Companies that expand into international markets have countless opportunities to increase their company’s revenue. Fortunately, global growth has never been easier.
Emerging international markets such as India, Mexico, and the Philippines see continued growth in e-commerce sales each year, making them particularly attractive to emerging businesses looking to start selling internationally. However, selling products in international markets presents unique challenges that require careful strategy.
This guide will explore the benefits and challenges of international ecommerce and outline how to sell products online internationally so you can grow your business.
Benefits and challenges of selling products abroad
Today, technology allows businesses of any size to sell products to international buyers. You can create a global storefront on platforms like Shopify and WooCommerce with just a few clicks.
But should you? Consider these advantages and obstacles to decide if you’re ready to reach buyers around the world:
Benefits of selling internationally
Whether you run a small ecommerce dropshipping store or a large corporation looking for untapped markets, you will reap the following benefits when you start selling products overseas:
New buyers: Each new market entry brings millions of potential buyers to your ecommerce business. The more markets you enter, the greater your revenue potential.
Competitive advantages: Selling globally gives you an edge over domestic competitors by diversifying your customer base. Expansion is often easier than carving out a niche in a saturated market.
Cost reduction: Some international markets offer lower manufacturing, fulfillment, and advertising costs. Additionally, partnering with third-party logistics companies in other countries makes international shipping easier and more affordable.
Seasonal opportunities throughout the year: Seasonal items have limited appeal outside of peak sales. However, summer and winter are reversed in the northern and southern hemispheres, so selling internationally ensures that your inventory is always in season. Plus, your ecommerce store can take advantage of various regional holidays to sell specialty products.
Increased brand recognition: Selling products abroad creates credibility and increases brand authority. A reputation for global success also attracts the interest of other companies seeking international partnerships.
Challenges of global e-commerce
Despite the benefits of selling internationally, you shouldn’t ignore its challenges. Beware of these obstacles to global sales:
Payment processing and currency exchange: Customers prefer to pay in their local currency, but conversion fees and exchange rate fluctuations can affect pricing and profits.
Cultural and language barriers: Storefront localization is vital to international engagement . Poorly translated product descriptions or marketing messages create confusion and damage a company’s credibility. Shoppers in different countries also have unique preferences and purchasing behaviors that affect sales. Tailoring online content and messaging to egypt whatsapp number data 5 million each market takes time and resources.
International customer support: Providing customer service across multiple time zones is complex and resource-intensive. Language barriers also make inquiries, complaints, and returns more challenging.
Legal and regulatory compliance: Laws governing e-commerce, data privacy, and consumer protection vary by country. Some products may also face restrictions or require certifications. Companies should research the regulations of each new target market to avoid costly penalties or bans.
Supply chain management: Companies need accurate demand forecasting to manage inventory and avoid stock shortages across multiple markets. Warehousing and distribution centers add another layer of complexity to cross-border logistics.
How to start selling products abroad in 5 steps
Expanding your ecommerce business into international markets can open up huge opportunities, but it’s not as create content for the user simple as shipping products across borders. A few vital steps will help you reach global buyers and avoid common obstacles like high shipping costs, payment issues, and customs delays.
1. Identify suitable target markets
Demand isn’t the only consideration when selling internationally. Many companies target the largest markets, assuming that more people means more sales. However, a country with a large population and strong purchasing power doesn’t guarantee success if the market is oversaturated or your product doesn’t align with local preferences.
Established competitors prove that your product is in demand, but you’ll need to invest heavily to overcome their gambler data initial advantage. Instead of looking for markets where similar products are already being sold, find places where your product can fill an unmet need.
Strategic market research examines the economic and cultural factors that influence purchasing behaviors, purchasing decisions, and local demands. This information will help you adapt your product and marketing strategies to meet local expectations.
2. Research international shipping
Each country has different import regulations, customs duties, and shipping networks that can affect delivery times and costs. Overseas shipping costs and customs fees quickly add up, while delays at border checkpoints can frustrate customers.
Companies can avoid these issues by researching customs requirements, classifying products with the appropriate Harmonized System (HS) codes, and staying up to date on changes in international shipping policy.
3. Set up international payments
Global businesses need to offer diverse and flexible payment methods. Credit cards, digital wallets, and region-specific payment systems (e.g. Alipay or Klarna) can speed up checkout for international shoppers. Make sure your ecommerce platform supports multiple currencies so shoppers can see prices in their local currency and avoid unexpected conversion fees.
4. Select your sales channel
Businesses can sell to foreign markets directly from their websites, through international marketplaces like Amazon or eBay, or through partnerships with local retailers. Many brands set up international ecommerce stores with Shopify, which offers built-in features and plugins for currency conversion, local payment methods, and multilingual support.
5. Localize your website and product pages
Translation and localization are essential for international sales. Buyers won’t complete an order if they don’t know what they’re buying.
Many ecommerce platforms, such as Shopify, integrate directly with translation solutions to simplify and speed up website translation. For example, Smartling’s Connector for Shopify allows users to send their Shopify content, such as product descriptions, checkout pages, and more, directly to Smartling for professional translation, without ever leaving the Shopify environment. This seamless workflow eliminates manual effort and speeds up connect with consumers around the world, regardless of language.