The cross-border commerce world is booming rapidly. With just a click of a button on smartphones, you can buy and sell anything across the globe. As per the Forrester study, the cross-border commerce is likely to double by 2021. This will bring a phenomenal increase in the outcome of sales and revenues. Thus, a majority of the online shoppers are going global in their search for sales and purchases. This has given a little run for money to the retailers. However, some of them have joined the bandwagon in the global marketplace.
For instance, the cross-border market of China will see a remarkable progress in 2021 with a huge increase in sales and purchases in this market. India and US are also following suit.
Let us understand the major considerations for the success in the global market.
Optimize local markets
As per research, a majority of online shoppers prefer using the globally recognized marketplaces. They focus on gaining a potential profit margin. This gives them a global recognition and a great customer outreach. It is necessary for these merchants to understand the market rates and values. Also, timely analysis of these helps them to increase their market.
Consumers should look out for multiple benefits to shop at marketplaces:
- Best deals
- Free shipping and delivery
- Ease of searching what you what at one click
- Wide range of products for all categories
- Faster delivery time
- Customer Loyalty Points
- Quality products
- Great customer experience
- Brand loyalty
Cross-border market strategies
Marketplaces have crossed international divides. There has been a substantial increase in the purchase of online marketplaces. This ratio is high when compared to retailer websites.
These cross-border market strategies succeed based on a lot of factors:
- Retailer’s market presence
- How much risk a retailer has to undertake?
- What difference lies between a marketplace’s and retailer’s own assortment?
- Is the retailer fully aware of the cross-border policies and charges?
Be like the locals and pose like a foreigner
The US, China, and India have an astounding cross-border market. Whether it is clothes, cosmetic products, food products and electronic items, they hold their positions in the marketplace.
It is essential for these online shoppers to know the insights of the local markets. They have to be aware of the conditions of the local markets, policies and the tax benefits. They have to understand and analyze the demand and supply of their products in these areas. This is the biggest challenge though. But from the sell-side, it is the most important thing to consider while entering the global markets.
Participation in the national market
The online brands have to actively participate in the national markets. They have to continuously strive to build their presence. This gives a good exposure in terms of markets and the consumers. They have to keep the important things while expanding their business globally.
- They have to understand the fiscal policies.
- They have to be well prepared for regulatory challenges.
- They should do proper calculations of the border taxes and custom duty charges.
- They should ensure the import/export compliance.
- They have to do accurate shipping and product costs’ calculations.
- They have to manage logistics effectively and efficiently.
- They have to process the data and conduct secured payments.
Focus on the brand and quality
It would be tough to survive in the global market if marketers rely completely on the brand. Product perception has to go hand in hand. As per a survey, 70% of the consumers make at least one cross-border purchase annually. This is because of the attractive pricing and discounts they get as well as the strong perception of the product aligned with local needs and quality expectations. Also because of the variety, they get in the products and its qualities.
It is quintessential to localize the brand. They need to create its online presence to enter the new global market. They have to deliver quality products and create a brand awareness to the local consumers. Thus, they have to look like an outsider but have to behave like the locals. The brand equity and the product quality matter among the consumers in countries such as India, China, and Hong Kong.
Manage the inventories and outlets
There are few of the retail brands that have managed to build empires. They have made the most of both cross-border and the domestic deals. These global brands do not enter the market directly. They have to plan and strategize cautiously. They have to manage the resources and the entire system. They have to be quick and efficient in delivering goods and services to their consumers.
Managing the inventory globally is one of the prime concerns for all the online retailers. They have to look into the challenges such as currencies, language, geographical distance, instant delivery and customer satisfaction. Regardless of the time zones and the cultural differences, they have to manage the inventories most effectively.
Brands have to evaluate the market position before entering into the cross-border commerce. As per the geographical and historical conditions, they might have to face huge challenges. But, they have to equally focus on the local brand perceptions to rise and stand out in this global market. Once they ensure compliance for all sorts of cross-border transactions, they surely can gain maximum success in multiple markets.