Global Expansion eCommerce Tools and Strategies for International Sales

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ecommercebreadcrumb separatorinternational marketplacebreadcrumb separatora complete guide to international ecommerce expansion and challenges
Updated December 13, 2024

Discovering & Overcoming The Challenges of Expansion

International eCommerce is an excellent opportunity for businesses as it allows you to scale your company to new markets. You can utilize the same formulas that work for you currently and replicate them to new territory. However, despite all the benefits, there are also a lot of risks involved.

In this guide, we have put together everything you need to know when expanding your eCommerce business.

Logistics Management

The biggest challenge most businesses face during their international eCommerce expansion efforts is logistics management and setting up a seamless distribution network. However, if a robust distribution network with international locations already exists, all you need to do is integrate it into your new markets. Begin with formulating a plan to scale those locations. Increase the capacity as the volume of orders increases.

Distribution Partners & integrations

In a lot of cases, businesses do not have a distribution network at all. Some countries don’t have the required logistical capability. So, what they can do is partner with different distribution centers. These can store inventory on-site. They may also integrate with these distribution centers, their applications, warehouse management systems, and their shipping notification systems.

The above integration will allow businesses to keep track of the inventory. Integrating to the distribution centers' systems will also ensure that the ‘inventory values’ in your eCommerce website or application are up to date. Ultimately, it will give real-time data to the end-user about whether or not an item is in stock. It will ensure customers do not accidentally purchase something that is out of stock.

One massive benefit of partnering with distribution centers is that they reduce the overhead expenses that come with a dedicated location. You also do not have to worry about the local regulations and requirements that concern owning such a utility. Not to forget, the hassle of logistics involved in finding and enabling a location from scratch.

Setting up a distribution network in a region this way will ensure the initial overhead is minimum. You can figure out the new market without taking any considerable risks. Ultimately, it will allow you to grow your business to a new market organically. In fact, a significant benefit of international eCommerce is that you can utilize organic marketing and digital marketing efforts to scale your business to new markets.

Dedicated Distribution Centers

Once you start getting an increased volume of orders, it would be a good idea to get a physical location dedicated to your business. Having company-owned distribution centers is definitely going to be more beneficial than working with distribution partners in the longer run.

Since distribution partners charge a monthly fee, take a margin out of each transaction, or take some form of compensation, it reduces the overall profitability.

Whenever a specific market starts performing well - sales and profit-wise, it is advisable to go for your own dedicated distribution center. This way, you can achieve economies of scale by increasing the size and efficiency of the production process. Also, you would eliminate the need for a middleman, which will result in more revenue.

Adaptable eCommerce Architecture

While evaluating the various global eCommerce systems and your own business growth; here are some of the questions and considerations you will need to keep in mind:

  • How capable is your International eCommerce system?
  • Is it possible for your global eCommerce system to adapt to different kinds of scenarios, for instance?
  • Can your system handle the different types or versions of software your partners might have for inventory and warehouse management?
  • Does the company you are working with have any previous experience in managing that kind of logistics with their clients?
  • Do they have the capability to handle that amount of data?

They might have a punchout catalog system, a cXML protocol, etc. for orders. Maybe they utilize EDI in eCommerce. Therefore, it is essential to know the type of APIs (Application Programming Interfaces) and integrations used by your various distribution partners. So, once you decide to get dedicated company-owned physical locations, the transition will be seamless for your system as well.

This includes different inventory information, different physical locations, separate shipments, shipping times, and shipment carriers depending on the region, different pricing, etc. As you might expect, the list is endless.

There are many detailed and complex nuances to keep in mind when choosing an eCommerce system, especially an international one. Since it is globalized, a lot of customs, duties, and distribution bottlenecks and challenges are bound to occur.

Fortunately, having a distribution partner when you are starting really helps iron out a lot of those details. Once everything is set, carefully monitor how your distribution partner handles things. When it makes sense to scale into that particular market, it would be a good idea to get a company-owned distribution center.

To execute your software and digital strategy, you may work with international eCommerce developers like Clarity. It will allow you to integrate seamlessly into the new system and carry out your international eCommerce business as desired.

Clarity International eCommerce Experts

When you are starting out, it can definitely be more beneficial to partner with a distribution center. We encourage you to look for distribution partners if you want to expand your international eCommerce business. It is potentially less risky, and there are lower odds of failure.

To be clear, lower odds are merely an uncertainty whether a thriving market exists in a location or not. Once you get market validation and find a successful market, you can gauge whether it is a good idea to set up a dedication location there.

Make sure there is enough margin capability and demand before phasing into a dedicated, company-owned physical location. Once you do that and there is no middleman involved, the profitability of your business will increase.

If you have any questions, you may get in touch with the friendly and knowledgeable experts at Clarity. We will be happy to provide you a complimentary consultation and answer any query related to international eCommerce systems.

FAQ

 

Key eCommerce tools for global expansion include platforms for international payments (e.g., PayPal, Stripe, and WorldPay), shipping solutions (like DHL, FedEx, and ShipStation), and localization tools for language translation and currency conversion.

Additionally, customer relationship management (CRM) software like HubSpot or Salesforce can help maintain personalized connections across regions. Tools for global SEO, such as Semrush or Ahrefs, can optimize visibility in different markets.

Finally, international eCommerce platforms like Shopify, BigCommerce, or Magento offer built-in features for multilingual support, regional tax calculations, and global storefront management.

 

Businesses should focus on localization, which involves tailoring website content, design, and functionality to suit specific regions. Start by offering multi-language support and displaying prices in local currencies. Incorporate culturally relevant imagery and messaging, and ensure mobile responsiveness since many international customers shop via mobile devices.

Provide regional payment options and clearly state shipping and return policies for each market. Partnering with local experts or agencies can also help fine-tune the website to meet cultural expectations and legal requirements.

 

Optimizing shipping for international sales begins with partnering with reliable carriers that offer global coverage. Offer multiple shipping options, including express and standard, to cater to customer preferences. Use tools like ShipStation or Easyship to automate shipping processes and provide accurate shipping rate estimates. Clearly communicate delivery times and costs to customers upfront.

Also, consider local warehousing solutions in key markets to reduce shipping costs and delivery times. Lastly, be mindful of customs regulations and taxes to ensure seamless cross-border delivery.

 

Handling international taxes requires staying updated on the tax laws of each target market. Tools like Avalara or TaxJar can automate tax calculation and filing for different regions. Register for tax identification numbers in regions where it’s legally required, such as VAT in the European Union. Display all applicable taxes clearly during checkout to avoid surprises for customers.

It’s also essential to comply with import/export regulations and customs requirements, which may vary by country. Consulting with legal experts or tax professionals experienced in international trade is highly recommended.

 

Marketing plays a pivotal role in engaging international audiences. Start by conducting market research to understand the preferences, needs, and shopping behaviors of customers in each region. Tailor marketing campaigns for specific regions by using culturally relevant messaging, visuals, and promotions.

Leverage social media platforms that are popular in target markets, such as WeChat in China or WhatsApp in certain regions. Invest in global SEO strategies to rank in local search engines and collaborate with local influencers to build trust and credibility. Consistent, localized marketing ensures better brand recognition and customer loyalty across borders.

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