If you are considering international expansion, do it now
Simply put — beyond international expansion being a great way to expand revenue, it is a great way to help future-proof your business.
As the cost of Facebook ads increases in countries like the United States, Canada, and Australia, other countries continue to remain very affordable, especially places like Asia. By opening up your targeting to foreign countries, you can often find media arbitrage opportunities, where your cost to acquire a customer is much lower.
By figuring this out now, you can identify opportunities to adapt as media costs rise and you can identify opportunities to become more efficient in your fulfillment and conversion, i.e. currency localization, over time.
— ERIC CARLSON, CO-FOUNDER
I recommend that you take the time to develop a strategy for cross-border selling
You should identify and leverage the right channels and tap into the right foreign markets to promote your products.
- Which of your products are in demand in foreign markets?
- Which ecommerce platforms do people shop from in your target country?
- Who are your competitors there?
- Will you be able to ship to those countries?
- And more!
All of these will help you understand and plan a robust marketing strategy.
— SHANE BARKER, DIGITAL STRATEGIST, BRAND AND INFLUENCER CONSULTANT, SHANE BARKER CONSULTING
Talk to people who live in the country to learn customs, language, and business nuances while you are still in the planning stages
Work with trusted ‘cultural translators’ to avoid big mishaps. Chevy introduced Nova in Mexico which translates as ‘doesn’t run/work.’ A German chocolate manufacturer introduced its own brand here called ‘Zit.’ Get the picture?”
— MIKE WITTENSTEIN, MANAGING PARTNER, STORYMINERS
Keep each culture and their unique business best practices in mind when developing your marketing strategy
What might be perceived as comical/commonplace in one country, may not translate well in another. The last thing you’d want to do is turn off a prospective customer.
— JESSICA LAGO, MANAGER OF MARKETING & PARTNERSHIPS, IMEDIA
It is critical to ensure your payment methods match the local culture
You need to understand how each country likes to pay for things online. For example, did you know that many online shoppers in Japan pay using a service where they don’t pay online, but take a reference number obtained after checkout to their local convenience store and pay cash to the cashier to complete their purchase?
It seems crazy to us Americans, but it is normal in Japan.
— JUSTIN EMOND, CEO, THIRD & GROVE
All cultures have different drivers to get them to purchase something
It isn’t just about having the technology and infrastructure to sell across borders. Make sure you understand the consumer as well.
— ERIK HUBERMAN, FOUNDER AND CEO, HAWKE MEDIA
Understand the differences in consumer behavior within a local market
Starting up in an additional country for many brands is simple, but understanding buying behaviors for consumers in that country (split-payments in South America, COD in the Middle East, detailed product specs in the Far East, etc.) can be the difference between tiny sub 1% growth and step change difference in expansion revenue.
— ADAM GROHS, CO-FOUNDER/CEO, PARTICULAR
Understand the market you’re about to enter!
It's a mistake is to think that the way you market in America will work in Australia or the UK, for example — let alone in France or China! You must understand the culture and what makes it tick before you embark on that expansion. So, word of advice: look at your number-one country by revenue outside where you reside and target that first. However, don’t forget to do TONS of research first.
— ELIE MAALOULY, RANDEM GROUP
Recruit an expert in each country - someone who understands the local market and can build your profile there
Depending on the type of products you sell, this may be a distributor, an affiliate, or an employee. They will be responsible for tailoring your brand to the local market and showing local people that your products are relevant to them. Your expert can also help with translations and advise on any local legislation or tax rules that may affect you.”
— KATIE KEITH, CO-FOUNDER, BARN2 WORDPRESS PLUGINS
Make sure your website domain is optimized for multiple locations before launch or expansion!
This seems like a very simple task, but in reality, it often requires a fair amount of work. Ensure that local SEO and keyword targeting has been considered, pricing structures are set to the correct currency and — when appropriate — smart content is utilized to showcase geographic-specific information or products for users with certain IP addresses only.
