Do you want to expand your e-commerce abroad? Avoid these 3 major mistakes

1. Unclear goals and expectations 

Without clearly defined goals and expectations, it’s difficult to measure success. Right from the start, it’s important to answer the questions of why you want to expand abroad and what it should bring you. 

• The goal may be to increase turnover. The equation is then simple: New market = new customers = more orders. 

• Or you can expand to diversify your risks. By expanding, you reduce your dependence on one particular market and negative economic or political events in one country may not have as much of an impact on your business.

At Proficio, we help set goals and expectations by preparing a country-specific business case. 

In order to plan everything, we need to find out the keyword searches in a given vertical based on the client’s product portfolio. Along with the searchability, we find out the CPC and CTR for search and shopping campaigns. The hardest part tends to be estimating the site’s conversion rate, which we always tend to see more pessimistically when developing a business case - rather than having overly optimistic expectations and then not meeting our goals.

Similarly, you need to allow for a certain period of time during the establishment in a given market. In the beginning, nobody knows your e-commerce store - this is reflected in lower credibility and higher investments in marketing, which result in lower conversion rates and higher conversion prices. 

This “trial period” can last for 3-6 months, during which you need to take into account that your marketing activities may not be as effective.

2. Choosing a market based on your gut feeling 

Choosing a market without thorough analysis can lead to entering the wrong market. Companies often choose markets based on personal preferences or recommendations, rather than actual data and analysis. Every market is different, and just because your friend is doing well in Germany doesn’t mean it’s the right market for your business. 

To avoid the hassle of choosing the wrong market, invest in an export analysis and choose a market where your business has potential. Don’t leave anything to pure luck. Research the demand for products in your category and be prepared for different customer behaviour of your target group.

Fortunately, today you don’t have to leave your choice of country for expansion to chance. As one of only two Czech agencies to be a member of Google’s International Growth Agency Program, we have tools that aren’t available to everyone. We can provide our clients with enough information to make informed decisions. 

We can compare key parameters across countries and choose the best option. 

The size of demand for products in your vertical is a key parameter that decides which country to enter.

Focusing on your own goals and processes instead of customer needs can lead to low customer satisfaction. Companies often assume that what works in their home market will also work abroad. As a result, they face a loss of customers and low repeat purchase rates. Dissatisfied customers will quickly switch to competitors who better understand their needs. 

Answer the essential question: Why should customers buy from you? Focus on their needs, conduct satisfaction surveys and adapt according to the feedback. Create processes to continuously improve the customer experience. Do you understand the buying behaviour of your potential customers abroad?

We like to say that choosing the right market is simply not about feelings, but about data. 

3. Entering a large number of new markets at the same time

Slow down your ambitions. Quality is important, not quantity. Expansion is a process that can be replicated to some extent. It is mentally and financially less demanding to focus on a maximum of two markets to start with and add more gradually. 

In the course of expansion, you will discover how many pitfalls await you and nothing will surprise you when you enter the next market. If you want to better diversify risk and to scale the expansion, plan to add more markets in a shorter time frame - but not at the same time.

For example, with our client Sanitino, gradual expansion has more than paid off. After export analysis, we set our strategy so that Sanitino would be able to enter 1 to 2 markets each year. We surpassed our original goal of tripling sales and increased revenue tenfold. By 2022, Sanitino will have expanded with us into 10 countries across the EU - you read more about that in this case study. 

Do you also want a hand in expanding your business? 

We know what actually works. Get in touch with us and we’ll look into it together.