Simplifying Cross-Border Retail: Growing Global 2015

By Gregg Zegras, SVP Sales, Global Ecommerce and Jon Kapplow, SVP Consumer & Merchant Solutions

From the smallest ecommerce merchant to the largest big box chains, retailers of all sizes and from all countries are starting to recognize the significant global ecommerce opportunity. We were excited to see many of these merchants at Growing Global 2015, which took place this July in sunny Hollywood, CA. Borderfree, a Pitney Bowes company, was also proud to be a platinum sponsor of the event.

The show not only spurred a lot of discussion around cross-border retail, but also provided an interesting cross-section of the types of businesses working through similar challenges. Our team had discussions with large and small merchants who were asking similar questions. Naturally, the approach and scale of a cross-border strategy might vary depending on the size of the company, but we found that there's little difference between what large and small retailers are looking to accomplish

What are the right markets to target?
What products make sense for certain countries?
What technologies address my cross-border needs?

It's no surprise why driving international sales is hot - recent research from Forrester says cross-border ecommerce in Europe alone will top 40 billion euros by 2018. To get started quickly and easily, many retailers are working with partners to make inroads, including international parcel carriers, third-party technology vendors, and global marketplaces. In fact, simplicity was one of the most prominent themes discussed at the event.

Keep it Simple

Merchants understand the global ecommerce opportunity, but also know it's tricky. Many are looking for answers to questions related to shipping, duties and taxes and the overall buyer's experience. For those dipping their toe into international waters for the first time, it might make the most sense to seek a full global ecommerce platform that can support everything from currency conversion to product catalog delivery. Experienced global merchants on the other hand, may be seeking more sophisticated solutions that address very specific needs like a duty calculation engine to plug into an existing platform. Either way, the goal is to eliminate friction points and ensure smoother service.

Marketing Globally

Watch, listen and test were themes that echoed throughout the conference. You can't cut and paste your domestic marketing program globally and expect it to work. Up front due diligence is critical to developing an international marketing strategy. For each country under consideration, track your organic international traffic to help you decide where to potentially focus your efforts further. Make sure you can marry what you sell to meet the needs of each local market. Using a global ecommerce partner can get you up and running quickly in many countries to start testing market demand with no capex investment.

On Merchant Maturity

Speaking of sophistication, it was interesting to hear the unique ways merchants of different maturity levels think about global ecommerce. For example, the more experienced merchants who know how to get their products to international customers are now starting their due diligence around service optimization and personalization. The challenge then, is to know which products suit each market the best, find solutions that make shopping easy for international customers, and to deal with matters of compliance. Conversely, less experienced retailers are more focused on tactical entry into new markets and risk aversion.

What About China?

China's retail market was top of mind for just about every retailer we spoke with. While many in attendance had a palpable fascination with China, there was also plenty of apprehension and a perception of difficulty about entering the market. It's clear that many retailers are watching closely, and learning more before they dive in. The key for these merchants is to find trusted partners who remove some of the friction of an initial market entry.

Ultimately, partnership was the word of the day - they can help you identify country trends they have learned about over years in the industry, as well as key nuances with each market. Use their expertise in top-of-the-funnel tactics in the channels that resonate with local consumers. Don't ever go all in - test your way into market scale. Support from the right carriers, vendors and marketplaces can make what's challenging, simple, for any international market entry.

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