What makes e-commerce impossible to ignore? What mistakes should be avoided in the perception of e-commerce? Read our article on facts and myths in #ecommerce #crossborder!
6 Key Facts About Foreign E-Commerce
1. E-commerce allows you to reach customers from all over the world
This trade sector is growing rapidly around the world. It will account for a quarter of global trade sales in this decade. In Europe, 75% of Internet users already shop online. If you are not yet present in e-commerce, you may be missing out on a major opportunity to develop your business.
2. Cross-border trade already accounts for 22% of online trade worldwide
Hence, cross-border e-commerce is often called the main trend in the development of e-commerce in the industry.
3. Europe is one of the leaders in the development of cross-border e-commerce
The value of transactions in 2021 in Europe amounted to $171 billion and grew at a rate of 17 percent year over year. Europe is a valuable e-commerce market that will continue to grow in the coming years.
4. International trade on the Internet enables expansion into new markets “without leaving home”
And certainly without the need for frequent travelling abroad. The Internet provides unlimited opportunities for international expansion and conducting trade relations remotely, blurring the physical boundaries between consumers and sellers.
5. It is easier to sell abroad today than a few years ago
Both individual European countries and the European Union are introducing legal and tax facilities for conducting international e-commerce. The e-commerce industry is also developing further tools to facilitate cross-border expansion. All this to encourage entrepreneurs to export and improve customer experience. Therefore, conducting trade on the Internet is becoming more and more accessible, especially for small businesses.
6. Selling through a marketplace is the easiest way to trade abroad
E-commerce platforms like Amazon and eBay allow you to sell products in multiple countries at the same time. Marketplace platforms work well for both B2B and B2C companies. Selling through a marketplace abroad is an effective strategy for growing your business. Learn more about what you can gain by selling online on foreign marketplace platforms.
7 facts worth knowing if you want to start e-export effectively
1. It is worth starting to sell abroad, because the threshold for further expansion is lowering
Companies that have started cross-border sales are more likely to further expand their sales, seeing the benefits and profits from this type of trade. The biggest challenge lies with companies that haven’t started yet. Therefore, the most important thing is to take the first step.
2. The market for services for international e-commerce is growing
On the market, including the Polish one, more and more companies and solutions are appearing that help to conduct e-commerce trade abroad. They have narrow specializations (e.g. sales on Amazon, logistics to the Czech Republic), many years of experience, they keep updated on the changes in the industry, and their expertise is growing year by year.
3. An attractive offer (including competitive prices) is the main motivation for online shopping from foreign stores
Consumer research across Europe confirms this. However, it is not the only motivator. Do not give up on e-export if your competitive advantage is not based on price.
4. Customers expect cheap and fast delivery of products
High delivery prices are one of the main barriers to shopping abroad. For customers, such purchases should be as easy and fast as those made within the country. Cheap delivery and return options are the important factors on the European market. Therefore, it is worth considering using fulfilment services for e-commerce.
5. Markets have different preferences regarding e-commerce
Therefore, it is important to thoroughly analyse the data on demand in the e-commerce segment in the country to which you want to start e-export. For this purpose, a reliable market analysis should be performed.
6. It is important to accurately match the offer description to the local language
Customers prefer product descriptions in their local language and have less trust in offers created in a foreign language or translated unprofessionally. Hence, it is very important to ensure professional translation, adjust communication through the localization process, and ensure high quality of the offer description.
7. It is crucial to be present in price comparison engines
Unlike traditional trade, online trade allows for easy comparison of prices, products and offers from different stores. Customers prefer making informed purchasing decisions. Therefore, it is necessary to prepare a product feed for the comparison engine and ensure appropriate positioning of your offers in this channel.
4 interesting facts that will make you become a champion of e-export small-talk
1. Western European countries have the largest share of cross-border trade in all of Europe
Great Britain, France and Germany are among the largest cross-border markets in the world in terms of value. However, they are not the market leaders in cross-border trade in Europe. Read on to find out which country is number 1.
