2024 Retailer's Guide to Globalization: Key Points You Need to Know When Expanding Overseas Markets

With the global economic recovery and the acceleration of digitalization, cross-border e-commerce has become the main driving force for the growth of the retail industry. According to the latest data, global cross-border e-commerce sales are expected to exceed US$2 trillion in 2024, with an average annual growth rate of more than 30%. Under such a trend, how retailers can effectively plan international expansion paths has become an important issue that needs to be solved.

How to start international expansion?

There is no single best strategy for retailers when choosing to enter an international market. Here are a few key steps for retailers to take when developing an internationalization strategy in 2024:

1. Data-driven decision making

Analyze website traffic and sales data, paying special attention to markets with low conversion rates or high bounce rates. For example, if a country has a high bounce rate at the checkout stage, it may mean that there is a problem with the payment method or language settings. By comparing key indicators across markets, retailers can more accurately screen target markets with potential high returns.

2. Prioritize markets with lower barriers

In 2024, many companies choose to enter markets with lower localization difficulty. For example, North America and Europe remain popular choices due to their more mature logistics, payment and localization solutions. However, some complex markets (such as China and India) may require additional resources to cope with higher localization barriers despite their huge growth potential.

3. Leverage global e-commerce platforms

E-commerce platforms such as Amazon, Shopee and Alibaba International Station provide retailers with a "shortcut" to enter the global market. These platforms not only provide brands with ready-made logistics and payment solutions, but also enable quick access to local consumers. For example, in the Southeast Asian market, Shopee has more than 200 million monthly active users, providing many retailers with potential high exposure opportunities.

Fulfillment and Logistics: A Key Competitive Advantage

1. Localized fulfillment strategy

According to a 2024 survey, 85% of consumers want retailers to provide fast or free delivery services. In addition, consumers in European markets (such as Germany and France) tend to support environmentally friendly logistics, while consumers in the North American market are more concerned about the speed and transparency of logistics. Therefore, retailers need to adjust their fulfillment strategies based on regional preferences.

2. Flexible logistics cooperation model

Many international retailers choose to work with regional logistics partners (such as DHL or FedEx) while setting up local warehouses in strategic markets to balance cost and efficiency. By combining centralization with local distribution, brands can reduce distribution costs and shorten delivery times.

3. Efficient returns management

In markets with high return rates (such as Germany, where the average return rate is as high as 50%), reasonable return policies are an important factor in consumers' brand selection. Retailers should improve customer satisfaction by simplifying the return process, providing a seamless refund experience, and increasing local return points.

Localization and Customer Experience

1. Localized website and product selection

The strategy of testing the market comprehensively is becoming a thing of the past. Retailers now prefer to gradually launch localized products and services. For example, launching a page targeting local consumers and only offering options for best-selling SKUs can test market potential while reducing costs.

2. Multilingual Customer Support

Language is an important part of customer service. The latest research shows that 74% of global consumers prefer to interact with brands that provide local language support. Retailers can respond to customer needs quickly through telephone translation services or AI-based chatbots, and gradually expand local teams after market verification.

3. Local SEO Optimization

Simply launching a local language website is not enough. The SEO strategy in 2024 needs to be fully optimized, including keyword research, content creation, and external link building. Especially in the context of the continuous increase in mobile visits, it is particularly important to optimize localized content to improve conversion rates.

Payment method: depending on local conditions

1. The importance of regional payment preferences

The diversity of payment methods directly affects consumers’ purchasing decisions. For example:

In the Southeast Asian market, e-wallets (such as GrabPay and ShopeePay ) account for more than 40%.

In Germany, consumers prefer open bill payments.

The Latin American market is mainly based on installment payments.

Retailers need to provide a variety of payment options based on the payment habits of consumers in the target market.

2. Choose the right payment partner

Global payment platforms like Stripe, PayPal and Adyen can help retailers quickly integrate regional payment methods, simplify technical integration and reduce operating costs.

Summary: The key to successful globalization of retailers

The global environment in 2024 provides retailers with huge opportunities, but challenges also exist. Through in-depth data analysis, flexible fulfillment strategies, localized marketing, and diversified payment solutions, retailers can effectively reduce risks and seize international market share.

For more professional advice on how to achieve global expansion, please visit: Arrow Translation official website.

Arrow Translation: Your global language service expert, providing seamless support for your company's international expansion!

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