How to Expand your E-commerce Business Globally

February 20, 2019 Uncategorized
global payments payoneer expand your e-commerce business globally

Are you in the e-commerce business and am looking to expand globally? It’s relatively easy for e-commerce businesses to scale globally, yet many small businesses are reluctant to expand. In the US alone, exports totalled 2.3 trillion dollars in 2018, yet only 10% of these exports were from small businesses with less than 50 employees.

In the past, the shipping costs and complicated taxes and payment systems have made it difficult for businesses to expand out of their own country. However, technology has now made it much easier for small to medium sized businesses to scale globally into untapped markets.

Before you begin expanding your operations globally to reach more customers, here are the top 4 things you’ll need to consider.

1. Build a Global Friendly Website

Your e-commerce website plays a key role in the success of global expansion. The current platform you’re currently using might only be suitable for your own country. When you’re wanting to attract a global audience, it’s crucial to make sure your website is user friendly for all users. This means making sure your site is multilingual, multi-currency and has all the bells and whistles to make sure the customer journey is smooth for everybody from start to finish.

2. International Payments

Expanding your e-commerce operations globally means you’ll also have to start accepting foreign currency. Why? Because people always prefer to pay in their local currency. Finding a solution that accepts multiple currencies and allows your customers to pay in the currency of their choice is easier said than done. When seeking an e-commerce platform, make sure it ticks this box so you don’t run into potential issues as you begin to scale.

It’s important to use a company that facilitate seamless, cross-border payments that everyone trusts. We use Payoneer and recommend them to all our readers so you can get paid in more currencies. It’s just like you had your own local bank account in each country.

Sign up for your Payoneer Account here to earn a $250 USD bonus when you sell $25,000 USD within 6 months! *Send us a message on my Facebook Page for an additional surprise once you sign up with your Payoneer ID.*

3. Create a Tax Compliant and Pricing Strategy

No matter where you operate, you’ll have to comply with your target country’s local tax collection regulations. This means it’s extremely important to have your accounting infrastructure done right in the first place. Not only will you have a much better understanding of your progress, it also reduces the liability risk in the event of an audit. It’s important to note that taxes on e-commerce operations can be quite complex, especially if you’re importing and exporting into foreign countries. You’ll also want to ensure your products are priced accordingly to the market realities of your target country.

4. International Shipping

International shipping is the reason why many small to medium sized businesses don’t open their doors to foreign trade. And the truth is, some of your products might not be suitable for international trade. It’s important to do thorough research into the customs involved with your target country and the costs associated with sending your product either individually or in bulk. You could also look into sending your products in bulk to a fulfillment warehouses in your target country to save on costs.

5. Understand the Laws

We can’t stress how important it is to understand the laws in each country you’re looking to expand into. As a random example, it’s illegal to import foreign calendars into Vietnam for commercial purposes. This means that online retailers based in the U.S. may not send quantities of more than 100 calendars to customers in Vietnam. If you did, you’d be breaking the law. This is just a single example of how intricate laws can be in each country. To make your life easier, UPS has created a very handy tool in providing you the information you need to make sure you’re not breaking any laws in expanding globally. All you need to do is input the origin of your product, the destination you’re looking to ship your products to and UPS will provide you with all the information you need.

Sign up for your Payoneer Account here to earn a $250 USD bonus when you sell $25,000 USD within 6 months! *Send us a message on my Facebook Page for an additional surprise once you sign up with your Payoneer ID.*

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