If you sell products or services online, you may have already considered opening up business to customers in other countries. After all, the internet provides connectivity to anyone around the world - why not take advantage of the global audience that is out there?
Of course, there are extra challenges and costs that come with serving international customers. This post details some of the important things to consider when opening up business to customers in other countries.
Weigh up the costs of international shipping
When it comes to selling products to customers in other countries, you need to factor in the increased shipping fees. While there are cheap international shipping options out there, they are typically slow and reliable. You will need to charge customers a larger shipping fee if you want to provide fast and reliable deliveries. Looking into drop-shipping could be a way to potentially save costs in the long run - this involves shipping products directly from the nearest supplier warehouse rather than your own warehouse. Of course, this may not be possible if you’re selling products you’ve manufactured on-site yourself.
Set up multi-currency payment processing
Serving customers in other countries means having to accept different currencies. You will need to make sure you are using a multi currency payment processing service. There will be exchange fees to factor in. You can price products higher to factor in these exchange fees (along with shipping fees), or you can accept this as an extra expense to budget for.
Automatically convert pricing
Customers are more likely to buy your product if the price tag is converted into their currency as they can more easily work out what they will be spending. There are website builder features and add-ons you can use to automatically convert the pricing into the local currency of each visitor. Alternatively, you can create different versions of your website for customers in different countries, allowing you to manually alter the price, however this is a much more time-consuming solution.
Make sure your product is legally compliant
Certain products may be banned in certain countries or may have to come with certain warnings or restrictions. It is important that your product is legally compliant in each country you sell to. There are global legal compliance advisors that you can work with to make sure that your product meets international standards and to help you determine where and where not to sell your product. Updating the terms and conditions on your website may be necessary.
Be prepared to expand your marketing
Successfully selling your products in other countries may require more extensive marketing. This could include targeted online adverts at consumers in different countries and potentially even using international marketing services. You cannot use the same blanket marketing approach across the globe as consumers in different countries respond to different marketing practices. You should consider the fact that there may also be different competitors to negotiate when selling abroad and it could be worth researching these to find ways of differentiating yourself.
