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4 Key Factors to Consider When Going Global with your eCommerce Initiatives

© Copyright 2014 Bridgeline Digital Inc. | Bridgeline.com | 1-800-603-9936

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InternatIonalIzatIon: Key factors that can MaKe your onlIne store a Global success

Commerce is both the vehicle that has

accelerated the creation and exponential

growth of the largest marketplace in history,

and the bond that holds that web-based

marketplace together.

none of that statement is exaggerated

hyperbole – Global ecommerce sales

surpassed $1 trillion in 2012. More

importantly, the business channel is showing no

signs of slowing down. according to projections

from eMarketer, total ecommerce will

eclipse $1.5 trillion by the end of 2014.

the best part? eCommerce knows no

boundaries. More than ever, everyone lives

on the internet, meaning there are endless

opportunities to market products or services to customers …regardless of location.

worried that you’re behind? it’s not too late play catch up. Your business may be late to the party, but with the rise

of smart phones and tablets, the time to develop your eCommerce platform is now. so long as its bulwarked with

a first-class eCommce solution (more on this later), a company’s reach is only as small as they want it to be. this

prospect opens opportunities never before available, as well as its share of challenges.

to properly take advantage of the markets your business is now open to, it’s necessary to internationalize.

Internationalization (commonly abbreviated as i18n,

where the “18” stands for the number of letters between

the two at the front and back of the word) officially opens

your business up to an astounding number of new

marketplaces, cultures and populations. it also presents

an instantaneous reputation boost with membership in

the global marketplace.

i18n isn’t without risk. Considering its potential benefits

– and the dangers of doing it incorrectly – a plan is

absolutely necessary before you turn your storefront out

to face the seven billion people inhabiting this planet. this whitepaper details the four steps to i18n.

$1.058$1.248

$1.500

$1.763

$2.043

$2.345

201720162015201420132012

B2C ECOMMERCE SALES source: www.eMarketer.com

B2C Ecommerce Sales Worldwide, 2012-2017

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the practice of i18n needs to be executed during the initial architecture design and building stage of your web

store’s lifecycle, in broad strokes. the idea is to build a framework open to options first, so that localization (or

l10n, using the same abbreviation syntax) will be less intensive, and much less expensive.

Universal options to consider in i18n surround currency, language, socio-cultural specifics and security, and getting

them right early usually means the difference between robust and marginal success.

CUrrenCy – MaKe SUre CUStoMerS Can Pay yoU

eCommerce websites need to keep a clear

lock on the bottom line – anything that impedes

cash flow is a potential deal breaker. while

going global opens your business to many

different risks, such as those from exposure to

global currencies, it’s also true that the benefits

usually outweigh the downside.

in order to clear this all-important hurdle,

consider critical options like being able to bill in

multiple currencies, adjusting quickly for varying

exchange rates, and awareness of – and

adhering to – international taxes, regulations,

tariffs and fees. the good news is that these

capabilities and options should be built into any

eCommerce platform.

Once you open your site to the world, currency options explode – it’s necessary to allow customers to transact

in their local coin. build your checkout with open variables to allow for as many currencies as possible (many

platforms offer support for as many as 140). Forcing a customer to try and adapt to Us dollars adds unnecessary

work at checkout. with shopping cart abandonment rates constantly rising, it’s too prudent to make the checkout

process as painless as possible.

exchange rates can vary daily – especially in today’s feral markets – and your solution needs to be quick to adapt.

Can you still afford to sell a product at a certain price if the exchange rate swings wildly overnight? having options,

like Open Variables at the code level will easily adjust pricing for you.

along with tariffs, duties and fees associated with transactions, you’ll need to be prepared to levy Vat (Value

added tax) on top of all european sales. these taxations can be tricky, and are applied based on the locations

where transactions take place. this means that if your office is in one country, while your distribution operations

are in another, you could be hit twice with the same tax, and possibly at different rates. Modern, complete

eCommerce platforms have tools that keep this under control before you even open the box.

