Foreign trade via the Internet is constantly developing and its role is still growing. For many companies, this is an opportunity to increase profits and reach new customers. Are you wondering how to successfully expand to other countries and what you should pay attention to in order to avoid threats? For answers to these and other questions, see our article.
Why is it worth betting on cross-border trade?
The pace of Internet sales increases very dynamically. According to people dealing with market analysis, e-commerce will continue to grow in strength and in 2026 the gross value of the Polish market in this area will amount to over PLN 160 million.
The way of shopping is also changing, as is the habits of consumers who increasingly use mobile devices. Therefore, running an online store can turn into a rapidly growing business. However, sales and purchase transactions do not focus only on the domestic market. Local and foreign arenas together form one universal global market. It is worth taking advantage of the potential of the e-commerce industry and introducing your products to foreign economic systems, which may turn into substantial revenues.
Consumers are very eager to shop in online stores from other countries. One of the reasons for this is the price, which in many cases is more profitable. It is also influenced by discounts and rebates. Some brands' goods are also not available in all countries, so consumers are looking for them abroad. Some are also looking for exceptional and unique products, which they have a better chance of finding in foreign stores.
Cross-border e-commerce brings many benefits, including:
- development of logistics and the entire business - entrepreneurs deciding to sell their products in different countries must reckon with greater competition; this, in turn, creates the need to improve logistics processes, expand your own product offer and work on improving customer service and pricing policy,
- new sales markets - many Poles live abroad who, due to their origin, will be more willing to buy goods from Polish sellers.
Entering the foreign market
Getting on the foreign market is not easy. Entrepreneurs who want to take such a step should think ahead and take into account cross-border in their plans. Cross-border sales allow you to reach a wide audience, build global awareness of the company and establish new business relationships. How to prepare for it to avoid unnecessary problems?
Choose your business market
Choosing the right market for specific products is of great importance and should be based on in-depth analysis as consumer habits differ from country to country. The supporters of online shopping, when it comes to the area of Europe, are primarily the British - 82% of them buy products online once a month. Poles came second with 81%. Right behind them are customers from Germany (75%) and the Netherlands (71%).
Lack of knowledge about the preferences of local e-consumers may lead to making mistakes, which in turn will have a negative impact on sales. It is important to obtain qualitative data, defined as the specificity of customer requirements. These include, among others, the preferred waiting time for the shipment, requirements regarding the standard of customer service, the most frequently chosen payment methods or the type of goods sought.
Competition analysis
If you want to be successful in your chosen market, you need to know your competitors. Knowing which distributors matter most in a given area and what strategic actions they take is essential. Without it, competing with sellers from the local market will be very difficult. These issues must be kept under constant control in order to react quickly to the changes taking place.
What should you pay attention to in connection with foreign expansion?
There are many challenges related to selling abroad and it is impossible to avoid all of them, but some threats can be minimized. Below we present the most common problems faced by sellers deciding to trade in other countries.
Different requirements in different markets
It is very likely that sellers and buyers located in different parts of the world speak different languages and use different money currencies. The formal requirements regarding the rights and obligations in the seller-consumer relationship may also vary.
Customs, Taxes and Legal Restrictions
One of the biggest challenges for sellers entering foreign markets are the formal and legal aspects. Area-specific restrictions and local requirements require careful analysis, as they may differ significantly from what the seller has encountered in the home market so far. Trade in other European Union countries is associated with the need to charge VAT at the appropriate rate - all countries have their own sales value limits. If the amount is exceeded, you will have to register as a payer in the selling country. Certain problems may also arise in relation to the duty when selling outside the EU.
Delivery
Optimal delivery time and low cost of shipments are of key importance for foreign trade. According to the eCommerce report, 57% of Polish consumers indicated this factor as the most important aspect of online shopping. The situation is similar in other countries.
Payment
When deciding to trade cross-border in a given country, you should find out what forms of payment are preferred by consumers. You must have the option to accept payments in local or EU currency. You should also ensure that prices are as competitive as possible, while at the same time covering the costs associated with selling abroad.
The preferred payment methods in some countries are as follows:
- Great Britain, France and Belgium - debit card,
- Finland, Germany, Malaysia - online bank transfer,
- Portugal - Multibanco,
- Switzerland - RatePAY,
- Japan - credit card,
- Netherlands - iDeal,
- Mexico - Oxxo.
Not having access to your favorite payment method can be a major inconvenience. There may be concerns about the security of the transaction, so it is worth paying attention to this issue.
Customer service
When entering a foreign market, one should be aware that such sales are associated with the need to service customers in hours adequate to the time sphere of a given market. If you want to increase the company's profits, it is also worth making contact with customers in their native language. In many studies, consumers report that they are more likely to buy a product if they have information about it in their mother tongue and the service is impeccable. This aspect is often more important than the price.
Potential Fraud
Be very careful when selling your goods abroad. The occurrence of fraud in such a situation is more likely as a dishonest customer can avoid the penalty more easily. Many anti-crime systems do not work with foreign credit cards. To reduce the risk, it is worth contacting your bank or payment service provider that you will implement in your store and talk to representatives of other companies from the same industry.