eCommerce is evolving at an accelerated pace and so the global online retail which has an undeniable growth opportunity. It is called differently like cross-border commerce, international ecommerce, borderless business, etc. Online shopping being one of the most popular online activities worldwide, international expansion or going global online comes with a lot of opportunities.
The huge international growth opportunity has made many retailers think about venturing into new territory. But there are many things that you need to figure out as an international retailer before going beyond borders. Like, where to invest, best product, currency solution, payment options, etc.
In this article, we have covered some of the areas of ecommerce that you must know to take hold of the opportunities in the international market.
1. What is Global Ecommerce and its Market Size
Global ecommerce is the buying and selling of goods and services, across geopolitical borders, over the internet.
Global Ecommerce Market Size:
In 2019, the global ecommerce market size was valued at USD 9.09 trillion.
From 2020 to 2027, the global ecommerce industry revenue is expected to grow at a compound annual rate of 14.7%.
The cumulative data anticipates a 276.9% increase in global ecommerce sales.
Global ecommerce has a huge digital retail growth opportunity which you should not give a miss.
2. Tap the Future Market of Ecommerce
It really doesn’t matter where you are. What matters is where you are going. Try to tap the largest ecommerce market, where the future of ecommerce lies.
Find the list of the countries that top the list of largest e-commerce markets in the world:
- China online sales $672 billion annually
- USA online sales $340 billion annually
- USA online sales $340 billion annually
- United Kingdom online sales $99 billion annually
- Japan online sales 79 billion annually
- Germany online sales $73 billion annually
- France online sales $43 billion annually
- South Korea online sales $37 billion annually
- Canada online sales $30 billion annually
In the borderless state of commerce, currently China looks to be a standout leader. It is one of the largest e-commerce markets globally.
3. Domestic Shoppers are Looking Beyond Domestic Merchants
People worldwide are now more comfortable than ever with the concept of e-shopping. You don’t really need a global presence to score a deal with international consumers. As the domestic online shoppers are citing better offers, terms, and product availability as their top motivations they are not hesitant about looking beyond domestic merchants.
You can simply begin testing foreign markets through online advertising or social media abroad. But the best approach would be to test the marketplaces in target regions where the global online sales is now at peak.
4. Product-Market Fit varies and depends on Region and Country
Although finding product-market fit is usually a time-taking process, it's well worth the time required. Product-market fit is more than offering value. It is about providing the right solution to the right person and at the same being able to explain why your product is valuable to them.
You need to make tactical decisions on which geographies to prioritize by determining geographic potentials. Once you identify a region, it needs to be followed by a country-by-country analysis.
5. International Analytics to Hold the Opportunities
If you want to expand your global ecommerce business, then analytics is important. Technology is evolving rapidly and the shopping trend is shifting on a regular basis. As e-commerce is in a constant state of adaptation it may leave e-merchants fumbling in the dark. Hence to keep up with the ecommerce changes businesses must have data insights.
Ecommerce analytics can help you to anticipate changes in the market and examine international traffic and sales. International analytics reports can help you determine international ecommerce opportunities.
6. China and Asia Pacific Are the Next Growth Horizon
We all know the global economy is trying to recover under the strain of coronavirus. Amidst this the social experience of severe countermeasures is apparent. The companies across the globe have sought out ways to adjust with the new market realities in response to the challenges COVID-19 presents.
China which is the goliath in the e-commerce sector initially overwhelmed, but adapted very quickly to the outbreak. It has been offering some important ecommerce business lessons to companies globally.
Even in Asia Pacific the ecommerce revolution and the vast economic potential is evident. It is one of the fastest growing regions in the global ecommerce marketplace with the largest share of the world’s business-to-consumer.
7. Localization Matters Most
If you are planning for an international ecommerce business then localization is a must which can make or break your global sales.
Approximately 75% percent of online shoppers prefer to buy products in their native languages?
Local currency has an immediate effect on online shopping as consumers prefer to make a purchase on sites that price in their local currency. Operating at an international level needs to go native with local currencies, otherwise your consumer may abandon the purchase.
8. Commerce Ethics and Practices
For fair business practices FTC has enforced the provisions to prohibit unfair or deceptive acts or practices in commerce. The Federal Trade Commission is the best source for getting global ethics right. The host of questions by FTC every business should face head-on to maintain a fair marketplace.
9. Three Paths to Global Expansion
Here are the three paths to global expansion by country.
US, UK, China, Japan, South Korea, Australia. These markets have:
- Large and developed ecommerce presence
- Smaller markets with strong physical infrastructures
- Ripe product markets within smaller overall markets
India, Indonesia, Mexico, Brazil, Saudi Arabia, Sweden, Switzerland. These markets have:
- Early-stage ecommerce development
- Complex domestic regulations
- Digitally advanced countries but small market sizes
Russia, Argentina, South Africa, Nigeria. These markets have:
- Uncertain political climates
- Emerging ecommerce markets with long-term potential
- Challenging infrastructures
10. Payment Preferences Vary Around the World
Consumer payment preferences are shaping commerce around the world. As consumers are paying in many different ways, it is important to know the preference of your target consumers. If you know the payment preference and use the technology to meet those preferences then you will be able to stay ahead of the game. As the Debit and Credit card payment continues to be the preferred choice of consumers to make the payment, the alternative methods are also gaining ground.
Data analytics can help you find which payment method is preferred in a particular geography.
11. B2B’s Global Online Sales Dominate B2C
Although B2C business has witnessed widespread adoption, B2B stats says that it is dominating B2C. B2B ecommerce is a ripe global opportunity now and has been grabbing the attention of many investors, sellers and buyers around the world.
All of the above data, trends, and reports can help you in the path of going global. Global ecommerce is the future of your company. So if you are planning to go global just go the right way.
Being in the industry for 6+ years, StorePlace has helped many ecommerce merchants to go global. We are a trusted web design and development company that provides comprehensive ecommerce services. To know more about us or for our assistance, please visit us at <storeplace.com>.