A 10 minutes Guide to sell Globally

Every human and their dog are online today. If you’re selling online on Shopify then you already know the power of e-commerce. And this power can be converted into super-power if you go selling globally.

1.66 Billion Of the worldwide internet user research products online, it’s safe to say that online shopping is only going to get bigger

There are different opinions on the e-commerce business model, one of them is: Entering the arena of cross-border trading is the fact that it is profitable.

Still, if you are not believing that going global could increase your sales then have a look at this picture.

It’s never too late to sell internationally. Prediction by Forrester says that between 2017 and 2022 cross-border transactions will exceed domestic ones by 17%.

Thus, as of now, you got the idea how much important overseas e-commerce business has potential.

Now let’s look at some essential things one by one you need to tick on your to-do list if you’re planning or doing the global selling.

 

Price Local while Global

Mathematical calculations while online shopping may always turn off your potential buyers. Thus it is suggested to make an online store’s pricing currency in your buyer’s native one.

  • A survey carried out by Shopify, 92% of the customers are more likely to do online shopping and purchase the product in their local currency.

So if you’re not listing products in the consumers’ local currency, then you are endangering your business with 92% of the online shoppers.

  • 33% are likely to abandon a purchase if pricing is shown in US dollar only.
  • Research conducted by Penton in November 2012, 30000 online shoppers from Canada, UK, Australia, and Germany indicated displeasure with sites that priced in US dollars (USD) only.

Thus as a store owner, you need your products listed currency local as per your customer’s native currency. To combat this query there is an app named “Auto Currency Switcher” in Shopify app store.

Auto Currency Switcher App automatically detects the IP of the user from whatever geographical location he/she is viewing your online store and displays all the prices in the home currency of the user. Even there is a flexible option to change the currency by the user as per his/her convenience.

This app will only change the product currency in the users home currency. But you must be knowing that different country has a different valuation for the same product.

So, now let’s discuss on setting different prices for different country and how you can offer free shipping.

 

Offer Free Shipping

Different country has different pricing, therefore it becomes essential for you as a store owner to set the products prices accordingly.

For example, you’re selling a product “A” in the US at ’$10’ and you’re already selling the same product in Germany at ‘8.5 €’ + ‘Shipping Charges’.

Now as you know the different country has different shipping rates and customs duties so the product that you are selling in the US may not have the same rates in another country. So you need different pricing structure for the same product for the different country

Among the millions of international online shoppers every day, 13% say they will abandon their cart without paying because the price is in a foreign currency.

One more e-commerce fact is that online shoppers don’t want to pay much for ‘Shipping’ and ‘Other extra charges’. These extra charges to your customers feel like as they’re paying more for without any reason.

So, what if you can offer your customer free shipping and no other charges? Yes, there is an app on Shopify app store which will allow you to :

  • Set different prices for a different
  • Automatically changes stores currency in users home currency.
  • Increase or decrease the prices of the product in a particular country anytime.
  • Include the shipping rates and other charges in the product price itself.

By including the shipping rates and other charges in the product price will create an impression like you are offering the product with free shipping (even if you’re not ;)).

Therefore having the capability of setting different prices for a different country, your shoppers can largely increase your global sales, revenue, and profit.

With “Multi-Country Pricing” app, you can achieve the same within your existing Shopify store without creating multiple Shopify stores. Hence, you will be saved from the overhead cost and headache of creating and running multiple stores.

 

Checkout in Local Currency

Ever happened?

You’re viewing a product in $10 (USD) throughout the buying process and suddenly at the checkout, it becomes 700₹ (INR).

As a user of the US (United States) you’ll either start converting it in USD or just abandon the checkout and leave the site.

A study even found that an online store manager can cut checkout abandonment rates by up to 50% by providing their customer a localized currency option at checkout.

For you, as a Store owner, it is very important to allow your customer to checkout in their local currency.

GALA (Globalization and Localization Association), studied the top four countries like Singapore, Taiwan, Czech Republic and India and found that online shoppers are expecting their checkout in local currency. If you’re a digital merchant with consumers in these countries, currency localization ought to be a priority.

