Ranging from news articles to recent CEO interviews
With international ecommerce on the rise, Payscout CEO Cleveland Brown says now is the time to expand to new markets overseas. Security, mobility and flexibility will help the ecommerce entrepreneur succeed.
(Los Angeles, CA) January 23, 2017—Online shopping has become a mainstay for consumers. In 2016, ecommerce spending reached over $22 trillion.1 By 2025, an additional 1.8 billion consumers will enter the market, spending an estimated $30 trillion.2 Moreover, online purchases are not solely relegated to holiday shopping anymore—people are turning to sites such as Amazon Prime to purchase everyday items for their closets and pantries.3
Because the internet is a borderless world, international ecommerce is expected to grow significantly in the coming years. In fact, just 40 percent of ecommerce sales in the United States were domestic in 2016.1 By 2018, the number of cross-border shoppers is predicted to grow by 50 percent.3
“Ecommerce merchants who are not looking beyond the domestic market are missing a tremendous opportunity,” said Cleveland Brown, CEO of leading global payment processing provider Payscout, Inc. “Consumers are looking for the best deals and products online—regardless of where in the world that search takes them.”
According to Brown, flexibility, research and top-notch security will improve a business’ chances of successfully migrating to a global business model. The following are some areas to consider when laying the groundwork for a global expansion plan:
Research new markets thoroughly. What countries—and, more specifically, what demographic—currently buy your type of product? Is there an unmet demand in your product area? What kind of culture does this new market have (e.g. gift-giving holidays, cultural taboos, etc.)? Cultural empathy is key. What language does the market prefer to use and, if necessary, can you translate your site to accommodate?
Determine what must be customized to the local market. Different cultures are comfortable with different currencies and even different payment methods. For example, 46 percent of Germans prefer to pay by online bank transfers, while in some parts of the world, cash on delivery is the standard.2,3
Test a new marketplace first. It may be a good idea to start with a small investment to test the demand for your product. Major marketplace sites, such as Alibaba, Amazon or eBay, can provide a virtual storefront with little upfront investment. Once you determine what the level of demand is, you can scale up or down to accommodate.
Consumers across the globe expect a highly secure shopping environment and the ability to access it on their mobile devices.4 For four years running, respondents to the annual KEY BUSINESS DRIVERS AND OPPORTUNITIES IN CROSS-BORDER ECOMMERCE survey have named mobile commerce as the biggest international ecommerce trend.4
“Most shoppers will purchase from an ecommerce site if they believe their payment information will be handled securely,” added Brown. “When choosing a payment processing provider, ecommerce businesses should look for companies that can provide security and flexibility across multiple platforms.” He explained that a payment provider should be able to seamlessly operate across borders by providing access to local funding methods, and additionally, they should be compliant with security standards such as PCI.