How to keep costs low for international shoppers

Global e-commerce is a growing trend that has accelerated significantly during the pandemic. Cumulative data estimates that worldwide e-commerce sales will increase by over 27% over the next period.

Selling products across geopolitical borders can offer businesses new growth opportunities.

With a global e-commerce market in height of $4.9 trillion in 2021, it’s fair to say that there’s plenty of room for growth for small online retailers.

It makes sense to reach out to growing markets, such as Latin America and Central & Eastern Europe, as both markets are showing faster e-commerce sales growth than Western Europe.

However, selling to international customers can bring new challenges. Overseas shoppers don’t want to be penalised for their location.

High delivery costs, custom taxes, shipping delays, and slow customer services can affect brands’ expansion into international markets.

What can online retailers do to ensure their international shoppers can benefit from the best possible service at all times? Indeed, brands that fail to meet the expectations of global customers are unlikely to survive long-term in the global market.

Research the best shipping option for them

It’s fair to say that next day delivery services may not be an option for international shipments. However, international buyers still expect swift delivery options. In other words, slow shipping processes can put off a lot of potential customers.

Additionally, long delivery processes can also increase the risks of loss and damage to parcels. If you are shipping abroad, you need to research the best possible options to protect your shipment.

Solutions such as royal mail international parcel or specialist 3PL providers can offer a fall-back guarantee. Indeed, global shipping solutions must include insurance cover that will protect parcels against loss and damage risks.

Some shipping providers also include custom management as part of their fees, so online retailers don’t have to worry about incurring additional import/export taxes.

Vary payment methods and trends

Payment methods differ from a market to another. German customers, for example, are familiar with bank transfer payments for their online orders. The trend for card payment is growing, but it isn’t as popular as in other markets.

When reaching international markets, the brand needs to focus on analysing and understanding the most relevant payment trends. A popular payment approach, buy now and pay later, is receiving interest in countless countries.

The pay later option is already part of the e-commerce culture for customers used to pay via bank transfer. For others, delayed payments give customers the confidence to purchase from an overseas brand.

Consider an international warehouse

An international warehouse offers a unique solution to overseas shipping. Indeed, international order fulfilment can promote the full brand experience to new customers. Using international warehouses as hubs within a global market, brands can offer low delivery costs and quick shipping times to all customers.

Additionally, warehouse locations can streamline the return process and reduce import/export taxes.

Needless to say, the service can be expensive to set up. It’s not a recommended option for small businesses experimenting with new markets. Yet it can be the right growth path once you’ve identified the most profitable overseas markets.

International growth is a natural progression for e-commerce businesses. However, it is a progression that requires strategic management. The choice of market, logistic solutions, and payment methods will affect international shoppers’ experience.

It is a delicate balance to keep costs low for shoppers without affecting the business cash flow.

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