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September 24, 2024

Breaking borders: essential insights for expanding your business abroad

Breaking borders: essential insights for expanding your business abroad

Expanding into international markets has become more essential than ever for businesses seeking growth and increased sales. To provide valuable insights and actionable advice for companies considering global expansion, we interviewed Lucas Kuijken, who leads the Global Customer Success team at ChannelEngine, with years of experience helping brands successfully navigate international commerce.

In this blog post, we explore the most important takeaways from our conversation with Lucas, covering the latest trends in ecommerce, the benefits and hurdles of selling abroad, and practical advice for businesses looking to grow internationally.

Recent ecommerce trends in international sales: social commerce, loyalty campaigns & localized content

We asked Lucas Kuijken about the most notable ecommerce developments in the global market, particularly regarding international sales. According to him, the ecommerce landscape is constantly evolving, especially when it comes to selling abroad. One major trend is the rise of social commerce, with platforms like TikTok, Instagram, and Facebook now offering direct shopping. “We see the social selling platforms being much more popular now,” Lucas says. This shift is transforming how consumers interact with brands. “In the past, it was a traditional marketplace model where you’d search for products. Now, it’s more of a lifestyle platform where commercials and product recommendations come through social media algorithms.”

Where in APAC this trend has already taken off, we also see the movement happening in Europe.  “Bigger brands, which typically didn’t do this themselves, now feel the need to start on social media platforms.” Social media shopping creates a seamless connection between product discovery and purchase.

Another development is the rise of vouchers and loyalty campaigns, especially in Asia Pacific (APAC). “If you visit a marketplace in APAC, like Lazada or Shopee, you’ll see a lot of vouchers and coupons to build customer loyalty. This model is now becoming more popular in Europe, with platforms like TikTok embracing similar strategies.” These programs incentivize consumers to make repeat purchases and are starting to gain traction in Europe.

Finally, Lucas emphasizes the increasing importance of localized content. "Marketplaces in different regions often have specific requirements for content, which means brands need to adapt their listings and campaigns to meet local expectations. If you’re not prepared, it can be a huge challenge.”

Why companies should consider expanding their business abroad

When discussing the reasons for international expansion, Lucas highlights the significant growth potential it offers. He shared that expanding into new markets can greatly boost a company's reach and brand visibility. According to him, expanding abroad allows companies to tap into new sales opportunities, which in turn increases their overall reach. “When you explore new markets like the Middle East or APAC, you open yourself to new sales opportunities and improve brand visibility,” he explains. This broader reach is crucial for brands aiming to move beyond local or regional constraints, as it enables them to explore whether their products and services resonate with different consumer bases worldwide.

Additionally, expanding internationally allows brands to take control of their presence in global markets. In many cases, businesses might already be selling in these markets, but through third-party retailers. Lucas notes, “Maybe your brand is already there, but created by retailers. You, as a brand, need to go there because you want to control your own content.” By directly managing their operations in new regions, companies can ensure that their branding and messaging remain consistent, thereby improving customer trust and engagement.

The main advantages and challenges of selling abroad

When discussing the pros and cons of selling internationally, we asked Lucas what businesses should consider. He highlights risk diversification as a key advantage. “You’re not putting all your eggs in one basket”: if the economy in one country struggles, companies can offset losses by maintaining sales in others. “If the Dutch economy is not doing well, but Germany is, you can balance each other out.” This creates more stability for businesses.

However, the challenges include the operational adjustments required when entering new markets. “It might require you to make a lot of operational changes in your systems,” Lucas explains. These adjustments could involve localizing content, tax compliance, and adapting to local preferences. “If you fail to adapt your sizes to the local size chart, you'll get returns for sure.”

Upfront investment is another hurdle. While the rewards can be great, Lucas warns that “you need to invest in it first to make it work.” This includes infrastructure, marketing, and content creation. “A good strategy to test the waters in a new country or region is to start by selling on marketplaces before opening a webshop”. This approach allows businesses to enter the market without massive investments. Despite the challenges, Lucas believes the long-term benefits outweigh the initial difficulties when done strategically.

Best practices for entering new markets: setting goals, adapting content & managing logistics

One of the key steps before expanding into any new market is to set clear goals. Lucas emphasizes the importance of knowing exactly what your company aims to achieve with the expansion. “You need to know why you’re expanding—whether it’s to test a market, increase revenue, or boost brand awareness,” he says. Without a clear objective, businesses might find themselves venturing into new territories without a way to measure success. Whether you’re looking to test the waters in a new market or aiming for long-term growth, clearly defined goals will help guide your decisions and strategy.

Another best practice Lucas highlights is the need to adapt your content for the local market. Simply translating your existing content might not be enough; businesses must tailor their product listings and messaging to fit local consumer preferences and cultural norms. “Content can make or break your performance,” he warns. This involves not only translating your product descriptions but also making sure that your content resonates with local consumers in terms of tone, size charts, and even product imagery. Neglecting to localize your content effectively could lead to poor engagement and higher return rates, hurting your overall profitability.

