One of the benefits of trading online (selling stuff through your website) is that it opens your business up to a worldwide market. That can give you access to loads of potential customers.

However, if you’re new to the world of ecommerce, the idea of trading internationally can seem intimidating. Only the big players do it, right?

Actually, doing business abroad can be easier than you think. That’s why we’ve produced this three-part guide to the basics.

Why look abroad?

The internet has transformed things; your website can be your shop window in any number of countries. You don’t need a physical presence in each territory to sell there.

If your business is operating in a niche, with a relatively small domestic market, looking to other countries can help you widen your audience with surprisingly little effort.

And if your goods or services appeal to a broader audience, entering foreign markets gives you the chance to reach a huge number of potential new customers. It could really boost your revenue and profits.

However, in a wider market there will be more competition from local companies. It can be hard to match up on price or fulfilment when shipping internationally, so you might have to alter your proposition to have an impact.

The basics

Online businesses can often start trading internationally with very little effort. At a basic level, you can get away with adding international shipping options and accepting payment by credit or debit card.

Currency conversions will be handled by the card issuer – you just need to deal with fulfilment.

If you sell items which are unavailable locally, you can do reasonable business without too much effort. People are generally willing to pay a bit more and wait a bit longer for items they can’t get elsewhere.

However, if you’re lined up against local competitors in that market, you might need some extra slickness to win business. Selling in the local currency is a good start. This brings certainty to customers, who will know that what they see on screen is exactly what they will get charged.

Many off-the-shelf ecommerce packages, including our own, come ready to deal in different currencies. You can set prices in Euros, dollars, or other currencies of your choice. Visitors choose which they want to pay in, and it gets converted back to sterling before hitting your bank account.

Shipping times are another deal-breaker, so try and offer a range of options to suit your customers. Airmail is the best way to send low-weight items. Surface mail takes forever, so it’s generally not worth offering.

Specialised shipping firms can provide the best options for items which are heavy or need to get where they’re going fast. People who want something urgently will pay a premium for a speedy courier service, so offer this if your goods are suitable.

Of course, if your business doesn’t sell any physical goods then shipping costs are not an issue. You may be ideally placed to trade internationally, on a level-footing with the competition.

Pricing

Deciding what to charge in different countries can be a challenge. Your UK pricing strategy may not work in other parts of the world and convenient price points (like £9.99) may not convert nicely into other currencies.

Assuming you want to sell in the local currency, the eurozone countries are a good place to start. You can price your items up once, in Euros, and then use these prices to sell into each country. Of course, shipping costs are will differ, so you need to take these into account too.

Look at how your competitors price their products and build some flexibility into your pricing structure so you can cope with currency fluctuations.

Some businesses take a long-term view of these, and your bank can probably advise on ways to reduce the risk they pose to your company. You can open foreign currency accounts in the UK, and this is certainly worth doing if international trade is a big part of your business.

Exchange rates can also help determine whether it’s worth entering a market. For instance, if you’re selling into Europe, the current strength of the Euro will work in your favour, to an extent. But if you want to trade in the US, it’s likely the weak dollar will make your prices look expensive.

You can read part two of our guide to international trade now. It looks at how tailor your sales pitch to sell effectively into different markets. And if you want more information, you can also check out these useful links:

• You can start trading online quickly with our ecommerce packages. The Pro and Business Pro versions even come ready to do business in different currencies.
• You can get lots of really in-depth information about ecommerce from the Business Link website.

Share and Enjoy