4 Key Factors to Consider When Going
Global with your eCommerce Initiatives
bridgeline whitepaper series
© Copyright 2014 Bridgeline Digital Inc. | Bridgeline.com | 1-800-603-9936
Internationalization: Key factors That Can
Make Your Online Store a Global Success
Commerce is both the vehicle that has
accelerated the creation and exponential
growth of the largest marketplace in history,
and the bond that holds that web-based
marketplace together.
None of that statement is exaggerated
hyperbole – Global eCommerce sales
surpassed $1 trillion in 2012. More
importantly, the business channel is showing no
signs of slowing down. According to projections
from eMarketer, total eCommerce will
eclipse $1.5 trillion by the end of 2014.
B2C Ecommerce Sales Worldwide, 2012-2017
$2.345
$2.043
$1.763
$1.500
$1.248
$1.058
2012
2013
2014
The best part? eCommerce knows no
B2C ECOMMERCE SALES
boundaries. More than ever, everyone lives
on the Internet, meaning there are endless
opportunities to market products or services to customers …regardless of location.
2015
2016
2017
source: www.eMarketer.com
Worried that you’re behind? It’s not too late play catch up. Your business may be late to the party, but with the rise
of smart phones and tablets, the time to develop your eCommerce platform is now. So long as its bulwarked with
a first-class eCommce solution (more on this later), a company’s reach is only as small as they want it to be. This
prospect opens opportunities never before available, as well as its share of challenges.
To properly take advantage of the markets your business is now open to, it’s necessary to internationalize.
Internationalization (commonly abbreviated as i18n,
where the “18” stands for the number of letters between
the two at the front and back of the word) officially opens
your business up to an astounding number of new
marketplaces, cultures and populations. It also presents
an instantaneous reputation boost with membership in
the global marketplace.
i18n isn’t without risk. Considering its potential benefits
– and the dangers of doing it incorrectly – a plan is
absolutely necessary before you turn your storefront out
to face the seven billion people inhabiting this planet. This whitepaper details the four steps to i18n.
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1.Make Broad Strokes First
The practice of i18n needs to be executed during the initial architecture design and building stage of your web
store’s lifecycle, in broad strokes. The idea is to build a framework open to options first, so that localization (or
l10n, using the same abbreviation syntax) will be less intensive, and much less expensive.
Universal options to consider in i18n surround currency, language, socio-cultural specifics and security, and getting
them right early usually means the difference between robust and marginal success.
Currency – Make Sure Customers Can Pay You
eCommerce websites need to keep a clear
lock on the bottom line – anything that impedes
cash flow is a potential deal breaker. While
going global opens your business to many
different risks, such as those from exposure to
global currencies, it’s also true that the benefits
usually outweigh the downside.
In order to clear this all-important hurdle,
consider critical options like being able to bill in
multiple currencies, adjusting quickly for varying
exchange rates, and awareness of – and
adhering to – international taxes, regulations,
tariffs and fees. The good news is that these
capabilities and options should be built into any
eCommerce platform.
Once you open your site to the world, currency options explode – it’s necessary to allow customers to transact
in their local coin. Build your checkout with open variables to allow for as many currencies as possible (many
platforms offer support for as many as 140). Forcing a customer to try and adapt to US dollars adds unnecessary
work at checkout. With shopping cart abandonment rates constantly rising, it’s too prudent to make the checkout
process as painless as possible.
Exchange rates can vary daily – especially in today’s feral markets – and your solution needs to be quick to adapt.
Can you still afford to sell a product at a certain price if the exchange rate swings wildly overnight? Having options,
like Open Variables at the code level will easily adjust pricing for you.
Along with tariffs, duties and fees associated with transactions, you’ll need to be prepared to levy VAT (Value
Added Tax) on top of all European sales. These taxations can be tricky, and are applied based on the locations
where transactions take place. This means that if your office is in one country, while your distribution operations
are in another, you could be hit twice with the same tax, and possibly at different rates. Modern, complete
eCommerce platforms have tools that keep this under control before you even open the box.