1. MaKe broad stroKes fIrst

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LanGUaGe – Create a SIMPLe PUrChaSe ProCeSS

Frequently, there can be idiosyncrasies that come with international commerce

that may seem trivial at first, but make huge differences in i18n. besides

obvious language requirements, design elements, symbolism and

graphics must be addressed. it’s also imperative to consider calendar,

time, currency, number and address, name and telephone formats.

the importance of language itself cannot be understated. it’s never

acceptable to allow straight, mechanical translation of your web

content. automatic translation sanitizes language and removes

idiom, colloquial phrases and intent, in favor of word-for-word

rendition. a truly internationalized website architecture needs to allow

for environments in which language will complement content, not

detract from it. Fortunately, well thought out eCommerce platforms

provide native language management as a given feature.

SeCUrIty – roLL WIth ChanGeS

international laws can vary from Us laws – sometimes more lenient, other times

more restrictive – and change drastically from country to country while maintaining

constant flux. as a retailer, it’s up to you to be aware of current regulations,

and to continuously adjust.

data security requirements are a perfect example, and can range from open to

highly regulated. difficulty with adaptation can add enough work to take bites

out of profits. in the european Union, for instance, businesses must register

with the data privacy authority and disclose all data they collect. they also have

to disclose where, how and for how long it’s stored, and who has access to it.

Make sure you’re prepared.

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after adapting for i18n, the real magic begins with l10n. if you’ve taken care to leave the most flexibility in your

architecture, the process should be relatively quick, painless and inexpensive.

l10n means customizing your site to fit into the geography of the local web. in short, l10n makes the eCommerce

web store fit into the neighborhood. the process involves modeling facets of your content, design, procedures and

interface to fit seamlessly into regional, cultural and geographical surroundings – so your customers feel at home as

they shop, though they may be in another hemisphere altogether. having a content management system integrated

with your eCommerce platform is a distinct advantage in driving your l10n strategy.

SoCIaL rULeS – MaKe SUre they’re SeeInG What yoU’re SeLLInG

Your site is the face of your company abroad. Fit it into the local

atmosphere, without the appearance of trying. let’s face it – the

tourist that tries too hard to be one of the locals is at best laughable,

and at worst patronizing. either perception can be bad news for your

store – and too often there’s only one chance to make an impression.

presenting your online experience in the local language is key, but it’s

also imperative to spend some time examining local jargon, slang,

punctuation, syntax and other idiosyncrasies. among the most

disconcerting – and most amusing – situations to arise from global

marketing are gaffes committed by marketers with less vision than

necessary to get ideas across just right.

take the classic parker pen campaign launched in Mexico on the slogan that their pens wouldn’t “leak in your pockets

and embarrass you.” Unfortunately, parker used the spanish verb “embarazar” to mean embarrass, failing to realize

that its true meaning is “to impregnate.” Or braniff international airways’ leather upholstery promotion that featured

the slogan “Fly in leather.” in spanish, the slogan translated to “Fly naked.” and talk about long tail marketing – many

products affected by miscues still carry some of their original sting.

punctuation and syntax also play an important role in your online store. simple punctuation like quotation marks can

make your site either look unprofessional or lead to confusion – or both. in english, standard quotation marks are used

(“ ”), while in France, they use “guillemets” that look like this: (<< >>).

syntax can also be a deal breaker. Most romance languages use specific genders for nouns, verbs and grammatical

agreements. programming a site to return a statement to a query that starts with “the,” in a language that distinguishes

clearly between a male and female option will result in confusion, if not outright gibberish.

look at local jargon on other sites, in printed matter, and from consultants’ advice to nail linguistic differences between

success and ridicule. additionally, make sure your platform offers content management on the administrative side in

local languages as well – so that content authoring and editing can be handled by the experts in their native tongue.

2. localIzatIon – MaKe the store fIt the neIGhborhood

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CULtUraL MoreS – SoMetIMeS eMbarraSSMent ISn’t onLy red

a cultural misinterpretation of even something simple can be problematic if you’re not cognizant of the differences. to

make sure you’re appealing to the widest audience possible, research and adjust designs with suitable color use, fitting

universal symbols and appropriate imagery.

For example, never take color schemes for granted. while red may fit perfectly with your branding, it may not result in

the same emotional response in other cultures. while in China red signifies luck, a safe option, in south africa it signifies

mourning – something you may want to avoid depending on the nature of your online store.

approach symbols from the same perspective to ensure they represent what you intend them to mean. One common

mistake american companies make far too often is use of a standard mailbox with a raised flag for “new mail.” a simple

envelope is more internationally appropriate and universally understood.

