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W H I T E PA P E R

Expand your
E-commerce
Business
Internationally
The updated
ultimate guide
Expand your
E-commerce
Business
Internationally
The updated
ultimate guide
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

S u m m ary
Translation and Scaling

07
Localisation: Internationalisation

04
Key Facts, Figures How far do you go? / p.82
and E-commerce / p.24

01
A. Streamlining the Workflow
Trends / p.06 A. Preparing your Content
B. CAT Tools and Live
Translation Memory
B. Translation VS Content Creation
A. Global C. Post-Edited Machine Translation
C. Localising your Website
B. North America D. Plugins & API
D. Legal Considerations
C. Europe
D. Differences within Europe
E. ASEAN Countries Fundamentals Scaling Reach
F. Emerging Markets
of Cross-Border Through Distribution

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05
G. Examples of Good
Cross-Border Businesses
E-commerce / p.40 Channels / p.86
Drivers A. Choosing the Right
A. Marketplaces
B. Product Ads
Shipping Methods
and Barriers B. Packaging Choices
C. Comparison Shopping Engines
D. Paid Search
for Ordering C. Taxes and Duties

02
E. Retargeting
D. Returns and Refunds
F. Affiliate Platforms
Online / p.14 E. Certification and Customs
Restrictions
F. Global Warehousing
White Paper

09
G. Inventory Management
Getting the Contributors / p.90
03

Strategy Right / p.16 Country

06
A. Market Potential Guides / p.52 The Lengow /
B. Positioning Differences
Between Markets A. America E-Services Group
C. Identifying the Right B. Europe
/ TextMaster

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Marketing Channels C. ASEAN
D. Identifying Keywords D. Emerging Markets Partnership / p.92

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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

01 . KEY FACTS, FIGURES AND E-COMMERCE TRENDS


A. Global
eMarketer estimates that e-commerce will account for
14.6% of total worldwide retail sales, topping $4 trillion
by 2020.
RETAIL E-COMMERCE
01
Key Facts, SALES WORLDWIDE
According to Forrester, cross-border transactions will
outperform domestic transactions at a compound rate
of 17% between 2017 and 2022. 2015-2020
Figures and In 2016, the Asia Pacific region accounted for the
majority of e-commerce sales at 12.1%, followed by
Retail
e-commerce
% change % of total
retail sales

E-commerce
sales
Western Europe and North America at 8.3% and 8.1%,
respectively. China drives most of the sales in the

Trends
Asia-Pacific region, their e-commerce sales alone are
$1.548
projected to reach $1.9 trillion by 2019. Countries such

2015
25.5%
as the US, UK, Japan, and Germany will have more 7.4%
modest growth through 2019. A large portion of these
global transactions are happening on marketplaces. $1.915

2016
23.7%
In this chapter
DHL reports that by 2020, cross-border e-commerce 8.7%
will reach $900 billion. Today, when a business starts $2.352
to sell internationally, it boosts their sales by an

2017
A. Global 22.9%
average of 10% to 15%. 10%

B. North America Every day millions of purchases are being made online. $2.860

2018
In fact, according to DHL’s report, every seventh online 21.6%
C. Europe purchase is already conducted as a cross-border
11.5%

transaction. Among cross-border purchases, 20% $3.418


D. Differences within

2019
are worth over $200; which is higher than domestic 19.5%
Europe e-commerce markets. 13%

E. ASEAN Countries The UK Company ASOS was an early mover into $4.058

2020
18.7%
international markets. Today it has international sales
F. Emerging Markets representing over 40% of total online sales. Amazon
14.6%

also slowly moved into international markets, now


G. Examples of Good 40% of their sales are international.
Cross-Border
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Businesses
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

01 . KEY FACTS, FIGURES AND E-COMMERCE TRENDS


Asia
Pacific 12.1%

E-COMMERCE Western
Europe 8.3%

SHARE OF North
8.1%
TOTAL RETAIL America

SALES IN 2016,
Central &
Eastern Europe 3.4% C. Europe
BY REGION Latin
America 1.9% On a European scale, 84% of European consumers use
the internet and 55% make purchases on the internet.
Middle East
& Africa 1.8% E-commerce in Europe is growing exponentially,
particularly in the southern countries. The online retail
industry in Europe is expected to be worth €602 billion
at the end of 2017, which would mean e-commerce in
Europe will grow 14% compared to 2016.
Millions of international shoppers, particularly those B. North America Last year, e-commerce in Europe was worth €530
in emerging markets, search online for discounts or billion (while predictions said 509.9 billion), which was
items unavailable domestically. North America’s e-commerce market is not growing an increase of 15% compared to 2015.
as fast as Asia-Pacific’s, but North America remains The speed of this growth varies regionally across
A recent study from Piney Bowes found that 32% of one of the world’s most important e-commerce European markets. Western European countries
consumers make a cross-border purchase at least markets. According to eMarketer, retail e-commerce continue to lead the way as the largest markets for
once a month and 67% of consumers have made a sales in North America are forecasted to reach e-commerce, with the UK topping the list with about
cross-border purchase before. When you put those $423.34 billion with a 15.6% YoY growth. YoY growth 33% of European online sales.
numbers into play in a country with a large population will stay in double-digits until 2021. The driving
like China, you’re looking at numbers in the hundreds forces behind this are growing mobile commerce The share of consumers who shop online is highest
of millions. and strategic year-round product discounts from in mature e-commerce markets. For example, 87% of
merchants. m-commerce will account for 34% of total consumers in the UK order products online, in Denmark
Online shopping is prevalent globally whether it’s in- e-commerce sales in the US and 29% in Canada, and and Germany the shares are 84% and 82% respectively.
country or cross-border. While consumers shop more continues to grow as shoppers increasingly feel more In countries such as Romania, Macedonia and Bulgaria
frequently through domestic marketplaces and online comfortable buying via mobile. the share of online shoppers is lowest. But it’s wrong
retailers than their cross-border counterparts, there is to say that e-commerce isn’t growing in Central and
still strong growth in cross-border opportunities. Due to their large merchant base and overseas Eastern Europe. In Romania, online sales increased by
expansion, Amazon and eBay are still the leading 38%, while the e-commerce markets in Slovakia and
When it comes to consumers finding products to platforms that claim a lion’s share of all cross-border Estonia grew 35%. Ukraine saw a growth of 31%, and
purchase online, close to two-thirds use marketplaces. purchases in North America. Especially during Poland and Bulgaria both grew 25% last year.
Search engines were the second most common Amazon’s Prime Day, an annual one-day only global
channel for consumers to find new products this shopping event, when North America sees the most Last year, 33% of online shoppers in Europe purchased
year (43%), followed by consumers using a retailer’s cross-border mobile orders. abroad, with Luxembourg, Russia and Switzerland

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website to find new products (39%). (each over 60%) topping this list.
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

01 . KEY FACTS, FIGURES AND E-COMMERCE TRENDS


D. Differences
within Europe E. ASEAN Countries F. Emerging Markets
Only 22% (58 million) of the 264 million online Forrester report author Michelle Beeson says in her The largest and fastest growing e-commerce and India, the United Arab Emirates, and Brazil are
shoppers in Europe had bought online across their blog that currently, “Europe remains more of a series cross-border e-commerce markets are all in the Asia- countries with huge potential in joining the
borders in the last three months, according to a recent of national markets than a single market. There are Pacific region, with China being the leader. Higher e-commerce battleground. International merchants
survey from Forrester Research. countries with different red tape to contend with, internet penetration, increasing mobile usage, a rising and marketplaces see them as the next gold rush in
differing payment structures and marketing, and middle class, and improved delivery infrastructure are the sector. Brazil remains the largest e-commerce
Globally speaking, the US, the UK, Germany, shopping tastes that vary per country.” some of the triggers of this rapid growth. market in Latin America; India is the fastest growing
Scandinavia, the Netherlands and France are world While Germany and the UK receive a strong spotlight E-commerce sales represent 14.7% ($1.365 trillion) of e-commerce market in the world; the UAE with Saudi
leaders in the exporting of products sold online. in the cross-border e-commerce field, smaller markets, total retail sales in the Asia-Pacific region. eMarketer Arabia and Qatar together account for about 50% of
According to the Forrester report, the countries in such as Cyprus, Malta, Austria, Belgium, Switzerland estimates that number will reach $3.001 trillion and all e-commerce sales in Middle East.
Europe with strong potential for a quick and effective and Luxembourg, have a big role to play as well. These represent 2/3 of the global e-commerce share by 2021.
expansion are: Germany, Switzerland, Belgium, Ireland, countries had the highest cross-border penetration. China is the largest contributor to this market, and Still, e-commerce business is immature in these
the Netherlands, and the UK. The underlying reason for this is domestic availability, accounts for more than 50% of the sales with close countries compared to the other leading countries
which does not meet the needs and expectations of to 500 million digital buyers. It will continue to be the mentioned above. Slower e-commerce growth is
In Western Europe, the UK and Germany are the shoppers, who look beyond their borders instead. main support of the overall growth in the region. expected in the Middle East and Africa as online
most attractive destinations for cross-border online In general, Europeans prefer to buy from other EU shopping represents less than 2% of the region’s total
shoppers around the world. More than a quarter of all member states than buying from the rest of the world. Just as in North America, m-commerce will become retail sales. Issues such as consumers’ concerns about
orders from online retailers in the UK were shipped one of the key trends in the near future. Cross-border payment and data security, low payment approval
internationally last summer. In Germany, over half of sales are not as great as in Western countries, but rates, and inefficient delivery systems are the hurdles
online retailers were selling to more than one country ASEAN shoppers are starting to see the benefits of to overcome in order to better exploit these markets.
internationally. buying overseas. More and more shoppers will embrace
cross-border online shopping in coming years.
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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

01 . KEY FACTS, FIGURES AND E-COMMERCE TRENDS


What helped Amazon the most G. Examples of
was to take a local approach for Good Cross-Border
each country and adapt technology Businesses
features such as one-click checkout.
Everybody knows the story of at least two or three As far as vente-privee.com is concerned, Europe is
rapidly growing digital brands nowadays. Whether now the main growth focus. Founder Jacques-Antoine
it’s a German fashion online marketplace (Zalando), a Granjon has implemented a mix growth strategy, with
French private sales site (vente-privee) or the biggest both organic development with openings of offices in
web merchant (Amazon), they all have something in high-value markets such as Germany, Italy, the U.K.,
common: they have an e-commerce business selling and acquisition of leading competitors.
online across different countries.
The French company has acquired many of its
European revenues reached more than €21.6bn in 2016 European competitors in the last few years: Polish
for Amazon. The U.S. giant explains that it took years zlotewyprzedaze.pl, Belgian Vente-exclusive.com,
to build up its fulfilment and distribution network Spanish Privalia, Swiss eboutic.ch, Danish Designers &
in Europe. What helped the most in building this Friend. A strategy that allowed vente-privee to reach a
business was to take a local approach for each country €3 billion turnover in 2016 (50% increase compared to
and adapt technology features such as one-click the previous year).
checkout.
The previously mentioned figures and examples
The fastest growth for Zalando came outside of its core highlight the enormous opportunity that international
markets of Germany, Austria and Switzerland. In those cross-border sales represent.
countries, sales grew by 14.8% to €1.8 billion in 2016, The key now is to know how to enter these markets,
but web sales in the rest of Europe grew even faster, respecting the specificities of each country and
up 29.6% to €1.57 billion. “Zalando sells in 15 European consumers’ habits.
countries and has dedicated web development,
marketing and product buying teams for each market”,
says Robert Schütze, Zalando Country Manager for
the United Kingdom and Poland. “We are targeting all
of Europe because there’s a huge potential there, and
that’s how we scale our business,” he says.

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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

02. DRIVERS AND BARRIERS FOR ORDERING ONLINE


DRIVERS FOR BARRIERS TO
ORDERING ABROAD ORDERING ABROAD
(SHOP THE WORLD STUDY - DHL) (SHOP THE WORLD STUDY - DHL)

02 Emerging Industrialised
Long delivery times

Drivers and Barriers


economies countries (Europe)

Industrialised countries High delivery costs

for Ordering Online


(Americas and APAC)
Complicated return process

Fear of fraud
Products not
obtainable
domestically
Global online shoppers usually buy from There are also a variety of barriers, both
Customs clearance
foreign countries to find better product physical and psychological, that consumers
availability and prices. As they shop online face when shopping online abroad. Online
Lower prices Non-transparent costs
from these international websites, they retailers need to carefully manage these
expect the same services that they receive issues and adapt their offering to the needs
from local businesses. of their international consumers. Uncertain delivery
Greater
selection
According to the DHL study, businesses According to this same study, businesses Uncertainty regarding warranty terms,
payment process, legal situation, etc
should focus on making a deep analysis of should focus on reassuring their customers
their target markets in order to offer the about delivery, by being as transparent as
Higher quality of Unknown product quality
right product mix at a fair price. possible about shipping times and costs as the products
well as return policies.
Uncertainty with
problems
Assurance
against product
counterfeiting Concern about misuse
of payment data

Language problems

Concerns about
data protection

No demand because all


products are obtainable
locally
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A. The Market
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

03 . GETTING THE STRATEGY RIGHT


Potential
Before creating a strategy or a plan,
it is vital to select the right market(s)
for international expansion. Rather B. Positioning C. Identify
than spreading themselves too thin
over a variety of regions, it is best Differences the Right
for online retailers to optimise their
resources and target a few select Between Marketing
markets with the highest business
growth potential. Markets Channels
03 In some cases, it may be necessary When entering a new market, it is General or specialised, marketplaces

Getting the to create a need among potential


customers if the type of product
important to establish a position in
terms of value and pricing. In some
are becoming essential in the current
cross-border e-commerce landscape.

