International ecommerce: an opportunity you can’t afford to miss

As an industry, we should be looking to encourage initiatives that support SMEs’ growth online by giving them the chance to respond to market forces.

There is a definite shift away from the High Street to online. The UKTI ‘Do More Online’ campaign was a great idea as it encouraged UK SMEs to trade internationally online and was a part of the Government’s ‘Business is GREAT’ initiative, that aims to help businesses develop an online presence (by setting up websites, using social media, using online banking, etc.).

We should be doing more things like this to help businesses develop effective strategies for professional online sales. In order to grow their online businesses, those working in the e-commerce industry need partners capable of helping them meet their goals and the UK Government’s Trade and Investment department (UKTI) has an essential role to play.

Whatever the outcome of the referendum, a strong international online trade development strategy is more important than ever for UK SMEs. It is surprising that only 36% of e-tailers in the UK export internationally, this is versus 73% in Belgium – which is the top European exporter on the e-commerce market. The growth potential of international online sales is incredible. Moreover, according to the latest statistics from Motionpoint, the market is currently on the agenda of European buyers as 50% of UK site traffic for fashion e-tailers comes from the EU, this is led by France (24%), Germany (14%), followed closely by Italy and Spain.

In order to set up an effective e-commerce strategy, it’s important to identify which markets are promising and thoroughly study the specifics of each market.

Know your international ecommerce competitors

E-tailers need to know their competition inside out before taking advantage of the opportunities they’ve identified. It’s important to surround yourself with the partners who are experts on the market in question. Translation is something you need to think about ahead of time, so you’re ready when the time comes to export your catalogue. In particular, it’s important to pay attention to the translation of the legal and financial aspects of your site. Lastly, numerous logistical requirements have to be dealt with in order to ensure an optimal purchasing experience for customers. E-commerce businesses must ensure that they link their website with account or business management software as this will contribute to increasing the time available to them and their productivity in order to grow their online turnover.

Through discussions and feedback we had from e-tailers wanting to expand their businesses internationally, we have been able to identify the obstacles that could prevent businesses from setting-up online export arms. The challenges raised mainly concern logistics and how to ensure satisfactory customer service. It is also imperative that a secure online payment system is set-up, using methods and payment facilitators that customers trust. On top of this, whilst the language question doesn’t concern the UK as much as some other countries, it remains an important factor for businesses throughout the EU.

According to research cited by the UK Cabinet Office, 50% of SMEs and community social enterprises (CSEs) don’t have their own website. The main challenges in our industry have been the same for the last few years: perceived high initial overheads, a lack of general resources and, finally, the lack of specific skills. We have already mentioned the need to hire a translator in order to export your products. This implies a significant budget if you have a large product catalogue. Logistical concerns are also often an obstacle to creating an online business.

The solution lies in increasing productivity, thereby freeing time to concentrate on growing the business overseas. To achieve this, retailers need to put e-commerce at the heart of their strategy. The first step is choosing an e-commerce solution that integrates perfectly with the tools your business already uses. If you use business management software, you will need it to automatically interface with your e-commerce website. Your website should complement your existing business by giving you a greater visibility through different distribution channels and by offering you the real opportunities for growth. This means having the option of selling on marketplaces, on mobiles, through AdWords campaigns or email marketing and benefiting from co-operation with the established e-tail play and marketing tools that are constantly evolving.

Choosing expertise is the second step in your strategy when creating an online shop. The support, availability and proximity of the e-commerce experts you work with contribute to the gain in productivity. E-commerce is about building a relationship of mutual trust over the course of the whole process.

Some SMEs may be reluctant to take on an online business due to presumption that it would be difficult to set up online payments systems. There are easy payment systems that allow e-tailers to sell online without a distance-selling contract.

Customer satisfaction is at its highest.