Selling to overseas customers and expanding your business internationally offers several great benefits. It opens up new revenue avenues, reduces your dependence on local markets and helps increase sales and profits within your business. Fortunately, expanding your business is now easier than ever thanks to internationally-selling platforms like Amazon. This means that every business has an incredible opportunity to advertise and sell their products worldwide. However, you should be aware that businesses face several unique challenges when expanding overseas. To help ensure that your global expansion goes smoothly, here are some key factors to consider when doing business internationally.
Choose the best-selling platform
There are several different options when it comes to choosing the best international marketplace for your business. Some of the most popular include: Amazon, eBay, Etsy and Rakuten. Each online selling platform has its unique requirements, audiences, listing fees, and so on. For these reasons, you must conduct thorough research and consider your options carefully to determine which is best for your business. Amazon Global is an excellent choice for businesses looking to expand internationally as order fulfillment and shipping is fully managed by Amazon. There is also a 24/7 support center in the local language which ensures that all users have a positive customer experience. What’s more, Amazon has over 300 million customers in over 180 countries in the world. This makes Amazon one of the most convenient and accessible international marketplaces available.
Do thorough market research
Market research is vital when you are expanding your business overseas. You may be set on a certain location, but you must check whether there are enough potential customers in that area to support your business. Research your chosen market to learn about your target audience and make sure that you understand the local cultures and traditions of the market you are entering. This will help you anticipate how your brand will be perceived by consumers within that country. You may need to adapt certain parts of your business to suit local customs, religions or values. Keep in mind that you must offer a product or service that people in a particular area need and are willing to pay for. You should also use market research to understand your international competition. Learn as much as you can about your competitors and determine what customers like and dislike about these companies. This will allow you to amend your business plan to increase your chances of success when you expand to a new overseas market.
Consider economic sanctions
Before you start doing business internationally, you must check whether any barriers or fees apply. Economic sanctions are imposed by countries and can take several different forms. For instance, they may be used to impose additional taxes on goods being imported or exported out of the sanctioned country. Financial sanctions may also prevent companies from carrying out transactions with certain people or organizations within a country. Sanctions can have a massive financial effect on businesses and governments. For example, according to news from theirandeal – “Iran is trying to secure a line of credit from the European Union for $15 Billion to offset the losses in oil exports due to the economic sanctions.” Breaching a sanction can have serious consequences include large financial penalties and even prosecution. For that reason, you must check whether the countries you are expanding to have any sanctions in place that may affect your business operations.
Make local connections
In business, who you know is extremely important. Making local connections with industry leaders in the countries you are expanding to will help your business in several ways. Firstly, your connections may be able to offer valuable advice on the local market and provide you with essential resources. They may also be able to introduce you to other connections that can further support your business expansion. Attending networking events is one of the best ways to make local connections and expand your professional network. Look for any events that are specifically geared towards international business. You should also reach out and connect with people through professional social media platforms like LinkedIn.
Summary
Taking your business global isn’t easy, but it offers some incredible rewards if done successfully. This includes increased earning potential, exposure to a global audience and the opportunity to boost sales and profits. You must have a detailed strategy in place to expand your business internationally and have a thorough understanding of what will be involved in the process. Use some of the above advice to help your global business expansion go smoothly.
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