Going Global Guide Part II: Questions to Ask Before Internationalizing Your E-Commerce Business
Overview
This article is the second part of SPACEGOATS' comprehensive Going Global Guide, designed to help e-commerce businesses expand internationally. The guide emphasizes that successful global expansion requires strategic planning rather than random decision-making.
Research Is Key Before Going Global
Before expanding internationally, develop a solid research strategy as your foundational framework.
1. What do the current numbers say?
Key Points:
- Use analytics tools like Google Analytics to gather essential data about your current customer base
- Modern analytics should integrate privacy compliance features for GDPR, CCPA, and LGPD compliance
- Analyze where your clicks originate geographically
- Identify which channels drive the most traffic to your store
Understanding your existing customer journey helps inform expansion decisions.
2. What is my target market for going global?
Market Selection Criteria:
- Expand into markets where you already have customer traction
- Test-sell specific products before full expansion
- Ensure expansion markets represent approximately 5% of total revenue to justify investment
- Research product trends and local purchasing patterns in target countries
- Identify seasonal events and holidays that align with your offerings
Important Regulatory Considerations: The article highlights several new compliance requirements:
- "General Product Safety Regulation (GPSR), effective December 13, 2024" introduces expanded responsibilities for EU sellers
- "European Parliament's July 2025 resolution" brings customs enforcement changes and removes the EUR 150 low-value exemption
- "2025 consumer law overhaul" in the UK empowers the CMA with penalties up to 10% of global turnover
Cross-Border Selling Alternative: Consider cross-border sales rather than full expansion if budget constraints exist. Countries like Portugal, Ireland, and Peru show especially high cross-border shopping activity.
3. Who are my target customers?
Customer Analysis:
- Examine shopping and spending habits of your future customer base
- Analyze demographic information and purchase history
- Consider data privacy expectations and intellectual property protections in target markets
- Understand local payment preferences
Payment Method Preferences: Payment preferences vary significantly by region:
- U.S. customers typically use credit cards
- European customers often prefer online banking or SEPA direct debit
- Asian customers (as of 2018) favored cash on delivery
"They prefer to pay in their own currency" represents a universal customer preference. Implement currency conversion on your site or leverage platform tools like Amazon's automatic currency converter.
Customer Search Starting Points:
- Research where customers begin their product searches
- Google dominates most markets, but Amazon increasingly serves as a product search starting point
- Traditional media like TV and radio remain effective in some regions
Conclusion
The article emphasizes that these three research questions prepare businesses with "the right strategy for success" when internationalizing. Given evolving regulations like GPSR and UK consumer laws alongside data privacy standards, staying informed and compliant becomes critical before expansion.
SPACEGOATS offers support through their knowledge base and services to simplify the internationalization process.