Strategy Right
is new to them. While quite a cases, a different position than in the The business volume generated via
challenging task, being in this home market may need to be taken. marketplaces now represents 28%
type of position can present big For example, pasta producer Barilla of the total business volume of the
opportunities and put online retailers is known as high end in France, while websites that host them. (Fevad
at a significant advantage given the in its home country of Italy it is seen study, 2017).
right momentum. as low end.
The strong traffic that marketplaces
attract offer a real opportunity for
online retailers to boost their bottom
lines. The relative ease of setting up
In this chapter on a marketplace lets online retailers
QUESTIONS gain visibility in a foreign market
TO CONSIDER without investing too much time or
Are there existing international customers? money. According to a recent study
A. The Market Potential If so, where do they come from?
by Forrester Consulting, 82% of the
Is there a demand for the products in this
new market?
world’s consumers have already
B. Positioning Differences shopped for products abroad, but
Who are the local competitors? How many
Between Markets and how strong are they? for the most part they prefer to buy
Is the retailer already known in the market? on global marketplaces with strong
C. Identifying the Right If not, what communication and acquisition reputations.
Marketing Channels channels can be used to quickly gain
customers and test the market?

D. Identifying Keywords
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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

03 . GETTING THE STRATEGY RIGHT


Despite having stringent
requirements, these platforms offer
the possibility for retailers to reach One of the main reasons that retailers
millions of potential clients. Amongst join marketplaces is because of their
the most popular marketplaces, you attractive business models. Most
can find pure players like Amazon or marketplaces charge €30 to €50 per
Ebay, as well as click and mortar like month to join, and then a commission
La FNAC, Tesco or El Corte Inglès. on sales that varies from 2.5% to dominant marketplaces in these
30% depending on the number of countries. In France, marketplaces Marketplaces offer retailers
strategic and financial advantages
Marketplaces offer retailers strategic sales and product categories. Unlike have a particularly important role
and financial advantages by helping price comparison sites, marketplaces with sites like RueDuCommerce,
them with their first steps in foreign
countries. They allow online retailers
don’t charge a few cents every time
shoppers are referred to merchant
Cdiscount, FNAC, La Redoute and
PriceMinister (Rakuten) are leaders by helping them with their first steps
to position their products in new
markets, get familiar with their target
sites and instead charge only when a
sale is made.
alongside Amazon.
in foreign countries.
countries’ trends and habits and test A good strategy is to start with
their offer while limiting the risks. Niche marketplaces are dominant global marketplaces in order to test
Even with occasionally high delivery in several national markets, such as different products in several markets.
costs, this remains a profitable option Asos in the UK and Zalando or Otto After this, online stores can try to be
as it allows retailers to get to know in Germany. In Spain and Italy, Privalia more selective and choose a vertical
the market before committing to and ePrice are very popular; however, marketplace to sell in a specific
developing their business there. Amazon and eBay remain the most country to focus on their audience.

5 MAJOR BENEFITS
OF MARKETPLACES
FOR RETAILERS
CONSUMER
BENEFITS Increase visibility

Reach new clients


Access a larger range of products
Develop business internationally
Compare prices more easily
Increase sales
Save time
Product stocking services/logistics
Find the best offers (e.g: Amazon FBA)

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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

03 . GETTING THE STRATEGY RIGHT


North and South America
GLOBAL AND GENERAL USA ARGENTINA BRAZIL CHILE MEXICO

MARKETPLACES

Europe
SALES 2016 SALES 2016 SALES 2016 SALES 2016
$136 Bn $23 Bn $10 Bn $7 Bn DENMARK FRANCE

2015 TO 2016 2015 TO 2016 2015 TO 2016 2015 TO 2016


+27 % +56 % +5 % +9.5 %

CLIENTS CLIENTS CLIENTS


GERMANY ITALY
310 M 454 M 167 M

NETHERLANDS POLAND RUSSIA SPAIN

SOME SPECIALISED AND


LOCAL MARKETPLACES
Asia/Oceania
SWEDEN SWITZERLAND UNITED KINGDOM

AUSTRALIA CHINA INDIA NEW ZEALAND

Africa
THAILAND JAPAN SINGAPORE SOUTH KOREA TAÏWAN
ALGERIA CAMEROON EGYPT IVORY COAST
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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

03 . GETTING THE STRATEGY RIGHT


3 STEPS FOR FINDING
THE RIGHT KEYWORDS
In order to hone in on the right keywords and to
D. Identifying build an optimised content strategy, it is important
to make a detailed analysis:
Keywords
A successful international expansion strategy
starts with a solid SEO foundation. Online retailers
1Translate your most-used keywords and their
variations in order to have the largest choice
need to carefully choose the relevant keywords for possible
local audiences for both their website and product
catalogue.

In an international context, keyword selection is


2Research the keywords used by local competitors
using tools like SEMRush or Google Keyword Tool
far more complex than a simple word-for-word
translation. Terminology differs from country to
country, even ones that speak the same language.
For example, if your online clothing store is selling
3Compare the popularity of your new list of
keywords and select the most relevant.
sweaters in the US, you may also rank highly for the
keyword “sweaters” in the UK. However, this will not
be very useful as “jumper” is the term that your local
UK customer is using to search online. Therefore,
keyword identification requires investing time and
effort into research and testing.

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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


A. Preparing your B. Translation VS
04
Translation Content Content Creation

& Localisation:
When organising the translation and localisation of Most e-commerce businesses use some form
your e-commerce site, think about all the different of content marketing to attract visitors to their
contents and means of communication that are website and engage them. An important step for an

How far do you go?


available to you. e-commerce site going global is to look at making the
content marketing multilingual, including blogs, white
No matter the method you choose to translate and papers, tutorials and videos. To do so, you can choose
localise your site, it is important to make a full website between 2 options to make content that is fresh and
audit to list all the elements that need to be translated relevant to local audiences.
and localised including:
When going global, it is vital to appear native language. The first step to adapting
as local as possible in order to truly your website and other communications Headers, footers and menus
connect with a local audience. A study for your target market(s) is to translate Texts 1ST OPTION
by Common Sense Advisory showed that or localise content, cultural and technical Text in images Translation
nearly 60% of online customers won’t details into your customers’ native Buttons, Forms, Popups, Error messages
shop from websites that are not in their language. URLs Some companies may have the time and budget to translate all of their
existing content into one or multiple languages. However, for those
Meta data like alt tags that do not have these kind of resources, the best course of action is
to analyse which pieces of content are the most popular and give the
highest ROI. It is important however, to ensure that it is a relevant piece
for local audiences. An extremely popular blog post about the Super
Bowl will have very little impact in countries where American football is
not a well-known sport.

In many cases, even if the content is relevant to the local market, a


translator will still adapt it by changing examples, expressions or cultural
In this chapter references.

2ND OPTION
A. Preparing your Content Content Creation
In cases where translating existing content would not be suitable for
B. Translation VS Content an international target market, the best option is multilingual content
creation. A local writer selects a popular topic in their market and writes
Creation a content piece that matches the brand voice and personality.
The difficulty with this approach is finding a local writer who can also
research trending topics and follow the brand’s direction. It is important
C. Localising your Website to consider how to manage the content strategy – centralising it from
the headquarters or giving local managers more autonomy.
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D. Legal Considerations
C. Localising
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


Key elements such as shipping information, return/ This goes hand in hand with translating automatic Payment Methods
refund policy, currencies and payment methods also emails, such as receipts and shipping confirmations,
your Website need to be localised. You’ll find more information on as they provide important information, like the return and Fraud
those on pages 27 to 31 and 41 to 50. policy or the scheduled delivery time.
Cultural Characteristics Payments are key to successful international
Customer Support It is important that your customer experience is always expansion. Many criteria have to be taken into account
Localisation goes beyond simple translation because coherent, and that the same language is used every like currencies, fraud and preferred payment methods:
it involves adapting the website to the local audience Communications step of the way.
with relevant information and writing style. The key Currency Dilemma: Use of local currencies has been
elements to localise are: Apart from their website content, companies are Technical Details confirmed to result in higher sales and is mandatory
often faced with real-time communications, such as for online retailers who want to sell on places
Vocabulary: It’s important to use the style, social media and customer support. There are two While localising content is crucial for winning the trust like Google Shopping. Online retailers should be
vocabulary, expressions and even slang of the target steps to customer support communications. First, of potential customers and increasing conversions, cautious when choosing the currency for European
market in order to resonate with them. It may also it is necessary to understand the message that the technical website localisation is important for gaining sales for example: they have the choice of using the
be useful to create a glossary. customer has sent (this is one of the few times that higher search engine rankings. The main aspects to Euro or a local currency. However, these two options
automatic translation can be used—lots of CRM consider regarding Search Engine Optimization are: involve different risks: using the Euro makes it easier
Contact Information: A local email, physical software even integrate it natively.) for shoppers to compare prices from one website
address and phone number should be listed so that Web Hosting: There has been little evidence so to another, which can be disadvantageous for
customers can easily get in contact without paying Then, a response must be sent (this should always be far to suggest that local web hosting has a real online retailers with significant price differences. On
international fees done by a human translator). Machine Translation can impact on ranking. The most important factor is the the other hand, using the local currency can carry
only be used to understand the message. It must not page load times, which are often best on American the risk of exchange rate fluctuations during an
Operating Hours: Having a local customer service be used to answer the client directly. It is crucial to hosting providers. economic crisis. Apple faced this problem in Russia
and sales team is best, but if operations are understand the type of message: when the Ruble experienced massive fluctuations,
centralised from one location, it is important to Domain Name Structure: While there is significant which resulted in the decision to stop selling
indicate the appropriate operating hours, taking into Is it a question? A complaint? debate between whether a subfolder (www. products on the Russian website.
account possible time zone differences. A potential partnership? company.com/fr) is better than a subdomain (fr.
A journalist interested in covering the company? company.com), it is generally accepted that a Payment Methods: Even though the European
Measurements: Sizes, weights and volumes should An emergency? localised top level domain (www.company.fr) does Union is trying to build a single digital market,
all be adapted to the local standards. have an impact on SEO. there are still significant differences in payment
Once you know what the email is about and how preferences in each member state. It is often
Holidays & Events: Marketing promotions should urgent it is, the response should be translated into the Search Engine Localisation: To ensure that search assumed that credit cards are the best and only
match the holidays and events that are popular in customer’s own language. With emails being the third engines display the correct versions of a website way to accept payment for online purchases – but
the target market. highest customer acquisition channel (according to a in their rankings, it is important to specify the this is only partly true. While it is the most popular
study by Custora), it is crucial to communicate with audience of the pages. This can be done in Google payment method worldwide (it dominated more
Seasons: This can have an enormous impact on customers in their native language in order to have the Webmaster Tools. than 50% of the market in most countries in 2016),
product catalogues and timing. A winter collection most compelling message possible. there are other payment methods that count in
in Canada will not have as much success when Backlinks: Backlinks are also a vital element that some countries.
launched at the same time in Australia... must be invested in. Backlinks from popular local
websites carry more weight than ones from other
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regions and languages.
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


Alternative Payment Methods: Alternative Preferred Online Payment Methods: see the table
payments can be defined as all payment solutions on the next double page Delivery Times
that do not involve credit cards, such as online
wallets (Bitcoin or PayPal for example) and bank Fraud: While consumers are fairly used to online and Options
transfers. It is essential for merchants to offer shopping, the fear of fraud still exists for many,
these alternatives in order to attract cross-border especially for overseas purchases. Online retailers Many e-commerce consumers are still disappointed
sales. Consumers generally prefer PayPal, but need to address this fear and instil a sense of with delivery and it poses a big challenge for online
local players are gaining popularity, such as iDeal trust in shoppers without degrading the shopping retailers. However, delivery offers a real opportunity
in the Netherlands, Sofort in Germany or Alipay in experience. As online shopping is increasing, the for online retailers to differentiate themselves,
China. If online retailers offer the right combination risk of online fraud is also growing and affecting as well as increase conversion rates and boost
of options for customers, this can lead to higher consumer behaviour. Recent reports have shown customer loyalty. Generally speaking, online shoppers
conversion rates and sales. Online retailers should that 62% of consumers who didn’t buy from prefer home delivery but each country has its own
also stay up to date with the latest innovations international online shops said that they were preferences. For example, click and collect (online
in payment methods as these often provide an hindered by the fear of fraud, such as stolen credit purchase followed by in-store pickup) is very popular
improved user experience while reducing costs for card details or misused personal data. Expectations in the UK, Germany and France, while delivery to the
online retailers. towards security can be quite different across workplace is more popular in Spain.
countries. As an example, in the UK, 40% of
Mobile Payment: As mobile shopping becomes the smartphone users do not purchase through the 66% of consumers choose the online store depending
norm in Europe, online retailers need to ensure that device because they don’t find it secure. This is less on the delivery options and 51% will not complete their
their payment methods are also mobile-friendly. A prevalent in Germany and Belgium, where only 25% order if these options aren’t satisfactory.
good way to do this can be to develop a custom feel this way. Retailers must clearly understand how
mobile app, which can also serve as an extra customers want to shop online and what type of 83% of consumers would like to see delivery options
distribution channel with a high reach potential. A security they expect. One solution for combatting directly on the product page; but few online retailers
successful mobile user experience involves a limited payment fraud is the use of 3D Secure payment offer this.
amount of scrolling, number of pages and steps security. On a global scale, the results of this
while shopping, especially during the payment solution have differed across countries and local As more and more customers expect same-day
process. Online retailers can use payment platforms preferences. The impact is positive on conversion delivery from online retailers in mature e-commerce
like Stripe or integrate solutions like Apple Pay, rates in Russia and India but judged quite negatively markets like the US, UK or Germany, it has become a
Android Pay or Alipay, in order to offer one-click- in France, Germany, Brazil, China and the USA where key issue. It is still considered a premium, paid option
buy options and to simplify the process, thereby the process increased shopping cart abandonment for online shoppers. Delivering orders on the same
increasing conversions. All these payment methods rates (especially on mobile). Online retailers must day has logistical implications, as retailers must have
are meant to achieve one goal: creating a seamless adapt their anti fraud strategy to every market the stock located near their customers. That is why
shopping experience that contributes to a successful based on the risks, the steps in the payment process the ship-from-store option can be a good solution for
international expansion strategy. and the type of payment method. retailers who want to offer same-day delivery.