— ABBY THOMPSON, DIRECTOR OF MARKETING, SALTED STONE
First and foremost, make sure your infrastructure is set up to support international expansion before you start advertising in new markets
Do you show pricing in international currencies? Do you have affordable shipping options that are clearly explained, while also considering duty charges? Do you have proper translations in place? Once your user experience is optimized to accommodate your audience in a new market, you can start advertising in those regions.
— COREY DUBEAU, VP MARKETING, NORTHERN COMMERCE
Make your website as appealing to cross-border customers as possible, but only if you can follow this through all stages of the customer journey
For example, it’s a great idea to make your website multilingual — but only if you can also support customers in their own language. It’s also a great idea to provide free or affordable shipping for overseas customers — but only if you’re also willing to make it affordable for them to return items to you.
— KATIE KEITH, CO-FOUNDER, BARN2 WORDPRESS PLUGINS
Focus on how people pay locally in your market
If you can’t offer the payment methods that are the most common, most trusted, and most useful to the market you are entering, you should reconsider entering that market. Payments must be localized.
— JUSTIN EMOND, CEO, THIRD & GROVE
Make sure you understand the post-sale issues that can arise from international sales
This is absolutely key when returns can easily wipe out any margin. There are many reasons why you may have to arrange a return, ranging from the wrong item being sent out, to the customer misunderstanding the features of the item due to language or cultural differences (for example, a cappuccino cup in Italy is much much smaller than a cappuccino cup in the UK), to customers not wanting to pay any customs duty due on the order.
You may end up refunding the order and not justifying the return of the item due to costs - just make sure you use every problem you encounter to improve your website and service.
— LUIGI MOCCIA, FOUNDER, CALASHOCK
Create the largest digital footprint possible through Google, Facebook, Instagram, and other social platforms
You have to build a loyal following.
— LON SAFKO, CEO, INNOVATIVE THINKING, SAFKO
A lot of the organic reach you’ve built won’t translate outside the US
You’ll need to reinvest in digital marketing for international Google results.
— JOE CHILSON, HEAD WRITER AND PROJECT MANAGER, 1DIGITAL AGENCY
Consider your current customer acquisition channels and then analyze how well they may work out when internationalized
So, if your primary acquisition channel is SEO, different regions will have different ways of describing products, different buying processes and information requisites, and differing levels of search volume (even if the different regions speak the same language, this could be the case).
Before you plan an international roll-out, try to model your demand given your current acquisition channels and what you can feasibly expect by rolling out internationally in certain regions (and also model the costs associated with localizing content and products).
— ALEX BIRKETT, SR. GROWTH MARKETING MANAGER, HUBSPOT
The logistics and technology are not your largest problem in international expansion
Your largest problem in international expansion is building an engaged community in a market that may not know of your brand - yet. Lead with community building and engagement campaigns. Prove that you can gain the attention of prospective shoppers. Then monetize that audience.
— STEVE DECKERT, CO-FOUNDER, SMILE.IO
Understand the new market, your new competitors in each space and ensure you have a go-to- market strategy unique to user behavior and values in each region
— TALAR MALAKIAN, BUSINESS UNIT DIRECTOR, SALTED STONE
Test test test
Leverage local marketplaces initially to assess demand and don’t be afraid to pull the pin in a market if it is not meeting your targets or strategic objectives.
— JASON GREENWOOD, ECOMMERCE MANAGER, HEALTHPOST
Assuming you’re already using a unified FBA-stocked Amazon account to sell into all of Europe, and that you have been set up properly, are brand registered, have good content, and have pricing set up properly so VAT is built into your offer, then we recommend that you leverage advertising
The European market is less saturated with sophisticated Amazon sellers and your advertising dollars will return a bigger bang for each buck. Whereas the U.S. market has become much more mature and CPCs are rising YoY and MoM, there are many categories/subcategories where no Headline Ads (Sponsored Brands) appear.
That alone should demonstrate the ability sellers and brands have to leverage the entire suite of Amazon advertising tools to propel their products and gain paid and subsequent organic dominance in those markets.
— JOSEPH HANSEN, FOUNDER, BUYBOX EXPERTS
Ready for more? Explore other critical topics, such as international shipping, and selling in some of the world's largest markets like China and Germany, with a free download of the International Selling Guide.