As the name suggests, global commerce is a process of globally selling products in a country different than your residence or business place.
With the advent of online businesses, global commerce has drastically increased. This is because physically global commerce is restricted to where you set up a store and which country you can reach without challenges.
Online global commerce has no limits. You can ship products to any country and inevitably expand your business with much less effort, time, and resources. Isn’t that amazing?
It sure is!
Let’s explore the endless possibilities that global commerce has brought for online businesses. Here’s an overview:
Global commerce is the process of selling products in foreign countries. In recent times, owing to the expansion of technology and digital tools, global commerce has become the key to business growth.
When you integrate global commerce with online businesses, then it becomes simpler to sell globally. This international e-commerce moves beyond brick and mortar stores, surpasses traditional retailers, and serves foreign markets without physically being present in the country.
However, it may seem that with an online business, it should be a cakewalk to serve global markets. That’s not true. Every country is different, and so are its requirements. As a result, the burden of strategizing, marketing, and sales are still the same when you expand globally.
Dropshipping businesses should think about expanding their online business globally. Here’s the impact of global commerce on online businesses, read and react:
1. Better Expansion Opportunity
Global commerce has enabled businesses to expand in foreign countries to improve their sale. As a result, many retailers pursue entering different regions with thorough research, strong connections, and money.
However, when your Dropshipping business is selling online, you can easily create a website relevant to different countries and arrange international parcel pickup. This feasibility is truly a game-changer for e-commerce businesses.
You can start selling online internationally without visiting the country or physically creating a clientele there. You have the power of digital media to effectively conduct sales, marketing, buyer engagement, etc.
2. Enhance Buyer Attraction
To attract buyers, you can’t stay focused on first-hand strategies invented decades ago, such as brochure-based websites or a physical store at a prime location. You need to move the extra mile with your global commerce strategy. When online businesses enter global commerce, they are able to attract more buyers.
We know the harsh truth that most buyers now like to find products online and make a purchase digitally. Of course, a physical store may offer you similar buyer attraction, you have the entire world for your business with online global commerce. You can reach many countries at once and offer users products they want to buy.
With this, you also need to understand that internationally people love shopping from their smart devices, and their phones. So, you need to create platforms that cater to the requirements of mobile phone users. If you really wish to enhance buyer attraction, you have to have a mobile-friendly application along with an interactive website.
3. Reduced Sales Cost
From the above discussion, you may have guessed how much online global commerce saves you.
Let’s think about this:
· You don’t need to rent out a store in any country.
· There’s no need to hire people from the country to work in your store.
· You don’t have to pay taxes for the company.
· You don’t need to maintain an inventory in a foreign country.
There’s a nominal charge on shipping internationally and it may include taxes and charges, but much less than what you may pay when in the country.
4. Increased Brand Awareness
When you are selling in foreign countries with global commerce, you are able to reach many people. These people start recognizing your brand and services. In this way, you can start building trust in your brand slowly.
Think of Nike, they didn’t make a brand in a day but today, they are known globally. You can start creating the same awareness around your brand.
We are sure that you have made up your mind to start expanding internationally, looking at how well global commerce helps online businesses.
For this reason, we have explained a few things that you should keep in mind:
Before you enter global commerce and prepare your website for the same, you should prepare yourself first. How can you do that?
Research about the market, country, laws, and requirements for doing business in a region.
You should understand the following:
· The audience
· Products and services popular in the region
· Competitor analysis
· Significant resources needed
Create Local Strategy
Localization is the art of making a strategy as per the local audience of that country. For example, Nike won’t follow the same strategy in India and in the USA. You need a different strategy to match the look and feel preferred by the people of the country.
What should you consider?
The language, ethnicity, culture, and demographics of the audiences in the area. This should include the income group you are targeting.
How should you proceed?
Check what people like and dislike to make your social media, marketing, sales, and supply chain strategy. You should change and personalize your products according to different countries if you wish to sell quickly and sell better.
Always remember that different regions have different cultures. Now, this is true even for different cities within a country. You have to keep your graphics and communications neutral to these cultural and ethnic limitations. You should not put out something that can be offensive to some people or a group.
For example, a peace sign with your hand is popular in the US but not liked by people in Australia, the UK, etc. You should understand basic differences and what offends people culturally.
Create a Global e-Commerce Site
You should always have e-commerce platforms that are feasible for a global audience. A small example of this can be an in-built language changing option so that people from different regions are able to check out your products and services without glitches.
Many businesses create different websites for different countries to personalize the experience of users from different regions.
Even when you are selling online, there are some stringent logistics laws and compliances that you are expected to follow. Therefore, you should conduct thorough research on the same and find out the laws and compliances of a region before shipping products to customers.
Global commerce has been a blessing in disguise for international retail. It has proven specifically beneficial for users because they are able to order products from across the globe. It has been proven beneficial for e-commerce businesses that are now able to expand their business and gain better revenue.
Think about it, you don’t need to physically create a store in any country, yet you are able to reach out to people from across the globe. That type of impact brought by a brand is transformation.
Evaluate how global commerce is disrupting online businesses and decide your international online retail strategy.