Preparing for international expansion

International expansion into new markets is a challenging venture. It demands meticulous research, strategic planning, and a deep understanding of global consumer behaviour.

Here are our tips for taking your e-commerce brand global:

1. Competitor research

A SWOT analysis can help identify your business's strengths, weaknesses, opportunities, and threats compared to your international competitors.

This essential research exercise will help you understand how much you need to invest to get your brand off-the-ground and turning a profit as soon as possible.

Many e-commerce competitor research tools are available online with a subscription. However, additional desk-based research is also required to verify information and identify unique selling points that make your competitors' brands a hit with consumers.

2. Sourcing suppliers

Navigating the supplier landscape requires careful consideration of quality, cost, and reliability factors. Beginning your supplier search on established B2B marketplaces like Alibaba.com and AliExpress will help you identify reputable sellers with protections like Trade Assurance and outstanding customer reviews. 

Getting in touch with a sourcing agent from your target country will also help you understand the manufacturing landscape and the processes for setting up supplier contracts and importing goods.

3. Product selection and logistics

As of 2023, a third of the world's population shops online (totalling approximately 2.64 billion people). India is poised to lead in GDP growth and become the world's third-largest economy by 2027. Plus, Latin American countries continue to expand their e-commerce industry, with experts predicting that B2C e-commerce Gross Merchandise Value will reach USD $254.3 billion by 2027.

This staggering growth of economic activity across multiple regions indicates that logistics and fulfilment cycles are becoming more efficient in previously underserved areas.

Therefore, to grasp the best opportunities, researching products that may be new to international audiences or established marketplace sites may be a wise investment. Likewise, partnering with leading fulfilment companies in your target market will ensure customers get their deliveries on time.

4. Marketing for global audiences

A 2022 survey conducted by Meta and YouGov found that attitudes towards cross-border e-commerce brands are overwhelmingly positive. The majority of online shoppers (82%) are open to purchasing from international sellers, citing access to a wider selection of products and favourable prices as key reasons to try out overseas brands.

The same study also found that 63% of online shoppers wish to see comprehensive product information to help them make informed purchasing decisions. In response, investing in professional translation services from localised marketing agencies can help you tailor your e-commerce storefronts to suit international audience preferences.

5. Legal and compliance

Expanding internationally requires brands to adhere to local laws for collecting and importing goods – including tax registration and obtaining necessary permits.

To help with this, seek out third-party import/export custom agents that can help calculate rates and meet your compliance needs when shipping to countries globally.

International payments and pricing

Ensuring a seamless online shopping experience is vital to your international expansion project’s success.

79% of e-commerce shoppers prefer to see prices listed in their home currency. With WorldFirst, your international customers can pay in over 60 currencies directly through your e-commerce storefront and 60 of the world’s top marketplaces. 

Here is how a free-to-open World Account from WorldFirst can benefit your business:

1. International payment solutions

Traditional banking systems, designed primarily for larger corporations, often come with extended transaction times, making them less suitable for small businesses.

For instance, international payments via SWIFT can take up to five days to clear. Consequently, long payment delays can hinder your ability as a seller to access early payment discounts from suppliers, which may be crucial in helping you maintain good profit margins.

In contrast, WorldFirst offers a streamlined solution for businesses of all sizes, ensuring fast and secure international transactions. You don't need to register with an overseas bank to send and receive international payments with us; you can open a free account from the comfort of your home computer.

2. Controlling multi-currency payment costs

Hidden costs in multi-currency payments, such as minimum deposit fees and account subscriptions, can significantly impact a business's bottom line. Banks often charge a high margin on exchanges, which can be over 5%, leading to substantial losses even before the payment is sent.

WorldFirst, on the other hand, offers transparent pricing, meaning that you will always know your exact currency exchange costs before the transaction goes ahead. Plus, if your supplier also has a World Account, you can send same-currency payments with zero transaction fees, helping you save even more money.

Shopify Plus and marketplace sellers can also save approximately 1% of FX costs by integrating WorldFirst with their e-commerce storefront. We track live FX rates to ensure our exchange fees are competitive, helping  you keep control of your e-commerce costs.