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Language – Create a simple purchase process
Frequently, there can be idiosyncrasies that come with international commerce
that may seem trivial at first, but make huge differences in i18n. Besides
obvious language requirements, design elements, symbolism and
graphics must be addressed. It’s also imperative to consider calendar,
time, currency, number and address, name and telephone formats.
The importance of language itself cannot be understated. It’s never
acceptable to allow straight, mechanical translation of your web
content. Automatic translation sanitizes language and removes
idiom, colloquial phrases and intent, in favor of word-for-word
rendition. A truly internationalized website architecture needs to allow
for environments in which language will complement content, not
detract from it. Fortunately, well thought out eCommerce platforms
provide native language management as a given feature.
Security – Roll With Changes
International laws can vary from US laws – sometimes more lenient, other times
more restrictive – and change drastically from country to country while maintaining
constant flux. As a retailer, It’s up to you to be aware of current regulations,
and to continuously adjust.
Data security requirements are a perfect example, and can range from open to
highly regulated. Difficulty with adaptation can add enough work to take bites
out of profits. In the European Union, for instance, businesses must register
with the Data Privacy Authority and disclose all data they collect. They also have
to disclose where, how and for how long it’s stored, and who has access to it.
Make sure you’re prepared.
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2.Localization – Make the Store Fit
the Neighborhood
After adapting for i18n, the real magic begins with l10n. If you’ve taken care to leave the most flexibility in your
architecture, the process should be relatively quick, painless and inexpensive.
l10n means customizing your site to fit into the geography of the local web. In short, l10n makes the eCommerce
web store fit into the neighborhood. The process involves modeling facets of your content, design, procedures and
interface to fit seamlessly into regional, cultural and geographical surroundings – so your customers feel at home as
they shop, though they may be in another hemisphere altogether. Having a content management system integrated
with your eCommerce platform is a distinct advantage in driving your l10n strategy.
Social Rules – Make Sure They’re Seeing What You’re Selling
Your site is the face of your company abroad. Fit it into the local
atmosphere, without the appearance of trying. Let’s face it – the
tourist that tries too hard to be one of the locals is at best laughable,
and at worst patronizing. Either perception can be bad news for your
store – and too often there’s only one chance to make an impression.
Presenting your online experience in the local language is key, but it’s
also imperative to spend some time examining local jargon, slang,
punctuation, syntax and other idiosyncrasies. Among the most
disconcerting – and most amusing – situations to arise from global
marketing are gaffes committed by marketers with less vision than
necessary to get ideas across just right.
Take the classic Parker Pen campaign launched in Mexico on the slogan that their pens wouldn’t “leak in your pockets
and embarrass you.” Unfortunately, Parker used the Spanish verb “embarazar” to mean embarrass, failing to realize
that its true meaning is “to impregnate.” Or Braniff International Airways’ leather upholstery promotion that featured
the slogan “Fly in leather.” In Spanish, the slogan translated to “Fly naked.” And talk about long tail marketing – many
products affected by miscues still carry some of their original sting.
Punctuation and syntax also play an important role in your online store. Simple punctuation like quotation marks can
make your site either look unprofessional or lead to confusion – or both. In English, standard quotation marks are used
(“ ”), while in France, they use “guillemets” that look like this: (<< >>).
Syntax can also be a deal breaker. Most Romance languages use specific genders for nouns, verbs and grammatical
agreements. Programming a site to return a statement to a query that starts with “the,” in a language that distinguishes
clearly between a male and female option will result in confusion, if not outright gibberish.
Look at local jargon on other sites, in printed matter, and from consultants’ advice to nail linguistic differences between
success and ridicule. Additionally, make sure your platform offers content management on the administrative side in
local languages as well – so that content authoring and editing can be handled by the experts in their native tongue.
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Cultural Mores – Sometimes Embarrassment Isn’t Only Red
A cultural misinterpretation of even something simple can be problematic if you’re not cognizant of the differences. To
make sure you’re appealing to the widest audience possible, research and adjust designs with suitable color use, fitting
universal symbols and appropriate imagery.
For example, never take color schemes for granted. While red may fit perfectly with your branding, it may not result in
the same emotional response in other cultures. While in China red signifies luck, a safe option, in South Africa it signifies
mourning – something you may want to avoid depending on the nature of your online store.
