The Three Phases of Online Marketplace Internationalization

Misha Pabari

October 1, 2021

Marketplaces have become an increasingly important route to market for brands who want to grow their international online sales. In this blog, we share the three key phases of online marketplace internationalization that every consumer brand will go through during its journey into new markets.

Cross-border online sales have grown significantly in recent years, and the global ecommerce market is forecast to surpass $6 trillion USD by 2024. However, launching in new markets is a complex process which requires expert knowledge and a willingness to invest to reach scale.

Three phases of online marketplace internationalization:

Our newly launched Marketplace Internationalization Checklist highlights what consumer brands need to think about when considering whether various marketplaces should be a key channel within their international ecommerce strategies.

1. Test your demand

Entering new markets however is no easy task. A brand that resonates in its domestic market may not do so in its target market. For this reason, we recommend that brands test for demand in the new market to be sure that customers exist.

A simple way to do this is through cross-border sales via marketplaces. By selling cross-border your products will be readily available in markets that previously might have required a localization strategy, providing a shortcut to marketplace internationalization for many brands.

2. Grow your demand

Once you’ve established that there is demand for your products in your target market, you can begin to increase your profile. Investing in local marketing–while still selling cross-border–is one way to increase sales momentum.

Running local marketing campaigns in your target market with native content can help with demand generation. Engaging with influencers on popular social media channels provides plenty of opportunities for brand awareness and drives customers directly to your sales channels.

3. Full localization

Finally, localizing your proposition is the third phase of online marketplace internationalization. Create a local entity, local listings on marketplaces, and move product to the market to fulfill orders once consumer demand warrants the investment. You may also consider launching a localized direct-to-consumer site or partnering with third-party retailers as a means to full localization. Many brands who choose to sell their goods via marketplaces often work with an authorized seller to execute this phase of marketplace internationalization.

Download our five-step guide to determine if your brand is ready to launch on international marketplaces here.

For more information on how we could support you in developing your international ecommerce strategy, or if you are interested in us becoming the authorized marketplace seller for your brand anywhere in the world please contact us today.