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EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


PREFERRED PAYMENT METHODS
OF ONLINE SHOPPERS
GLOBAL EUROPE UNITED STATES CHINA

Credit cards Digital wallet (PayPal, Alipay) Credit card / Charge card Alipay

42 % 42 % 42 % 35 %
47 %
Electronic payment (PayPal if available) Visa / Mastercard Union Pay
Debit cards
39 % 35 % 22 %
16 %
Debit cards Domestic bank credit card / Debit card Tencent Finance
25 %
28 % 24 % 15 %
PayPal
Cash on delivery Bank transfer 99Bill
4%
23 % 21 % 12 % 8%
Bank transfers Cash-On-Delivery (COD) Not applicable China PnR

20 % 13 % 30 % 6%
Gift cards or vouchers Direct debit 4% YeePay

15 % 11 % 4%
Online travel
Mobile payment By invoice (and payment slip) sites Huanxun IPS

14 % 11 % 3%
Online shopping
Cryptocurrencies (Bitcoin) Stored value cards / Virtual card / e-money Others

3% 8% 2%
Other Payu

3% 4%
Voucher e-pay / Gift card from unique store or brand

4%
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C. Legal
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


Shopping and Shipping Worldwide: do not relate to the actual costs or a larger distance. In
The target Group in the International addition to the policy, sellers themselves are therefore
Considerations Online Shop expected to develop transparent and attractive
shipping cost models for their customers.
At Home in the World: Different language versions of a shop also depend on
which group a shop is targeting. Some customers are One must of course follow things through. Once you
Legally Secure your Shop Or does the shop also have to be optimized for pioneers in ordering from abroad, such as citizens of have decided to include a range of countries in the
international customers if the goods and services are Austria, Switzerland and China. Even if it is not quite delivery circle, potential customers must of course
for International Business to be presented to an international audience? delivery to the farthest corner of the Earth, taking know what it would cost to ship. Anyone who offers
small steps is not a problem. Decide exactly which goods to consumers in online trade must indicate
Online shops that ship exclusively within their home According to a study by the research institute ibi countries you want to supply and indicate them whether additional freight, delivery or shipping costs
country are becoming less and less popular. Given research, around half of the small and medium-sized centrally. This can be via a special button labelled or other costs are incurred. If this is the case, the
the constant growth of internationalisation, this is no companies surveyed have made adjustments to “Payment and Shipping” or some other, similarly amount of such costs shall be stated if these costs can
surprise. Not only is travelling to the farthest corner of their sites for activities abroad (e.g. content in other unique wording. reasonably be calculated in advance.
the world now possible, orders from other continents languages) in order to account for different conditions.
have also long been possible without any problems. From a legal point of view, however, there is no It is important to remember the central theme. And Although it may be possible to quantify the shipping
Technically… but is this also true legally? compelling need to do so. during the registration process, the destination costs for neighbouring countries or countries of one’s
country must be specified when entering the address. own continent, it is hardly possible for countries on
Legal issues are among the top barriers for cross- If an online shop is operated under a national domain There are often mistakes here, giving certain countries the other side of the world to do so. At the very least,
border e-commerce. Since many retailers are uncertain and is in their official language, no separate legal texts as options, but to which the merchant does not the European legislator has left a back door for sellers
about shipping even to neighbouring countries, selling in other languages are required even if the shop is send goods according to his payment and shipping and provided an exemption from the specification of
to the farthest corners of the world doesn’t even occur also aimed at foreign customers. This is very practical, conditions. Merchants should therefore adapt the shipping costs if the costs are “reasonably” not able
to some of them. Nevertheless, online retailers should considering that countless languages are spoken country selection in the registration form to the to be calculated. In cases where these costs cannot
not necessarily be afraid of foreign customers and around the world. However, for the language of the selection of countries actually supplied, in order to reasonably be calculated in advance, the seller must
foreign law. A harmonisation of the legal framework contract, sellers should include a rule according to avoid inadmissible contradictions. state the fact that such additional costs may be
on consumer rules for the sale of goods, services and which the “language of the contract” is recorded. incurred. However, at least for neighbouring countries,
digital content is in effect within the European Union. Mandatory Information: Shipping Costs the shipping costs can and should be determined
Beyond the borders of the EU and Europe, this is Translations are of course conceivable and possible and Payment Methods without any major effort. Remember: No transparency
not the case. But even outside the usual boundaries, for service reasons. However, traders should be very for your prospective customer equals no orders.
sellers should break these frontiers. careful here. Translating legal texts into another Only targeting domestic customers? That is not
language should be carefully considered. With enough for many sellers and does not consider ever- Online retailers shall therefore define which countries
Parlez-vous Français? Language in versions in different languages, inconsistencies or increasing globalization. However, cross-border trade they ship to, and what shipping costs or calculation
International Online Shops errors can easily arise, which can become fatal for isn’t yet functioning without hindrance. Customers methods they use to calculate orders from that
merchants in a legal dispute. Translations cannot are often confronted with high shipping costs when country. In order to avoid contradictions and errors,
In addition to Spanish, English is regarded as a world be provided without professional help. The above shopping abroad. Customers are discriminated the ordering process should also be checked
language, because English is understood on the other also applies to article descriptions. Since the article against in cross-border orders too, because those who accordingly. Send a test order and check whether
side of the world. But what about online shops? Is description also becomes an integral part of the purchase abroad often pay two to five times more for the appropriate shipping costs are calculated for the
a Spanish version sufficient for Spanish merchants contract, there must not be any contradictions delivery than when purchasing in their home country. selected country.
selling their clothing via a Spanish web domain? between the different languages. The higher costs cannot always be explained as they

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Incidentally: No concrete customs duties, taxes or Weigh carefully how long the delivery period has to An online retailer whose offers are also aimed at not exist. Merchants are therefore under no explicit
fees are to be communicated to the customer before be in order to guarantee delivery but not frighten the consumers abroad may use the clause “The law of obligation to indicate any taxes and fees incurred in
the order is placed. It is possible to point out that customer because of too long delivery times. XY country applies” in their GTC. A clause on the the case of shipping to other countries. Payment of
if the goods are delivered to non-EU countries, choice of the applicable law designating the law of customs duties is the responsibility of the consignee.
the customer may have to pay further customs By the way: When a consumer places an order, the state in which the seller is established is unfair Therefore, the customer shall not be notified of any
duties, taxes or fees to the relevant customs or tax the transport risk is borne by the seller until the only in so far as it causes a significant imbalance to specific customs duties, taxes or fees before the order
authorities. customer holds the parcel in their hands. This means the rights and obligations of the parties. Therefore is placed. However, it is possible to point out that,
in the case of international shipments, the risk of add an indication that more favourable national in some cases, further customs duties, taxes or fees
Similar to the shipping costs, payment methods must loss or damage must be borne to the very farthest provisions of the consumer are not impaired (so-called may have to be paid by the customer to the relevant
also be provided. As our experience shows, this is corner of the Earth. Therefore, consider taking out a advantageousness principle). customs or tax authorities.
something that many sellers forget. Consider: not special transport insurance policy. Even in the case
every payment method is available in every country. of a return shipment after exercising the consumer’s The following wording is possible for EU-traders: “If
right of withdrawal, the seller bears the risk if the the delivery is made to non-EU countries, further
In addition to the legal aspects, customer preferences shipment is lost or damaged during transport. customs duties, taxes or fees may have to be paid
EXAMPLE
also play a role. While something might be successful by the customer, however, not to the supplier, but
“Swedish law shall apply. This choice of law only
in domestic shipping it could be completely unheard (Almost) Free Choice of Law applies to customers if it does not result in the
to the customs or tax authorities responsible there.
of abroad. For example, US citizens swear by payment revocation of the protection guaranteed by the The customer is advised to ask the customs or tax
mandatory provisions of the law of the country
via credit card, but Scandinavians swear by the However, internationalisation is not completed with in which the respective customer’s usual place
authorities for details before placing an order, but this
“eDankort”. Specify exactly which countries you want a market analysis and a corresponding business of residence is located (benefit-of-the-doubt notice should only appear if the goods are actually
principle).”
to supply and which payment methods should be concept. Most online merchants panic when they think delivered to non-EU countries”.
available to the customers. Please enquire whether about the consequences of entering into contracts
special clauses, e. g. in the GTC or the data protection with foreign customers. Does the law of my country If goods are shipped outside the country, however,
declaration, are necessary. apply, is foreign law applicable? However, the answers other official regulations must be observed. So-called
to these questions aren’t rocket science... However, in view of the enormous potential of “customs declarations” must be submitted for the
On its Way: Shipping and Delivery international trade, the choice of law and its shipment of both an uninsured parcel and an insured
Keep calm! International regulations and treaties consequences should not be the reason for a missed package. The customs declaration must be placed
Purchasers from overseas are prepared for a longer provide that the parties may choose the law applicable opportunity. In practice, the question of the applicable in an adhesive bag or on the address side of the
delivery time and will – hopefully - accept this. to a consumer contract. Most online retailers are law and the question of who is right in a specific case package or packet. In the case of an incorrect customs
However, online retail can only compete with “local” relieved if they can continue to agree on their national does not always matter anyway. Many online retailers declaration, the consignments could be delayed or
e-commerce or local commerce by having punctual and well-known law. And this is basically also possible are already responding with goodwill just to keep confiscated for a considerable amount of time. The
and on-time deliveries. if you want to address foreign customers as well as customers happy - and that’s right! invoice should be indicated on the address side of the
customers at home. So-called choice-of-law clauses consignment with the note “Invoice enclosed”.
In online commerce, sellers must give the customer such as “These contractual conditions are subject Customs Duties and Import Regulations
a “delivery date” for the products they have ordered. to US law” or similar wording are not admissible in If the value of the goods exceeds a certain amount
For international online retailers, the problem here themselves, if there is not any relationship to either Apart from freight, delivery and shipping costs, it is of money, the consignor also needs an export
is that the delivery times have to be specified for party. E.g., the agreement on Australian law between a interesting for customers in other countries to know declaration. For this purpose, the export of the goods
those abroad as well, which is not easy at all in Polish customer and a Brazilian seller would be illegal. whether customs duties have to be paid and, if so, must be declared directly to the export customs
practice. Bank transit times and postal routes must They should either choose Polish or Brazilian law. what they will amount to. However, a legal obligation office. In addition, a separate export accompanying
be included in the calculation of the delivery period. for dealers to point out this fact to buyers does document is required, which is attached as the
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topmost document in the transparent parcel card In general, customs and import law issues vary widely Online retailers who ship to consumers are subject any problems with the platform operator. If the sales
pocket with a sticker on the outside of the parcel. from country to country. To avoid any risk of delay in to the provisions of the Packaging Ordinance. Most channel is blocked or terminated, it is too late and a
delivery, merchants should check with their carrier. countries have their own national regulations on the redirection from the platform operators is usually not
In addition, the shipper has to deal with the transport The shipping service providers usually have detailed handling and recycling of waste. The reason for this possible.
regulations of his transport company. Many transport instructions for shipping to other countries. is that packaging waste from cross-border trade
companies have special regulations for shipping to no longer originates in the home country, but in Geoblocking: When Will Shopping
other countries. In particular, carriers do not wish to Product Requirements the target country. Information on the licensing of Abroad Finally Become Contemporary?
provide a guarantee if the customs regulations of the packaging for shipment abroad can be obtained from
destination country are infringed upon, for example if As already mentioned, internationally active online the relevant public authorities, chambers of commerce People worldwide like to shop on the Internet. But
the consignment is confiscated. It is worth mentioning sellers do not have to renounce the (trusted) law of and waste disposal companies. less when it comes to buying abroad! Many offers
that transport companies are usually no longer on site their home country. Nevertheless, there are still some already stop at national borders. Even if the term
themselves, but have the delivery handled by local special features to know. Online traders should be Legally Secure On All Channels “Geoblocking” is as old as the Internet itself - and is
postal service providers such as the United States aware that even when agreeing on their national law, frequently mentioned in the media - not everyone
Postal Service. they are not dismissed from a dispute with national Opening a shop on the Internet is technically not knows what it means. Geoblocking is a technique by
legal regulations in the target country. The export difficult. With just a few clicks, the rough framework which consumers can be denied access to certain
Moreover, the import of weapons, living animals of products requires a certain degree of care. For for sales can be put in place, with large platforms websites based on their domicile or credit card data.
and other sensitive or dangerous goods is subject example, the shipment of electrical equipment to making it possible. In order to make an online shop
to stricter and more stringent import regulations. another EU country means that the seller is seen as a known worldwide, however, enormous effort is In practice, Geoblocking is expressed by the fact that
Separate approval may be required for this purpose. manufacturer in accordance with foreign regulations, required. Nonetheless, if you want to start from customers are not allowed to shop in an online shop
which in principle presupposes a corresponding scratch, without having to invest in your own online originating in another country. You will either be
CHECKLIST obligation to register with the respective national shop and its advertisement, it makes sense to use an notified that delivery to the destination country is not
Customs declaration authorities. The regulations of the target country also online marketplace as a “catalyst”. The Internet giants, available, or you will be automatically redirected to a
If applicable, export declaration apply to youth and data protection. Amazon, eBay, and Alibaba, are the three best-known local online shop where the seller maintains a website.
Compliance with import regulations online platforms. So why not benefit from their The provider then wants the customer to shop on the
for certain goods popularity worldwide? Even “local” platforms such site of his home country. Geoblocking has yet to be
as Fyndiq in Sweden or Allegro in Poland should be resolved on the road to flourishing international trade.
considered.
At least the EU has recognized this problem and
In order to ensure a smooth sale and a consistent wants to tackle unjustified Geoblocking. To end this,
shopping experience for customers, each online a regulation on “cross-border portability” was agreed
TIPS marketplace uses detailed seller’s terms and on in 2017. The main aim is to prevent consumers who
The more successful a company’s business concept is, the more conditions and instructions, such as image guidelines, wish to purchase services or goods online (or locally)
protection its corporate designations, company names and brands that must be followed. When opening an account, in another EU country from being discriminated
need to be given. If worldwide activity is desired, the extension of
trademark protection should be considered. While the protection it is therefore worth taking a look at the house against on the grounds of different prices, terms and
of a national trademark is territorially limited to the territory of rules to avoid any unexpected surprises. At regular conditions of sale or payment. The draft provides
the origin country, a Union trademark produces protection valid
throughout the EU, and the international trademark even extends intervals, the online marketplaces give their sellers that service providers such as Netflix, Amazon Prime,
its protection worldwide. At the moment, however, there are new instructions that have to be strictly followed Spotify or Steam must allow their users to access the
already 98 states that can be covered by a single application. You
can register at WIPO (World Intellectual Property Organization). - otherwise downgrades or, in the worst case, services on EU-wide journeys.
expulsions are imminent. It is therefore important for
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traders to act according to their rules in order to avoid
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

