The post is an echo of the “Grow UP” seminar that took place on 09.11.23, which focused on directing e-business to foreign markets. The seminar highlighted the undiscovered potential of foreign markets for Estonian e-merchants and discussed the main bottlenecks in the expansion of e-stores from a developer’s perspective. Experts such as Aldar Reinberk (Acty), Rauno Raid (Finestmedia), and Matthias Kreisman (Zaproo) participated in the discussion round, which was led by Hando Sinisalu.
This blog post is a short summary of a longer article written for the website of the E-commerce Union, which can be found here:
The article is authored by Aldar Reinberk and co-authored by Rauno Raid and Matthias Kreisman.
An overview of the article
The article underlines the importance of international markets in e-business, pointing out that market entry requires awareness of different cultural and regulatory market differences. In order to succeed, businesses need to understand the uniqueness of each target market, including consumer behaviour, legislation and market dynamics. It is also important to adapt to differences in language, payment options and supply chains, and to respect local laws.
The article also offers practical tips and ideas to help businesses adapt their e-commerce to foreign markets. It highlights the importance of understanding cultural differences, which affect marketing, product presentation and customer service. In addition, import tariffs, taxation and product safety standards in the country of destination need to be taken into account. Successful expansion requires the involvement of local experts, continuous market analysis and adaptation to changing conditions.
The article also concludes with a checklist to help plan the adaptation of an e-commerce store to foreign markets, highlighting the importance of key factors that ensure the integrity and efficiency of global e-commerce.
Why look to the foreign market at all?
Considering the small size of the Estonian market, foreign markets are the only option for Estonian entrepreneurs to fulfill their growth ambitions. Foreign markets offer a significantly larger customer base, which expands sales opportunities and contributes to the growth of companies. Expansion into foreign markets allows companies to spread risks, reducing dependence on a single market, which is especially important in a period of economic uncertainty, thus opening doors to new business opportunities and learning, and allowing companies to apply new knowledge and skills to develop their products and services.
Practical advice for cross-border e-business
Here is a quick summary of the eleven tips in the original article:
1. The potential of international markets: Understand the cultural and regulatory characteristics of the target markets. Knowing consumer behavior, legislation and market dynamics in each different market is essential to success.
2. Knowledge of local laws and regulations: Familiarize yourself with local laws and regulations that include payment handling, customs fees, and import regulations to avoid legal issues and ensure smooth business operations.
3. Understanding cultural differences: Consider the impact of cultural differences on marketing strategies and product adaptation to local consumer preferences and tastes.
4. Consideration of preferred payment methods: It is important to understand that different payment methods are popular in different countries and regions, which can affect the consumer’s purchase decision and the smoothness of the purchase process.
5. Use of local language and slang in marketing: It is important to understand local linguistic nuances and avoid themes or designs in marketing messages or product descriptions that may be sensitive or inappropriate in the local context.
A technical checklist for starting a cross-border e-business
The following important points can be summarized from the checklist at the end of the article “Preparing for cross-border e-business”:
1. SEO localization: In addition to content translation, it is also important to consider technical aspects such as HTML language settings and web address management.
2. Performance and scalability: Making sure that the e-shop is fast in every part of the world, using, for example, CDN (Content Delivery Network) services.
3. Security: Due to the increased presence on the Internet, it is necessary to pay attention to security to prevent attacks.
4. UX (User Experience): Different countries may require a different approach to offering a product or service.
5. Selection of software solutions: Choose software solutions that do not limit future business expansion to foreign countries.
6. Starting and planning: Start small, but plan big, considering longer-term goals and opportunities.
7. System performance check: Before expanding to the foreign market, make sure that the systems in the home market are in order and functioning.
The full article can be found here:
https://www.e-kaubanduseliit.ee/uudised/praktilised-nouanded-piiriuleseks-e-ariks
