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Part I: Reasons and Benefits of International Expansion – With or Without Amazon
Wouldn’t it be incredibly useful to have all the information you need to take your e-commerce sales around the globe at hand, easily accessible and collected in one place? We definitely think so! That’s why we developed this Going Global Guide: All you need to know to start selling internationally. This is the first part of this new series – make sure to come back regularly to catch the following articles and topics!
To start out, we might have to establish some reasonable ground for all of this international expansion. Why should you, or any online seller for that matter, start selling globally? How can e-commerce retailers benefit from expanding into other countries? And how does Amazon play into all this and what advantages does the online retail giant provide? Let’s dive in!
Reasons to take your online sales to other countries
With the world becoming increasingly connected through the internet, more and more buyers are becoming available in already existing as well as currently developing markets. While expansion still requires time and money, it has become easier than ever to reach people and customers around the world.
The prediction from 2017 that 20% of e-commerce shopping would be international in 2020 has been superseded by actual growth, though a precise current global percentage for international online shopping is not widely aggregated. What is clear, however, is the sheer scale of global online retail: there are now over 2.77 billion online shoppers globally, accounting for about 33% of the world’s population, with significant numbers in markets like China and the U.S. This continued expansion underscores the immense potential for international e-commerce.
E-commerce sale numbers are soaring
Global e-commerce sales have continued their upward trajectory. While a significant surge was observed in 2020, partly due to the Covid-19 pandemic, the growth has since normalized. However, the market continues to expand. Worldwide retail e-commerce is projected to reach between $3.66 and $3.7 trillion in 2025. When considering both B2B and B2C transactions, the total e-commerce figure is much higher, estimated to hit $37.05 trillion by 2025, according to the U.S. Department of Commerce. This demonstrates an undeniable and持续 expanding global digital marketplace.
It’s important to note that while e-commerce growth remains strong, the pace has moderated compared to the unprecedented surge during the pandemic. Economic headwinds such as inflation, reduced disposable income, and consumer debt in major markets like China and North America are influencing spending habits. Nevertheless, the underlying trend of increasing online consumption persists.
That means there are plenty of reasons to go global if you’re selling online – and you can benefit even more from this step.
Benefits of international expansion in e-commerce
If you expand your sales to international markets, you are using a workaround to an issue that most sellers face: Finding new customers. If the market in your country is saturated or if you struggle to find new customers within familiar terrain, you should consider the abundance of people, and therefore potential customers, you can reach outside of the borders you’ve been operating in this far.
Fastest access to newly developing markets
On top of generally being able to reach more potential buyers, online sales and most e-commerce platforms are definitely the easiest way to be among the first retailers on up-and-coming markets.
Countries like India, Brazil, Russia, and Argentina are currently seen as some of the fastest-growing markets in e-commerce. In addition to their already existing potential, e.g. having high populations, these countries experienced a spurt in online sales during the Covid-19 pandemic.
Refine and advance your products and range
Exploring new markets, and with that, new customers and needs, might also bring additional inspiration and impetus in other areas of your business, such as product development and sourcing.
For example, if you’re selling products with a certain pattern or print, it might be a good idea to offer additional new options that match the culture and taste of the new market you’re delving into.
Adapting to newly arisen demands not only offers you to cater to more diverse customer desires, it also offers you the chance to broaden your product range and therefore grow your business.
Evolving Consumer Behavior and Technological Advancements
Today’s online shoppers have high expectations. Approximately 70% of global consumers expect to primarily shop via social media by 2030, highlighting the importance of integrated social commerce strategies. AI-powered features like virtual try-ons and voice search are no longer niche but are becoming essential for competitive differentiation. The shift toward hyper-personalized, seamless shopping experiences, driven by generative AI and advanced analytics, is redefining how consumers interact with brands online.
Furthermore, sustainability is a growing concern for consumers; about one in three shoppers abandon carts due to sustainability issues. Delivery options also play a crucial role, with 81% of shoppers dropping out if their preferred shipping methods aren’t available. Understanding these sophisticated consumer behaviors and leveraging technological innovations—from AI-driven shopping tools to mobile, voice, and augmented reality (AR) shopping—is key to success in international e-commerce.
Advantages of going global with Amazon
The biggest and most general benefit of going international with Amazon is summarized in the fact that you could piggyback off the success and infrastructure of one of the world’s leading e-commerce marketplaces.
By using Amazon’s network only in Europe, for example, you can market your products in 28 countries already. Need more convincing? In 2020, more than 2,700 products were sold per minute on all European Amazon marketplaces.
There is, however, a bit more detail to several reasons why expanding with Amazon would be beneficial and easier for you.
What Amazon offers as an e-commerce giant
Amazon is already a well-known platform around the globe. This goes hand in hand with high levels of appeal to and trust from customers. Amazon is generally known for providing high-quality customer service to end customers, as well as fast shipping and generous return conditions.
Hopping on board with a platform of this size and reach also means that there is already a giant infrastructure in place. If you are willing to pay what Amazon is asking, you get access to cutting-edge tools and logistic networks and are able to let Amazon provide excellent service to your customers.
Using all these benefits when selling on Amazon comes with a price – a quite literal and high one at that. Do you want to benefit from international Amazon programs and start selling internationally for a fraction of the price, while also saving time and resources for international bureaucracy? Start selling with SPACEGOATS!
Book your free and non-binding strategy call now.
Fulfillment and Sales all in one
When using Amazon’s fulfillment program, Fulfillment by Amazon (FBA), sellers gain access to a comprehensive system.
According to Amazon, there are only four basic steps required:
- Decide where and what products to sell.
- Register with Amazon and list your products.
- Ship your goods and start fulfilling orders.
- Managing your business.
While the last point reads a little vague, this does also not cover the amount of administrative and bureaucratic work that is still required. Check out our Step-by-Step guide to starting PAN EU sales if you want to sell internationally on Amazon.
Easier access to international markets
Amazon offers additional benefits that make it easier to start exploring new markets.
First is the option to expand later on, whenever Amazon opens up an additional marketplace in a new country – as seen recently in Sweden, the Netherlands, or Poland.
On top of that, Amazon provides a built-in converter for a growing list of currencies across the world – at least in Amazon marketplace countries. Check out the full list of supported currencies here. While you should still do your research on pricings and product values in other countries, this Amazon feature offers you a ballpark figure that you can use as a guideline or basis for research.
Exploring new countries and markets also offers new options for special sales and peak periods that are also great marketing opportunities: By selling internationally, you get to take advantage of more holidays, sales peaks, and periods of increased traffic and demand.
Regulatory Considerations for Global E-commerce
As you expand internationally, it’s crucial to be aware of the evolving regulatory landscape. For instance, new web accessibility directives in the EU now mandate that e-commerce operators design their online experiences to be accessible to all users. Understanding and complying with such regulations is paramount to avoiding legal issues and ensuring a smooth customer experience in different regions.
SPACEGOATS bonus tip: International marketing strategies and opportunities will be the topic of a future Going Global Guide part – stick around in order not to miss it!
Be sure to leave us your email address to receive updates about new articles in our Knowledge Base, so you won’t miss the next parts of the Going Global Guide.
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