04. TRANSLATION & LOCALISATION. HOW FAR DO YOU GO?


However, this does not imply a general Europe-wide traders, as part of the membership, unlimited access
delivery obligation, because the seller’s freedom of to professional legal advice – whether via telephone
contract must and will remain untouched according to or e-mail – at no extra cost. Members also have the
the current status. Exceptions are still possible if they opportunity for an individual shop inspection. Defined
are made for objective and verifiable reasons, such review criteria cover all the legal requirements that are
as VAT law or rules for the protection of the common important for online trading. In addition, Händlerbund
good. The next step against Geoblocking must be a provides a huge range of training possibilities, e.g. our
global one. Be one of the pioneers... own Händlerbund academy and fact sheets in English.

Break Into New Shores https://www.haendlerbund.de/en

Carrying transport risk to the very last corners of the


world, questions about “exotic” legal areas or simply
language barriers. Even if, in addition to essential advice
in this area, there are many other reasons that prevent
online merchants from international orientation. Even if The EU General Data
some of the reasons mentioned above are more against
internationalisation.... open up new horizons! Whether Protection Regulation
via an own online shop or an internationally available
platform, the time and effort to adapt sales channels to (GDPR)
foreign market is well invested.
This European regulation was created in order to
ABOUT THE AUTHOR harmonise data privacy laws across Europe. The
Since 2013, Yvonne Bachmann has been working as goal is to ensure that all EU citizens’ data privacy is
an attorney for the Händlerbund, Europe’s largest protected and empowered. A single set of rules will
e-commerce association. She advises online retailers on apply to all members of the European Union. The
legal issues and regularly reports on legislative changes key articles of this regulation concern the Rights of
and legal issues affecting the e-commerce industry. the Data Subject (mostly right of access and right to
She has extensive experience in the online trading and erasure), the notions of consent, pseudonymisation,
advertising industry and its appropriate fields of law, data portability, and data protection by design and
coupled with an understanding of the needs of legal by default. The GDPR will be officially enforced on 25
laymen. In addition, she is an international speaker, May 2018. On this date, organisations which are still in
interview partner and guest author. non-compliance will potentially face heavy fines. Every
part of an e-commerce firm is thus concerned: Data
ABOUT THE INITIATIVES OF THE HÄNDLERBUND and IT departments, Marketing, Human Resources,
Do you want to expand your online business Management...
internationally? Händlerbund provides all the necessary Learn more on https://www.eugdpr.org/.
and legally secure texts for over 50 sales platforms
including Amazon and eBay. Händlerbund guarantees

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A. Choosing the
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

05. FUNDAMENTALS OF CROSS-BORDER E-COMMERCE


International Postage: Similar to courier services,
orders are dispatched from one location to worldwide
Right Shipping locations, but using a slower, more cost effective
shipping service provided by international providers.
Methods Depending on the destination, shipments can take
anywhere from 7 to 30 days to reach the customer.
When it comes to cross-border shipping, the

05
biggest challenge for online retailers and brands Direct Injection: Orders are picked and packed in

Fundamentals
is how to manage their customer’s expectations a global fulfilment hub (usually in Hong Kong or
regarding shipping time. With more and more China), and then shipped in bulk to one regional
customers demanding next day and faster delivery, destination, where they are split into individual

of Cross-Border
anyone shipping cross-border could be working orders and handled by local carriers for last mile
at a significant disadvantage compared with their delivery. Using airfreight for the first leg, and courier
competitors if they are not well versed in the variety services for the last mile can result in a good hybrid

E-commerce
of options that are available, and how best to of courier and standard service, with transit times
manage both their own costs and their customer’s typically between 8 to 12 days.
expectations. Having the right options is therefore an
important step in differentiating yourself from other Bulk & Local Fulfilment: Similar to direct injection,
brands in order to win your customer’s trust. in that goods are shipped in bulk to a regional hub.
The main types of cross-border shipping and their However, the pick and pack only happens once an
benefits and limitations: order is placed, which is then shipped using local
shipping channels. This can significantly lower
B2C Courier: Worldwide couriers are utilized the time taken from order to delivery, and careful
In this chapter
to ship directly from a fulfilment centre in one inventory management can mean that sea freight
location to end customers around the world. If it is can be used for the first leg leading to significant cost
affordable, this gives the best customer experience, savings. This solution does require a reliable fulfilment
A. Choosing the Right with international delivery taking as little as 2 to 3 partner in the regional hub, and a good inventory and
Shipping Methods days. However, delivery of bulky products to some order management platform to enable online retailers
countries can work out to be prohibitively expensive. and brands to manage their business easily.
B. Packaging Choices

C. Taxes and Duties

D. Surcharges
25%
of consumers are willing to
30%
of consumers
E. Returns and Refunds
pay premiums in order to are choosing
obtain the privilege of same- same-day and
F. Global Warehousing day delivery. instant delivery
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G. Inventory Management

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Depending on the manufacturing location and your Here are some tips for packaging:
core markets, a multi-carrier approach is likely to
deliver the most cost-efficient, user friendly result. Use the right outer packaging materials that are

CROSS-BORDER SHIPPING This can either be achieved by developing strong


relationships with key carriers in multiple markets, in
durable and meet the industry standard for best
protection to ensure customers receive the items in
SOLUTIONS: BENEFITS & order to benefit from good pricing and great service, mint condition.

LIMITATIONS
or using a shipping solutions provider who is able
to negotiate better rates through aggregating their Depending on the product you ship, light cushioning
volume and passing on savings. Utilizing a shipping materials may be used to protect fragile items.
solutions provider is often a better option for non- Bubble wraps, polystyrene chips, and air cushion
Cross-Border
Benefits Limitations Best used for enterprise online retailers. Most of these providers film are some of the common materials used.
Shipping Solutions
offer online platforms and integrations to allow However, the package dimension may increase in
Optimized customer Most expensive High value goods retailers and brands to manage orders, inventory, and this case so online retailers have to balance between
experience amongst all solutions Time sensitive payment in one place, leading to better efficiency of protection and dimension size.
Fastest Additional cost for delivery operation for the brands.
B2C Courier Reliable end-to-end end customer to clear Shipping into high
Affix proper invoices and labels on top or on
tracking customs threshold countries
the side with the biggest surface area for easy
Insurance and short
identification.
claims procedure
Lowest price Highest rate of lost Low value goods
B. Packaging Choices
Branded packaging can enhance brand awareness,
compared to other parcels Lightweight items
International When it comes to packaging for cross-border optimize customer experience, and ensure every
solutions Lack of tracking
Postage e-commerce, the most important thing is to minimise touchpoint of the brand delivers a consistent
Widest locational No insurance and long
coverage claims procedure shipping cost. Shipping costs are based on the message.
Milestone tracking Not suitable for time Mid to high value
dimensions and weight of the shipment, and the ratio
available sensitive orders goods of actual weight to the volumetric weight, which is Check out any specific package requirements from
Reduced tax & duty Unable to take Large number of a pricing technique used to determine the physical your carriers and align with their expectations.
Direct Injection volume of the shipment.
liability advantage of tax & SKUs
Variety of last mile duty savings
options Packaging design should be taken into account
Reliable tracking Requires significant Mid to high value as some shipping channels will charge based on
Able to keep costs resources in a good goods volumetric weight, and have restrictions, so a package
Bulk & local
fulfilment
low by using sea
freight for first leg
inventory and order
management system
Large number of
SKUs
which looks great in a retail environment may end
up being extra costly to ship – with brands paying to
28%
of shoppers will abandon
Quick fulfilment effectively ship air. Online shoppers tend to abandon
their shopping cart if
process the cart if the shipping cost is too high, so special presented with unexpected
attention should be paid to this often-forgotten shipping costs.
element.

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According to a study from Package
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

05. FUNDAMENTALS OF CROSS-BORDER E-COMMERCE


Pre or Post Pay
Insight, when a consumer receives a
package with a damaged item, 58% With the exception of international postage, most
shipping channels have the option of pre-clearing
as there is usually a DDP (Delivered Duties Paid)
surcharge levied on the sender for pre-clearance, or

of consumers would be “Somewhat taxes & duties at the departure point, or paying
when the shipment clears customs at the destination
a handling fee for customs clearance levied on the
receiver. There are also additional elements regarding
unlikely” to purchase from the same port. Both cases are likely to result in additional cost, the customer experience to take into consideration.

retailer again.

