Half of Online Retailers Lack Localization Capabilities When Expanding Globally

If you ask most retail gurus, they’ll tell you that the key to global success in retail is abiding by that grand old message (I don’t know about you, but I never get tired of it) of ‘think globally and act locally.’

However, the results of a new national survey indicate a severe lack of local consideration for many retailers when going international.

Ingenico ePayments, the online and mobile commerce division of Ingenico Group, in conjunction with InternetRetailing, undertook the in-depth research, Passport to International Sales.

Here are the particulars regarding the data collected from the survey:

Social media: A quarter (26%) of online retailers do not tailor social media to territories or languages at all.

Fraud: Retailers generally see their fraud management as fit-for-purpose, but 28% are dissatisfied with their setup.

Logistics: Only 9% of ecommerce merchants are very satisfied with their international logistics.

Localisation: Over two-thirds (69%) of respondents believe localisation is very important or vital to success.

Payments: 67% of retailers tailor their payment options to each territory to some degree

“The advantages of selling abroad are clear and plentiful, but to achieve long-term success, merchants must also address the risks and the layers of complexity involved,” notes Julian Wallis, UK Country Manager at Ingenico ePayments. “Payments technology is often considered at the end of the international expansion strategy. But it is important to realise that a solid and secure payments strategy is embedded in every step of the expansion plan, not just at the final step of the checkout.”

Cross-border ecommerce sales are slated to increase by 27 percent each year in the EU up until 2020, when estimates show it will be worth over 1 trillion euros.

For a number of merchants feeling the pains opposing a saturated domestic market, the factors driving them overseas are borne completely out of necessity, as well as ambition.

Liz Morrell, Research Editor at InternetRetaiiling, explains: “It takes more than simply a ‘want’ for an international product from customers. A credible, sustainable and profitable international growth requires a more active and considered engagement. We hope that the insights in this report will help internet retailers to decide which approach they should take and how they can reach their international destination a little sooner.”

Ian Jindal, Editor-in-Chief of InternetRetailing, adds: “The results of this new survey show an appetite for more tailored strategies and highlight that merchants need to think more locally to drive greater success.”