5 reasons why you should internationalize your business
It’s no news that global business is booming. In fact, more than every seventh online purchase was an international transaction in 2016 already (15%). By 2022 the share of cross-border e-commerce is expected to reach 22%. The line between offline and online shopping is slowly vanishing and so are the borders between the individual countries’ e-commerce markets. Steadily enhancing logistics performance ensures astoundingly short delivery times and an easy integration on global marketplaces leads to a convenient service for the customer.
Whether you have a large company or a SME (small- to medium-sized enterprise), the global marketplace offers many new opportunities. That’s why we introduce you to five of the several reasons, why you should internationalize your business as soon as possible:
1. Increase sales: New markets, new opportunities
If your business is successful in your home market or the market already seems saturated, you will be pleased to hear that there are plenty new fresh markets waiting to be discovered. Consumer markets are increasingly expanding abroad. Especially presently underdeveloped markets and underserved product categories offer an enormous growth potential and chances for a decent market share. On average, cross-border traders are increasing their sales by 10 to 15% when ‘going global’. Another incentive is the possibility to generate economies of scale in sourcing, production, and marketing. Get to know your new target market and keep in mind the differing consumer landscape. (In this article we put together the preferred payment and delivery options in the heterogeneous European market). This will help you reach your customers in a trice!
2. Increase security: Make your business less vulnerable
Expanding your customer base internationally can also benefit your business’s short- and long-term security. Especially in times of economic insecurity. You will be less dependent on periodic fluctuations and downturns in your home market. Thus, sales in foreign markets do not only increase profit, but have historically shown that traders can retain and improve their employment, financial structure, and production capacity. Moreover, international trading activity has positive side effects on the political and cultural relationship between the participating states.
3. Don’t miss out on innovative developments
Getting out of the comfort zone of your home market and extending your customer base to an international level can be demanding, but it can help you learn from competitive markets and firms. Potentially rewarding partnerships can arise, too. Additionally, increased profit can enable you to invest more in innovative technology or product development. Furthermore, keeping up with the latest trends in global e-commerce, such as a merging B2B and B2C business, a more comprehensive marketplace integration and seamless shopping – the merging of offline and online shopping from independent devices – can help you tap new and younger customer groups.
4. Forestall international competitors in your home market
Online giants like Amazon increasingly put pressure on local merchants and their brick-and-mortar – as well as domestic online stores. Competition is becoming tougher every day, as many customers do not care anymore, where they purchase their products of desire from. Retailers have to keep that in mind and should not wait too long with the internationalization to get the chance for a decent market share on the international playing field. Cross-border business opens up new possibilities for international competitors. You better not miss out on these growth opportunities!
5. Know that obstacles are solvable
Sure, starting to sell goods abroad can create obstacles for online traders. Especially uncertainties concerning legal matters as well as complicated customs procedures and doubts regarding payment and returns handling scare off many merchants to make the leap. But, having an experienced e-commerce and logistics partner by your side can make these obstacles surmountable and solvable. Hermes BorderGuru can assist you with these tasks and take the weight off your shoulders to create a smooth shopping experience for your new customers.
When you’re not wondering anymore if, but how you’re going global, take a look at our previous articles Going global and What’s important for customers when shopping online cross-border. With the fitting strategy, the world is yours!