C. Taxes & Duties Duties PREPAY & POST-PAY:


Most cross-border shipments are subject to the
payment of appropriate import taxes and duties upon
HS code is the international standard maintained by
the World Customs Organization (WCO) to accurately
BENEFITS & DRAWBACKS
entry into any destination. Calculating the correct classify and identify traded goods and allocate the
amount of taxes and duties to be paid is a complicated correct duty in a uniformed identification system. It
process, and is a specialised service itself. is a legal requirement for all importers and exporters Paid by Prepay Post-pay
to use the appropriate HS code to properly classify
Benefits: Drawbacks: Benefits: Drawbacks:
Taxes all imported goods. Incorrect use of HS code usually
leads to delays in customs clearance, additional cost
Better brand Additional cost No need to Additional cost
experience burden on brands calculate T&D in burden on brands
Taxes are usually levied at the same rate on all products, and in extreme cases, confiscation of the goods.
Ensure smooth advance
although there are also exemptions on particular Online retailers
customs
categories for most countries. Some countries or states Customs duties are usually calculated based on: and brands
clearance and
offer a tax-free threshold, so some understanding Product category & Use/function (HS codes) delivery, leading
of this is important in determining which shipping Trade agreements to shorter delivery
service to use. For example, any order into the USA Relevant import quotas times
valued less than US$800 is not subject to sales tax, so Country of export Benefits: Drawbacks: Benefits: Drawbacks:
if the majority of your orders are below this threshold, Materials/Ingredients used Transparency on Higher cart Customers are Bad customer
then cross-border shipments are likely to be much Shipping cost costs based on abandonment rate responsible for experience due
more cost-effective than using a bulk first leg, where Customers estimate paid due to perceived their own T&D to unexpected

the entire shipment value will have sales tax levied. during online higher cost No need to extra fees when
checkout calculate T&D in receiving the
A shipping solutions partner or freight forwarder can
advance parcels
usually help to navigate this area with expertise.
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05. FUNDAMENTALS OF CROSS-BORDER E-COMMERCE


Tax Resources
D. Surcharges
UK - Taxes & customs - https://www.gov.uk/
Associated with exceptional activities, conditional shipments with substances and commodities
Germany - Taxes & customs - http://www.zoll.de/DE/Home/home_node.html surcharges are imposed by carriers to maintain a that are certified by International Air Transport
high level of delivery service. Charges vary widely Association and International Carriage of Dangerous
France - Taxes & customs - http://www.douane.gouv.fr/ depending on the reason, the carrier, and the location Goods by Road as Dangerous Goods.
so it is important to understand what may trigger any
USA - U.S. Customs and Border Protection - https://www.cbp.gov/ such surcharges. Oversize Shipments: Couriers charge when the
shipment or pallet exceeds the restricted weight and
United States International Trade Commission’s Interactive Tariff and Trade DataWeb - https://dataweb.usitc.gov/ The most common reasons that a carrier would dimension standards.
impose a surcharge are as follows:
Canada - Canada Border Services Agency - http://www.cbsa-asfc.gc.ca/menu-eng.html Extra fuel: Fuel surcharge is introduced when
Preclearing tax & duties (DDP shipment): Most changes in fuel prices result in an increase of the
Government of Canada: GST/HST - https://www.canada.ca/en/services/taxes/gsthst.html couriers will incur a surcharge for the additional overall cost for the express, which usually applies to
paperwork they are required to prepare and submit air express.
Government of Canada: Excise taxes, duties, and levies for every shipment.
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies.html Security: Brands have to pay a surcharge when the
Remote areas: A surcharge is applied when the shipping destination is in continuous state of war,
Mexico - Mexican Customs Authority - http://www.sat.gob.mx/Paginas/Inicio.aspx delivery destination is remote, which means the civil unrest, terrorism, or other kinds of threats.
location is difficult to reach or serve; located in
China - General Administration of Customs - http://www.customs.gov.cn/ distant areas; or located on islands and highlands. Incorrect shipment information: When the delivery
address at time of pick-up is incorrect, or orders are
Japan - Japan Customs - http://www.customs.go.jp/index.htm Dangerous goods: Couriers set handling charges unable to be fulfilled, couriers impose a surcharge
when there is a need to handle and transport for the additional effort in document correction.
South Korea - Korea Customs Service - http://www.customs.go.kr/kcshome/main/index.do

Australia - Australian Taxation Office - https://www.ato.gov.au/

Brazil - Foreign Trade Integrated System (SISCOMEX) - http://www.portalsiscomex.gov.br/

UAE - UAE Government UAE Customs - https://government.ae/en/information-and-services/finance-and-


investment/clearing-the-customs-and-paying-customs-duty 35%
of online shoppers said
4.7%
of shipments consist of
cross-border duties and errors as either retailers or
India - Central Board of Excise and Customs: Indian Customs Electronic Commerce/Electronic Data interchange
taxes were a concern. customers incorrectly fill
(EC/EDI) Gateway - https://www.icegate.gov.in/ out their data.
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E. Returns & Refunds F. Global
Return shipping costs, restrictive return policies, Some important considerations of a good return Warehousing
and poor customer service communications are policy include:
the 3 key factors that result in a negative customer Cross-border shippers with significant amounts Type of products: Do your products have any
experience when returning products purchased online. How long is the cooling-off period for customers to of customers in key markets often use several special storage requirements? For instance, are they
Consumers are usually concerned about high return return a product? warehouses in order to optimize their shipping composed of hazardous, flammable, or chemical
costs, complicated return or refund processes, and costs and efficiency. Warehousing facilities should materials? Do they need to be stored in water,
cumbersome replacement or repair arrangements. Is there an option to return to a local address if the be strategically located in areas close to multiple temperature, or chemical-based systems?
To avoid such negative customer experience, develop product was shipped cross-border? customer bases to enhance global logistics ability by
a web return system allowing customers to print optimizing shipping costs, routes, and times in order Capacity: Is your business growing so rapidly that
return labels and track return packages themselves, Who is responsible for the return shipping cost? to ship locally and internationally easily and efficiently. you will need extra storage space in the short term?
giving them control of part of the reverse logistics. The individual warehouse teams need to be reliable
Another consideration is whether to manage the What are some valid reasons for a successful returns and efficient to be able to pick, pack, and dispatch Cost: Is your warehouse location the most cost
returns process in-house or outsource to a third-party or refunds? orders within the desired time frame. effective?
logistics service. The latter can save time and cost but
is less flexible in monitoring returns and refunds. What is the return or refund procedure? Here are some considerations that help with your B2B orders VS B2C orders: B2C orders are all about
decision in choosing the appropriate warehouse speed, accuracy, and customer service. Fulfilment
To facilitate reverse logistics with great customer Are returned items likely to be subject to tax and locations: typically involves a higher number of individual
experience, a comprehensive, concise, and transparent duties charges for the return leg? orders, but each order comprises of smaller
product return policy should also reflect the online Availability of local last mile solutions: Who are the quantities. On the other hand, B2B orders heavily
retailer’s legal obligations. Standards and Consumer Are there any alternatives when shipping and other local carriers available to pick up your orders and depend on accuracy of delivery time – sometimes
Rights for returns and refunds differ from country to fees are too high? A full refund may only be cost deliver to the end-customer in the region? down to delivering within a particular time slot. B2B
country. It may be necessary to create a separate set effective for low value goods but not economically shipments generally involve higher quantities and
of terms and conditions for each region, country, or viable for mid- or high-value orders. Customer orders: Where do the majority of your indirectly reach the end customer.
even industry to align with respective requirements orders come from? Based on that, which location is
and expectations. the best for shipping efficiently with cheaper prices, Local climate: Are the temperature, humidity, and
given the availability of carriers? weather in general suitable for storing your core
products, especially for electronics, fragile products,
chemicals, and perishable goods?

20-30%
of e-commerce orders are
returned, compared to the 9%
traditional retail return rate.

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G. Inventory
Management
Inventory management is important in terms of Inventory Forecasting: Predict the customer
overseeing storage, orders, and product sales. It is demand to prepare for ins and outs of inventory
often difficult to match stock volume to customer based on historical data, market trends, seasonality,
demand. However, an automated order management business growth rate, and your planned sales and
system that syncs the online sales platform with promotions.
warehousing facilities in real time can overcome this
difficulty by providing you with a centralised inventory Stock Count: Regular inventory taking is vital. It is
control. A cutting-edge management system can keep important to know the exact amount of stock you
track of all inventory changes, shipment records, and have and match up with customer demand.
order status to ensure smooth flow of information
across channels. To effectively manage inventory Planning: Make a contingency plan in advance for
levels and customer shipments, the inventory system any possible problems that may arise to guide
must be integrated not only with the company’s back your workers on steps to solve the problems. For
office systems, but also with suppliers’ and logistics’ example, you can design a guide for situations such
systems. as when your warehouse reaches the maximum
capacity, when you run out of stock to respond to
Brands control inventory to effectively sell across peak seasons, and when your shipment information
different regions with the best pricing. Online retailers is incorrect etc.
and brands can base themselves on customer
behaviour, seasonal and product trends to refine
product assortments with sales and promotions on
products that do not sell well to clear out inventory
space for other products. Stock transfer is necessary
for managing excessive and obsolete inventory.

Some inventory management techniques that will help


you save money and effectively control your stock:

First-In-First-Out (FIFO): An organized warehouse


will make sure old products are placed at the front
and new products at the back to practice FIFO by
shipping the older merchandise first.
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06. COUNTRY GUIDES


06
Country
Guides

In this chapter

A. America C. ASEAN

- USA - China
- Canada - Japan
- Mexico - South Korea
- Australia
B. Europe
D. Emerging
- UK Markets
- Germany
- France - Brazil
- United Arab
Emirates

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- India
A. America

06. COUNTRY GUIDES


USA

The Market
11.7%
IS THE SHARE OF
The US is the world leader in cross-
border e-commerce imports and
E-COMMERCE IN THE exports; the most trusted cross-
TOTAL RETAIL SALES border market. Consumers
e-commerce represented 11.7% of American online shoppers mainly
TOTAL TOTAL INTERNET
total retail sales, and 41.6% of total buy from the UK, followed by

43
POPULATION PENETRATION

324 M 88.5 % % retail sales growth in 2016. China, Canada, and Hong Kong. More Tips
43% of online sales went through Toys, Hobby & DIY is the largest Given the huge e-commerce
OF ONLINE SALES
the dominant e-commerce giant, segment, with Clothing, Shoes and competition in this region, detailed
WENT THROUGH THE
DOMINANT E-COMMERCE Amazon, in 2016, and Amazon’s Accessories following. planning with specific target
GIANT, AMAZON, IN 2016 market share is still growing. marketing and countermeasures
67% of Millennials and 56% of Gen for shopping cart abandonment
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 BI Intelligence predicts that US Xers prefer to shop online rather would be helpful.

224 M $395 BN buyers’ online spending will reach than in-store. They spend nearly

67 % $632 billion in 2020. half of their time (up to six hours) Demand for same-day delivery is
shopping online each week. growing. 1 in 4 US shoppers would
The market will most likely grow consider abandoning the shopping
OF MILLENNIALS AND for a few more years and become Price (87%), shipping cost and cart if there is not an option of
56% OF GEN XERS
stable afterwards, but it will still be speed (80%) and discount offers same-day delivery. However, the
PREFER TO SHOP ONLINE
RATHER THAN IN-STORE a very strong and safe market. (71%) are the three most important acceptable average wait time is
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM factors that determine where four days.
OVER YEAR A FOREIGN SITE American buyers shop.
15.6 % 71.7 M Customer loyalty and brand
awareness have been the key
drivers of Amazon’s success.
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A. America

06. COUNTRY GUIDES


CANADA
More Tips

10% Consumers
93% of Canadian shoppers use
There are two official languages
in Canada – English and French.
Translation and multilingual
IS THE PROJECTION
OF THE SHARE OF The Market credit card payment. customer support then become the
THE TOTAL SALES IN keys in approaching and keeping
CANADA BY 2020
e-commerce sales are projected to Canadian buyers are still on Canadian shoppers.
reach $40 billion, making up 10% of their way to migrating to mobile
TOTAL TOTAL INTERNET
POPULATION PENETRATION the total sales in Canada by 2020. payments due to high mobile There is a rising concern regarding

93%
36.7 M 88.5 % data fees. In 2016, around 25% of fraud for Canadian online
Cross-border e-commerce takes up Canadian shoppers made their retailers. Companies should put
a significant portion in Canadian purchases with mobile devices and cybersecurity and data protection
OF CANADIAN e-commerce. One-third of the total this number will keep growing. high on their list of priorities.
SHOPPERS USE CREDIT online spending is in the United
CARD PAYMENT States, and the rest in Asia and Both Canadian consumers and Shipping cost and delivery time
Europe. retailers embrace omnichannel remain the top two reasons why
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 strategies, mainly click and collect, Canadians are reluctant to buy

20 M $27 BN Canada’s e-commerce to facilitate online shopping and from overseas sites. Overcoming

25%
infrastructure is as well established avoid huge logistics cost. these obstacles is basically what
as the US’s because of their other countries are trying in the
similarity in broadband internet Cheaper price is the main meantime.
OF CANADIAN SHOPPERS access, their geographical determiner for Canadian shoppers
MADE THEIR PURCHASES
closeness, and the free flow of when purchasing overseas.
WITH MOBILE DEVICES
IN 2016 information between the two Canadians can buy with a 50%
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM countries. lower price tag on Amazon US than
OVER YEAR A FOREIGN SITE other local websites.
14.9 % 13.4 M
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A. America

06. COUNTRY GUIDES


MEXICO
Consumers

16.5%
PayPal, debit cards, and credit
cards are the most preferred
payment methods. Companies also
accommodate alternative payment
EXPECTED RATE
FOR THE MEXICAN options such as cash paying at
E-COMMERCE REVENUE
BY 2020
The Market convenience stores. More Tips
e-commerce only has a small Mexican online shoppers are on Online presence is still a weak
TOTAL TOTAL INTERNET
POPULATION PENETRATION piece, about 1-2%, of the total retail the high end of the average online spot for Mexican retailers. User

60%
129 M 59.5 % sales in Mexico, but the trend will expenditure per shopper. With an friendly and developed websites
continue to grow tremendously. average of $864 spent per shopper, with optimized search tools, broad
Mexico’s e-commerce revenue the number is very close to many ranges of products with fully
is expected to grow at a rate of other mature e-commerce markets. detailed product descriptions, and
OF MEXICAN ONLINE
SHOPPERS MAKE 16.57% by 2020. comprehensive online support with
PURCHASES FROM Males tend to purchase more online real time response will be vital in
FOREIGN ONLINE
60% of Mexican online shoppers than females, which is the complete improving website experience and
TOTAL ONLINE TOTAL E-COMMERCE RETAILERS
SHOPPERS SALES 2016 make purchases from foreign opposite of South Korea. customer satisfaction.

