Global Ecommerce.pptx

Global ecommerce is the process of selling products or services online across geopolitical borders to customers in foreign countries.
Compared to local ecommerce, in which a retailer only sells within its country of origin, global e-commerce allows merchants to expand into non-native markets and reach new customers. 

1. Global Ecommerce

2. Global Ecommerce Global ecommerce is the process of selling products or services online across geopolitical borders to customers in foreign countries. Compared to local ecommerce, in which a retailer only sells within its country of origin, global ecommerce allows merchants to expand into non-native markets and reach new customers.  With so many ecommerce platforms, marketplaces and digital solutions available, there are practically no limits for merchants looking to sell online, which makes it easier than ever for businesses to go global.

3. However, you may be shocked to hear that 58% of global ecommerce market share is held by just six ecommerce companies: Taobao.com (15%) and TMall.com (14%) (both owned by Alibaba Group), Amazon (13%), JD.com (9%), Pinduoduo (4%) and eBay (3%). And only 5% of market share is taken up by other big-name retailers Rakuten , Walmart, VIP.com, Sunning.com, Apple and Shopee . 

4. Establishing Your Global Ecommerce Platform and Integrations A reas to consider when launching your business abroad: 1. Pricing According to Harvard Business Review, how customers perceive pricing is just as important as the price itself. C urrency conversion is another pain point to consider. In the face of fluctuating exchange rates, many global retailers instead set a fixed rate, which helps ensure consistency in pricing.

5. For example In high-context countries like China, India, Brazil and Argentina, products sell better when prices end in zero (such as $10.00), and in low-context markets like the US, Australia and Norway, customers respond better to prices that end in 9 ($9.99).

6. 2. Payments. According to Statista, in 2020, credit cards and digital/mobile wallets tied as the most popular ecommerce payment methods in the US, both holding 30% of the total payment count.

7. However, looking at payment methods from a global standpoint, the rankings are a bit different.

8. This goes to show that customer payment preferences vary from country to country — so you can’t expect customers abroad to always pay in credit card.  For example, in Mexico, 86% of all payments are cash, and in Southeast Asia, only 15% of the population owns a credit or a debit card, while almost a third of the population doesn’t own a bank account.

9. 3. Customer service. Customer service is equally as important for your global markets as it is for your domestic market.  Thus, when expanding globally, you’ll need to be mindful about how to address each country’s return policy depending on the preferences of the market. While many American stores have a no-questions-asked return policy, shoppers in France often assume that all purchases are final, and in Japan, many stores won’t accept returns for arbitrary reasons.

10. Another key aspect of customer service is the method of communication.

11. Looking at the graph above by Statista, it’s clear that the preferred communication channels vary widely from country to country, although phone/voice, email and live chat consistently hold the greatest popularity.

12. 4. Shipping and logistics. According to Statista, the majority of challenges that business owners face in global ecommerce are related to shipping and logistics: Navigation customs: 44.5% Cross-border logistics: 37% Cross-border returns: 33.5% Managing delivery expectations: 34.5% Tracking deliveries: 27.5%

13. Benefits of Global E-Commerce Global e-commerce may, however, be advantageous for both clients and clients’ enterprises when implemented intelligently and effectively.

14. For Businesses Business advantages include: More brand awareness: By developing your brand in other markets, you may reach a larger audience of potential customers. This ultimately boosts sales by increasing brand recognition and trust. Expanded consumer base: Expanding into new areas and raising brand awareness to expand your company’s potential clientele.

15. Discovery and development of new locations: It is a significant factor in why an online company can try to reach a worldwide clientele. Before opening a physical site in a foreign nation, expanding your business abroad enables you to ascertain whether specific sectors will be profitable.

16. For Customers Customer advantages include: More product preferences: Customers worldwide gain from e-commerce by obtaining a more comprehensive range of products. Rapid growth in information between customers and the business: A well-planned global e-commerce program makes it possible for companies to communicate more effectively with their customers.

17. E-commerce also increases productivity because it is quick to get a product and make a payment while purchasing online. There is no need to visit physical stores, so you can also save time on transit. Because numerous wholesalers engaged in offline retailers, consumers had to pay more.

18. Disadvantages of eCommerce 1. Lack Of Personal Touch 2. Price And Product Comparison With online shopping, consumers can compare many products and find the lowest price. This forces many merchants to compete on price and reduce their profit margin.

19. 3 . Need For Internet Access T here's a chance of excluding visitors who have slow connections. 4. Credit Card Fraud 5. IT Security Issues 6. Complexity In Taxation, Regulations, and Compliance