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Aug 2, 2022

Global Ecommerce Weekly News: 2nd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon sees its share price rise 10% and beats revenue expectations Amazon has exceeded revenue expectations, mainly due to its Amazon Web Services cloud business and its fast-growing advertising arm. Investors who have been concerned about the effects of sharp macroeconomic effects have been reassured as the ecommerce giant has overperformed and seen growth. [Read more on the Financial Times](https://www.ft.com/content/911f7a71-72ed-4c26-8a07-932832ffff4d) Amazon set to launch localised versions of its Prime Video in Southeast Asia Amazon is launching local versions of Prime Video across three countries in Southeast Asia, with new investments in local content. The service will launch in Indonesia, Thailand and the Philippines, where users will be offered a 7 day free trial along with other discounted introductory offers. Prior to this launch, consumers in these countries had been able to shop cross-border on the platform but Prime Video has not been available until now. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-still-worth-it/) Amazon closes down its cloud storage platform, Amazon Drive By the end of 2023 Amazon Prime members will be losing a big feature, Amazon Drive, as the company turns its attention towards its Amazon Photos service. The tech giant wants to focus on photo and video storage features, allowing Prime members to safely back up, share and organise photos & videos with Amazon Photos, which is currently available on iOS, Android and desktop devices. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/01/amazon-prime-members-are-set-to-lose-a-big-feature/) --- Other Marketplace News --- Shopify lays of 10% of its workforce Shopify has cut 10% of its workforce as it struggles with a slowdown in ecommerce growth. The company was relying on a permanent jump in online purchases in the retail space, and are now realising that incorrect assumptions were made, which now need adjustment accordingly. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/27/shopify-cuts-10-workforce/) Alibaba Group goes after primary listing on the Hong Kong Stock Exchange By the end of 2022, Alibaba will become dual-primary, listed on both the NYSE (New York Stock Exchange) and HKSE (Hong Kong Stock Exchange). Being listed in two major financial centres will allow the company to expand its openness and diversity, broaden its investor base, and will help to pave the way for its globalisation strategy. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/alibaba-group-pursues-primary-listing-on-the-hong-kong-stock-exchange/) Shopee and P&G launch virtual home shopping experience As part of Procter & Gamble’s Regional Super Brand Day on Shopee, a new exclusive 360 degree virtual home shopping experience feature has been launched, with P&G brands of household essentials on offer, categorised according to rooms. Accessible through P&G’s official store on Shopee’s website and app, the feature includes multi-format touch points like videos, games, and localised content to make online home shopping convenient and engaging. [Read more on Business Mirror](https://businessmirror.com.ph/2022/07/26/pg-and-shopee-launch-a-new-exclusive-360-virtual-home-shopping-experience/) The Hut Group ends investment deal with Japan’s Softbank UK ecommerce company, THG, has recently put an end to an investment agreement with Softbank due to “global macroeconomic conditions”. The deal was made to help fund the expansion of THG’s technology platform before going public in London. The company saw its share price fall after the announcement and its valuation remains well below its flotation price despite recent bidding wars. [Read more on The Guardian](https://www.theguardian.com/business/2022/jul/26/uk-thg-ends-investment-deal-softbank-lookfantastic-zavvi) --- Other Ecommerce News --- Third-party online marketplaces sales to account for 59% of all global ecommerce by 2027 By 2027, third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, accounting for two thirds of all online sales. Alibaba will continue to hold its place as the global leader in retail sales, growing total net GMV sales in 2027 to $1.5trn, and Amazon in second place with $1.2trn. The number of third-party marketplaces operating globally has increased by over 500% since 2007, and is expected to see further growth. [Read more on Internet Retailing](https://internetretailing.net/marketplaces/third-party-marketplace-sales-to-account-for-59-of-all-global-ecommerce-by-2027/)
Jul 26, 2022

Global Ecommerce Weekly News: 26th July 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon moves into healthcare through a $3.9bn deal with One Medical Amazon has acquired membership-based health service, One Medical, which offers virtual and in-person advice and care to patients. One Medical has close to 767,000 members and 188 medical offices in 25 markets, but has recently been making a loss. The ecommerce giant will take on One Medical’s debt, and sees the acquisition as a mission to make “quality healthcare more affordable, accessible and enjoyable”. [Read more on Retail Gazette](https://www.retailgazette.co.uk/blog/2022/07/amazon-healthcare-one-medical/?utmsource=Retail+Gazette+Subscribers&utmcampaign=bd98bc7b9e-EMAILCAMPAIGN202207220737&utmmedium=email&utmterm=0d23e2768b6-bd98bc7b9e-61040615) Amazon set to increase the price of Prime delivery and streaming services Amazon is raising the price of its Prime delivery and streaming service in the UK as a result of “increased inflation and operating costs”. Being a Prime subscriber allows for unlimited free delivery, entertainment and sport streaming services. The cost has been £7.99 since 2014, but from mid-September will increase to £8.99 for new customers or on existing customers’ next subscription renewal date. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-subscription-rise/) --- Other Marketplace News --- YouTube and Shopify team up to add live shopping features YouTube has partnered with Shopify to offer users the option to purchase products without leaving its website. Viewers in the US, Brazil, and India will see the shoppable content in the explore tab within the next month, later rolling out to other regions. Someone watching videos on YouTube may come across a list of products on their page, and is then able to purchase the item without leaving the website or the video itself. [Read more on CNBC](https://www.cnbc.com/2022/07/19/youtube-partners-with-shopify-to-add-live-shopping-features.html) Alibaba is set to close Tmall online store in Hong Kong Alibaba recently announced that it will be shutting down Tmall in Hong Kong at the end of October this year. Tmall is Alibaba’s online retail platform that sells large Chinese and global brands.The company made the decision based on “business strategy adjustment”, but has stated that it will continue to provide payment and delivery services to local residents in Hong Kong through its Taobao marketplace. [Read more on Tech Node](https://technode.com/2022/07/25/alibaba-to-shut-down-tmall-online-shop-in-hong-kong/) Klarna is set to open its first brick-and-mortar retail pop-up shop Klarna is launching an immersive shopping experience in a pop-up store in Los Angeles called ‘Klarna Oasis’, and is focused on supporting the company’s mission-driven merchant partners. Customers will be able to shop exclusive discounts from specific partner brands and will have the option of donating gently used clothing and accessory items. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/22/klarna-to-open-first-brick-and-mortar-pop-up-shop-in-los-angeles/) Superdrug signs more than 200 brands to its online marketplace Superdrug has a new and upcoming online marketplace set to launch in September, and has already signed over 200 brands both premium and start-ups. The company aims to recruit and partner with more sustainable brands to support entrepreneurs and small businesses, promoting diversity and inclusion within the industry. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/20/superdrug-signs-over-200-brands-to-its-online-marketplace/)
Jul 20, 2022