58 M $7.19 BN online retailers, with US websites


being the most popular and Asia Electronic products are the leading Lack of confidence in online

$
864
following. segment in online shopping, but transaction security leads to a low
Mexican shoppers favour offline level of credit card usage. Building
Most of the young working-age purchase in product categories like or using a secured payment
IS THE AVERAGE population is tech-savvy with large clothing and grocery due to a lack platform and communicating
EXPENDITURE PER
SHOPPER
disposable incomes. This group of product information online and that to customers will be the
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM of people is expanding rapidly, risks for returns. first step to encourage Mexican
OVER YEAR A FOREIGN SITE offering a great potential target online shoppers to embrace online
21.6 % 34.8 M market for all online merchants. payment.

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B. Europe

06. COUNTRY GUIDES


UK The Market Consumers More Tips
3rd largest e-commerce market in Books, electronics, household Online sales of accessories
the world. equipment, fashion and food increased the most (38 %), followed

3RD
are the most purchased product by lingerie (33 %) and gifts (26 %).
The UK is a competitive and categories in the UK.
customer-focused market. The UK infrastructure is
Next day deliveries and Click & comprehensive, efficient and
LARGEST E-COMMERCE
MARKET IN THE WORLD The country is the most popular Collect and Click & Reserve options modern. The need for efficiency
destination for European cross- are commonplace and expected by has resulted in very low pricing for
border online shoppers, followed British consumers. deliveries.
by Germany and France.
TOTAL TOTAL INTERNET
POPULATION PENETRATION Online buyers are looking for It’s necessary for sellers to provide

54%
65 M 88 % The UK is also one of the biggest clear & accurate online tracking quality customer service and instill
cross-border B2C e-commerce and efficient & proactive confidence in their clients.
exporters in the world, thanks to communication.
the popularity of British brands
OF MOBILE DEVICE
SALES ARE WITH A and the large use of the English In the UK, credit cards (40%) are
SMARTPHONE language. the most popular payment method
in the case of online purchases.
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 The strong growth of e-commerce They’re followed by debit cards

57 M €153 BN in the UK was fueled by the (34%) and PayPal (21%).

40
continued growth of m-commerce.

% Smartphone: 54 % of mobile device


British online shoppers are used
to making online purchases and
sales. generally feel confident about
OF ONLINE PURCHASES
entering their payment card details.
ARE PAID WITH CREDIT
CARDS Department stores experienced
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM almost 20 % growth in online Favourite online shopping
OVER YEAR A FOREIGN SITE sales, more than food (14.1 %) or destinations of British online
16 % 33 M household goods stores (11.8 %). shoppers include the USA, China
and Germany.
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06. COUNTRY GUIDES


Could you outline cross-border e-commerce
in the UK? What are the main advantages? (for
international retailers wanting to sell in the UK
and for British brands and retailers wanting to sell What are the biggest sales periods retailers should
internationally) be aware of in the UK?

The UK market is large and highly advanced, with an There are a number of major sales periods in the UK Three tips for selling internationally. Number one,
engaged and established shopper base who have market, the most prominent of which is Black Friday understand the customer. As obvious as it sounds,
willingly embraced online retail. For those able to (fourth Thursday in November), which was imported retailers need a thorough understanding of their
secure a foothold, the rewards can be very strong. from the US and has fundamentally altered the shape audience. Different demographics have their own
For British retailers, the appeal is much the same of Christmas trading. Many retailers make around preferences for a retail experience, and respond (or
as for retailers anywhere – expanding out of their 25% of their sales during November and December, don’t) to different offerings and messaging, so it’s
own market, finding new customer bases etc. One then Boxing Day (26 December) is also a big day, important to appreciate what resonates with your
major advantage British retailers have though is the traditionally being the day when post-Christmas target market. Failure to get this right often results in a
benefit of ‘brand Britain’ – a reputation for quality and clearance starts. In terms of clearance periods, January fundamental failure when entering a new market.
authenticity that makes them attractive to customers and summer (July) tend to be the biggest ones.
in markets where counterfeit fraud has been common Number two, find your niche. Not just what you offer,
in the past, such as China. Guy Fawkes Night (5 November) is unique to the but how you offer it. Your brand or your product
UK market. It marks a failed attempt by a group of needs to fulfil a need or inspire a feeling that others
What are the main obstacles? disgruntled Catholics to blow up Parliament in 1605 don’t. The UK market is highly competitive so ensure
and there are large firework displays and bonfires you are bringing something unique or interesting that
For retailers selling into the UK, the main obstacle across the country. will help you to stand out.
is around competition; there are some very well

Andy Mulcahy established brands operating in the market and some


demographic segments are very well catered for
Other globally-common retail days – such as
Halloween, Valentine’s Day, Mother’s Day etc – can
Number three, check what experience your
competitors are offering. Find out what shoppers
Director of Strategy already so, in order to be successful, new entrants also be found in the UK, though the exact dates may can expect from the competition. Does your chief
and Insight need to be offering something a bit different that be different from when they occur in international competitor(s) offer free delivery on everything?
helps them to stand out – perhaps a unique range of markets. What’s their returns policy? Do they accept several
products or something about the customer promise different methods of payment? What’s the user
that differentiates them. Plus, of course, there is the experience on their website like?
looming uncertainty around trading conditions post-
Brexit.

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B. Europe Consumers

06. COUNTRY GUIDES


German consumers buy online

GERMANY The Market


rather than in store because of the
convenience and cost-savings.

Germany is the 5th largest Clothing remained the best- More Tips

5TH
e-commerce market in the world selling product type, with €11.16
and second in Europe. billion in sales in 2016. But several Language is a key driver and
smaller categories by value grew implementing a German website
The e-commerce market is growing considerably faster than apparel would be key to boosting sales.
LARGEST E-COMMERCE
MARKET IN THE WORLD fast and is expected to represent did—among them food (up 26.7%),
AND 2ND IN EUROPE at least half of Germany’s GDP by home textiles (up 23.4%) and Germany has one of the highest
2017. household items and appliances return rates (from 10% for
(up 23.4%). electronics to 70% for fashion).
TOTAL TOTAL INTERNET
Germany is one of the most active

+50
POPULATION PENETRATION

82 M 84 % % countries both in imports and


exports for B2C e-commerce in the
Men contributed to e-commerce
sales of several product categories
Credit card is not the most popular
online payment method. Germans
world. (clothing, home décor items…) at prefer SEPA Direct Debits, Sofort
OF ONLINE RETAILERS IN
rapidly rising rates, according to or Giropay options. German
GERMANY ARE INVOLVED
IN CROSS-BORDER More than half of online retailers in BEVH. consumers are also used to pay-by-
E-COMMERCE Germany are involved in cross- invoice.
border e-commerce, thus the German consumers appreciate
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 infrastructure is already in place for being able to pick up their Germans use Facebook much

48 M €78 BN new online retailers who would like e-commerce orders from lockers in more than any other social media

15%
to sell in the country. train stations or other public places. platform, by quite a long way.
38% of the total population use
In logistical terms, the market is German cross-border shoppers Facebook.
OF ALL E-COMMERCE one of the most competitive and primarily look to the U.K., the U.S.,
SALES IN GERMANY
efficient in Europe. and France for goods.
ARE MADE BY MOBILE
SHOPPING
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM Mobile shopping accounts for A big reason for avoiding cross-
OVER YEAR A FOREIGN SITE 15% of all e-commerce sales border purchases is that they feel
12 % 16 M in Germany, and the usage of that returning products would be
smartphones is growing steadily, difficult or costly, so make sure that
with a mobile sales total of €8.8 if you are shipping internationally,
billion. you offer the same returns policy as
you would in your native country.
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B. Europe

06. COUNTRY GUIDES


FRANCE Consumers
9.3 million French people have
already used their mobile device to

6TH
make a purchase.
The Market More Tips
53% of internet users made online
The French e-commerce market is purchases over the last month, this Marketplaces are taking up
LARGEST E-COMMERCE
MARKET IN THE WORLD one of the largest in Europe (3rd) figure represents an increase of an increasingly large part of
AND 3RD IN EUROPE and ranked the 6th in the world. 6.4% over a year. e-commerce business. The business
volume generated via marketplaces
France is recognised as an €70 is the average transaction now represents 28% of the total
TOTAL TOTAL INTERNET
established and growing market value. business volume of the websites

16%
POPULATION PENETRATION

66 M 85 % with good prospects for cross- that host them.


border e-commerce. A yearly average of 28 online
transactions and almost €2,000 Language is a key driver, French
OF ONLINE
E-commerce continues to increase per buyer in 2016. is also spoken in Switzerland,
TRANSACTIONS (1.029
BILLION) ARE MADE VIA its market share by 1% each year. Belgium, Africa, the Caribbean and
MOBILE Its share of all retail sales (tangible Most purchased product Canada.
goods) in 2016 is estimated at 8%. categories: Clothing, cultural
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 products, footwear, travel/tourism, Online retailers should provide free

37 M €72 BN Logistics is highly rated for beauty/health. and on-time delivery to win loyal

29%
effectiveness and timeliness. customers.
29% of online shoppers have used
1.029 billion online transactions in click & reserve services. France has the most victims
OF ONLINE SHOPPERS 2016, 16% via mobile. of cybercrime in all of Europe
HAVE USED CLICK &
Preferred delivery options for according to the security firm
RESERVE SERVICES
French people are: delivery at Symantec.
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM home and to pick-up points.
OVER YEAR A FOREIGN SITE

15 % 15 M The preferred payment method for


online purchases is by far the credit
card.
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67
C. ASEAN

05. COUNTRY GUIDES


CHINA The Market
China is the largest e-commerce
market in the world, with higher
Consumers
1ST
market volume than the US.

China’s e-commerce revenue Chinese shoppers prefer using More Tips


makes up nearly 15% of the total online wallets, such as Alipay and
CHINA IS THE LARGEST
E-COMMERCE MARKET retail sales in the country. It is Tenpay, and debit cards instead of A study conducted by FedEx
IN THE WORLD estimated to make up 25.4% of credit cards. suggests it is better to sell via the
total retail sales in Asia-Pacific by popular Chinese marketplaces
2021. Specifically, Chinese buyers instead of relying on your own
TOTAL TOTAL INTERNET
POPULATION PENETRATION purchase overseas products online website if your goal is the Chinese

15
13.8 BN 50.3 %
%
China is one of the major cross- to fulfil their demand for premium market.
border destinations for other goods.
countries. There have been difficulties for
OF THE TOTAL RETAIL 58% of Chinese cross-border commercial trucks to access rural
SALES ARE MADE BY Chinese cross-border e-commerce shoppers favour purchasing US areas. Improvement on delivery
E-COMMERCE REVENUE.
mainly constitutes Chinese products mainly because of better systems may be necessary to fulfil
merchants selling overseas (90%). product quality, authenticity, and quality orders.
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 availability.

380 M $752 BN Chinese online merchants export Lower average wait time is also an

58%
mostly to the US, followed by the Chinese shoppers spent an important factor for cross-border
UK, Hong Kong, and Brazil. average of $473 each on cross- shipments. The demand for same-
border purchases in 2016, which day delivery from Chinese people
OF CHINESE CROSS- Tmall, operated by Alibaba Group, accounted for about 4.2% of the has been increasing.
BORDER SHOPPERS
is one of the most common total e-commerce market.
FAVOUR PURCHASING
AMERICAN PRODUCTS platforms for international brands High product and/or brand
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM to sell their products to the Chinese More than 51% of urban Chinese reputation with good return policy
OVER YEAR A FOREIGN SITE market online. consumers believe that reviews can attract more loyal customers.
26.2 % 180 M and/or recommendations are
important indicators to choose As an official language, Chinese is
where to shop for overseas spoken by most of the population
products online. (70%). Translation is the first step
to attract Chinese customers.
Content localization would help

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boost sales.
C. ASEAN

06. COUNTRY GUIDES


Consumers
JAPAN Using credit and debit cards is the
most preferred payment method,
while bank transfer is their second
The Market choice.

2.8% Japan is a popular cross-border


destination for Asian countries,
especially for India and South
Twitter is used by 36% of the
Japanese population. Japanese
online shoppers engage with
E-COMMERCE’S SHARE
OF JAPAN’S $4.123 Korea. brands on social media to get More Tips
BILLION GDP coupons and free products.
Given the sufficient availability of Japanese people respect courtesy
goods within the country, cross- With rapidly growing mobile usage, heavily. Aggressive, persuasive,
TOTAL TOTAL INTERNET

36%
POPULATION PENETRATION border shopping is not popular online transactions on mobile and hard-sell approaches of

127 M 91.1 % among Japanese people. It has the platforms make up nearly 60% presentation will be seen as poor
lowest foreign buying activity in of all purchases, with sales of $16 customer service and lead to loss
OF THE JAPANESE the Asia-Pacific region, but cross- billion. of loyal and trusting customers.
POPULATIONS USE border confidence is growing.
SOCIAL MEDIA TO
Japanese shoppers are generally High quality physical packaging,
ENGAGE WITH BRANDS
TO GET COUPONS AND eComerce takes a share of 2.8% of risk averse so they only look for presentable products, and detailed
FREE PRODUCTS Japan’s $4,123 billion GDP. brands they know and trust. Low product instructions are highly
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 return rates and excellent customer valued. High transparency on return

77 M $90 BN With the aging population, service are expected in their policy and process is essential.

60%
Japanese people over the age of purchases.
55 spend the most time online Click and collect and locker pick-
amongst all age groups. up are still not well developed
OF ONLINE in Japan. Japanese buyers
TRANSACTIONS ARE
Rakuten, Amazon Japan, and prefer to be able to pick their
MADE ON MOBILE
PLATFORMS Yahoo Japan Shopping are the own delivery time and date.
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM three biggest marketplaces in the Retailers and logistics may need
OVER YEAR A FOREIGN SITE country, with around 50% of the to accommodate for Japanese
18 % <25 M total Japanese annual e-commerce shoppers’ delivery preferences.
revenue in 2015.
70

71
C. ASEAN

06. COUNTRY GUIDES


SOUTH
KOREA The Market More Tips

3RD
LARGEST E-COMMERCE
South Korea is the third largest
e-commerce market in the Asia-
Pacific region. Consumers
South Korea is known for having
fast fulfilment rates, which means
efficient delivery systems and wide
MARKET IN ASIA- distribution warehouse networks
PACIFIC Domestic online purchases still Koreans find cheaper prices after are basics for succeeding in the
make up a majority of South adding in shipping cost and duties Korean market.
Korea’s e-commerce revenue, but on overseas marketplaces than on
TOTAL TOTAL INTERNET
cross-border e-commerce has domestic sites. It is expected that 90% of Koreans own a smartphone.

