What are the challenges of Cross-border Ecommerce?

Selection of adequate markets

 

The first question before even thinking about localization should be: What markets offer reasonable chances to set up a profitable business within a feasible time frame? Blindly investing in expansion to new markets is dangerous. Often, the obvious choices – for example the large ecommerce markets such as the UK or Germany – are not the only options: the true potential for individual players can very well be situated in smaller or emerging markets. There is no one-fit-all approach. In order to select the right markets for an online expansion, the target countries should be profiled in order to determine their potential. Sellers should also include an analysis of the search frequencies of the products they wish to sell in the new markets. Another important step is a comparison of product prices, CPC (Cost per Click, average costs when running an AdWords Campaign) and CPO (Cost per Order, quality of a marketing measure).

 

Languages/Translation

 

For most sellers from non-English speaking countries, selling abroad means translating their website. Some merchants choose to offer a uniform dotcom-version of their online shop in English, in order to attract international buyers. This is often seen with big international brands, which can build on their already mature brand recognition. For many other players, however, going abroad means translating the online shop, product descriptions, marketing efforts, terms of use and all consumer communication. Figures by Common Sense Advisory.

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