Cross-border Ecommerce Advanced

From EcommerceWiki

Cross-border Ecommerce Advanced

1. When is a company ready to sell abroad?

Companies often decide to expand abroad when the home market is saturated and new growth opportunities are needed. Alternatively, traffic from other countries might have indicated a demand and motivated an expansion to a specific market. In order to make a decision that is not regretted in retrospect, a company must evaluate the situation realistically
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2. What are the challenges for brands in terms of cross-border ecommerce?

In cross-border e-commerce, manufacturers of goods that sell their own product (range) – as opposed to retailers, which primarily sell other parties’ products – are often referred to as “brands”. Examples include Nike, H&M, Bugaboo and Adidas.

Brands often start selling online themselves when they already have a network of offline and online resellers in place. Just as a “flagship store”, an e-commerce site allows a brand to both sell and create a specific experience for their customer.
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3. How should you determine your market entry strategy?

Venturing into a new market is more than just a new marketing channel. It should be subject to a sound decision-making process and decided by the person who makes all high-level investment decisions, such as the CEO or MD.
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4. How to identify market opportunities and create a sales forecast?

In order to identify market opportunities and create a sales forecast you will need to have information about the size of the market for expected revenues, expected performance of the localized website in the new market and the buying behavior of your customers. The great thing about identifying marketing opportunities is the data that is freely available nowadays. This data can help you in getting the above information for your marketing plan.
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5. How can outsourcing help your cross-border ecommerce activities?

Opening up in a foreign market with an online shop requires localization, marketing, fulfilment, returns management, customer service and much more. This really is quite difficult to do in a country where you probably do not reside, your company has no offices and you are not exactly fluent in the local language.
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6. What is the influence of scalability?

Retailers decide in favor of “making” because they feel that they have sufficient capacity and resources in-house. On the other hand, they decide in favor of “buying’ when they do not want to invest in difficult-to-assess market developments. This often works out okay, but in 10% of the cases in which the decision was incorrect, this has long-term consequences.
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7. What is the impact of marketplaces?

There are plenty of national and international marketplaces active in the global ecommerce sector, including Alibaba, Rakuten, Tmall, eBay, Amazon and PriceMinister. Retailers and brands choose to sell through marketplaces for various reasons.
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Janine Nöthlichs
Global Content Marketing Manager

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