ArchiveMonth: March 2017

3 Considerations When Going International on Magento

Going International on magento Magento International Expansion

How do you prepare when traveling internationally? Between informing your bank to reading up on local cultural idiosyncrasies to ensuring you understand conversion rates, there’s a lot that goes into a two-week vacation for a family of four.

So don’t expect your online retail business to simply drop a router in England and start selling products.

There are a range of variables that eCommerce companies need to consider before they can meaningfully expand into overseas markets. From technical, cultural and logistical perspectives, online retailers must ensure they are prepared before they embark on a global business journey.

At ExpandLab, we’ve been dealing with several issues with clients who have expanded to overseas markets. Below are our top three potential difficulties eCommerce companies will run into when they venture off into foreign lands, and how Magento can help solve for those issues.

1. Language

Language is as much about culture as it is about the actual words being used. While Google Translate may have gotten you a pass for your college Spanish class, it won’t pass the sniff test for a professional online store. Luckily, partnering the right team with Magento’s capabilities will make this a smooth transition.

Additionally, within a certain language, there can be many different dialects. If a company uses the same language coding in Spain as they do in Mexico, customers will be confused and unable to understand key messages behind your brand. Plus, it makes anyone look foolish and unprofessional when using the wrong syntax to communicate with a customer base. Although all of this is more time consuming from a technology perspective, it’s vital to ensure customers will actually be able to understand, and then more likely to purchase, your product.

2. Shipping

The logic behind shipping varies from country to country and region to region. Once a company has established a fulfillment center in a certain country, like Germany, they need to determine how that dispersed shipping will work when shipping within Germany, and how that varies when shipping to other locations like Italy and England. Magento helps solve for these issues by having a huge backlog of data with updated price points for shipping costs.

Because these costs can vary so substantially, a robust understanding of these shifting expenses needs to be completely integrated into your product’s final price. According to a study by WorldPay, over 50 percent of consumers will abandon the checkout process when presented with unexpected costs. Even if your shipping prices can’t compete with local retailers, a consumer will often pay more than you think for shipping a unique item.

3. Duty Fees

This is another cost companies need to carefully consider when pricing their goods in different countries. Some regions will have more than ten line items companies need to include when shipping their goods internationally. Is it best to present these to customers as one single fee or would it better to list them individually? Some countries have Value Added Taxes (VATs), creating another unique coding problem.

The other issue is that these fees are not stagnant. Companies need to ensure they have a team that monitors for increases in tariffs and other fees so their technology can be quickly updated to reflect any changes in costs. We’ve found Magento makes these changes simple and easy to implement. ExpandLab also uses a tool called Avalara that monitors for these types of changes and provides real-time updates so there are no surprises in store for clients.

Going global isn’t simply a matter of flicking a switch. But by keeping the above considerations in mind when building an oversea presence, the benefits are clear and powerful. From untapped markets to greater exposure to favorable business climates, international growth can be a real bellwether for eCommerce companies to take their businesses to the next level.

But to be successful, online retailers need a team that understands the nuances of how a platform like Magento can be used to grow their business and keep the ship sailing smoothly. Our team at ExpandLab has the experience and tools to make your international outreach as simple as possible and extremely lucrative.

Contact us today! Let's talk about how we can help grow your business.

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