In addition to content, fulfillment strategies play a crucial role in ensuring a smooth international expansion. Lucas advises businesses to think carefully about how they will manage logistics in new markets. Some companies may choose to set up their own infrastructure, which can be a long-term investment, while others might prefer to rely on third-party logistics (3PL) providers. Alternatively, many marketplaces, such as Amazon, offer fulfillment services like Amazon FBA (Fulfillment by Amazon), which can simplify the process of shipping and handling across borders. Each approach has its benefits, but businesses need to choose a fulfillment strategy that supports their long-term scalability.

Practical tips for expanding into international markets: conduct thorough research & build a scalable infrastructure

Lucas’s primary advice for businesses looking to expand abroad is to do thorough research on each new market. “Understand everything from tax regulations to local consumer behavior,” he says. This means understanding not just the legal aspects—such as VAT, local taxes, and compliance requirements—but also the nuances of consumer preferences. For example, in certain regions, consumers may expect high levels of customer service, free returns, or specific marketing approaches that are unique to their cultural norms. Thorough research will help businesses align their products and services with local expectations, minimizing potential friction.

Another practical tip is to focus on building a scalable infrastructure from the very beginning. Lucas stresses the importance of setting up systems that can grow with your business as it enters new markets. “A scalable setup will save time and avoid manual errors that can come from managing each market individually,” he explains. Without the right systems in place, businesses can quickly become overwhelmed by the complexity of managing multiple countries, languages, and marketplaces. A scalable approach allows companies to add new regions more easily and expand their operations without unnecessary delays or mistakes.

Must-have tools for success in international sales: PIM & marketplace integrator

When it comes to tools, Lucas identifies a Product Information Management (PIM) system as one of the most essential. “A good PIM system will help you manage your content efficiently across all platforms,” he says. A PIM system allows businesses to centralize their product data and in combination with an integration platform, easily distribute it across multiple channels, ensuring that information remains accurate and consistent across all regions. This is particularly important when dealing with international markets, where localized content and accurate product data are crucial for success.
> You can learn more about how a PIM tools helps with these challenges here.

"Without the right systems in place, businesses can quickly become overwhelmed by the complexity of managing multiple countries, languages, and marketplaces."

Next to a PIM solution, another must-have tool is a marketplace integration platform, which connects all of a company’s systems and processes. This platform acts as a bridge between your internal operations (such as inventory management, sales tracking, and fulfillment) and the external marketplaces where your products are sold. “Integration platforms help synchronize your operations and automate manual tasks,” Lucas says, making it easier to manage your international sales channels from a single point of control. This level of automation is critical when scaling across different countries and marketplaces.

Finally, businesses should consider using fulfillment solutions that match the needs of their international expansion. This could mean partnering with a third-party logistics (3PL) provider to handle warehousing and shipping, or using marketplace fulfillment services like Amazon FBA. These solutions allow businesses to focus on selling while leaving the logistical challenges to specialists, ensuring efficient and timely deliveries to international customers.

Real-life examples: success and challenges in international expansion

Lucas shares an example of one of their biggest customers that successfully expanded into new markets by leveraging a scalable infrastructure. “One of our bigger customers started using ChannelEngine in Europe and quickly connected to APAC and the U.S. within two years,” he explains. This rapid expansion was possible because the company had the right tools in place, including a PIM system and a strong integration platform. By adapting their setup for different regions, the company was able to seamlessly enter three major markets without significant delays. “Their scalable setup allowed them to grow quickly, making only minor adjustments to meet local requirements,” Lucas says. This highlights the importance of having a flexible and efficient system in place when scaling internationally.

Another example that he shared is one of a company that faced issues with content localization“One of my sellers expanded into France and used an inexpensive, automated translation tool for their product listings,” he recalls. The automated translations resulted in errors that confused local consumers. “Consumers can tell if the translation is off, and it damages trust in your brand,” he warns. As a result, the company saw poor sales and had to overhaul their content strategy. This case emphasizes the critical need for proper localization and attention to detail when entering new markets.

Wrapping up: setting the stage for global success

Expanding into international markets presents incredible opportunities for growth, but it requires careful planning, the right tools, and a deep understanding of the new market’s dynamics. As Lucas Kuijken has shared, keeping up with the latest trends, preparing a scalable infrastructure, and localizing your content can make the difference between success and setbacks.

At KatanaPIM, we’re committed to helping businesses seamlessly manage their product information across multiple channels, enabling efficient, scalable growth in global markets. Whether you’re starting your international expansion or looking to optimize your current strategy, our PIM system can help streamline your operations and ensure consistency across all platforms - you can also try it for free!

Ready to take your business to the next level? Contact us today to learn how KatanaPIM can support your global expansion efforts. And if you’re looking for a complete solution to optimize your marketplace operations, check out how ChannelEngine can help accelerate your international sales.

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