When a business wants to go into the international marketplace, it must have logistics in place to be able to cater to these customers and ship overseas. Large brands such as Gap, Overstock, Nordstrom, and Cabelas have jumped on the bandwagon of using a vendor called FiftyOne to optimize their international sales. Depending on the vendor used, there are several advantages of using this service for global expansion.
Why Use a Shipping Company for International Expansion
Vendors such as FiftyOne Global Ecommerce and Bongo International allow businesses to grow without having to be experts in international website development and logistics. These two vendors allow U.S. retailers the opportunity to signal out customers from different countries to provide them with a localized experience, and also the ability to ship orders without worrying about the logistics.
It can be very costly for businesses to set up and maintain geo-targeting for customers to reach different pages, images, languages, and pricing. By having a vendor specialized in this area take over this aspect of their websites they can focus on getting more international customers to their site instead of worrying as much about converting them once they are there.
Increase International Website Visitor Conversions
FiftyOne sets up the business’s website so that it detects automatically where the customer is from. The business can then opt to display pricing in the customer’s local currency, display their flag, or change the language.
They even offer a service called the “Welcome Matt” that appears when a consumer lands on the website. It is a lightbox that includes branding, content in the local language, country-specific tax terminology, assurances regarding pricing and costs. They announced that customers that opt for the Welcome Mat experience visitor conversion rates of 200% to 300% higher than those that do not.
Localizing is an effective way of gaining customers because it instills a sense of confidence in the e-commerce business. International visitors see that the business knows their country, has sold there before, and understand their needs. When international customers land on a U.S. website they should be notified immediately that the website caters to them before they bounce, since it is common for U.S. merchants not to ship overseas.
Bongo offers a different strategy all-together by providing two different solutions for businesses, or customers can go to them directly before purchasing from a website. One solution for businesses allows customers to sign up with them at the time of check-out and they provide the customer with a U.S. address to enter as their shipping address. This shipping address is to one of Bongo’s shipping centers.
When the shipment is received from the retailer, Bongo goes ahead and ships it overseas. It uses consolidation to reduce costs for its customers by packing multiple items into one shipment to be sent overseas. The more that is sent, the lower the cost per pound.
Offer International Pricing in Multiple Currencies
International customers do not know the currency exchange rates by heart between the US and their country. In addition, currencies are constantly fluctuating in value and they may be charged extra for purchasing abroad. Customers are notified of the total cost with import duties and local taxes included. This way they will not experience any additional fees or pay cash on delivery.
This enhances the overall customer experience by giving them confidence in your business. There is nothing like receiving a package internationally then a month later receiving a bill from FedEx for additional charges not billed by the vendor for import duties.
Simplify Logistics for International Orders
When an international visitor lands on the website, immediately it prepares the catalog so that items that are restricted in certain countries do not appear. All orders are shipped to one of the vendor’s fulfillment hubs by the business’s regular shipping carriers. After it is received at the hub, the vendor takes over the landed cost calculations, international trade compliance, customs clearance, and final delivery. cek ongkir all ekspedisi
Customers receive a branded e-mail with their order number and link to be able to track the progress of their order. This reduces customer service calls and increases customer satisfaction in the company. FiftyOne allows businesses to embed the tracking system into their own website so that their customer service representatives can see the progress of orders to help with any customer support needs.
A significant disadvantage is that this results in customers having to wait a little more to receive their orders. For instance, the website of Gap shows that delivery estimates for international orders range from 9 to 21 business days. However, businesses that are not efficiently prepared to ship overseas or does not have a fulfillment center that is strong in this area – then having a vendor take over this aspect may reduce mistakes and errors, resulting in faster international deliveries.
Strengthening an International Expansion Strategy
Using an outside vendor can result in increasing sales conversions, customer satisfaction, and customer retention. The business also does not have to worry about handing international orders and worry about calculations, trade compliance, and customs clearance. The biggest downside is that it may take longer for customers to receive their orders. If the business has competitors in the local market that can deliver the product within days then the business will be at a distinct disadvantage.
Look at all possible vendors, as FiftyOne Global Ecommerce and Bongo International are not the only companies out there. Compare the additional cost with the cost already being spent on international orders to see if there is a big difference. But even if there is a difference, it could be significantly offset by the increase of sales resulting from their additional services, such as with the Welcome Mat.