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:
- How much investment is needed, and how much investment can be made?
- Is there enough personnel to manage an internationalization project with the necessary dedication?
- Can the systems be adapted to multi-currency, multi-lingual, multi-tax and multi-assortment sales?
- Is the cost structure of expanding to a new country sustainable in the long term?
- What are the cultural, policy, tax, marketing channel differences in the new market and should the business make adaption?
- How scalable are the resources in order to ensure the company is flexible enough to get through the starting phase?
Are your systems ready for cross-border ecommerce?
Selling in new markets means that your CMS must be capable of adapting to sales in different currencies, displaying varying assortments and imagery per country, communicating with local payment systems and other local system integrators. The illustration below provides you with a clear overview:
Businesses should also make sure their payment provider can process payments in local currency and offer local payment methods, which are essential for enjoying the best payment conversion rates. There are some global players, but often businesses need to work with different payment providers depending on the country they are expanding to.