7 golden rules for international e-commerce expansion

The wind was good and it turned into a real headwind. For business owners, this show must go on in 2024. Although we still have to pay the same bills, tough macroeconomic conditions are forcing us to consider other avenues to grow, regenerate, or survive. Therefore, international expansion is also on the horizon. Australians want to explore the world. We are great travelers and great exporters. With a population of less than 30 million people, it's natural for ambitious business owners to want to expand their horizons and especially want a piece of the US pie. However, if your e-commerce business aims to expand globally, there are some things to consider. Here are some timely reminders for those looking to expand internationally in 2024. 1. Wait for organic traction – no need to rush Entering a global market without a solid plan? This is my recipe for burning cash faster than I burn a Christmas roast. If you're not making $5,000 to $10,000 a month in a foreign market with no media spending, it's time to slow down. The good news is in the journey, and natural traction is the golden ticket. If you create buzz around your brand without trying too hard, success will follow. In other words, follow your customers and always expand on your strengths. If his monthly income in the US is less than $5,000, suddenly increasing his advertising spending on Facebook won't work. 2. Accept local currencies and payments If you want to sell internationally, use foreign currencies. If you use Shopify, it's as easy as switching to Shopify Markets. Don't have it on Shopify? No need to worry. You can piggyback on a service provider like Reach and use white-label banking services to process transactions just like a local entity. Airwallex is also a great option for receiving payments in other currencies without having to set up a bank account overseas. 3. Calculate International Pricing Correctly Make sure your pricing is not lost during translation. Changing the currency symbol often doesn't work. Consider rounding up taxes and duties and converting prices to a new currency. If Australia's sales tax is 10% and UK sales tax is 20%, consider converting from AUD to GBP and rounding up to account for the additional tax. This is probably the fairest approach. A confused customer is not a satisfied customer. Another consideration is where your product or brand sits in the market. If the method above results in uncompetitive pricing, you may need to cut your margins a bit to gain traction in new markets. 4. Fast and affordable shipping is the real MVP. Remember, you are now competing with local sellers, not Australian sellers. If you want to compete, you need fast, reliable, and economical shipping options. It doesn't have to be free, but it has to be competitive. Aggregate Co is your go-to service for solving your international shipping problems. 5. Easy returns and keep repeat business It's cool to place orders like a boss, but don't forget the return party. Make it easier for your customers. Use local returns hubs or his 3PL wizards such as Loop Returns for processing. No one wants to ship items across the country or wait forever for returns to be processed. A poor return experience will reduce repeat purchase rates. 6. Tackling Taxes and Tariffs Taxes and tariffs aren't all that fun. Very few people know the rules. Planning to go to the US? Enjoy state-based sales tax! Shopify Markets provides a basic solution that not only allows you to collect taxes, but also allows you to start paying taxes in certain US states. It also provides useful notifications and reminders when you need to. Collecting taxes is easy, but paying taxes is difficult. Now consider using Avalara to simplify your end-to-end process. 7. Target native languages ​​first It's much easier to sell in countries where your customers speak the same language as you. Dealing with a new country that requires translation can be a daunting task. In addition to translating your website, you also need to consider the appeal of advertising and social media in countries where people don't speak the same language. Going global is hard enough. Focus on where you feel comfortable chatting with your customers. It's not uncommon to see terrible conversion rates in new markets. Language issues can make it worse. We see many brands rushing to sell overseas by building new websites with new domains targeting each market without really knowing why. But be careful. Forced international expansion can result in long-term losses. If you're trying to enter a new market and don't have existing organic traction, you can run into some problems. It is important to understand that although it has become easier than before, it is still not always easy. Finally, if you are an Australian business with annual sales of $2-3 million in your home market, there may be untapped potential in your home country. Before jumping into a new pool, focus on breaking through the ceiling locally. I strongly believe in strengthening weaknesses and developing strengths in business. In other words, if your domestic market is strongest, you should exploit its full potential before complicating matters. This article first appeared in his February 2024 issue of Inside Retail Australia magazine.