Acquiring new customers is a key success factor for successful online business. But sooner or later, purely national business reaches its limits. In order to achieve sustainable growth, more and more retailers want to tap into foreign markets. But what special features should online retailers bear in mind as they expand? And what help should they seek?
International expansion: these challenges await online retailers
For bricks-and-mortar retailers, overcoming national borders involves considerable effort and some risks: Attractive regions have to be identified, stores opened and language barriers overcome. For online retailers without multichannel ambitions, opening stores or local sales networks are not an issue. Nevertheless, there are a number of challenges to overcome when entering foreign markets. To ensure that the core business is not neglected even during a gradual expansion abroad, merchants should consider working with specialists in the following areas in particular:
Law
According to a study by eCommerce Guide, legal uncertainties make the decision to sell abroad more difficult for 67 percent of all online retailers. In fact, before online retailers conquer new countries, they should make sure that they meet all the legal requirements of the country in question. This includes, for example, the correct structure of the legal notice or the Terms and Conditions. As the country of origin principle applies in the EU single market, retailers can largely adhere to familiar requirements. In addition, the legal provisions that goods or services must comply with are now mostly standardized throughout the EU.
However, there are always new developments. For example, retailers should work with experts to ensure that they meet all the requirements of the general data protection regulation (GDPR). They should also look into tax aspects such as VAT, in particular in which country and to what height VAT must be paid, what it is levied on and how it must be shown. A retailer should definitely have these questions clarified by a lawyer specializing in IT law in advance of the planned expansion.
Language
Translating all content into the target language is essential so that future customers have an overview of the listing and can complete the purchase process with confidence. Quality-conscious and future-oriented retailers should rely on a professional service provider for this, as texts have a significant influence on the customer journey.
Service providers such as Eurotext AG offer not only precise, but even SE-optimized translations for this purpose, which at best simply flow into the respective local online store via an API. To create a consistently positive customer experience, retailers should also not forget to offer support in the respective national language or at least in English.
Distribution
Entering a foreign market undoubtedly requires a successful sales strategy. To simplify this complex task somewhat, online retailers can use an already established marketplace. A popular option: according to a study by eBay, a full 98 percent of commercial sellers also sell abroad via this marketplace.
The advantages of Amazon, eBay & Co. are obvious: high brand awareness and existing structures. The disadvantages are the fees and the lack of brand development. Nevertheless, marketplaces are a real alternative to your own store due to their increasing popularity with buyers – or at least a worthwhile addition.
Logistics
Shipping logistics in new markets is a headache even for experienced online retailers. This is not only due to order preparation, handling returns or compliance with customs regulations. The often confusing listing of shipping service providers and tariffs as well as the local peculiarities of the last mile are also real challenges.
Despite everything, online retailers must also impress their new target group with reliability while keeping costs manageable. Retailers should therefore not do without the support of specialized service providers, especially when it comes to shipping and logistics. One of these is PARCEL.ONE.
The company collects the international shipments of all customers in the German logistics center every day and selects the ideal delivery option with the best local shipping service provider for each individual shipment. This process is extremely simple for online retailers, as they always send their collected goods to the same German address, regardless of the destination country. In this way, store operators not only reduce their costs, but also their internal organizational effort.