+53%
POPULATION PENETRATION

51 M 92.7 % been rapidly growing, reaching $1.6 there will be huge boost in the m-commerce sales will continue
billion in 2016. number of Korean cross-border to grow at impressive rates.
shoppers in the next few years. Incorporating responsive mobile
SHARE OF M-COMMERCE
With high smartphone penetration platforms with user friendly
IN THE TOTAL
E-COMMERCE MARKET rates and outstanding internet About 60% of 20- to 29-year- designs would help merchants
VOLUME infrastructure in this country, old Koreans use mobile as their reach the most Korean shoppers.
m-commerce sales account for primary device for doing online
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 more than 53% of the total market purchases.

30 M $57.5 BN volume. Mobile e-commerce will

60 % continue to be the key driver of Female Korean shoppers are more


Korea’s e-commerce growth. likely to shop online than male
shoppers.
OF 20 TO 29 YEARS OLD Amazon and eBay are the most
KOREANS USE MOBILE AS
popular overseas marketplaces Korean shoppers mainly buy from
THEIR PRIMARY DEVICE
TO SHOP ONLINE Korean shoppers visit. US retailers, accounting for 65% of
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM the cross-border online sales, but
OVER YEAR A FOREIGN SITE more shoppers are starting to buy
17 % 7.5 M from European and Chinese online
retailers.

73
72
C. ASEAN

06. COUNTRY GUIDES


AUSTRALIA
The Market Consumers More Tips

9%
EXPECTED GROWTH
Australians favour cross-border
trade. Chinese imports account
for more than $40 million of all
Computers remain the main
device Australians use for online
shopping, but m-commerce
Imported goods with a value of less
than $750 are exempt from Sales
Tax. Such legislation is anticipated
RATE OF ONLINE Australian imports, while the US continues to grow yearly and has to change as Australian Parliament
PURCHASES BY 2022 only accounts for $22.5 million. become the key factor driving is considering imposing taxes on
e-commerce growth as mobile imported goods for merchants
The spending of Australians’ online phone penetration is close to 100% who sell more than $59k a year.
TOTAL TOTAL INTERNET
purchases is projected to reach in Australia. Merchants would have to pay

100%
POPULATION PENETRATION

24.5 M 86.9 % $20.7 billion by 2022 at an annual attention to related changes and
growth rate of 9%. Unlike other countries, Australians make careful calculations.
are more forgiving in delivery wait
MOBILE PHONE
Australia is known for possessing time. 36% of all shoppers accept There is no solid counter to
PENETRATION AS THE
KEY FACTOR DRIVING a top class logistics system and that shipments will take at least Amazon’s entry in the Australian
E-COMMERCE infrastructure, and not surprisingly, two weeks, considering the big market, but innovative business
it ranked 19th in the world in 2016 geographical size of Australia. strategies, products, and marketing
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 with an LPI score of 3.79. will help merchants survive in the

15.3 M $9.5 BN Australian shoppers prefer to buy competitive environment Amazon

36%
Amazon and Alibaba are the two from brick and mortar retailers with creates.
significant operators entering the online stores rather than online-
e-commerce market in Australia, only retailers. The long standing Localisation is another important
OF SHOPPERS ACCEPT which imposes huge competition customer trust towards these measure to consider in the
THAT SHIPMENTS WILL
to other local and international traditional retailers supports their Australian e-commerce market.
TAKE AT LEAST 2 WEEKS
platforms and retailers. dominance even in this digital age. As the seasons are opposite to
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM those in the Northern hemisphere,
OVER YEAR A FOREIGN SITE overseas merchants would need
10.5 % 10.7 M to arrange seasonal products
differently in terms of promotions
and sales.
74

75
D. Emerging

06. COUNTRY GUIDES


Markets
Consumers
BRAZIL Credit and debit cards remain
the major payment methods.

42
About 24% of Brazilian shoppers

% The Market
use Boleto Bancário, a payment
method regulated by Brazilian
More Tips
Federation of Banks. Payment approval rates have been
BRAZIL’S SHARE OF
TOTAL LATIN AMERICAN Brazil is the largest internet low as merchants collect payments
E-COMMERCE SALES market and the most developed 54% of all Brazilian online shoppers from foreign banks. Merchants
e-commerce market in Latin made cross border purchases in should learn about Brazil’s
TOTAL TOTAL INTERNET
POPULATION PENETRATION America. It accounts for 42% of 2016. Chinese websites are the e-commerce payment landscape,

209 M 65.9 %
75%
Latin America’s total e-commerce most popular choice for Brazilian regulatory requirements, and local
sales. cross-border shoppers because of payment processing to facilitate
the high level of availability of lower transactions and maximise revenue.
Smartphone penetration has been priced products.
OF ONLINE SHOPPERS
booming since 2011. A report from A common customer practice in
BUY FROM THEIR MOBILE
DEVICES yStats indicates that about 75% of Electronics were the leading Brazil is to publicise customer
Brazilian online shoppers buy from product category purchased on complaints online. These
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 their mobile devices. Therefore, overseas online stores in 2016, complaints and comments

66.4 M $13.4 BN huge growth potential, especially in followed by software, fashion and determine the reputation of online

54%
m-commerce, is expected. phones. merchants since buyers take them
as a crucial reference when looking
While Brazil’s e-commerce growth The shopping cart abandonment at online stores. Providing quality
OF BRAZILIAN ONLINE saw a deceleration in 2016 due to rate is substantially high when customer service and excellent
SHOPPERS MADE CROSS-
economic recession, e-commerce Brazilian shoppers do not find their buying experiences thus becomes
BORDER PURCHASES IN
2016 sales are projected to increase at a expected payment option available the key to increasing conversion
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM CAGR of 12.5% until 2019. and handling and delivery fees are rates and building new shoppers’
OVER YEAR A FOREIGN SITE more than they expect. confidence in the merchants.
7.4 % 36 M
76

77
D. Emerging

06. COUNTRY GUIDES


Markets
UNITED ARAB
EMIRATES Consumers More Tips
24% Instead of going online with
computers, there is an emerging
Cash-on delivery wins over all
other online payment methods in
EXPECTED GROWTH OF
ONLINE RETAIL SALES The Market trend for online shoppers in the UAE due to low level of trust
IN THE UAE BY 2021 the UAE to make purchases via in online payment systems. It will
The B2C e-commerce market smartphones. In response to this take time for UAE shoppers to
volume in the UAE and Africa is trend, retailers in the UAE have fully adapt to digital payments,
TOTAL TOTAL INTERNET
POPULATION PENETRATION expected to hit $26 billion with the already taken actions in making but merchants can take this

9.4 M 91.9 %
65%
UAE’s online retail sales expected responsive website designs to opportunity to offer multiple
to grow at a CAGR of 24% and comply with their shopping payment options and start building
reach $3.8 billion in 2021. behaviours. customer confidence in this
convenient sector.
OF THE TOTAL ONLINE
Holding a double-digit share in The online purchasing population
SHOPPERS IN UAE ARE
MILLENIALS the market, Souq.com, a local of the UAE is one of the youngest With security concerns from UAE
e-commerce platform, is the in the world. Millennials make up shoppers, it is better for companies
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES leader in the UAE’s domestic more than 65% of the total online to tone down customer data
(COMBINING WITH OTHER (2014 DATA) online shopping market. It raised shoppers in the UAE and as a result collection. UAE shoppers still
$2.5 BN
COUNTRIES IN MIDDLE EAST)
more than $275 million to invest in they are the main target market for feel uncomfortable with online
30 M further growing the marketplace. all retailers. payments and customised offers
based on their data because of
Slow delivery processes, high The main reason that shoppers in fear of identity theft and fraud.
product return rates, and inefficient the UEA avoid online shopping is Understanding their behaviours
transactions are some of the the inability to touch and test out and preferences then slowly
GROWTH CONSUMERS WHO major concerns in this developing products before making purchase accommodating is the key to
% YEAR HAVE BOUGHT FROM industry. decisions. Concerns about credit bridging the trust gap in this
OVER YEAR A FOREIGN SITE
card fraud follows that. market.
21 % 60 %

79
78
D. Emerging

06. COUNTRY GUIDES


Markets
The Market Consumers More Tips
INDIA India has the second largest Cash on delivery is the beloved Similar to the Australian

2ND
internet population in the world, online payment method, but this e-commerce market, innovation
with over 462 million internet users, payment method is proven to be over the traditional e-commerce
but that makes up less than half very slow and risky for couriers in business nature is the key to
of the total population despite its light of manual cash collection and breaking through the giant wall
LARGEST INTERNET
POPULATION IN THE large internet user base. high return rates. built by the three e-commerce
WORLD (462 MILLION powers. Specifically, a better
INTERNET USERS)
While being the third biggest The average Indian male’s online customised user experience in
e-commerce market in the world, order value is 3 times higher than terms of user searches is what
TOTAL TOTAL INTERNET
POPULATION PENETRATION India tops the e-commerce market the average female’s. The reason online retailers and marketplaces

1.3 BN 35.5 %
60%
growth rate with 51% annual for this is attributed to men’s larger should aim for.
growth. Retail e-commerce sales pool of disposable income.
are estimated to reach $79.41 billion There are more than 120 dialects
by 2020. 60% of online purchases happen and languages in India. Language
OF ONLINE PURCHASES
during business hours. While is then another key to succeed in
HAPPEN DURING
BUSINESS HOURS The Indian e-commerce market this may show a questionable this diversified market. Specified
is described as a battleground workplace practice, retailers localisation is necessary in suiting
TOTAL ONLINE TOTAL E-COMMERCE
SHOPPERS SALES 2016 with leading local players such as can schedule marketing and each Indian shopper segments’

130.4 M $30 BN Flipkart, Snapdeal and Amazon promotions accordingly to reach tastes.

+120
India fighting for bigger shares in the biggest shopper population.
the market. The Indian e-commerce sector
is regulated by 9 government
DIALECTS AND agencies. Being a relatively new
LANGUAGES ARE SPOKEN
market with a fast growing pace,
IN INDIA
changes in regulatory efforts,
GROWTH CONSUMERS WHO
% YEAR HAVE BOUGHT FROM whether contributing to or
OVER YEAR A FOREIGN SITE hindering the industry growth,
51 % 32.6 M are being launched from time to
time. Merchants have to pay close
attention to these fast-changing
policies and adjust their business
models accordingly.
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81
A. Streamlining the
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07. SCALING INTERNATIONALISATION


Assigning a project leader: most translation
projects are complex and require internal
Workflow coordination with graphic designers, marketing
departments and web developers. A project leader
Many online retailers are already translating their should be assigned internally to monitor the
content, but to be able to scale international progress.
development, it is important to have a streamlined
translation workflow. The ideal process for successful Writing detailed instructions: instructions ensure
external translation involves: that there are no misunderstandings and that the
final translations meet the requirements as much as
Choosing a team of translators: when hiring external possible (tone, structure, SEO)
translators, a “casting” process can be a useful way
to select a team of translators. This process involves Using a glossary: glossaries containing a
sending the same content to a variety of translators standardised list of terms make it possible to

07 and selecting the ones that are the best fit. achieve consistency and improve SEO.

