Marketing February 7, 2019 Last updated February 23rd, 2019 151 Reads share

How to Make Your Ecommerce Growth Strategy Work

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According to the OC&C Strategy Consultants, in a study in collaboration with Google, online sales from outside the UK will rocket from the £4bn generated in 2012 to an estimated £28bn by 2020, accounting for around 40% of total sales revenue. We are seeing this external growth happening in real time. As the CEO of a print-on-demand, e-commerce platform (Spreadshirt) I spent much of 2014 optimizing our services for an international audience and looking into potential new markets. To improve our sales, we are now active in 19 markets and 12 languages and our customers can pay in 11 currencies. We also operate five production sites in Germany, Poland, the USA, and Brazil and deliver to about 200 countries.

 

Changes in the world of retail, technology, and delivery to global consumers moving so fast means e-commerce companies now need more than just inspiring customer experiences, great sales strategy and a savvy marketing plan to succeed abroad. All the successes generated by launching in new countries can be rapidly jeopardized with a poor delivery and supply chain. Without establishing a solid plan and network you might as well have thrown away the money spent on expanding.

 

So how did we make our international growth strategy work? By focusing on seven key areas:

 

  1. Knowing that growing globally might mean first appearing local

 

Your internationalization strategy should be about making things easy for your customers and this might mean localizing your brand and website. Customers should be able to access your site via their own country domain name and pay in their currency. Most consumers want to buy from local service and some of our sellers are only interested in reaching their domestic market, so we have had to provide that, alongside a global service for those that want it.

 

  1. Focus on where there already is customer demand

 

Know your market and go to where the customer is. Our recent expansion into Australia, Canada, and Switzerland was because, not only are these markets important, but we knew that in these countries there was already significant demand for our products.

 

  1. Checking on the local tax and business rules

 

This is where partnering can sometimes be a better bet than organic growth; you take on a business which already has all the right permits and understands how to do business in the region. For example, in the USA there are tax variations between the States, which need to be taken into account, along with the tax issues surrounding cross-border sales. If a customized t-shirt is sold by a YouTuber in New York and shipped to Brazil, but the transaction happens in Berlin, where is the tax paid? These are issues an international e-commerce company must be on top of. Spreadshirt is not only an online retailer, but we also provide a platform for other re-sellers, so this is especially key for us; it’s our job to make this a smooth and efficient process. No-one wants to get bogged down in tax issues when they’re creating and selling their ideas.

 

  1. Getting the product to the consumer

 

Shipping is a vital component in the supply chain and it must be fast, reliable and priced right. In 2014 we added delivery to over 150 new countries. Within weeks, we had to delist 10 countries due to fraud and delivery problems. However, there were some nice surprises within the mix. Some countries even with small populations, such as Bermuda, Guadeloupe, and French Polynesia, are doing very well. Other countries had good sales, but have had to be paused until delivery issues are sorted out. Spend time getting this right.

 

  1. Planning to get on the ground

 

Many of our key sellers build a fan base on global social platforms such as YouTube and Facebook – making a demand for their products truly international. We see huge traffic coming from countries like India and Brazil, meaning that eventually, shipping will not be enough to satisfy consumer expectations. We’ve therefore acquired last year a partner in Brazil and are looking at India, Turkey, and other countries, to reduce the shipping time. A demand-driven approach from traffic or shipped orders always governs our next steps. You have to go to where the customer is.

 

  1. Not forgetting cultural differences

 

Don’t forget to consider the possible complications of growth in different regions. Are they culturally similar to your initial countries? This is not just language but consumer attitudes. For example, the US and UK are vastly different in their consumer behavior, so perhaps look at the possibilities of partnering or acquisition in countries where doing business might be complicated or culturally very different. Often, the quickest route to success in a region is to find locally successful companies to partner with.

 

  1. Planning and logistics are key

 

Finally, don’t forget that expansion is about planning and establishing good logistics with reliable shipping partners. You may be able to get your package out of the country easily, but who will be responsible for it once it arrives at the border of the delivery country? Last mile issues can often be a challenge for businesses looking to expand.

 

Your internationalization strategy, however, should be about making things easy for your customers and this might mean website localization as a first stage of expanding into new territories. Spend time localizing your marketing activity and content and establishing reliable partners is a good investment.

 

The process of growing internationally has been a positive move for us. The world is a great place to do business and in our experience, more valuable orders were gained than lost due to expansion problems. Glitches have been easily sorted out by switching off certain payment types or changing a shipping provider.

 

Our goal is to continue expansion via acquisition, access, and strong international partnerships with an eye towards local production hubs. But while expansion is an important aspect of doing business, be sure you have a clear strategy with trusted partners in place before taking launching in new markets because all the successes generated can be rapidly jeopardized with a poor delivery and supply chain.

 

 

Author: Philip Rooke, CEO of Spreadshirt. Follow him on Twitter @PhilipRooke

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Philip Rooke

Philip Rooke

Throughout his career, Philip has seen internet business models develop and new technologies emerge; from creating 1990s dotcoms, through to the mobile app businesses of today. As CEO of Spreadshirt, Philip Rooke brings a laser focus to delivering a simple and easy customer experience and seasoned experience in scaling business processes to address and deliver precisely what a customer needs and demands. Philip Rooke launched his career in the internet business starting in media and eventually evolved into a leadership role with leading e-commerce retailer Tesco.com. He developed a finely-honed, customer-centric approach during his 16 years in the industry, where he was part of the team that transitioned Tesco.com into £1 billion in sales, making them one of the most successful retailers in the world across both the food and non-food industries. Philips’s specific expertise has been all about delivering the best customer experience in rapidly growing industry-leading businesses like Tesco.com, SkinStore, and Carlton Television. Philip joined the Spreadshirt leadership team in 2009 as Vice-President and Managing Director of the Business Unit for Shop Partners and Direct to Customer Business. He moved swiftly through the ranks; by August 2009, he became a member of the Management Board as Chief Marketing Officer. This promotion recognised his commendable efforts in driving a 45% growth rate of the online shop business globally. By May 2011, Philip was promoted to Chief Executive Officer of Spreadshirt. Philip’s ability to build revenues and implement best practices continues to position Spreadshirt as a market leader and a pacesetter in the e-commerce industry.

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