Approach symbols from the same perspective to ensure they represent what you intend them to mean. One common
mistake American companies make far too often is use of a standard mailbox with a raised flag for “new mail.” A simple
envelope is more internationally appropriate and universally understood.
Common hand gestures in graphics can also be prone to misunderstanding. People as influential as American
Presidents have been embarrassed by the use of a simple hand gesture commonly accepted in the US. For example,
when then-President Richard Nixon flashed the “OK” sign as he was getting off a plane in Brazil in the 1960’s, he was
woefully unaware that locally the gesture holds a meaning much closer to that of the single, raised middle finger in the
United States.
Human body imagery should be used with sensitivity as well, since cultural acceptability varies so greatly across the
globe. Use of the female form can be tricky, since there are many interpretations of how women should be represented.
This doesn’t mean that gender cannot be portrayed successfully online, but that the use of gender-specific graphics
should be researched from a local perspective first. Maybe a global brand like Benetton can benefit from exploiting
provocative imagery, but not all brands have that luxury.
Merchandising – How Many Holidays Can You Fit In a Year?
Merchandising is generally a lot of fun for retailers, both off and online,
and it helps the bottom line, to boot. There’s no shopkeeper that doesn’t
like a new reason to feature specific products or services, whether holiday
or daily specials, neighborhood celebrations or completely manufactured
“special events.”
Once you’re on the international market, opportunities increase exponentially,
and they correlate directly to your global customer base. Take full advantage
of this – but do it wisely. Again, study the local culture before you launch
– be sure you’re aware of local customs, holidays, traditions and the like
– then begin planning ways your store can showcase them online. Most
modern, quality product platforms integrate with local calendars easily, or provide them off the shelf with holidays intact.
Consider the example of Cyber Monday – the Monday after the American Thanksgiving holiday – now a traditional
explosion of online shopping that marks the beginning of the Christmas holiday shopping season. In 2013, Cyber
Monday had grown to $2.29 billion in online transactions. Make sure you plan out holiday habits you should adopt for
your “local” international store.
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3. Logistics – Closing the Circle With
Effective Options
To complete the commerce cycle, you have to provide the customer with their finished, packed, sealed and
delivered product – and that requires logistical support. To apply the same options, rules, procedures and
providers you’ve used at home to the international market can be a fatal mistake. There are too many options
that need to be considered, addressed and perfected.
The International Shopping Cart – A Tool to Vet Leads and
Generate More Sales
Both at home and abroad, far too many carts remain at the
end of a transaction and never make it through the checkout
process. Currently, studies show that well over 50% of shopping
carts are abandoned globally, for a variety reasons. This
tendency internationally is usually the result of shipping or other
charges (such as duties or taxes) at time of delivery. Delivery
time in another oft-cited reason for abandonment.
But, regardless of why, the fact remains that far too few sites view
abandonment as an opportunity, rather than a missed chance.
An abandoned shopping cart should be seen as a part of the
purchase process, if not a beginning to a new sales opportunity.
Think of it: Customers that have made it to checkout have
approved of your site on every level along the way, and have
arrived with merchandise that they intend to purchase. This is one way customers show you items on their wishlist
– whether they actually build one or not (a capability that should always be provided). It’s also a perfect opportunity
to reach out and make a new pitch to a vetted lead, with reminders, incentives to come back and finish, coupons
– the list goes on.
Shipping – The pinnacle of the Whole Global Challenge Is
Here. Are You Ready?
The simple fact that the majority of abandoned online shopping carts are a result of shipping charges makes
logistics probably the most important function of your international expansion, and could ultimately be the deal
breaker for the entire project.
One way to address this is to maintain localized consistency at checkout, as you have all the way up to it. Weights
and measures, for instance, are key. Most countries operate on the metric system, which requires that you provide
costs that fit their view.
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And consider: the potential weight for an
entire order is no longer measured as the
sum of the weights of its parts. Too often, it’s
the retailer that ends up eating packing and
shipping costs due to miscalculations, which
cut away most or all margin in logistics. To
address this shortcoming, many eCommerce
platforms have begun to offer 3D boxing
algorithms. These tools are designed to
calculate item fit by variables to fit in optimal
package sizes for shipment – including
multiple packages. This prevents off-kilter
estimates and out-of-range charges, and can
preserve strong margins.
