Expanding into new marketing is an exciting opportunity for any business, it opens the door to new customers, increased revenue streams and a chance to build towards a global brand. But trying to penetrate new markets does not come without challenges or difficulties, so careful planning is essential. Below we have drawn up a list of key considerations that should be considered for ecommerce merchants.
1. Market Research and Analysis
First things first, before entering any new market, thorough market research is crucial to your success. This will involve understanding the demand for your product or service, identifying your target audience, and analysing your competitors in the market. Key questions you should be asking yourself in your market research.
– Is there a demand for your products? Conduct surveys, analyse search trends, and look at competitor performance in the new market.
– Who are your competitors? Understanding who you’re up against can help you identify gaps in the market and opportunities to differentiate your brand.
– What are the local shopping habits? Preferences for payment methods, shipping expectations, and shopping behaviours can vary significantly between regions.
Market research will help you identify whether the new market aligns with your business objectives and how to position your brand to meet local needs.
2. Localisation of Your E-commerce Store
Localisation is more than just translating your online store. It has to include the entire e-commerce experience meeting the cultural and linguistic expectations of the new market. Here are a number of key aspects you should consider:
– Language and Currency: Offer local language options and try to make sure that all the pricing is displayed in the local currency, it will help make your store more accessible and trustworthy to the user.
– Cultural Sensitivity: Tailor your messaging throughout the site to be in line with the culture of the market you are trying to enter. What works in one country or area may not be the best strategy for another country/area.
– Payment methods will vary from region to region. For example in China digital payment methods such as Alipay or WeChat Pay are the must popular, but in other countries like the US credit cards or PayPal may be much more prevalent.
3. Understanding Legal and Regulatory Requirements
Regulations in ecommerce can be complex, and can vary depending on the country or market that you wish to enter. Some key considerations you should include:
– Taxation & Duties: Make sure you have a good understanding of the tax implications of selling in your new market such as VAT or import duties.
– Consumer Protection Laws: Different regions and countries will have various rules around refunds, data privacy and consumer rights that you must be aware of. For example, in the EU, GDPR has strict rules and requirements on how consumer data is handled.
– Product Regulations: It’s important that your products meet the local standards and certifications, particularly for categories like electronics, cosmetics and food.
Consulting with legal experts or partnering with a local agency can help you navigate these complexities and ensure compliance.
4. Logistics and Supply Chain Management
Creating efficient and effective logistics and supply chain management will prove to be vital for your customer’s experience in a new market. Below is a quick summary of some of the considerations to include.
– Shipping Options: Having fast and affordable shipping options are key to managing your customer’s expectations. Look into local shipping partners or explore other options such as warehousing or fulfilment centres which can help reduce delivery times.
– Returns Management: Making the returns process for your customers as easy as possible will go a long way to building trust within the market.
– Inventory management: Expanding into new markets and locations can cause complications regarding your inventory management. Investing in inventory management systems and software will go a long way to streamlining this process.
5. Marketing and Customer Acquisition
To break into a new market you must adapt and tailor your marketing strategy, replicating what has worked in other markets may not work in your new market. You should try to focus on:
– Localised SEO: Optimise your site for local search engines and keywords. This may include setting up country specific domains or subdomains and using local hosting to improve site speed.
– Social Media & Influencer Marketing: Social media preferences will vary depending on the market, some markets may respond well to Instagram or facebook, while others may prefer TikTok. It’s important you do your research into the preferred social media platform of your market. Partnering with local influencers can also help to build your brand’s reputation and credibility.
– Paid Advertising: Test different ad formats and platforms to see what resonates best with your target audience in the new market. Consider using local agencies that understand the nuances of the advertising landscape.
6. Customer Support and Experience
Your customer support and experience is a vital component you should consider when entering a new market. Customers should feel they are supported and confident that you will help them when needed.
– Multilingual Support: Offer customer service in the local language, whether through live chat, email, or phone. This can significantly improve customer satisfaction.
– Time Zone Considerations: Ensure that support hours align with the time zone of your new market to provide timely assistance.
7. Technology and Website Infrastructure
Expanding into new markets might require adjustments to your website infrastructure. Ensure your e-commerce platform can handle international sales by considering:
– Scalability: As your business grows, your website should be able to handle increased traffic and sales volume.
– Site Speed: Optimise your site’s loading speed for the new market, as slow websites can deter potential customers.
– Mobile Optimisation: In many regions, a significant portion of e-commerce traffic comes from mobile devices. Ensure your site is fully optimised for mobile users.
Expanding into new markets will always bring with it challenges and unfamiliarity, but if it is done with careful planning and with a strategic approach it can be a transformative step for your business. By considering the key factors we have outlined above you can position your online store for huge success in new regions and markets. Taking time to understand and adapt to your new market will help increase your chances of success and build a loyal customer base.