For Shopify stores, there is a plugin especially developed for checkout localization named as Multi-Currency Checkout.

The Plugin is packed with all the features to make checkout more customer-friendly and allow them to make payment in their desired local currency.

 

Final Thoughts

Regardless of whatever your business size is, these are some of the basic things which you need to consider when you sell globally.

If you’re fascinated towards international market you can read more on strategies for harnessing Cross-Border Commerce Success.

Let me know by your comments that whether these guidelines helped you or not. If you have any suggestion or way to sell internationally, let my readers know.

Cross-Border Commerce: Choosing the Right Regional Trends with Payment options

Cross-border commerce is one of the most challenging ways for the online merchants to develop their presence in the market. The e-commerce merchants have started focusing more on the cross-border markets to grow their business. Today every merchant aims at expanding their business or market employing regional sensibilities and local market flavor for their success. They focus on building strategies that promote their growth in the online market and create a place in the heart of the consumers. To grow faster, they have to build strategies taking into consideration the market trends and key elements. Here are some of the best strategies:

Trust first: Pay locally; offer at a global level

A global offering can never be enough. Consumers demand secure transactions while shopping online. For this, online merchants have to focus on offering the commonly used, trusted and secured payment methods in the local markets. They have to ensure their customer’s safety, confidence along with the market’s conversion rates. Apart from this, the online merchants have to keep up with the pace of technology. The power of technology is undeniable in the expansion of markets in the global and local market. It binds the consumers and the online merchants across all the geographies and various channels giving a great experience to both in all terms.

Merchants need an overview of the market dynamics and the consumer’s behavior for the successful expansion of their online businesses. This way, it helps them to localize the experience. Moreover, businesses have to study the local payment cultures. For instance, in some countries, consumers trust payment modes as credit and debit cards while in some they trust e-Wallets.

Omni-Channel and Social eCommerce – The future

Omni-channel retail and the social eCommerce is the future already. This gives fully-integrated and seamless customer experience. This also helps to understand how the customers interact with the online brands across all the channels. The eCommerce merchants can gather the comprehensive data from various geographies, brands, and stores. This collectively helps to analyze the customers’ behaviors and preferences in a better way. Furthermore, this can help to create great customer offerings and provide loyalty solutions.

In the digital space, millennials prove to be great influencers. They play a vital role in voicing their opinions and sharing information. For instance, 50-60% of the consumers follow brands and products on social media. They browse a plethora of products on the social media. As per online surveys, 33% of the online shoppers utilize social media for potential purchases. Thus, the online and social recommendation of brands and products encourage the significance of cross-border trades and transactions. In future, social eCommerce and omnichannel strategies will become a major source of payment drivers too.

Go cashless and seek new opportunities

The eCommerce field is flourishing at a more accelerated rate. By 2019, it is expected to hit $3.6 trillion. This is the right time for the eCommerce enthusiasts and merchants to invest and expand internationally. To strategize a good expansion, merchants must understand the landscape and seek out new opportunities. They need to seek out effective ways of electronic payments as the global market is turning cashless. Most countries like North America, Europe carry out cashless payments.

In comparison to the domestic eCommerce market, cross-border eCommerce is skyrocketing at an unprecedented rate. Consumers have started trusting international sources to buy products that are unavailable locally. Online merchants can turn these higher demands into high-profit margins. They can grow their businesses effectively. That said, new opportunities arise with the growth of cross-border eCommerce market.

Key points to remember

While choosing the right step with the payment modes, here are some key points every merchant should consider. So, choose the payment partner smartly to grow your online presence and a strong global network.

