I was watching Squawk Box this morning with guest host Ted Leonsis, Vice Chairman Emeritus of AOL, and he threw out a figure on worldwide internet users and its effect on the global economy. While I wasn’t quick enough to write down the exact figures, the point was that North America represents only a small part of internet users.
This got me thinking about our clients and what they are doing to reach as many customers as possible. When I got to the office I looked up the numbers and there are approximately 1.7 billion internet users with the largest concentration in Asia. Only 251 million online users reside in North America. I know it can be said that this is consistent with overall population; it does not diminish the fact that there are potential customers internationally who may not be getting the attention they deserve. Additionally, given the current weakness of the dollar, buying online using USD also makes financial sense for those shopping overseas.
A few things to keep in mind when tapping into the international market:
- Security: By opening your site to a larger audience and more potential sales you are also opening your site to more hackers and people with nefarious intentions. You need to ensure you can withstand both the new traffic and new threats.
- Communication: You need to let your customers know that you ship outside North America. Provide international dialing instructions or an international phone number so customers can place orders by phone.
- Shipping: Once you figure out how to provide competitive international shipping, you need to provide clear shipping details on your site to ensure a smooth check-out and customer satisfaction.
- Foreign Currency: While most major credit cards allow buyers to purchase in local currency, having a currency conversion tool on your site, for informational purposes only, will provide your customers with more transparency as to what the real cost of your products will be. This will again enhance customer satisfaction and provide for a smooth checkout process.
With “Cyber-Monday” on November 30 and only 21 business days until Thanksgiving many of our clients are implementing final website tweaks to prepare for the holiday season. Now might not be the right time to focus on expanding your customer base, but don’t overlook the large areas of expansion for improving your sales in the New Year.
One Comment
Nolin LeChasseur Says:
Great points, PJ. There’s an enormous opportunity for U.S. retailers who can extend their ecommerce selling capabilities overseas, but as you point out, there are a lot of pitfalls and challenges along the way. I’ve worked with a number of retailers who have expanded overseas, and if there’s one piece of advice that remains a consistently high priority for all top tier retailers, it would be not to underestimate the value of offering as good a customer experience for international shoppers as you do for domestic shoppers. The payback in brand equity, word of mouth, and repeat customers is critical when you’re entering new markets.
The company I work for, FiftyOne, has published some helpful resources for anybody looking at global expansion, including a piece on the pitfalls of insourcing global ecommerce infrastructure, and another on best practices for international customer experience. Please feel free to check out our resource center at http://www.fiftyone.com/resources if you’re interested.