2. Over 60% of e-commerce purchases worldwide are made through marketplace platforms
This percentage is expected to continue to grow in the upcoming years, even up to 75 percent. There is no need to have your own online store, because, as research shows, the opportunities offered by sales platforms are enormous.
3. Clothing and footwear, electronics, cosmetics and food are the most popular product categories in e-commerce in the world
Similar products are successfully sold by Polish SME companies on Amazon abroad. Customers appreciate the diversity and the possibility of a wide selection of products in these categories, paying attention to both quality and price.
4. Mobile shopping is becoming the new normal
With the development of the smartphone and tablet market, many people make purchases using mobile devices. According to forecasts, in 2023 almost half of global e-commerce sales will come from mobile devices.
A fact about cross-border that will surprise you
Luxembourg has been classified as the leader in cross-border trade in Europe.
Consumers of this small country boldly take advantage of offers abroad. Luxembourg has an unusually high number of cross-border network users. Most importantly, it’s the best in terms of the number of foreign transactions on the European market. From this perspective, it is a very promising market for Polish stores and domestic offers in foreign marketplace platforms.
4 myths that should be dealt with once and for all
1. Cross-border e-commerce is only available to e-shops
Cross-border trade requires preparation, time, patience and optimism in every case. Psychological factors are just as important as having your own online store. Cross-border is also available to manufacturers and sellers who have a brick-and-mortar store or other sales channels. Use our database to dispel your doubts. Contact experts who will support your company during the internationalization process.
2. E-commerce export is only available to large companies
This is not true. E-commerce, as well as export with the use of online channels, is available to every company, regardless of size or potential.
3. E-commerce is more expensive than it seems
The reality is that running an online store can be cheaper than a physical one, and doesn’t require as much financial outlay.
4. E-commerce is only good for younger generations
In reality, people of all ages use it. More and more people from older generations are discovering the convenience of online shopping. Nowadays, 91% of people in Europe have access to the Internet. Seniors are not lacking there either.
5 myths that should be forgotten
1. Customers won’t buy products they can’t touch
Although it’s still a significant obstacle for some customers, it doesn’t change the fact that the percentage of customers who regularly buy online without prior verification in a physical store constantly grows. The convenience of easy returns of products has contributed to this. Therefore, many companies include this aspect in their strategies.
2. E-commerce is going to overtake traditional stores
Despite the rapid growth of e-commerce, traditional stores still play an important role in trade. E-commerce and traditional trade complement each other. That is why the largest companies invest in omnichannel or multichannel strategies to increase their chances of success.
3. E-commerce abroad is dominated by large e-commerce companies.
No, this trend does not occur in every country. Central and Eastern European countries such as the Czech Republic, Slovakia or Hungary are attractive to Polish sellers precisely because they are friendly to new online stores, and the market there is not dominated by marketplace platforms. If you have your own store, consider directing your offer to our southern neighbours.
4. In foreign trade, margins are lost on currency conversion and bank costs
Due to the companies’ growing interest in international online trade, and the resulting challenge related to settling cross-border transactions, new fintechs are developing dynamically, providing services for convenient and advantageous transaction settlement. By cooperating with such companies, we can relieve the company’s cash register of currency conversion costs and spreads. We recommend following new solutions in this industry.
trong>5. Product presentation is not important, price is more important
Factors influencing the attractiveness of an offer are varied, and it is impossible to determine a single key criterion (such as price). On the other hand, even the most attractively priced offer may often not inspire customer’s trust if it is not accompanied by professional “packaging”. When it comes to the sales offers in an online store or marketplace listings, professional photographs, reliable product descriptions, an engaging presentation of the advantages, benefits and values, as well as positive opinions about the product or attractive branding are equally important. Product presentation allows you to stand out in the crowd of offers on a foreign marketplace or among PPC advertising campaigns.
Do you have questions that the article above did not dispel? Contact us and get a free consultation with a Gonito expert!
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