  • Focus on the regional trends that meet the customers’ demands and expectations
  • Know the online market value of your products in terms of local and global market
  • Follow the customer shopping habits across various geographies, devices, and media
  • Integrate the trusted payment methods to ensure secure customer online shopping experiences
  • Focus on the fast delivery of the products and best return policies
  • Exciting payment cashback offers and coupons
  • Keep a check on the local regulations, exchange rates and policies

To summarise, developing a successful cross-border strategy is not just about best products and services. It is equally necessary to maintain trust, security and provide a great shopping experience for all the customers. Along with this, they also need to retain the customer base, product quality, brand awareness and customer satisfaction values. Thus, for a seamless experience, the online merchants have to focus on developing expansion strategies that are easy and trustworthy.

Devising International Payments for Cross-Border Commerce

Devising International Payments for Cross-Border Commerce

Selling internationally can be a thrill and a hassle as one needs to process international payments efficiently. The good news is that e-commerce sellers do have loads of options to make global sales easy enough for buyers and sellers.

Do US Merchants Accept Payments from Abroad?

In most cases, they do not accept international payments since the processing fees are high enough with huge risk of fraud and chargebacks. For working with customers in other countries, one would have to set up an account for those orders specifically.

International Merchant Accounts give owners dealing with cross-border commerce with multiple solutions meant for small businesses. These accounts have the ability to accept money and process varied payments automatically. They also feature fraud prevention and other attributes. These accounts also offer alternatives to payment aggregators like PayPal, and even present buyers a view of an established business along with currency exchange rates as part of fees.

Once you’ve opted for international merchant account for allowing international transactions, here are some things you need to do

  • One needs to pay set-up fee to obtain processing equipment along with relevant software.
  • After installing the software, and set account information, link the account with business bank account.
  • The money received through the merchant account will be converted to U.S. dollars and transferred to bank account.

Instructions to link international payment service with marketplace

To link the payment service with the storefront, follow the rules and create your checkout process. Here are some payment aggregators and services that would aid cross-border ecommerce and international payments.

  • PayPal

Being the most popular payment processor for online sales, PayPal now operates in a staggering 190 international markets and even accepts payment in 24 currencies without one needing a merchant account. Transaction fees are mostly lower than the fees levied by banks, most transactions are also swift and secure. It can be set up with an email account and a credit card only and there are several free tools for shipping and tracking reports.

One does get charged per transaction, withdrawals and currency conversions and one can set out adequate product prices for including those fees.

Set pricing for international customers in relevant currencies that are available for you to accept and the money can get transferred to the local bank account within a couple of days. Consider a dedicated merchant account if there are consistent transactions along with a dedicated chargeback department for the services.

Payment comes in default currency through PayPal based on account preferences. One can convert money at the standard rate to account for any wayward currency fluctuations. PayPal monitors foreign exchange rates and adds its own fee of 2.5 percent to the transaction especially when funds are moved from PayPal to bank account.

  • Individual credit card firms

One can work directly with merchant accounts including the popular Visa, MasterCard, and the like. But these provide limited international buyers’ options and thus limit sales.

  • International money orders

Your customer from another country can purchase money orders from their bank, and are mostly considered secure. Fees are minimal, but payment process takes up 8-10 days. Also these international money orders are liable to frauds!

  • International wire transfers

If one has forged a relationship with an international customer, international wire transfers can be swift although expensive at $35 – $60 per transaction.

  • Google Wallet

This wallet is available in limited countries and the UI is uncluttered and boasts of a good online presence, and many cross-border commerce organizations have started using it.

  • Telegraphic Transfers between banks

These transfers have been used for several decades and now they are losing importance owing to convenient payment options.

  • Personal check

Major marketplaces discourage use of personal checks owing to huge chances of fraud. One can even consider the checks on a case-by-case basis if you are the prime decision-maker and comfortable with varied taxes, currency exchange and ancillary fees.

Conclusion

Payment terms and methods are few and far between that actually work in an online marketplace. Check out the best mode of payment for your cross border commerce strategy although do encourage every channel for hassle-free payment for customers.

A Brief Guide To Selling Globally

Are you planning to go global with your current local online store? Or, have you already taken this step forward and now are stuck with various issues? Whether you are the former case or the latter one, your game in the international market needs a timely and continuous update. Continue reading “A Brief Guide To Selling Globally”