Global eCommerce has been expanding year on year at a rapid pace. Even the coronavirus pandemic can’t keep down sales.
But while COVID-19 sparked an international economic downturn, causing a lot of people to pull back on the amount they were spending on offline retail, many consumers moved to shop online to avoid the risks of infection. As a result, eCommerce sales have skyrocketed and in the U.S., for example, online sales have so far made up 16% of all retail purchases in 2020.
But these sales aren’t spread out evenly around the globe. China, for example, is one of the biggest eCommerce markets, followed by the U.S., Japan, the UK, and Germany. Naturally, you’d want to sell to these leading markets, as well as tapping into some of the world’s fastest-growing eCommerce regions like Asia-Pacific and Latin America.
And why not? The internet doesn’t stop at international borders, so why should your internet sales? eCommerce is creating a truly global marketplace and you deserve a slice of the revenue.
Amazon leads the way
As you probably know, Amazon is leading the way in the eCommerce space. In the last 12 months, Amazon opened up new marketplaces in the Netherlands, which is rumored to be a gateway to many more European marketplaces; Singapore; and the United Arab Emirates, and announced a new marketplace for Sweden.
Amazon also added 2 more marketplaces to the list of those offering Amazon Prime, after remaining fixed at just five Prime marketplaces for a number of years.
If you’re an Amazon seller, this makes it easy for you to follow Amazon into new markets. But non-Amazon online vendors should also be looking to seize the moment.
Why expand to a new market?
Moving into a new cross-border market helps you expand your business and boost your bottom line. Customers in other countries want to buy your products, and you want to meet their needs.
Often, people are happy to buy across borders to get a wider range of products, or to enjoy better pricing. In the EU, in particular, consumers who live on or near the border find it convenient to buy in the neighboring country. It’s easy for them to pick up their products from a post office or delivery point over the border. For example, residents of Zermatt in Switzerland, where prices are known to be very high, regularly drive to the nearest town in Italy to do their shopping at lower prices.
The challenges of cross-border expansion
Although it’s usually worth it, it can be challenging to expand into a new country without the right support. For a start, you could find yourself paying a lot for foreign currency conversion, in order to change payments back into your local currency.
You might also face setup costs, like translating all your product descriptions into another language, or changing your sales processes to meet local trading regulations. Sometimes, you might need to open up a new warehouse space or join a new fulfilment center, so that you have somewhere nearby to store your products and ship them for speedy delivery.
If you’re joining a local online marketplace in the new country, you might also have to pay registration fees, or licensing costs to run a business across the border.
How Payoneer can help
Fortunately, Payoneer can help you to expand into a new market without paying too much in fees and costs. Use Payoneer to convert funds that are already in your Payoneer account to local currency, without losing extra cash on conversion fees and high foreign exchange rates, and use them to pay upfront setup fees.
Your Payoneer receiving account allows you to accept payment in any of 150 different currencies, so there’s no need to go through the hassle and pay the high costs of opening up a local business bank account, just to get paid.
You can store your funds in USD, EUR, AUD, GBP, CAD, CNY, JPY, or MXN, then use them to pay local suppliers, licensing fees, or local taxes. If you need to convert funds into your local currency, you’ll just pay a transparent fee of 0.5% of the total amount.
Payoneer can help expand your eCommerce business
With the help of Payoneer, you can accept payment, exchange currencies, and pay setup costs without losing money in fees or having to put up with the hassle of opening a new bank account or foreign entity. Payoneer makes it easy for your eCommerce business to expand across borders to increase revenue and boost your bottom line.
For more information on how you can benefit from fast, secure and easy global payments to expand your eCommerce business, please open an account through this link or contact firstname.lastname@example.org and mention this ChannelAdvisor blog post.