There has never been a better time to enhance your international eCommerce strategy than right now. With varying payment options, advanced shipping, and the expansion of Internet and mobile device usage, cross-border shopping and international eCommerce is rapidly growing. According to eMarketer, global online sales are expected to surpass $2.3 trillion in 2017. International eCommerce is growing significantly in countries such as Russia, Brazil and India. While sales in North America are growing, it is not near the rate of the growth of those in other regions around the world.
Cross-border Shopping
Due to the vast supply in the United States, cross-border shopping isn’t very prominent. However, plenty of consumers in varying markets are unable to get the products they want domestically, which presents a rich opportunity for US retailers. According to Pitney Bowes global online shopping study in 2016, 66% of consumers shop online, and 40% had purchased items from another country. The trend noticed from the study was that the most desirable e-destinations for cross-border shopping were Germany, United Kingdom and United States. Australia is also another strong market for US retailers, due to the threshold of $1000 Aussie dollars and the lack of their local supply. By demonstrating the simplicity and accessibility of purchasing products online, retailers can tap into this trend and succeed in their international eCommerce.
Challenges
There are a few things to pay special attention to when considering your international eCommerce strategy:
- Clarity of cross-border fees at time of purchase (duty/taxes)
- Shipping costs
- Tracking visibility
- Reasonable delivery times
- Data security
Using partners that have expertise in the international eCommerce and cross-border shopping barriers will aid in your establishment of your successful strategy.
Go International
The main reasons that consumers shop outside their country are price, availability and selection. By focusing on these reasons, retailers can simplify their websites and target their audience well. A major turn-away for a consumer when visiting a website is that their language isn’t available, therefore they cannot understand the content on your website. Avoid having the customer feel uncertainty by clearly presenting costs, shipping, taxes, etc. and then follow through withy what you have promised the consumer.
Only one-third of the world’s purchasing power is within the United States, leaving over 790 million potential international consumers for US retailers to engage with in cross-border shopping, yet only 50% of US online retailers sell internationally. Take advantage of the profitable international channel and its rapid growth to extend your business all over the globe.