Scaling
Internationalisation
THE RIGHT WORKFLOW:
BEST PRACTICES
In this chapter

In-house CAT tools and Automated


Localisation Glossary of Pool of
project translation integration &
instructions keywords translators
A. Streamlining the management memory workflow
Workflow Leading Give context Industry- Native Reduce API
projects specific terms speakers only number of integration
B. CAT Tools and Live SEO
words to streamline
Editing requirements SEO Industry
Translation Memory workflow
images experts Recurring
Brand Consistency
translations
C. Post-Edited Machine Writing a identity
Translation briefing Homogeneity

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D. Plugins & API


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07. SCALING INTERNATIONALISATION


B. CAT Tools and Live C. Post-Edited
Translation Memory Machine Translation
The majority of e-commerce websites have a product have been developed. A Translation Memory is Post-Edited Machine Translation (also called PEMT) A translation plugin not only allows you to select the
catalogue with product descriptions that often have essentially a database of original and translated combines the use of real-time translation memory, sections of the product page that you want to translate
repeated words or phrases (e.g. Men’s long sleeve text. CAT tools now integrate real-time translation machine learning, and human verification. E-retailers (title, description, meta data), but also lets you save
shirt, Women’s long sleeve shirt). Depending on the memories (to put it simply, CAT tools are the pots can benefit from this technology for content such time by sending an entire product catalogue to your
type of product description (length, writing style, and pans, while Translation Memory is the food as product descriptions and short texts. First of all, translation team. You can do this directly through your
amount of product information), the number of that’s cooked). This technology recycles all your repeated words or phrases are pre-translated thanks website’s CMS, eliminating time spent copy/pasting text.
repetitions in the text can be as high as 50%. translated content and counts all segment repetitions to real-time translation memory. Then, the rest of the
in real time, and then suggests previously-translated text is translated by a neural machine translation tool If you want to go further, another advancement in
Most professional translators around the world use phrases to the translator, improving their productivity, that’s been trained specifically for the appropriate translation and localisation technology involves the
special tools called Computer Assisted Translation consistency of terminology as well as reducing the sector (for instance, women’s clothing). Eventually, integration of an API. An API makes it possible to
tools (CAT tools) to help them translate quicker. To final word count, and therefore, price. It also enables human translators proofread and adapt pre- automatically send content from the client’s platform
match the needs of today’s clients and especially multiple translators to work collaboratively on the translated texts to make them intelligible. More than to the translation partner’s, where the translators can
online merchants, Translation Memory technologies same project directly in the cloud. just a simple machine translation, PEMT guarantees start working on them. Once finished, the content is
content optimization, reduced margin of error and then automatically reintegrated back into the client’s
considerable time savings thanks to the combination platform. Integrating an API is one of the key steps
of artificial intelligence and human expertise. to automating translation processes, especially in the
following 3 cases:

Translation API D. Plugins & API E-commerce sites with very large product catalogues
Real-time translation memory (more than 500,000 words)
While some e-commerce sites are built using an Websites that update or add new content frequently
internally-developed platform, many businesses Websites translated into multiple languages
choose to host their websites on popular CMS like
Magento, Shopify or PrestaShop. These platforms It is best to let your developers or web agency take
Direct access come with optional add-ons, also called plugins care of the integration, as it can be quite technical (but
to CMS and extensions, which allow you to add different most APIs are simple to use once implemented!).
functionalities, including website translation.

High volume capacity


84

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A. Marketplaces C. Comparison
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

08. SCALING THROUGH DISTRIBUTION CHANNELS


Marketplaces represent a particularly large Shopping Engines
opportunity for cross-border online retailers to reach
08 new clients and geographic areas. They can choose Comparison shopping engines have millions of visitors

Scaling between hybrid or pure players’ marketplaces,


global and general ones like Amazon or eBay
looking for the best prices, and chances are high that
they end up on the retailer’s online store.

Reach Through
or more specific and local ones like Spartoo or
Cdiscount. However, this range of choices can make it Almost all of these platforms have the same “pay
complicated for companies to maintain and optimise to play” business model and a similar product

Distribution
so many product listings on a variety of marketplaces. information workflow.

Online retailers can take it one step further by looking Online retailers must upload their product catalogue,

Channels at other types of distribution channels: comparison


shopping engines, affiliate platforms and retargeting/
display ad networks.
which should contain standard product information
such as the product title, the description, the price and
the image. However, each comparison site can have
different file format requirements. Once the product
catalogue is on the website, the retailer is charged a
B. Product Ads fee per click every time an online shopper clicks on a
product and is sent to the online store to complete
Popular search engines and social networks have the purchase.
introduced a range of different advertising solutions
geared towards online retailers. Their massive Businesses have many comparison shopping engines to
audiences and advanced targeting capabilities make choose from, like Price Grabber, Leguide.com, Shopzilla,
them a necessary choice for e-commerce businesses. TrovaPrezzi, and Kelkoo. Some have better ROI than
others and the best way to choose is to try them.
In this chapter Global players like Google Shopping, Facebook
Dynamic Product Ads and Bing Shopping share the
space with local services such as Yandex Market in D. Paid Search
A. Marketplaces Russia.
Search engines such as Google, Bing, Yahoo! or
B. Product Ads Contrary to marketplaces, product places don’t cover Yandex have been offering paid links in their results
the transaction process (yet?), online retailers must for years. By using services such as Google AdWords
C. CSE’s therefore have an optimised website, especially for or Bing Ads, online retailers are able to drive highly
mobile devices, to fully leverage product ads. qualified visits to their websites. Traditionally,
D. Paid Search targeting has relied on keywords typed by visitors,
but this has recently changed with the ability to target
E. Retargeting specific audiences, like Google RLSA.
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F. Affiliate Platforms
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08. SCALING THROUGH DISTRIBUTION CHANNELS


E. Retargeting
Retargeting is a marketing tool that allows online
retailers to reach visitors who came to their website
and left without engaging. Online retailers can target
these visitors with ads tailored to their level of interest.

It is now possible to adapt to the multi-screen


environment and customers’ preferred devices
through cross-device retargeting.

Numerous companies offer these retargeting


solutions such as Criteo, AdRoll, Struq, Nextperf and
Sociomantic.

F. Affiliate Platforms
These automated marketing programs allow
companies to place a banner ad on a publisher’s
website. Publishers receive a commission from sales
when the customer has clicked the affiliate link to go
to the merchant’s website to make a purchase or fill
out a contact form.

These platforms drive traffic to online retailers’


websites, generate qualified leads, extend the
reach of the brand, increase sales and allow better
search engine ranking. Online retailers can choose
from different affiliate platforms like Tradedoubler,
Webgains, Zanox, NetAffiliation and AffiliateWindow.

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09. WHITE PAPER CONTRIBUTORS


E-Services Lengow
Group TextMaster Lengow is the e-commerce

09 automation solution that helps

White Paper
E-Services Group (ESG) empowers TextMaster is Europe’s leading brands and distributors improve their
brands, manufacturers and global translation solution for the performance, automate their business
e-commerce sellers to grow their e-commerce industry. Thanks to processes and grow internationally.

Contributors
business and capture overseas a network of expert translators,
markets through our e-commerce cutting-edge technologies and Intuitive and innovative, the Lengow
solutions. Founded in the U.K. in a range of value-added services, platform is the key that opens the
2002, we’ve spent the past 15 years TextMaster enables companies to door to strong profitability and
growing in size, knowledge, and streamline the translation of their visibility for products sold by online
expertise as the best in the business. content in over 50 languages and retailers around the world on all
We are now the leading international areas of expertise. TextMaster is distribution channels: marketplaces,
end-to-end E-commerce company available as SaaS, API or through comparison shopping engines,
headquartered in Hong Kong, with one of our partner plugins (including affiliate platforms and display/
offices in China, Singapore, Taiwan, Magento, Akeneo, Salesforce retargeting. With more than 1,800
and fulfilment centers throughout Commerce Cloud…). More than partners that have been collaborating
Asia-Pacific, Europe, and North 10,000 companies of all sizes and with Lengow since 2009, the SaaS
America. We deliver our innovative domains turn to TextMaster for solution offers a powerful ecosystem
solutions to over 185 countries around assistance with their international to the 3,500 online retailers that use
the world. expansion. it in 45 countries across the globe.

www.eservicesgroup.com www.textmaster.com www.lengow.com

mail: esg@eservicesgroup.com mail: sales@textmaster.com mail: contact@lengow.com


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Key facts, Figures Country Guides

R e fe re nc e s
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

and e-commerce Trends USA


www.dpdhl.com: https://goo.gl/Mfrofk
www.statista.com: https://goo.gl/qE5fZs

10 www.payvision.com: https://goo.gl/TRKu4c
www.digitalcommerce360.com: https://goo.gl/gMPsr1

The Lengow / www.chargeback.com: https://goo.gl/htofXp

www.newegg.com: https://goo.gl/UT2ukw
www.businessinsider.com: https://goo.gl/R9BNZG

www.e-commerce-nation.co: https://goo.gl/TiM2JV

E-Services Group / www.e-commercenews.eu: https://goo.gl/UyQKrU

www.postnord.com: https://goo.gl/WC3jKt
www.bigcommerce.com: https://goo.gl/WChcFx

CANADA

TextMaster www.e-commercefoundation.org: https://goo.gl/A6iTCm

www.e-commerce-europe.eu: https://goo.gl/mwUHS1
www.emarketer.com: https://goo.gl/rxH9K4

www.export.gov: https://goo.gl/Z61NHx

Partnership Translation & Localisation.


How far do you go?
www.digitalcommerce360.com: https://goo.gl/AqD1mb

www.e-commerceworldwide.com: https://goo.gl/FJ1M7b

MEXICO
GLOBAL
www.export.gov: https://goo.gl/dAGMpB
ESG, TextMaster and Lengow understand www.statista.com: https://goo.gl/WZickE
the challenges and concerns of online www.atkearney.com: https://goo.gl/qW7wtP
EUROPE
retailers in today’s global marketplace.
www.fortune.com: https://goo.gl/SWm1vM
www.e-commercenews.eu: https://goo.gl/A7otMc
As experts in helping e-commerce www.mexiconewsdaily.com: https://goo.gl/MxTfQj
UNITED STATES
businesses succeed internationally, it was UK
only natural to share their expertise in an www.statista.com: https://goo.gl/ZuoEQN
www.e-commercenews.eu: https://goo.gl/iC2kfs
in-depth white paper. With valuable insight CHINA
from industry specialists like IMRG or www.e-commercenews.eu: https://goo.gl/eB6ktC
www.chineseseoshifu.com: https://goo.gl/rAEdeY
Händlerbund, this white paper aims to be
www.e-xanthos.co.uk: https://goo.gl/tWCwNR
the ultimate guide for online retailers who
wish to gain a deeper understanding of the Fundamentals of www.webinterpret.com: https://goo.gl/iUoSyu

global e-commerce market. Cross-Border e-commerce www.twenga-solutions.com: https://goo.gl/BkYWVV

www.google.com: https://goo.gl/rAEdeY www.e-commerce-nation.fr: https://goo.gl/Ps9RPX

www.blog.kissmetrics.com: https://goo.gl/tEcdzG GERMANY


www.packworld.com: https://goo.gl/7b8hQu www.gtai.de: https://goo.gl/Nuyngc

www.multichannelmerchant.com: https://goo.gl/wDUz1k www.emarketer.com: https://goo.gl/bbBGso

www.easypost.com: https://goo.gl/vy1AZc www.emarketer.com: https://goo.gl/guwizc


www.packagingdigest.com: https://goo.gl/HcKBtZ
www.e-commerceworldwide.com: https://goo.gl/zo4oa2

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FRANCE www.digitalcommerce360.com: https://goo.gl/8NwwTs
EXPANDING YOUR E-COMMERCE BUSINESS INTO INTERNATIONAL MARKETS: THE UPDATED ULTIMATE GUIDE

www.fevad.com www.huffingtonpost.com.au: https://goo.gl/H8hvYb

CHINA www.home.kpmg.com: https://goo.gl/tfHk9H

www.thepaypers.com: https://goo.gl/m9qBQC BRAZIL

www.digitalcommerce360.com: https://goo.gl/uZvkKf www.export.gov: https://goo.gl/T8a6FL

www.data.stats.gov.cn: https://goo.gl/z7mkgp www.pfsweb.com: https://goo.gl/EvUWfL

www.stats.gov.cn: https://goo.gl/Z8ELsy www.eshopworld.com: https://goo.gl/vVpo1t

www.pfsweb.com: https://goo.gl/o38j7F www.researchandmarkets.com: https://goo.gl/PhGbKC

www.emarketer.com: https://goo.gl/p3gHBF www.techinbrazil.com: https://goo.gl/EMiKkg

www.chinadaily.com.cn: https://goo.gl/Q1zPXF www.researchandmarkets.com: https://goo.gl/NFFzS7

www.rvo.nl: https://goo.gl/jZXBRd www.businessinsider.com: https://goo.gl/JfUZdS

JAPAN UNITED ARAB EMIRATES

www.pfsweb.com: https://goo.gl/XpYjkp www.arabianbusiness.com: https://goo.gl/mjC1XM

www.datocms-assets.com: https://goo.gl/hvPhF7 www.gulfnews.com: https://goo.gl/VgTDhk

www.retailinasia.com: https://goo.gl/zghNud www.gulfnews.com: https://goo.gl/RSASD1

www.pfsweb.com: https://goo.gl/A1YXHV www.forbes.com: https://goo.gl/m5egWv

www.flyinglynx.com: https://goo.gl/zN9Qi8 www.euromonitor.com: https://goo.gl/qYbt92

www.emarketer.com: https://goo.gl/yG9yfR www.ystats.com: https://goo.gl/vCPbAe

SOUTH KOREA www.thepaypers.com: https://goo.gl/oXjjsX

www.emarketer.com: https://goo.gl/yG9yfR https://goo.gl/71L7Lx

www.export.gov: https://goo.gl/acJV1Y INDIA

www.pfsweb.com: https://goo.gl/sWz6Cb www.codilar.com: https://goo.gl/mQvDZ5

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