Common hand gestures in graphics can also be prone to misunderstanding. people as influential as american

presidents have been embarrassed by the use of a simple hand gesture commonly accepted in the Us. For example,

when then-president richard nixon flashed the “OK” sign as he was getting off a plane in brazil in the 1960’s, he was

woefully unaware that locally the gesture holds a meaning much closer to that of the single, raised middle finger in the

United states.

human body imagery should be used with sensitivity as well, since cultural acceptability varies so greatly across the

globe. Use of the female form can be tricky, since there are many interpretations of how women should be represented.

this doesn’t mean that gender cannot be portrayed successfully online, but that the use of gender-specific graphics

should be researched from a local perspective first. Maybe a global brand like benetton can benefit from exploiting

provocative imagery, but not all brands have that luxury.

MerChandISInG – hoW Many hoLIdayS Can yoU FIt In a year?

Merchandising is generally a lot of fun for retailers, both off and online,

and it helps the bottom line, to boot. there’s no shopkeeper that doesn’t

like a new reason to feature specific products or services, whether holiday

or daily specials, neighborhood celebrations or completely manufactured

“special events.”

Once you’re on the international market, opportunities increase exponentially,

and they correlate directly to your global customer base. take full advantage

of this – but do it wisely. again, study the local culture before you launch

– be sure you’re aware of local customs, holidays, traditions and the like

– then begin planning ways your store can showcase them online. Most

modern, quality product platforms integrate with local calendars easily, or provide them off the shelf with holidays intact.

Consider the example of Cyber Monday – the Monday after the american thanksgiving holiday – now a traditional

explosion of online shopping that marks the beginning of the Christmas holiday shopping season. in 2013, Cyber

Monday had grown to $2.29 billion in online transactions. Make sure you plan out holiday habits you should adopt for

your “local” international store.

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to complete the commerce cycle, you have to provide the customer with their finished, packed, sealed and

delivered product – and that requires logistical support. to apply the same options, rules, procedures and

providers you’ve used at home to the international market can be a fatal mistake. there are too many options

that need to be considered, addressed and perfected.

the InternatIonaL ShoPPInG Cart – a tooL to Vet LeadS and Generate More SaLeS

both at home and abroad, far too many carts remain at the

end of a transaction and never make it through the checkout

process. Currently, studies show that well over 50% of shopping

carts are abandoned globally, for a variety reasons. this

tendency internationally is usually the result of shipping or other

charges (such as duties or taxes) at time of delivery. delivery

time in another oft-cited reason for abandonment.

but, regardless of why, the fact remains that far too few sites view

abandonment as an opportunity, rather than a missed chance.

an abandoned shopping cart should be seen as a part of the

purchase process, if not a beginning to a new sales opportunity.

think of it: Customers that have made it to checkout have

approved of your site on every level along the way, and have

arrived with merchandise that they intend to purchase. this is one way customers show you items on their wishlist

– whether they actually build one or not (a capability that should always be provided). it’s also a perfect opportunity

to reach out and make a new pitch to a vetted lead, with reminders, incentives to come back and finish, coupons

– the list goes on.

ShIPPInG – the PInnaCLe oF the WhoLe GLobaL ChaLLenGe IS here. are yoU ready?

the simple fact that the majority of abandoned online shopping carts are a result of shipping charges makes

logistics probably the most important function of your international expansion, and could ultimately be the deal

breaker for the entire project.

One way to address this is to maintain localized consistency at checkout, as you have all the way up to it. weights

and measures, for instance, are key. Most countries operate on the metric system, which requires that you provide

costs that fit their view.

3. loGIstIcs – closInG the cIrcle WIth effectIve optIons

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and consider: the potential weight for an

entire order is no longer measured as the

sum of the weights of its parts. too often, it’s

the retailer that ends up eating packing and

shipping costs due to miscalculations, which

cut away most or all margin in logistics. to

address this shortcoming, many eCommerce

platforms have begun to offer 3d boxing

algorithms. these tools are designed to

calculate item fit by variables to fit in optimal

package sizes for shipment – including

multiple packages. this prevents off-kilter

estimates and out-of-range charges, and can

preserve strong margins.

