Online shopping takes place 24 hours a day, 7 days a week, and worldwide. This global market for e-commerce transactions now accounts for a crucial share of international trade. The World Trade Organization (WTO) predicts steady growth in cross-border trade, including e-commerce , over the next decade .
If your company is in the business-to-business (B2B) space, you’ve probably already thought about becoming part of the growing world of B2B e-commerce. Adopting an international B2B cross-border e-commerce strategy allows you to reach a huge customer base. Here’s how to structure your e-commerce platform for cross-border selling.
What is B2B Cross-Border E-Commerce?
B2B Cross-Border E-Commerce refers to the online buying and selling of goods or services between companies in different countries, philippines email list using digital platforms, websites and online marketplaces to facilitate exchanges regardless of the companies’ locations.
Advantages of B2B Cross-Border E-Commerce
A cross-border B2B business model can offer e-commerce companies several significant benefits. Here are the most important ones:
- Access to new markets and customers: Cross-border sales allow you to tap into completely new markets and customer segments. This is particularly advantageous if your home market is saturated or your products and services are in demand in international markets.
- Diversification and risk mitigation: A diversified customer base in different countries helps you minimize risks from economic fluctuations or market-related challenges in one region. If your business is faltering in North America but booming in Southeast Asia, your cross-border e-commerce strategy can offset the decline.
- Competitive advantage in your market niche : Entering new markets can give you a competitive advantage. By entering international markets early, the key to efficient and automated telephone lead generation you can build brand awareness and customer loyalty before other international competitors follow suit.
- Extending the product life cycle : Products that have reached the end of their life cycle in one market may still be in demand in other regions. Cross-border e-commerce allows you to take advantage of international markets if a product is no longer doing well in your home market.
- Extended selling hours: E-commerce companies can capitalize on seasonal differences by selling in countries with different climates and holidays. For example, switzerland leads a North American swimwear company might target markets in the Southern Hemisphere during the summer months of December through March.
- Economies of scale: International expansion can bring about economies of scale in production, procurement and logistics, thereby reducing unit costs and increasing overall profitability.
- Maximizing existing resources: By expanding into global markets, you can take advantage of new business opportunities without significantly increasing your fixed costs.
Best Practices for B2B Cross-Border B2B E-Commerce
International expansion can lead to new customers and business growth for your B2B e-commerce operation. The process requires diligence and attention to detail. Here are five strategies to ensure a successful cross-border B2B expansion:
conduct market research
First, analyze the demand for your products and services in your target market. You need to conduct a market analysis and identify gaps in the market that your products and services can fill. Examine competitors’ pricing strategies and positioning, which may vary depending on the local economy and consumer expectations.
Choose the right e-commerce platform and payment processors
Choose a flexible and scalable e-commerce platform that supports multiple languages, currencies, and international shipping . You also need a payment processor that supports multiple currencies and offers secure transactions according to international standards.
Additionally, you should look for platforms that allow you to customize your catalog to different markets. For example, you might want to show a certain product line to customers in North America, but not to customers in Australia. Likewise, you should be able to offer different currencies, languages, shipping and payment options, and products without having to open a new store for each one. This work quickly becomes complicated and not scalable as you expand into new markets.
Shopify offers industry-leading e-commerce functionality and an app store with international B2B solutions, making it a strong choice for many cross-border businesses.
Optimize your website for international customers
Translate your website content into the local languages of your target market. Use region-specific formats for dates, addresses, and contact information. Display prices and transactions in the local currency to provide clarity and transparency to international customers. Clearly display taxes, shipping costs , and delivery times for international orders.
Offer localized customer support and service
Recruit and train a customer service team or support center that can handle inquiries and issues from international customers. Provide a comprehensive FAQ section on your website in multiple languages. Your FAQ section can help answer common questions and concerns from international customers.
Ensure compliance with legislation
Comply with all trade policies, taxes, and compliance requirements in the target country. You can consult with local legal advisors to ensure compliance with the laws, tax regulations, and data protection requirements in each country where you do business. If you sell through multiple channels, make sure each sales channel collects and remits the appropriate amount of tax.