Colin Boucher, Senior Performance Department Director: People of Pattern

Here at Pattern we believe that our people are integral to our success, and are what makes us great. Our PeopleofPattern series highlights some of the incredible, data-driven people in our company to learn about their roles, experiences, and what it’s like to work at Pattern. This week we caught up with Colin Boucher, Senior Performance Department Director in Pattern’s Melbourne office in Australia. Could you tell me a bit about your role and experience working at Pattern? I’ve been working at Pattern for five years now in the Melbourne office, one of our two offices in Australia. My current job title is Senior Performance Department Director and I head up the Performance Marketing team, our responsibilities include things like Google Ads, paid social, advertising, affiliates and marketplaces advertising, as well. I manage our team and also work across the client set from a strategic point-of-view when working with some of our key clients on relationship management also. I started at Pattern as an Account Manager, implementing the digital channels and working with clients on a daily basis. In August 2020, I started my current role working across all of our clients, in particular our key brands, including Under Armour, Converse, Rip Curl, & Baby Bunting. You worked at Practicology when it was acquired in 2018, why did you choose to work at Practicology then and why do you choose to work at Pattern now? When I first moved to Australia I had experience working in different sized agencies in the UK, and when I met Merline McGregor, she instantly grabbed my attention as someone that I wanted to work with. The role I came into wasn’t what I’m doing now, it was more of an account management role, running the clients on a day-to-day basis. At that point, they hadn’t had anyone in the Melbourne office in that sort of role. Because of this, it was a bit of an opportunity to go in and put my own stamp on things. I’d also done bits of ecommerce, but not huge amounts of it. This was a really key area in Australia, so it made sense to pursue from that perspective. Even in 2017, the company had some fantastic global and Australian brands that really appealed to me, including Rip Curl & Converse. During the interview process, I got such a great impression of the people and culture, there wasn’t anywhere else I wanted to work. What has been the most rewarding part of working at Pattern for you? The most rewarding part for me has been seeing clients that were quite small when I started, grow much, much bigger and gain a great deal of significance. Being part of a brand’s growth is really satisfying, especially when, at times, the channels we own are crucial to them. There are also a few people that have been in my team for a few years and they’ve gone from more junior positions to much more senior positions. This is also rewarding to me, it’s really nice to see people grow and develop. Ultimately, going to the office and seeing the team is a pleasure, it’s a privilege to work with our brands too. Last question, why would you recommend working at Pattern? The people! I love working with the team across Australia. There’s loads of smart, really experienced people and the company continually recruits really talented people across all positions as well. Over the years we’ve also developed a strong client base. We have global brands like Under Armor and Converse, but also more local Australian brands that we’re helping to grow bigger. It’s really a mix of the people I work with at Pattern and the clients I work with - they’re all great. We’re growing our team at Pattern! If you're looking to start a career in ecommerce or even if you're a seasoned professional and want to learn more about our exciting opportunities, [check out our open positions here.](https://pattern.com/about/careers/)