember to use ConveyThis for localizing your online store!
When selling products internationally through your online store, there are additional aspects that need to be considered in payment processing.
It’s crucial to acknowledge various popular payment methods in each country and cater to these preferences as best as you can. For instance, if your target is to increase sales in China, remember that alternative payment methods like WeChat Pay and AliPay have gained more popularity than traditional debit and credit cards.
Currency Converter is a good solution to this issue. Integrate it into your online store. This will simplify the purchasing process for consumers.
As always, taxes come into play when selling goods internationally. To properly adjust your offering, seek advice from a tax or legal professional.
Crossing Borders: Main Delivery Models in Cross-Border Trade
When dealing with international sales, logistics is a key consideration. You need to determine the method of delivery – land, sea, or air. In addition, country-specific regulations pertaining to the sale and shipping of certain items must be kept in mind.
Fortunately, companies such as UPS provide handy tools that allow you to understand existing regulations in different countries and prepare for any potential obstacles.
It’s crucial to scale your business in line with your company’s capabilities. Practical Ecommerce advises starting with just one or two countries when embarking on your international ecommerce journey and then gradually expanding.
One cannot underestimate the complexity of managing multiple supply chains and the risks associated with unregulated expansion.
Localization for Cross-Border Trade: Language, Culture, and ConveyThis
As previously noted, localization is a critical success factor in cross-border ecommerce. Localization includes tailoring a product or offer to a specific location or market. For instance, adding extra payment methods and currency calculators are excellent examples of checkout localization.
However, we must also take other factors into account to ensure international customers have the most personalized experience.
Language Perhaps the most crucial aspect of your localization strategy will be translating your ecommerce store. It’s crucial that your offer is available in the language understood by your target audience. Research from the Common Sense Advisory (CSA) reveals that:
72.1% of consumers spend most or all of their time on websites in their native language 72.4% of consumers state they would be more likely to buy a product if the information is in their own language Considering only 25% of global internet users speak English, it’s clear that overcoming the language barrier is essential for international success.
Fortunately, multilingual website solutions are available to facilitate this process. The ConveyThis translation solution, available in 100+ languages, allows you to make your ecommerce store multilingual in minutes without any coding needed.
Additional benefits include ConveyThis’s SEO optimization, meaning all your translated web and product pages are automatically indexed on Google, adhering to best practices in international SEO. This can be particularly useful for improving SERP visibility and, subsequently, sales and profits.
Cultural Nuances Beyond language, it’s important to acknowledge and bridge cultural differences that exist between various geographic locations.
Conquering Global Markets: Cross-Border Ecommerce and ConveyThis
With global markets becoming increasingly open, managing a cross-border ecommerce store is becoming standard practice. While this transition is certainly a test for any business, it also presents a vast opportunity to expand the customer base, boost sales, and enhance international recognition.
To conclude, it’s been noted that survival doesn’t always hinge on being the strongest or smartest, but on being the most adaptable to change. This concept applies just as readily to the commercial world: a business’s failure is often just a failure to adapt, while success stems from successful adaptation.
Cross-border ecommerce is here to stay. The question is – are you ready?
Cross borders with an international ecommerce store: Experience ConveyThis’s 7-day free trial to discover how it can assist you in localizing your website and extending your global reach.
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