Cross border e commerce: Checklist and effective strategies to succeed
The world is getting “ flat” nowadays since the line between countries and countries blurred. It’s never been this easy when buying goods internationally. As a result, many companies and enterprise want to set up cross border e commerce. However, when entering a new market, everything seems to be different. Below are some checklists and effective strategies that can lead you to success.
What is cross border e commerce?
Cross border e commerce is online business involving people or organizations from different countries. This includes B2B ( business to business), B2C( business to customers), or even C2C ( customer to customer) trading. Therefore, this type of e commerce can bring shop owners great benefits.
Benefits of cross border e commerce
Shop owners can gain a lot more thanks to cross border e commerce. Online shopping is expanding in many countries. People have tendency to buy goods online, especially foreign goods. In the past, to get products from other countries, people have to go to that country r ask somebody to buy those. Nowadays, with a computer, customers can nearly get access to products from all over the world.
Another reason is the checkout process of international e commerce is more simple. Customers can use their international card like Visa to pay in foreign website. Therefore, cross border e commerce is more potential than ever.
Checklist for successful cross border e commerce
Despite all the benefits, entering new market is very challenging. Now we will provide you checklist you need to consider.
Common key factors to consider
Every merchant types can use cross border e commerce, from small, medium to enterprise. There will be some differences between those types. However, here are 3 common factors that every business need to look into.
- People: employees is the core of every companies. When entering a new market, employers should ensure they can support this service and maintain business in home country.
- Products: Different countries have different lifestyles and perspectives. Therefore, favorable product in home country might be unwelcome in specific market. Thus, shop owners must spend time analyze market and customers.
- Technology: to establish smooth cross border e commerce, technology is an important factor. Shop owners need to understand their current technological ability to make suitable adjustments. If you want to invest in foreign e commerce market, you have to think about it carefully
Cross border e commerce for small business
Since it’s very complex to go international, small businesses access to global market. Here are a few things you need to consider when join cross border e commerce market with small business.
Looking for international support
Business might want to expand their business as well as maintaining in-home business. Therefore, hiring international support is essential. You’ll get international support service when you are abroad. Also, this service can help you with translation as well.
You can seek support service in nation or foreign countries. If you are looking for a professional international support, ArrowHitech is the right option. We have work in e commerce market for 12+ years in many countries. Furthermore, our employees can speak English along with other languages such as Japanese, Germany fluently. We surely can deliver you the best international support service.
Check international product restriction
Each countries has its own rules and regulations. To protect citizen’s health and security, some products can’t be sold to specific regions. Make sure you learn the country’s or state’s laws carefully first. You don’t want to spend time and effort on products that you can’t sell. List down some types of products that might have restrictions such as: cosmetics, pharmacy or consumers electronic
Enhance technological foundation
Make sure your technological foundation is scalable enough. Since you sell goods online in a new market, technology is among the most important features. Otherwise, you’ll meet many problems and issues and waste your time.
At ArrowHitech, we surely boost your e commerce system and provide a strong technological foundation. You won’t have to worry about slow, or analog processes thanks to our service.
Cross border e commerce for mid-market
Mid-market are companies with annual income from $10 million to $1 billion. This market often has many competitors with the same products. Therefore, to compete with others in foreign market, shop owners should carefully evaluate business strategies.
Find business support when entering a new market
Local customers can have different point of view from foreign ones. Also, you’ll have more rivals in international market. Therefore, you’d better hire business support to grant your success. They can help you evaluate the market as well as competitors, suggest you some ideas to make your website outstanding.
Business support also grant you customer service and functional order process. They localize both payment and shipping method to build confidence with international shoppers..
You can look for local or foreign support. The choice is up to you.
Hot products in your country might not be favorable in foreign countries. Each market requires different perspective, creative or customer service. Thus, to get profit internationally, you need to understand the insights of customers in that area. There are many factors to consider when it comes to merchandise goods. For example, language, religion, customer market trend, etc. To avoid misunderstandings, shop owners must analyze all the factors carefully to make crucial changes.
