Digital River, a global ecommerce and payments provider, recently commissioned a study evaluating ecommerce merchants’ views on selling globally. According to the research, UK and US companies are not only pointing to ecommerce channels as critical to their rapid expansion plans in new international markets, but the vast majority surveyed expect to begin earning revenue in one year or less. While companies clearly have big plans, not all, however, are prepared to generate the big results they are banking on.
Understand your local consumer
Regardless of your industry or market, success in serving a global audience requires a deep understanding of your local customers. Whether your customers are located in the US, Germany, China or India, you need to understand their cultures, payments preferences and shopping patterns – and that is just for starters.
Understand your local market
Taking commerce global also requires in-depth knowledge of regional ecommerce infrastructures in the geographies where you do business. On a country-by-country basis, this includes having the right banking relationships, meeting regulatory and tax requirements to stay compliant, and having the right customer service and logistics channels in place so your shoppers are assured of the best possible shopping experience. This list alone can represent a challenge for many merchants when it comes to the realities of implementation. Yet it highlights only a few of the critical factors that can impact the success and failure of your global expansion plans.
Benchmark your cross-border commerce program
To truly test the preparedness of companies in meeting the needs of international shoppers, Digital River recently released X-Border Payments Optimization Index. The Index assessed more than 160 online stores, across more than 60 attributes, nine industry categories and 10 countries, including Brazil, Canada, China, France, Germany, Mexico, Spain, and the Netherlands, UK and US.
The results were somewhat sobering. The Index found that the majority of companies are not fully prepared to effectively welcome the influx of global shoppers. Based on the Index scale of 1(low) to 100 (high) – online merchants’ aggregate score was 60 – just above the halfway point – when it comes to conducting global ecommerce.
Implement industry best practices
While these results suggest there is plenty of work that needs to be done, the good news is there are some basic steps you can take to ensure your online business outperforms your competition. To improve your chances of exceling at cross-border ecommerce:
Speak the local language: Support a minimum of six different languages on your website – aim to support all languages of your target audience.
Do the math: Present prices in local currency, offering 11 or more currency options that are pertinent to your buyer’s location.
Play the global card game: Accept global payment brands and methods, including Visa, MasterCard, American Express, PayPal and Diner’s Club International, and preferably local payment options where relevant.
Keep help alive: Ensure that your customers have easy access to help when needed.
Slim down checkout: Minimise the number of pages that your customers must navigate to complete their checkout process.
Don’t do it alone
If you’re running into challenges getting your online store optimised for cross border sales, you are not alone. With competing priorities and limited resources, many merchants find it difficult to prioritise and execute the necessary changes that will improve their cross-border shopping experience. To help minimise your risks and speed time to market, you can partner with experienced solution providers like Digital River that have done the hard work to figure out how to sell online globally, comply with local laws, cater to the local consumer preferences and offer both global and local payment methods.
In 2014, Digital River processed more than USD 35 billion in online transactions across more than 240 countries and territories. Through its Digital River World Payments solution, Digital River offers merchants a portfolio of more than 200 international payment options and over 170 transaction and display currencies.
To get additional cross-border commerce and payments insights, access and download a copy of the X-Border Payment Optimization Index.
About Rick Barbari:
With more than 20 years of experience in business leadership, financial services and commerce, Rick Barbari, a group vice president at Digital River World Payments, has been responsible for product strategy, product management, and partner alliances. In his role, Rick oversees a suite of international online payment offerings that contribute to the USD 35 billion in online transactions that Digital River handles across the globe.
About Digital River:
Backed by 20 years of ecommerce experience, Digital River is recognized as a global provider of Commerce-as-a-Service solutions. Companies of all sizes rely on Digital River’s cloud-based commerce, payments and marketing services to manage and grow their online businesses. In 2014, Digital River processed more than USD 35 billion in online transactions, connecting B2B and B2C digital products companies and branded manufacturers with buyers across multiple devices and channels, and nearly every country in the world.
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