Growing your business online
What to keep in mind when you want to grow your business abroad
If you are wondering how to increase your sales, expansion into foreign markets is one of the solutions. This is a process that may seem daunting at first, but the European market promises significant profit in a short period of time. World wide access to the Internet, as well as membership in the Schengen Area, have made it easier than ever. However, there are things you need to keep in mind when planning your development.
Where to sell your product
When deciding to enter foreign markets, it is important to decide through which channels or platforms we will sell our products. We can choose one of the ready-made, already functioning e-commerce platforms, such as Amazon or E-bay, or their numerous local counterparts (e.g. Kaufland DE, CDiscount, Bol, Otto). They offer a plethora of off-the-shelf solutions, but they all come at the cost of commission.
Another option is to create our own online store or expand the platform we currently run. Choosing this option will usually involve adjusting the parameters of the site and making additional language versions, as well as tailoring the payment and shipping methods to a wider group of customers. Translation alone may prove to be time consuming, so a good place to start would be the fundamental elements, such as statutes, rules for deliveries, returns or complaints. It is important that all regulations are in line with the laws of the target country. Keeping to European markets reduces the workload, as certain EU directives unify the legal systems of individual member states. Nonetheless, it is important to find out whether our store's regulations adhere to local laws.
Creating our own online store also comes with many benefits. We have full control of our offer, the look of our site, and the marketing strategy, not to mention the customer experience. Using the right tools, not only are we able to collect data about our customers, but also utilize it, personalizing the ads. Having our own sales platform, we have the ability to react quickly both to trends that emerge in our industry, and to possible legal revisions. At the same time, we reach beyond geographical limitations. With such tools, we are the ones deciding on which global markets we want to move into, and which categories of customers we want to focus on the most.
Payment methods offered to our customers will also need to be adjusted, most importantly ensuring currency compatibility. While card payments are already quite widespread, each country has additional platforms that are most commonly used by consumers.
Customer service
The development of online sales in foreign markets also involves providing a high level of customer service. Customers will certainly appreciate the opportunity to speak with a specialist in their native language and are more likely to decide to purchase our products if they can receive reliable support and after-sales service. Hiring people fluent in several foreign languages will incur high costs, so if we do not have the ability to provide customer service in each of the official languages , it will be a good idea to start by providing service in English, which is the most popular language among European customers.
When deciding to expand product sales to foreign markets, consider using marketplace platforms such as Amazon or eBay or smaller local partners. This is one way to gain recognition in markets around the world. There is no need to create or customize your existing platform by adding more forms of payment. If you’re set on a quick launch, this solution might be your best bet. It is important to note, that one of the downside of this option is limited control over which customers our offer reaches. Additionally, you will be charged on each purchase made through one of these platforms.
Accounting support for online vendors
Regardless of what form of sales we choose, once our business is ready to operate in foreign markets, it is necessary to take care of the accounting processes. As the European Union is also a customs union, we don't have to worry about import duties and resultant paperwork. Despite this accommodation, it is still necessary to be familiar with both domestic and international tax regulations, especially those related to VAT. An external expert can help you maneuver this delicate matter. But is it worth the additional costs?
Gain customers on new markets!
We'll provide VAT compliance and accounting services for your business.
Get in touch and find out how we can help you.
As a result of our cooperation with a tax consulting company, we gain point of contact with specialists in the field of tax law and reporting, which allows us to avoid mistakes in our tax returns. They are responsible for keeping track of any legal revisions, which are very difficult to follow on our own, especially in many countries at the same time. The knowledge and experience of experts will help us stay up to date and meet all necessary deadlines. By putting our tax returns in the hands of specialists, we gain extra time to develop our business and the range of products we sell. What’s more is that they are always available to help address any doubts you might have.
As our business grows, so does the scope of processes we may need assistance with. For example, If we decide to extend payment terms for our customers, it might be helpful to hire accounts receivable management services, known as credit management. The selected service provider can take care of monitoring payments from our customers, sending reminders and notices of impending payment, or collection. With an increasing number of customers, this can significantly improve our liquidity and ultimately allow us to invest in further growth.
Expanding our business into foreign markets may be a challenge, but with proper analysis and preparation, we will be able to reach new customers throughout Europe or the world.
_______
Author: Anna Statucka, Accountant at EFF