As mentioned above, technology is vital when entering international market. In mid-market, most of the companies might have strong technological foundations. Hence, to succeed in foreign countries, shop owners must boost their technological capacities. However, you don’t need to spend a large sum of money building advanced technology if you can’t. You can use email marketing, or optimize you search engine with affordable price.
Logistic and shipping
When selling goods globally, shipping is the first thing to consider. Mid-market can ship the goods themselves or through the third parties. Remember to keep the price affordable, or find trusty third-parties. Late shipping or broken products can reduce customer satisfaction and affect your business
Cross border e commerce for enterprise
For brands having annual revenue more than $1 billion, the cross border e commerce might have happened. However, the enterprise still meet some problems when entering a new market. Many employees working in different time zone can lead to miscommunication or hard to manage. Thus, we deliver you some checklist to minimize those issues.
Establish brick-and-mortar store.
If you are doing well on e commerce, building brick-and-mortar stores is the second step to reach higher revenue.When you enter international market, customers don’t know about the quality of your products and feel hesitate to “click” buy. Then, offline store can help your customers understand your service more. They can come to your store to “ touch and feel” your products. Besides, the communication between customers and enterprise will be enhanced thanks to physical communication. Thus, you’ll understand your targeted customers and improve profit.
Gain long-term customers
Most of the enterprises nowadays focus on gaining long-term customer. To be successful in foreign market, shop owners should show how their product can impact daily lives, therefore gaining more repurchase. Make your products become a lifestyle.
Evaluate technological investment impact
You can invest in foreign e commerce channel to enhance your business. Foreign customers are used to some online shopping channel, therefore, selling your product on those can grant you a lot of new customers.
You should spend time to segmenting customers and analyze strategies to make the right investment. For example, your targeted customers are teenagers and people in their 20s. In U.S.A, you can invest in Amazon, one of the largest online shopping channel. While in China, you should invest in WeChat, where there are many teenagers and the young.
Effective strategies to grant you success in cross border e commerce
We provide you some checklist you need to remember in cross border ecommerce. If you consider entering international market, here are some effective strategies to grant your success in cross border ecommerce.
Determine your purpose and assess market as well as competitors
The first step when making strategies is determining your expectations. Without this, you might get lost and the results can’t satisfy you. Set up your demands, then your plans
In cross border ecommerce, the market and competitors are different from in-house ones. Therefore, you should spend some time assess the market, focused customers and your rivals. Understand customer behaviour, demography, etc to make right decisions. Therefore, you can find some ways to take the advantage and make your products outstanding
Check products restriction
When you sell products internationally, you must obey the law of that nations or states. Hence, learning about foreign law is necessary. Otherwise, you’ll waste money and time on products that you can’t sell.
Survey your new market
It’s best to test customer experience in cross border ecommerce. In the beginning, you can release some samples for foreign customers to try. Then, make surveys to assess their satisfaction levels. From all those data, you can make necessary changes to adopt in a foreign market.
Choose the right channel
Right channels can bring you a lot of benefits. They can make your product visible for your customers, hence, bring you more profit. There are many channels available for you such as Market place, Google market, or social media. Here are something to consider to choose a suitable channel for your store
- What product is not in restriction in the country?
- Find popular online shopping channel in the country
- Current level of competitors in the market
- Time and effort required to set up foreign online store
However, you should keep in mind that not all the popular channels are good and by versa. The main purpose of shop owner should be gaining the most profit. Therefore, it’s best to choose a channel that fit your requirements and budget.
ArrowHitech is a leading IT outsourcing company in Vietnam. Established since 2007, we have 12+ years in e commerce market and many offices around the world. As a result, we can grant you a great online store and can boost your revenue to the next level.
Our decade-long developers can work on many e commerce platforms such as Magento, Shopify, Bigcommerce and Woocommerce. They have worked in many projects all over the worlds. Therefore, you don’t have to worry about language restriction when working with us.
If you consider working on cross border e commerce, don’t hesitate to call us. We can help you with international online business from the beginning with our consulting service, to develop your website. You can see our product for further information. Contact us here or via email: email@example.com and hotline: +84 243 7955 813