Three steps to go global

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Three steps to go global

Cross-border e-commerce could unlock the door to higher growth. Check out this three-step guide on how to do it.


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Average reading time: 5 minutes





Executive summary

Cross-border e-commerce is a big opportunity, with growth rates surging and expected sales of around $8 trillion by 2032.


Data can be key to unlocking the potential for your own business, helping you to identify the most promising markets.


Researching potential destinations – and consumers – is crucial, while it’s essential to plan for potential costs and customs compliance.


Localisation could be the difference between success and failure – remember to go beyond translation and consider the whole experience.





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20%

Forecast annual growth rate for cross-border e-commerce sales from 2023 to 2032


businesses searching for growth
businesses searching for growth
businesses searching for growth




For businesses searching for growth, it could pay to look to international markets. Cross-border e-commerce sales are expected to reach approximately $8 trillion by 2032, from just $1.5 trillion in 2023.1 That’s an annual growth rate of 20%.

But recognising the opportunity is just the beginning. The next step is capitalising on it – and for many businesses that’s easier said than done. Over half of supply chain professionals (55%) say that they find cross-border e-commerce difficult.2

So, if you’re thinking of expanding into international markets – or are planning to take the next steps in your cross-border growth – follow these three steps to help set yourself up for success.




Understand the opportunity for your business

There’s a whole host of statistics that illustrate why cross-border e-commerce could hold great potential for European businesses. Here are just a few of them:







Approx 20%


$7trillion+


22%


58%


E-commerce’s share of total global retail sales by 20273


Global value of online retail sales in 20254


Cross-border’s share of global e-commerce sales5


Cross-border’s estimated share of global e-commerce sales in 20286


Approx 25%

E-commerce’s share of total global retail sales by 20273


$7trillion+

Global value of online retail sales in 20254


22%

Cross-border’s share of global e-commerce sales5


58%

Cross-border’s estimated share of global e-commerce sales in 20286



USA icon
USA icon
USA icon

India icon
India icon
India icon

Mexico icon
Mexico icon
Mexico icon

Argentina icon
Argentina icon
Argentina icon

Brazil icon
Brazil icon
Brazil icon



United States


India


Mexico


Argentina


Brazil







USA icon
USA icon
USA icon

United States


India icon
India icon
India icon

India


Mexico icon
Mexico icon
Mexico icon

Mexico


Argentina icon
Argentina icon
Argentina icon

Argentina


Brazil icon
Brazil icon
Brazil icon

Brazil








World’s fastest growing online retail markets7






Of course, not all markets will be suitable for your business. Key to success is matching the potential in the country to the ability of your business to capitalise on it.




How to take advantage

Use data to find your market

For businesses wanting to grow across borders, finding the best market to do it in is one of the most important steps. It might not seem easy to decide, but data can be your friend here. Review the stats from your website traffic to see where interest is coming from. Then, consider whether any of those markets would be suitable places to target your efforts.


Get your business ready

Once you’ve decided on where to go, it’s a good idea to ensure you’ve put the fundamentals in place. For example, think about whether you might need any additional training or support within your business, such as customs clearance knowledge or the ability to speak a particular language. This could be important when dealing with customers in your new market.


Think about the consumer

You may also need to consider whether your working hours should change or be extended to give yourself the best chance of success. For instance, depending on the type of customer support you want to offer, you may wish to make sure your business is awake when your customers are – 75% of customers will spend more with businesses that provide a good customer experience.8





Man in store looking at tablet
Man in store looking at tablet
Man in store looking at tablet



Research your market

You shouldn’t assume that your chosen market will be the same as your domestic one, even if it is relatively close geographically. There can be lots of differences – ranging from the kind of competition you’ll face to pricing, demand levels and consumer expectations. It’s also important to understand the costs associated with entering the market, while knowing how to meet customs compliance regulations is essential.




How to tackle it

Consider the finances

Assess the financial implications as best you can. There are lots of things to consider here, including whether you need to budget for compliance with local regulations, as well as market research and any advertising costs. Bear in mind too that consumer tastes vary by market – you may need to invest in adapting your products to suit.9


Think about how to sell

Knowing how best to sell to customers in the market is also important. You could rely on your own website or sell via a marketplace, and there are pros and cons for each. One survey suggests that 58% of global cross-border consumers prefer to buy directly from a business’s website, compared to 40% that prefer a marketplace, but those preferences will vary based on the specific market you’re considering.10


Get local knowledge

It’s a good idea to find out as much about your chosen market as you can. Visiting yourself is a good option – make use of local trade shows and any contacts you can make – while you can also consult with trusted sources such as local chambers of commerce and business associations. The European Commission’s Market Access Database also provides a wealth of information about shipping to new markets, from trade barriers to local services for businesses.


Learn customs essentials

Customs compliance is an area that some businesses find challenging, so it’s important to get on top of it. But that doesn’t mean you have to know everything. In most cases an understanding of the basics – completing a commercial invoice and knowing how to write an accurate goods description – will be enough. However, for some products and in some markets, it’s worth checking to see if your goods will need any additional licenses or if there are any extra processes to follow – such as including additional documentation when shipping items classed as dangerous goods, or completing a Prior Notice when shipping food or beverages to the US. Don’t forget your shipping partners here – they will have local knowledge and should be able to advise on the requirements.





Woman with credit card and mobile phone
Woman with credit card and mobile phone
Woman with credit card and mobile phone



Localise the experience

Localisation is a great way to help boost your chances of success in a new market. In fact, it can be make or break. Figures show that 75% of shoppers want to buy online in their native language, but it’s about much more than translation. More than 9 in 10 global consumers prefer buying from websites that state prices in their local currency, for example.11




How you should do it

Translate appropriately

It’s important to make sure your website is translated effectively. That means thinking beyond just the main product pages. Customers will also want to be able to understand your policies, for example, and know how to contact you. This will help to build confidence in your business, as well as helping with search engine optimisation in your chosen market.


Go beyond translation

Translation is important but there’s more to localisation than that. Your returns processes are a good example, as are your payment options – in both cases it’s important to offer what consumers are looking for. For instance, while card payments are common in e-commerce, it’s bank transfers that are the most popular form of online payment in several countries – including The Netherlands and Poland – while cash is most popular in Argentina.12




Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.

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