The challenges of opening up to the international market
After the explosion of e-commerce this year (+24% vs 2019), e-merchants are seeking to maintain their digital development momentum. 3 growth levers are then theirs
advised by a study conducted by GME (Global Merchant eCommerce Study):
– The diversification of the offer.
– Omnichannel/multichannel.
– International development.
It is on this last point that we will focus.
Currently, only one out of two French e-merchants plans to enter foreign markets. At the same time, 89% of this same panel think that international development is a
intelligent investment, which can positively impact their results. A data gap that is due to a fear of not knowing how to manage its expansion and compromise its customer relationship.
Indeed, a number of challenges are to be raised during such an expansion; first, logistics. A real headache for companies, they must ensure that they choose the right service provider in order to
to offer their customers an optimal experience, while guaranteeing the best cost. To do this, several points of attention should be noted:
– Costs related to border logistics, and the last mile:
Main concern for e-merchants, the problem must be approached from different angles in order to reduce these costs as much as possible by:
• Optimizing storage systems. By rethinking the layout of the logistics space and investing in solutions that will help manage and optimize your inventory, making demand forecasts.
Similarly, it is interesting to integrate its logistics into its ERP & to all of its SI. The collaboration of the systems also guarantees the optimization of the logistics.
• Using relevant performance indicators. By identifying and analyzing the KPIs essential to your logistics, it is possible to improve resource management and reduce non-essential additional activities, and therefore logistics costs.
• Using multimodal transport (rail-road, sea-road, etc.). This alternative will make it possible to guarantee better lead times while optimizing transport costs. Companies (such as Spring GDS or Malherbes (for example)) can thus help on this path.
– The service provider's offer chosen:
The service must be flexible in its delivery times but also in its speed of dispatch.
While leaving the choice to customers to choose the type of collection they wish to carry out (relay point, in store, by appointment). Indeed, let's not forget that the important thing is to stay focused on the customer who is looking for a personalized service, corresponding to his needs.
– Risk management:
In the eyes of the customer, if the package arrives late or is degraded, the e-merchant will be held responsible. To avoid this type of inconvenience, the packaging must be reviewed, because who says international shipping, says longer journey and increased risk of damaged or lost packages. It is therefore necessary to carefully review the packaging material, padding and the label which must be printed (if possible on waterproof material) and attached. This will limit the risk of damage and loss of your shipments.
In conjunction with the points made above, it has also been shown that almost 70% of consumers prefer to reach a minimum of orders, in order not to have to pay.
(or less) shipping costs. It would therefore be interesting to play on this customer need to increase your average basket and have more leeway when it comes to managing your costs
transport, while meeting consumer expectations and increasing their satisfaction.
In addition to questions relating to the Supply Chain, other points are also preponderant when it comes to international expansion. Indeed, to penetrate a new market, it is essential that the choice of the latter and the adaptation of your skills to enter it are elevated to the rank of priority points to be dealt with.
The language, the currency, the standard of living, the administrative specificities are all points of attention (among others) to be taken into account before embarking on a new country.
Similarly, benchmarking the most promising markets (both from a "digital growth" point of view and purchasing power) and the presence of competitors in these markets are also crucial steps to take. . Limiting the risk of making a mistake in its marketing positioning by offering products at a price not adapted by the specificities of the country, or because of the positioning of your competitors already established.
After conducting this various research, choosing your partners and defining your business strategy, you can finally test your offers on a small scale.
For this, the marketplaces (Fnac, Tesco, Black Market, etc.) will offer you interesting opportunities, giving you the possibility of directly testing your offer on the target market while limiting the risks. Nevertheless, this "test" phase on marketplace must be temporary or risk experiencing growth limits: see articles “Marketplaces & e-merchants”.
Sources/to go further:
https://www.ecommerce-nation.fr/comment-etendre-son-e-commerce-a-linternational/
https://www.upmybiz.com/strategie-e-commerce-internationale-concept/
http://www.mynewsdesk.com/fr/visa/pressreleases/etude-visa-le-commerce-levier-de-croissanceinternationale-2972467
https://www.ecommerce-nation.fr/booster-ecommerce-ouvrantlinternational/#:~:text=Lorsqu’on%20sait%20que%20l,acteurs%20du%20e%2Dcommerce%20fran%C3%A7ais.
https://www.pitneybowes.com/fr/e-commerce-international/case-studies/the-challenges-of-cross-borderecommerce.html
https://www.ecommerce-nation.fr/5-defis-logistique-internationale/
https://www.ecommerce-nation.fr/spring-gds-livraisons-international/
https://www.supplychaininfo.eu/transport-logistique-international/
https://www.myabcm.com/fr/blog-post/facons-de-reduire-les-couts-de-logistique/
