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.
As early as 2017, Forrester predicted that 20% of e-commerce shopping would be international in 2020, with sales of about $627-629 billions – and that obviously didn’t even take into account the rise in global sales and buys we experienced last year due to the Covid-19 pandemic.
E-commerce sale numbers are breaking all records
Global e-commerce sales increased by an incredible 25.7% in 2020, coming in at $4.2 trillion. This number is expected to rise by another 16.8% to almost $5 trillion by the end of this year.
By 2023, global e-commerce sales are anticipated to amount to a total of $7.4 trillion.
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.
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.
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!
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