Rapid growth in ecommerce sales and digital adoption across the globe opens up a world of opportunity for businesses looking to expand. The numbers alone make a compelling case: in 2021, ecommerce sales are expected to make up nearly 20% of total retail volume.1 By 2023, global ecommerce is projected to hit $6.5 trillion2 with the majority of retail ecommerce growth occurring in Latin America, Central and Eastern Europe, and the Middle East and Africa.3
And it’s easy to see how this shift is occurring in real time—new ecommerce customers are logging on every day. Take Europe, for example. In 2020, the digital adoption rate jumped from 81% to 94%.4 As people confronted new challenges brought on by the coronavirus pandemic, similar acceleration occurred worldwide.
The projected growth of ecommerce markets makes expansion more attractive than ever, with opportunities for businesses to tap into a new customer base, establish new partnerships, increase revenue, and become a global brand.
So, considering the tremendous opportunities for growth, why don’t more businesses go global? Companies frequently cite the following barriers to branching out:
For many businesses, the task of addressing all of these issues is daunting and cost-prohibitive. And the reality is that going global is a major undertaking. Fortunately, you don’t have to go it alone. With the right partner and smart planning, you can successfully navigate these challenges.
There’s a lot to consider before you venture across borders. Following a basic strategy can help you take a careful, thorough approach. We’ve partnered with Stripe, a global leader in payments infrastructure, because they enable businesses to accept payments in 195 currencies5 and dozens of local payment methods when using Stripe on MYFUNDBOX Subscription Billing. Stripe recommends a three-step framework for going global that helps businesses think through their options and take smart steps toward international growth.
As with any big adventure, you’ll want to start with a map. It might seem simplest to choose your closest neighboring countries or the most developed regions where ecommerce is already strong. But taking a broader sweep and evaluating markets around the world can help you identify your path to expansion.
Consider not only where the market stands today but where it’s headed. An estimated 1.8 billion people are expected to enter “the consuming class” by 2025, spending an additional $30 trillion.[6 And five out of six new internet users are outside Western Europe and North America7—so taking a careful look far and wide may lead you to greater growth potential.
Let’s look at some regions you might want to consider and the key numbers that will factor into your decision.
Top market opportunities in North America in 20208
Top countries by market opportunity in Europe in 20208
Top countries by market opportunity in Asia-Pacific in 20208
Top countries by market opportunity in Latin America in 20208
As you’re taking stock of different markets, you’ll want to also compare and consider the following:
After a thorough evaluation, you’ll be ready to make a strategic choice and start selling in a new market.
Once you’ve chosen your new cross-border market, it’s time to launch. When you start doing business in a new country, it’s critical to ensure not only that you’ve chosen the right market, but that your company is ready for cross-border transactions. Here’s how to set yourself up for success:
Some other crucial areas to pay attention to:
Each of these issues can be highly complex for a business to navigate in a new region, but remember, you don’t have to manage it all on your own. When you partner with MYFUNDBOX and Stripe, we manage these challenging and ever-changing matters every day, so you don’t have to worry.
After you’ve opened for business internationally, it’s time to refine your operations for optimal performance. Now you can focus on maximizing your revenue and minimizing costs.
This option requires a big investment, but as your business expands, it’s something to think about. You can do a lot virtually, but having a physical location in the market you’re serving can help you further boost revenue and add local expertise to your team.
What’s the advantage of opening an on-the-ground local shop? First, there’s significant cost savings on transactions. Domestic card transactions have about 10% better authorization rates than cross-border transactions.11 And domestic transactions eliminate cross-border fees, which can save you more than 2% on a $100 transaction.
Another advantage is that by hiring regionally, you tap into local knowledge, experience, and expertise, which can lead to better products and more effective marketing. Ultimately, this can help your business establish deeper connections with customers and drive brand loyalty.
Fraud is a growing global issue with quickly shifting patterns that vary from country to country. But with MYFUNDBOX Subscription Billing and Stripe on your side, that’s one less thing to worry about. Even if a card is new to your business, there’s an 89% chance it’s been seen before on the global Stripe network. By learning from millions of businesses processing hundreds of billions in payments in 195 countries each year, MYFUNDBOX Subscription Billing and Stripe help you fight fraud in a way that works for your unique business.
Taking your business global is exciting and introduces immense opportunities for growth. But the challenges of venturing beyond your own borders aren’t insignificant. In fact, they can be highly complex and difficult to untangle.
The good news: MYFUNDBOX Subscription Billing and Stripe together are a great fit for ambitious businesses looking to expand. With the right partners in your corner, you can tackle those big next steps with confidence. To learn more, chat live with our support team here.
2. See note 1 above.
3.: McKinsey, The Decade Ahead
4.: McKinsey, Europe’s digital migration
9. FuturePay, The Big Ticket Report