Cross-border organizations are complex as well as exciting structures for the growth of cross border e-commerce initiatives. Often, every online vendor wants to expand its enterprise by turning to the right markets. However, in order to achieve this, it is necessary to create the right strategy, follow the trends, and read the market well.
First Step for Cross Border E-commerce Strategy
Understanding the market and identifying opportunities is the first and foremost move to build the right growth strategy. When you look at the market, you can see that last year, the ratio of e-commerce sales to all retail sales worldwide is more than 7%. This figure heralds a tremendous growth opportunity. Because e-commerce is developing, and you are in the best time to move it to an international arena.
You can also observe that the global trend in payment around the world is shifting from cash to electronic payment methods. In areas such as North America, Europe, and South Korea, the use of cash has declined considerably. Considering this and similar data, we can acknowledge that cross-border e-commerce is growing faster and is more profitable than domestic e-commerce. Of course, finding opportunities in the market does not mean finding a solution to the problems since cross-border e-commerce contains complex structures such as regulations and payment methods.
Consumer Trust is Your Priority
Every consumer wants to make sure their money is in the safe hands before the transaction is completed. The decrease in trust means the instant termination of the shopping. Therefore, providing consumers with payment methods that are widely used and reliable in the local market is primary. Thus, customers feel safe, and the rate of their revisit increases. Besides, one of the most important points to remember is that you should always focus on improving the consumer experience. As technology evolves, consumers always expect better from you because they are used to faster and easier transactions. If you cannot provide this, they can easily give up on you. If you want to be indispensable, you should take leaps per the trends to improve the consumer experience.
Local payment culture and preferences also play a significant role in choosing a payment method. For example, credit cards, debit cards, and PayPal are used mainly in the USA, while Qiwi, Yandex, and WebMoney eWallets are highly preferred in Russia. These user habits vary in many geographies, from China to Brazil. Therefore, before entering the market for successful growth, it is necessary to understand the consumer dynamics in that market in the best way. Of course, the legal requirements of the market they will enter are also fundamental. When optimizing operations and costs, you need to make sure that you meet all of the responsibilities to appear safe to the consumer.
Read the Future of E-Commerce
The model projected for the future of e-commerce and cross border e-commerce has a multi-channel structure. This means an integrated and uninterrupted consumer experience. Successful analysis of preferences and behaviors at the points where customers contact brands are the right way to extend them much better offers. In particular, the Y generation has become the dominant consumer of the digital world, and this has enabled the business to develop in a social dimension. E-commerce has also been affected by the people’s needs to express their ideas, and their desires, to show their likes or problems, to share their comments. For this reason, online-based socialization-oriented interactions are of great importance for brands. Of course, the most important data are positive comments and hassle-free customer experiences.
This development will lead in the near future to the emergence of multi-channel solutions for more advanced user experience and a shift towards social commerce. At the moment, “buy buttons” and payable chatbots, which are experimented on social media, aim to encourage people to buy while they are in their social environment.
Things to Remember While Preparing Cross-Border E-Commerce Strategy and Action Plan
- In order to ensure the trust of your customers, it is necessary for you to convey towards payment methods that are commonly used in the relevant market.
- It is important to identify local regulatory requirements for cross-border sales.
- Local trends that meet consumer expectations should be followed.
- You should observe customer habits and experiences between regions.
- It is crucial to read the future of social e-commerce well and make the right moves accordingly.
- It is essential to realize that a successful cross-border e-commerce move is far beyond providing good products and services.
Why Cross-Border E-Commerce?
In recent years, people have started to make purchases by facing cross-border markets because they cannot find some products in the local markets. This kind of purchase, which has a considerable rate, will increase its share more in the coming years. At this point, as well as the importance of cross-border e-commerce for sellers is considerable, it also exhibits various risks. It is also critical that actors of cross-border e-commerce work with consultants in order to make the right moves and take advantage of this bright future. Thus, it is possible to be prepared for transportation, delivery, tax system, tax management, product management, and possible risks.
Although the global expansion of the actors of cross-border e-commerce may seem like a handicap for handling products and managing the organization correctly, you can build this complex structure correctly right from the start and run a well-functioning system without disruption. There is a great opportunity in the global market for profitability and growth, especially for sellers who want to do cross-border e-commerce. Benefiting from this opportunity requires grasping the system and taking firm steps accordingly, rather than fearing complex systems. Thus, sellers can easily reach the acceleration they could not catch in the domestic market in the right markets, and with the right target audience.
A global environment where many people are online, open to digital access, and can reach far more than they expect, is as important to the customers as it is to the sellers. With the increase in the use of mobile devices during recent years, together with the escalation in the use of the internet, the purchases made online became natural and easy. This situation requires that consumers, as well as the sellers, to be at the right place, at the right moment. In addition, the promising structure of social media supports continuous consumption during the day and has advantages for cross-border brands who want to enter the local market.
Remove Obstacles for Consumers in their Decision Making on Cross-Border E-Commerce
Shopping from a new and cross-border brand can sometimes be challenging for consumers. In this case, you should determine the possibilities preventing purchases while you are designing your cross-border e-commerce strategy and action plan and make your moves accordingly. For example; you should act according to the local pricing.
Consumers always want to see product prices in their currencies. In addition, providing accurate information to the consumer about taxes and duties and clearly specifying the amount they need to pay encourages consumers to shop from you. You must provide safe payment methods to consumers in accordance with the dynamics of the market you entered. This creates the feeling that you are not a foreign entrepreneur in that region, but a global brand that is aware of the dynamics of that region. In addition, one of the most important issues you should consider in cross-border e-commerce is shipping, delivery, and returns.
Although international shipping is an expensive method, you should keep in mind that your customers expect free delivery or cheap delivery from you. They will expect fast delivery from your side as they do when they shop from local brands. If you cannot provide them with these, your chances are low in the market. Therefore, designing an international logistics plan is essential. You should not forget to show with your moves that you speak the same language with them to ensure the trust of the consumers. If you show that you understand the consumer, that you prepare yourself with a complete cross border e-commerce strategy and action plan and present your product in the most accurate way, great opportunities will be waiting for you across the border.