Do you understand consumer expectations in your chosen region – and can you meet them?

Consumer expectations differ widely depending on region. Shoppers in certain countries won’t look twice at you unless you can offer quick delivery and free returns, whilst others insist on payment by invoice. Don’t assume that the service you provide at home will meet the needs of international consumers. Take the time to research the customer expectations in your chosen region, and think about whether you’ll be able to deliver on them. For example, consumers in the US take returns particularly seriously. In fact, 66% of US consumers will check out a returns policy before deciding whether to buy. And in Germany, a third of consumers said delivery times, costs and expensive returns were barriers to purchasing – and 40% of respondents who abandoned an online purchase said the cost of delivery was too high.

If you want to sell into the Netherlands, the ease and speed of your website is a big issue, as only 17% of Dutch consumers would consider returning to your site if it’s too slow in loading. In Germany consumers are more forgiving – 48% of consumers would come back.

If China’s on your radar, then be aware that there are vastly different marketplaces to navigate and a different social landscape to consider. Some 90% of Chinese e-commerce transactions occur on marketplaces like Alibaba, Tmall and Taobao, so these can be invaluable channels when trying to attract Chinese consumers. Additionally, China is a nation of mobile shoppers, with m-commerce expected to account for 71.5% of total retail e-commerce sales in the region by 2019. Marketplaces are optimised for mobile selling, so by choosing to list on these channels, retailers will be able to capture mobile consumers without needing to invest in mobile optimisation.

Have you checked out your fulfilment options?

Fulfilment can seem a huge hurdle when you’re new to selling abroad, but help is at hand in the form of marketplace programmes such as Fulfilment by Amazon (FBA) and eBay’s Global Shipping Programme (GSP). Both are designed to offer you a fast and stress-free route to selling in a large number of countries.

Where FBA or GSP aren’t available, or if you simply want to go it alone, find a reliable logistics partner with an in-depth knowledge of the country you’re targeting. Don’t come undone by not factoring in time differences and languages – make sure your carrier understands the address to deliver to! Shipping rates, measurements and weights all need to be converted, too.

When you’re starting out, try sending lighter, higher margin products to keep postage costs down until you’re sure-footed in the region – then expand your inventory further.

Do you know how to localise?

From customer services to listings, you need to work out how to interact with locals. Without sufficient localisation (and that means much more than just translation), your items won’t get much traction in new markets.

Set the tone by investing in professional translations rather than relying on free tools like Google Translate, because getting the message wrong could be costly. This particularly applies if you’re considering selling to China, where returns policies and fulfilment have to be crystal clear if you don’t want to run into legal difficulties.

Don’t forget to make sure your branding and product names work well abroad, too. You could inadvertently be offending consumers in other cultures. Localise product names to ensure they get picked up, and consider differing sizing requirements (for example, a size 6 shoe in the UK is a size 7 in the US).

Be aware of local time zones if you’re taking on customer service yourself. Don’t leave customers waiting for a response. Using Amazon’s FBA takes away a lot of the strain when it comes to localisation; Amazon can help with customer service as well as delivery and returns – in the language local to your buyers.

Can you offer the right payment options?

While many international shoppers have credit cards and use PayPal, consumers in certain markets prefer other methods. In China, Alipay is one of the top payment platforms, with 69.9% share of the Chinese mobile payment market.

On the other hand, 58% of Germans like to pay for goods after ordering through invoice,8 while 57% of Polish consumers pay cash on delivery.

These payment options are all vastly different from preferences in the UK – are you equipped to cater to them? Not offering locally trusted and preferred payment methods can cost you up to 50% of sales.

Have you researched the legal requirements?

Tax can be a daunting subject when selling abroad, with each region having a distinct tax policy to get to grips with. The US has a particularly complex model, with each US state having its own tax rates, varying from 1% to 10%.

Be aware of selling thresholds, as well as tax requirements. In Australia, for example, you need to pay a goods and services tax (GST) on most goods if your turnover is over $75,000 (or $60,000 in New Zealand).

Even the EU presents challenges, as VAT thresholds and requirements vary by state. Take a read of our 10 VAT Mistakes to Avoid white paper to learn more about the varying thresholds and hurdles to be aware of when selling across Europe.

Do you know the marketplaces you should be listing on?

If you’re already listing on Amazon and eBay, a step to scaling your e-commerce sales could be to expand to new marketplaces. Consider popular local channels such as Trade Me, which is the biggest online marketplace in New Zealand, boasting close to 3.9 million members.11 Germany’s top marketplaces include MeinPaket.de, Zalando and Rakuten. In the US, top marketplaces to check out include Newegg, Sears and Jet.com. In China, Tmall Global invites foreign sellers to make the move into China by simplifying the process and reducing the costs.

Take the plunge

If you’ve done your homework and are familiar with all the points on our checklist, you’re well on your way to successful overseas expansion. Or perhaps you’ve identified areas you need to look at again? Take the time to get the foundations right and you’ll be able to expand with confidence, knowing that you have all the bases covered.