Direct exporting, or direct selling abroad from your home country, has been made much easier through e-commerce. It can be a quick way to test the market.
Especially the US market is growing and it is mainly because of consumers focusing more on value and quality than price, an increase in demand for products, which are healthier, more convenient, and more ethnic-preferential, and the strong presence of technology these days.
The retail world has evolved and has included the virtual world in its conquest for opportunities in business. Though e-commerce still has a small share in the retail market, this new approach in retail is very influential and is slowly gaining popularity.
The customers of E-commerce
If you ever decide to engage in e-commerce, always get to know your customers first. The same basics in retail apply to the e-commerce industry as well:
- Men spend nearly as much time online than women do and men are more likely to make purchases on mobile devices.
- Millennials are consumers who are aged 18 to 34 and they spend a lot more online annually despite low income.
- Baby boomers and seniors have also adopted mobile commerce.
- Online shoppers are those who live in households with high income.
In order to anticipate the demand of your business, you need to consider many things. You need to know what customers think of your business. Not only the customers, but those who have the potential to be your customers as well. How do they shop – by products? Or by brands? You need to find out how to discover these brands and what they would expect from your products. Lastly, you need to know how to make these customers stay.
The online retail sites
One can use several online markets right now as a platform in retail. However, each has its own advantages and disadvantages.
Mass marketplaces have an aggregated base of consumers and provides localized offerings to customers.
Mass marketplaces though can make customer information readily available for the public and the products become commoditized. Not to mention, brand control will be present.
Examples of mass marketplaces are:
The customers in this market platform are targeted specifically and services are more customized according to the consumers’ needs.
Unfortunately, branding customization is limited and the competition is stiff.
Examples of multilabel merchants are:
Monobrand (D2C) sites
There is a control over products, pricing, and customer experience.
Brand discovery though is difficult and more expensive and resources are needed to manage site and vendors.
Examples of monobrand (D2C) sites:
- Warby Parker
Before entering the market, one needs to consider a couple factors:
- Compare your perceived value of a brand or product against the brand value and the product attributes when launching a brand or product.
- When launching a brand or product, you need to identify your target audience first and study their spending habits.
Alliance experts can help you with localising your website
Alliance experts is a global network of business development specialists. We have experience in commerce in over 40 countries. Therefore we know the local trends, the main platforms, payment methods, and we can help you with localising your website. We can provide the right translations and do part of your customer support in the local language. Please contact us if you are interested.