What apps are essential to my shopify store? – 10 Rules for Scaling eCommerce Product Sources
Global digital shoppers will reach 2.14 billion in 2021 as the eCommerce business continues to attract consumers. It represents 27.2 percent of the 7.87 billion people across the world. This number will continue to grow in the coming years while the eCommerce industry becomes the most favored venue to shop around.
If you are an online seller who plans to expand your business in some locations, it is vital to scale your eCommerce product sources. Review the10 rules below to help you get started.
10 Rules for Scaling eCommerce Product Sources
Scaling your business is a strategy that helps manage your business growth and determine if your customers are happy with your offering. It keeps your money flowing and goes on with your expansion plan without hitches.
Here are 10 great ways on how to scale your eCommerce product source.
Identify Your Resources
Take this first step when scaling your eCommerce business. Make a list of questions that can help in evaluating what your business lacks.
Once you have listed down the question, your next step is to find ways to fill the gap. Here is a list of questions that you must answer:
- Does your ecommerce business have the technology?
- Do you have human resources?
- Do you have enough stocks to serve a large audience?
- How large is your inventory?
- Where to source your products?
- Do you have the personnel to handle a global market?
- Where to get your team to manage the expansion?
- How to integrate these people into your operation?
- How much will I spend on outsourcing people?
- Is it practical to open additional locations and websites that are near the target markets?
- Does our existing technology have the capacity to handle increased transaction volume?
- Are we capable of launching, managing, and evaluating performance in multiple markets?
- Can we earn more if we continue distributing and manufacturing our products from our current locations?
These questions apply to all types of eCommerce businesses that engage in cross-border transactions. Find time to answer them and contemplate if you push through with your expansion plans.
Familiarize with the Local Pricing
Selling the same item in your country could have different pricing when you sell it abroad. The pricing depends on the income levels, monetary value, and currency value of your targeted market. As an online seller, you need to become familiar with the financial climate in your target market.
Analyze if it can affect the pricing of your products. Ensure that the pricing is according to their local currency. For quick transactions, integrate the payment gateways available in your target market. Hire people to conduct market research and feasibility study before entering a new market.
Value other Languages
English is an international language, but not all nationalities can understand and speak the language fluently.
Be considerate when sending your marketing and sales messages by translating them into your target market’s language.
Produce translated versions of your sales copy and sales messages by hiring an expert instead of using an online translator like Google Translate.
You can hire a freelancer who is a native of your target market. Communicate with a translation agency or eCommerce platform vendor who will help you in the translation.
Consider Cultural Backgrounds
Avoid selling a product that appears offensive, insulting, and against the norms of a country for your eCommerce business expansion. Some communities are sensitive in matters concerning their religions, beliefs, and culture. Study the cultural backgrounds of these places before introducing your products to them.
For example, selling canned pork stew in a Muslim country or beef jerky in India would not be a good idea.
Know Your Competitor
Competitors are everywhere, whether you are launching a whitening soap or opening a branch. You have to conduct market research to know what product your competitor is selling. Find out who the players are in your niche. Discover the ingredients they use in manufacturing the product, including the prices.
Find out if your competitor is a conglomerate, a family-owned business, or a partnership. Know their marketing gimmicks, promos, and strategies, so you will have an idea of how to deal with them.
Face the Communication Gap
Business expansion abroad could be frustrating if you have no advanced communication tools and lines for your teams. You have to integrate both internal and external communication lines to succeed in your business abroad.
Learn to facilitate and encourage interaction between your local and international teams to solve the language barriers, different time zones, and technological resources.
Invest in Automation Software
Investing in automation software increases your productivity because you will have time to promote your business. Source out your workers who will do the jobs you previously did. Automation will cut down hours in doing the tasks and deliver a professional approach.
Know the Local Regulations & Laws
Engaging a business across borders should be taken with extra caution. You must know certain restrictions in storing and transporting the goods.
Arm your business with licenses, certifications, and permits before you start sending your goods abroad. It is better to play safe than regret later.
Research the local laws and regulations of that country and find out what products are allowed and prohibited.
Hire an Expert to Fulfill the Orders
If you decide to expand your business, you have to stop self-fulfillment. It eats up most of your time instead of focusing on sales and marketing. The cost of hiring an expert is worth the time you save in packaging and distribution of the goods.
Are You Ready to Scale?
How will you know if your business is scalable? You have to ask if your technology stack is ready for scaling at the required rate. The way you handle your customer service impacts their overall satisfaction. Ensure that your website can do the scaling and is strong enough to manage traffic without costing a lot of money. You can opt for a SaaS content management system (CMS) to grow your brand. Choose a reliable eCommerce platform vendor who will help you with the scaling.
If you want to know more where you can scale your products, read more here on this blog: Etsy, OnBuy, eBay and Other E-Commerce Places You Can Scale Your Online Store
Am I offering something different to my customers?
Offering unique services to your customer is vital to attract sales as shoppers always look for something different from your competition. Try looking for services and products that are different and new in the marketplace but are functional in terms of their purpose.
How should I offer a modern shopping experience to my global customers?
The best way to give your customer a modern shopping experience is to keep your product catalog updated. Make sure that your website is easy to use and navigate. Keep an update on your mobile app so that mobile users can access your website.
How should I handle international transactions when expanding my business?
There are numerous payment options that you can offer to your global customers. These are peer-to-peer payment, credit cards, debit cards, mobile cash, and money transfers. Find out the most preferred payment method in the country where you plan to expand your business.
Expanding your business to different locations is coupled with some challenges. You should follow the rules for scaling eCommerce before you start your business venture abroad. Every merchant dreams of growing their business, but it does not happen overnight. You have to spend more time in market research before you begin your journey.