The internet has rapidly evolved in order to cater to the needs of various dynamic markets and individual customers globally. Buying and selling on-the-go through mobile devices has become the need of the hour due to the requirement of advanced payment options and improved shipping methods with an anytime-anywhere operational convenience. In the advent of such emerging technology, global reach and expansion is just a natural phenomenon that has impacted the sellers’ opportunities and the buyers’ purchasing power immensely.
Listed below are 5 of the most important benefits of Cross-border online retailing:
- Wider Product Reach and Scalability
- Larger Customer Base
- Opportunity to Toggle between Seasonal and Off-Seasonal Products
- Large Sales Network
- Business Sustainability and Brand Promotion
Let us try to find out more details about each of these benefits of international retailing online:-
Wider Product Reach and Scalability
If you are an online seller who wants to showcase his product(s) on a global scale, then international online retailing is your key to success. The North American market exemplifies this fact with more number of online sellers signing up for cross-border operations through marketplaces like eBay, Amazon, Etsy, and Truegether. Consumers worldwide face the challenge of not being able to procure their desired products locally. This has opened the E-commerce corridors between USA, Canada, and the rest of the world, making North America the best e-destination for online purchasing. America has become the leading online engine for cross-border selling with relaxed yet systematic cross-border norms, easy information accessibility through user-friendly interfaces, and their well-integrated distribution networks that are backed by fool-proof security systems.
Products of a seller get more recognition through their global reach and the good responses from customers would lead to multiple re-orders that will improve product scalability since customers would want to buy better or higher versions of these products.
Larger Customer Base
If a seller manages to score aces with his customers across borders through his impressive product-line and immaculate services, the only outcomes are increased sales and a larger customer base. The current competitive market is highly driven by profits through more customer demand(s). This fact is proven time and again by International E-commerce strategies that are implemented today. Improved customer retention, more social media recommendations by satisfied customers, and remote accessibility of E-marketplace apps by more customers have direct implications on the sellers’ performance and feedback. High-quality product(s) and prompt services provided by sellers fade the line between sellers and international customers. If more and more customers start trusting a brand, the growth of that brand is guaranteed. Frequent buying by customers from a particular seller due to their competitive pricing and conviction drives online sellers to perform bigger and better.
Opportunity to Toggle between Seasonal and Off-Seasonal Products
Online retailing is all about striking the right chords for creating a demand pool. The demand for seasonal products may be high in certain geographic locations while being moderate or lower at other places. Factors like lifestyle, climatic conditions, geographical health requirements, local cost, local production, availability scenarios, local governmental norms, personal requirements, and spending patterns of the local buyers affect demand and supply in cross-border E-commerce.
International sellers can take advantage of this uncertainty in demand and uneven distribution by focusing their sales and promotions on only those geographic regions that render maximum turnover. They can create a sales strategy based on previous geography-based demands that would lead to faster product conversions and demand transitions. The E-marketplaces that facilitate sellers are also benefited through increased demands across borders since sales margins can increase for high-demand seasonal or even off-seasonal products. The stocking up of unsold products at warehouses can also be curbed through international retailing which would decrease the maintenance costs for sellers.
Large Sales Network
Sellers from one geographic location can use online selling platforms to contact other sellers at a different geographic location in order to supply as well as procure products that they may not have local access to. This leads to rapid networking and improved cross-border sales. Even order fulfillment guarantees through partner retailers ensures customer satisfaction and repetitive orders for international online sellers who supply the products. A good commission deal can be worked out with the recipient seller(s) which could boost revenues for the sender. The future prospects of increased sales or business propositions attract increased cross-border sales networking. Similarly, a seller could procure products that are high on demand by his loyal customers from sellers at a different location on-time for a nominal fee and end up winning over his customers. Sellers may also find luck in selling other specialized products to their trusted recipient sellers which will again open the doors to seamless online trading. The shipping and handling can also be rerouted to sellers who supply the ordered product which can bring down operational costs which is a big challenge for the primary online sellers. The sellers can also have a mutual agreement to promote each other among their trusted customers.
Business Sustainability and Brand Promotion
Current online businesses strive on brand promotion and expansion on a global scale. Local brand awareness among customers is beneficial only if the scope of the sellers’ business s limited to the local geography. Sellers who yearn for brand recognition and growth often resort to cross-border operations. Once their brand gets recognized globally, an unbreakable trust is formed between the brand and its customers, thus giving sellers an edge over their competitors. Business sustainability is another factor that gives sellers the drive to provide better products and services in the competitive market.
Only focusing on local sales and profitability would not help in the long run since the demand-supply balance may not remain stable in the local market. The global market can be explored infinitely since the products that are in global demand can cater to a larger purchase group in comparison to the limited number of buyers in selective locations. The local economy and its ups and downs may sometimes not support the seller objectives. This is where global distribution helps to make up for the downside of local selling. Economies that are currently flourishing can be taken advantage of to ensure the business sustainability of a seller and this can be done without border restrictions or trading impediments which are evident in offline trading.