Offering choices in carriers also helps, giving
customers options to receive their goods on
their schedule – provided they’re willing to
pay for it. This also shows willingness to accommodate them in different ways. Overnight, 2-day delivery, air mail,
land/sea – you’ll find customers for every possible option.
Specials on shipping and handling can encourage completing purchases, and even act as a “final loss-leader,” as
well. Free shipping as an incentive – something Amazon, for example, has found hugely successful as a continuing
marketing method – should be considered (though with the significant cost of overseas shipping, the possibility of
margin loss may prove simply too costly).
Customer Support – How Do You Handle the Front Line?
Inevitably, eCommerce can come back like a boomerang – and sometimes painfully. While it is true that customer
satisfaction should be met at nearly any cost, it can be very costly to do this effectively on an international scale.
If you’ve invested properly in accurate, appropriate and effective i18n and l10n on your eCommerce site, your
customer should already feel comfortable with it, and with you. Take advantage of that comfort and encourage focus
from that perspective, while you offer ways to satisfy, correct or resolve the customer’s need.
Take full advantage of options the Internet offers in terms of call center support, too. The phenomenon of live, real
time customer chat is gaining popularity at a fantastic rate – which stems from customers’ adoption of the technology.
Quick, expert answers or instant service estimates can be powerful closers.
As yet, there really is no perfect solution to international returns, save expensive refund of cost plus additional
shipping and handling in exchange for the returned item. But remember that clear and easy policies to handle returns
are extremely important (remember, in the past, 36% of surveyed customers in China named it one of their most
important eCommerce considerations). What cannot be stressed enough is the importance of getting the situation
resolved – failure will cause more damage than a mere loss of revenue in the long run.
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4. eCommerce Is Meant to Be Global
eCommerce is built for global interaction, and will open your online store widely across the globe. Sure, it
will require a little extra attention, but the payoff is clear. According to eMarketer, in 2014, for the first time,
consumers in Asia-Pacific will spend more on ecommerce purchases than those in North America, making it
the largest regional ecommerce market in the world. This year alone, B2C ecommerce sales are expected to
reach $525.2 billion in the region, compared with $482.6 billion in North America. It’s worth it to get it right. With
appropriate research and dedication in i18n, the next step of l10n can be achieved almost as an afterthought –
and drive international success.
A platform worth investing in will encompass all of these best practices and abilities as a matter of course.If an
international platform you’re considering doesn’t at least integrate multiple currencies, flexible shipping options,
VAT calculation, and global language options, you owe it to your business to keep looking.
Final Thoughts …
From organizational perspective, Internationalization is more than a “business term,” it is a way of
thinking related to the opportunities created from the Digital Age. Once achieved, your business will
bypass traditional barriers.
4 Key Action Steps:
■■ Make
Broad Strokes First: Currency and language translation backed by a secure checkout
process, are the pillars to a successful eCommerce experience.
■■ Localization
– Make the Store Fit the Neighborhood: Creating a contextualized eCommerce
experience requires personalization.
■■ Logistics
– Closing the Circle With Effective Options: Giving your customers options at the
checkout point will help your business avoid the dreaded abandoned shopping carts.
■■ eCommerce
Is Meant To Be Global: The world is your marketplace.
These capabilities may seem daunting, but commit to the process by understanding that anything
worth doing takes time. So long as you select the right solution, eCommerce knows no boundaries.
Without question, this is the most important component of going global with your eCommerce
initiatives. With the right platform, you can effortlessly market your product catalog to a family in Tokyo
just as easily as one in Texas.
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Award Winning iAPPS Product Platform
iAPPS Commerce is a part of Bridgeline’s iAPPS® platform, a Digital
Marketing solution that deeply integrates Web Content Management,
eCommerce, eMarketing, Social Media management, and Web Analytics
to help marketers deliver online experiences that attract, engage and convert
their customers across all digital channels. Bridgeline provides end-to-end
Digital Engagement solutions and boasts an award-winning team of interactive
services professionals across our 11 offices worldwide.
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