Offering choices in carriers also helps, giving

customers options to receive their goods on

their schedule – provided they’re willing to

pay for it. this also shows willingness to accommodate them in different ways. Overnight, 2-day delivery, air mail,

land/sea – you’ll find customers for every possible option.

specials on shipping and handling can encourage completing purchases, and even act as a “final loss-leader,” as

well. Free shipping as an incentive – something amazon, for example, has found hugely successful as a continuing

marketing method – should be considered (though with the significant cost of overseas shipping, the possibility of

margin loss may prove simply too costly).

CUStoMer SUPPort – hoW do yoU handLe the Front LIne?

inevitably, eCommerce can come back like a boomerang – and sometimes painfully. while it is true that customer

satisfaction should be met at nearly any cost, it can be very costly to do this effectively on an international scale.

if you’ve invested properly in accurate, appropriate and effective i18n and l10n on your eCommerce site, your

customer should already feel comfortable with it, and with you. take advantage of that comfort and encourage focus

from that perspective, while you offer ways to satisfy, correct or resolve the customer’s need.

take full advantage of options the internet offers in terms of call center support, too. the phenomenon of live, real

time customer chat is gaining popularity at a fantastic rate – which stems from customers’ adoption of the technology.

Quick, expert answers or instant service estimates can be powerful closers.

as yet, there really is no perfect solution to international returns, save expensive refund of cost plus additional

shipping and handling in exchange for the returned item. but remember that clear and easy policies to handle returns

are extremely important (remember, in the past, 36% of surveyed customers in China named it one of their most

important eCommerce considerations). what cannot be stressed enough is the importance of getting the situation

resolved – failure will cause more damage than a mere loss of revenue in the long run.

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eCommerce is built for global interaction, and will open your online store widely across the globe. sure, it

will require a little extra attention, but the payoff is clear. according to eMarketer, in 2014, for the first time,

consumers in asia-pacific will spend more on ecommerce purchases than those in north america, making it

the largest regional ecommerce market in the world. this year alone, b2C ecommerce sales are expected to

reach $525.2 billion in the region, compared with $482.6 billion in north america. it’s worth it to get it right. with

appropriate research and dedication in i18n, the next step of l10n can be achieved almost as an afterthought –

and drive international success.

a platform worth investing in will encompass all of these best practices and abilities as a matter of course.if an

international platform you’re considering doesn’t at least integrate multiple currencies, flexible shipping options,

Vat calculation, and global language options, you owe it to your business to keep looking.

4. ecoMMerce Is Meant to be Global

From organizational perspective, internationalization is more than a “business term,” it is a way of thinking related to the opportunities created from the digital age. Once achieved, your business will bypass traditional barriers.

4 Key aCtIon StePS:

■ Make broad Strokes First: Currency and language translation backed by a secure checkout

process, are the pillars to a successful eCommerce experience.

■ Localization – Make the Store Fit the neighborhood: Creating a contextualized eCommerce

experience requires personalization.

■ Logistics – Closing the Circle With effective options: Giving your customers options at the

checkout point will help your business avoid the dreaded abandoned shopping carts.

■ eCommerce Is Meant to be Global: the world is your marketplace.

these capabilities may seem daunting, but commit to the process by understanding that anything worth doing takes time. so long as you select the right solution, eCommerce knows no boundaries. without question, this is the most important component of going global with your eCommerce initiatives. with the right platform, you can effortlessly market your product catalog to a family in tokyo just as easily as one in texas.

fInal thouGhts …

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Partner WIth a ChaMPIon oF eCoMMerCe:

if your organization is in the process of selecting a global eCommerce solution, you’re undoubtedly sifting through copious amounts of research and analyst reports about various products. if your business is considering a .net-based solution and saas licensing options, iapps commerce should be on your shortlist.

in its 2013 Vendor landscape report, Info-tech research Group recognized the iapps platform as a “champion”, describing it as an “excellent product for retailer websites needing integrated eCommerce” and touting its ability to equip retailers with easy-to-use tools that optimize digital assets and capitalize on growing trends in digital engagement.

award Winning iapps product platform

iapps commerce is a part of bridgeline’s iapps® platform, a digital Marketing solution that deeply integrates Web content Management, ecommerce, eMarketing, social Media management, and web analytics to help marketers deliver online experiences that attract, engage and convert their customers across all digital channels. bridgeline provides end-to-end digital engagement solutions and boasts an award-winning team of interactive services professionals across our 11 offices worldwide.

learn More about brIdGelIne dIGItal’s InteGrated Iapps platforM

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