Navigating the Global Marketplace

Lara Jelowicki

September 10, 2021

For many brands, expanding to new global markets and ecommerce marketplaces can be an untapped gold mine. Selling in more places and putting your product on more marketplaces can broaden your brand’s reach, act as a defense strategy against unauthorized sellers, and ultimately drive revenue.

But navigating the global marketplace on ecommerce is a lot easier said than done. Expansion can be massively expensive and time-consuming. If you don’t perform your due diligence and expand wisely, your untapped gold mine can quickly become a financial sinkhole.

While it would be impossible to adequately cover every aspect of navigating the global marketplace in one blog post, below we’ll present a few introductory ideas to keep in mind as your brand considers expanding.

Is your brand ready to expand?

While it may be easy to decide to sell on additional domestic marketplaces, deciding whether to sell on the global marketplace is more complicated. Here’s what to keep in mind to help make that decision:

Are you established in your home market?

It’s best to hold off on international expansion until you’ve reached peak sales in your domestic market. If you’re only selling $1 or $2 million in the U.S., it’s unlikely that you’ve reached your peak. Instead of focusing on internationalization, you should be focusing on your homegrown market and building your reputation.

Are you financially ready?

If you have reached peak in your domestic market, however, you should then consider if you have enough capital to fully invest in the global marketplace. Expanding to additional global markets isn’t cheap, and brands need to be prepared to cover regulatory costs, marketing spend, and other hidden fees. If you’re not prepared to invest, your expansion won’t be successful.

What are your international goals?

It’s also wise to establish your goals for launching your brand internationally. Once you hit a new market, it’s like setting up a new company — you probably won’t be profitable for 3-5 years. From the start, your strategy should be focused on the long-term. Entering the global marketplace isn’t a casual commitment that you can dip into and out of.

Do you have the resources?

Finally, ask yourself if you have the right resources and team members to facilitate a smooth international launch. You need to have a plan in place for reading reviews in foreign languages, speaking to international partners, arranging logistics, and following international regulations.

Strategies for the global marketplace

If you’ve considered the points above and feel like your brand is ready to enter new markets in the global marketplace, there are a few strategies you should consider to optimize your chances for global success.

**Research, research, research **

Research is a core internationalization strategy that you can’t afford to skip. Brands need to conduct research upfront to understand if the investment into international markets is worth the cost, and then continue to research to know the best strategies for their brand and markets.

Before expanding, brands should research which international markets to expand to in the global marketplace and how. The top 5 global ecommerce markets are the U.S., Germany, the U.K., Japan, and China. It’s logical to start with established markets since they’re already home to solid ecommerce infrastructure, making distribution logistics more simple. Even if there’s a large population and demand for your product in a given country, it will be difficult to scale your business if adequate technology, road, and delivery infrastructure aren’t in place.

While it’s good general advice to focus on large markets, this only applies if your brand’s product resonates in these markets. You should conduct a thorough analysis to determine whether there’s sufficient demand and opportunity for your brand and product category in a given market on the global marketplace. Conducting a competitor analysis can also help you identify gaps in the market and see how brands similar to yours are being represented on the marketplace.

Once you’ve decided where to expand in the global marketplace, you should also consider factors like pricing, translation, and regulatory and labeling needs. Determining international product prices isn’t as simple as converting your domestic price to a foreign currency. Instead, you should research the competitive landscape in the target market, be aware of local taxes, and factor in the additional costs you have to cover (like shipping and regulatory costs) to sell your product internationally.

International regulations are another consideration to research. Some ingredients may not be legal in foreign markets, and some countries may require labeling in the local language. Brands that sell supplements, for example, need to be aware of international regulations on supplements and how they might need to adjust their products to avoid getting shut down.

Understanding your customer is always important, but it becomes especially important while navigating the global marketplace. Ask yourself who your customer is, why they shop on marketplaces, what they’re searching for, and if there are similar products in the market already. Are their purchases driven by convenience factors? How can you tailor your messaging to match what they’re searching for? And how can competitors already in the market impact the demand for your products? You should answer all of these questions when creating your initial internationalization plan.

**Start small and work to full localization **

Like we’ve discussed previously, expanding to the global marketplace is an expensive process. To avoid the risks of heavily investing in a market where your product may not succeed, we recommend a three-phase internationalization process.

Phase 1 consists of testing your demand and ensure that enough customers exist in your target market to expand there. You can start by opening international shipping from your website or Amazon. In phase 2, you can continue cross-border selling while growing your demand with local marketing. When demand has grown enough to warrant the investment, brands can move to full localization, or phase 3, by creating a local entity and local marketplace listings.

Using this 3-step process can help brands mitigate some of the inherent risks of investing in the global marketplace.

**Localize while staying true to your brand **

Brand consistency is important, but when it comes to internationalization, so is adaptation. Your words might not translate well into the local language, making it necessary to alter titles or marketing content better catered to your international audience. The goal is to maintain your branding and the look and feel of your brand while adapting to local customers on the global marketplace.

Overwhelmed? Pattern can help

We’ve barely scratched the surface of the most basic principles of navigating the global marketplace. The process is both complicated and potentially overwhelming, even for brands that are incredibly successful in their domestic markets. However, Pattern has experience helping brands successfully launch internationally, increase sales, and exceed their goals.

By partnering with Pattern, we can facilitate this process and help you mitigate many of the risks of entering the global marketplace. We’ll handle due diligence and upfront research for you, helping you craft an effective long-term strategy while avoiding typical mistakes. We can work with your brand to help you prepare and know when to expand—or, if you’ve already started the process, we can assess your progress and help you do even better and perfect your marketplace management. We have the resources, staff, services, and infrastructure to ensure your international launch goes as smoothly as possible.

Interested in learning more? Get in touch for a free consultation or download our Internationalization Checklist to determine your brand’s readiness for expansion.

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Sept 20, 2022

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/amazon-to-raise-delivery-drivers-pay-and-add-more-work-benefits/) Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/amazon-to-give-away-shipping-software-to-merchants/) --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/walmart-launches-virtual-fitting-rooms-to-drive-clothing-sales/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2da7f0f8f8-EMAILCAMPAIGN202209150742&utmmedium=email&utmterm=0d23e2768b6-2da7f0f8f8-61040615) THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/thg-slashes-forecast-as-cost-of-living-crisis-hits-consumers-wallets/) --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/post-office-partners-with-dhl-express-to-provide-click-and-collect-services/) US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/us-consumer-watchdog-to-start-regulating-bnpl-sector/) Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/13/japan-ecommerce-market-to-grow-by-6-9-in-2022/) Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](https://searchengineland.com/ecommerce-brands-spent-60-more-on-tiktok-ads-in-q2-387876)