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The world has become increasingly interconnected, and for e-commerce businesses, this means a world of opportunity. In 2025, more and more companies are taking the plunge and expanding their reach internationally. But why?
Challenges
While the potential rewards of international expansion are significant, there are also challenges to overcome. These include:
Cultural and linguistic differences
Companies need to adapt their marketing and customer service strategies to resonate with different cultures and languages. Having team members who are from target countries and understand cultural sensitivity is truly invaluable. So no matter if you are a clothing brand like Hawaa, which sells abayas and hijabs, has recently expanded into Europe, they have members of their team that are equipped with cultural and linguistic differences.
Logistics and shipping
International shipping can be complex and expensive, requiring companies to navigate customs regulations and manage longer delivery times.
Payment processing
Offering a variety of payment options that are popular in different countries is crucial for maximising conversion rates.
Legal and regulatory compliance
Companies need to comply with the laws and regulations of each country they operate in, which can vary significantly.
Overcoming Challenges
Law & Regulations
Investigate the legal requirements and regulations in your chosen market. Utilize official resources like Country Commercial Guides. Seek advice from professionals who have expertise in your target market. Lawyers, consultants, and trade associations knowledgeable about the specific regulations in that country and industry can assist you in ensuring compliance as you begin your operations overseas.
Logistics
Think about utilising dropshipping, global fulfilment centres, third-party logistics, and various shipping methods to enhance delivery speed. A common strategy for offering free shipping involves incorporating the estimated shipping costs along with a buffer into the product price while ensuring the total remains attractive to customers. Another method is to establish a minimum purchase threshold for free shipping. Notably, 58% of consumers will increase their cart size to qualify for free shipping.
Customs & Duties
Investigate the customs regulations of your destination country in advance. Use reliable sources like the International Trade Administration. Seek advice from local professionals. Choose a logistics provider that provides pre-clearance and duty payment options. Familiarize yourself with the different customs duty alternatives: Delivered Duty Paid (DDP) and Delivered Duty Unpaid (DDU). Use resources such as Simply Duty to estimate duties and taxes.
Payment and Processing
Enable customers to transact in their local currency by showcasing currencies relevant to their location. You can utilize a payment processor that supports multi-currency transactions to manage conversions without impacting your profits.
Here’s the process: Customers make payments in their native currency, and the payment provider transfers the money into your account in that same currency. You then have the option to determine when and how to convert these funds.
Provide customers with the option to pay in their local currency and clearly communicate any possible fees in advance. Otherwise, unexpected charges may deter customers.
Adopt strategies to minimise exchange rates, such as hedging—employing financial tools like forward contracts, futures contracts, or swaps to lock in advantageous exchange rates or safeguard against unfavourable shifts in rates.
Strategies for Success
To successfully navigate these challenges, e-commerce companies need to carefully plan their international expansion strategy. This includes:
Market research: Thoroughly researching target markets to understand customer preferences, competition, and the regulatory environment. Utilise online resources like Google Trends to assess the search frequency, patterns, and traffic for products or services across various regions.
Leverage social media channels, particularly those that are popular in your target nations, to observe discussions, feedback, and sentiment from both potential customers and competitors.
Localisation: Adapting websites, marketing materials, and customer service to the local language and culture. Platforms like Shopify are perfect as they are easily adaptable, easy to use and track accurately.
Strategic partnerships: Collaborating with local partners who have expertise in logistics, marketing, and customer service. It could be worth beginning with drop shipping to prevent logistic issues; alternatively, it provides a large amount of temporary support.
Phased approach: Starting with a smaller number of markets and gradually expanding as the company gains experience and knowledge.
The Future of Global E-commerce
As technology continues to advance and barriers to international trade decrease, the trend of e-commerce companies going global is only expected to accelerate in the coming years. By embracing the opportunities and overcoming the challenges, businesses can unlock significant growth potential and establish themselves as global brands.
A Couple Of Trends To Watch Out In 2025
Global Inflation
One significant challenge faced by e-commerce companies has been the impact of inflation.
Inflation ranked as the primary concern in 2022, and while the IMF anticipates a decline in 2023 and 2024, some believe the global economy will still endure sluggish growth and considerable challenges.
In light of this situation, it is important to carefully evaluate your targeted sales regions.
Examine the inflation rates of your target countries, both currently and in the future. Assess demand forecasts to determine if your pricing strategies will continue to attract customers or generate profits.
Mobile Commerce
Mobile commerce (m-commerce), which refers to online transactions conducted through mobile devices like smartphones and tablets, is projected to reach a value of $3.35 trillion by 2028 and is expected to flourish.
Now is the ideal time to ensure that your websites are mobile-responsive, load quickly and securely on mobile devices, implement mobile-orientated marketing strategies, and utilise analytics to enhance the mobile user experience and boost conversions.
Livestreaming
Also referred to as live commerce, this trend originated in the Asia Pacific region but is gaining traction in Western countries. Predictions suggest that the value of livestream e-commerce in the US will hit $55 billion by 2026.
Livestreaming brings a personal and social dimension to online shopping for digital consumers. They can observe products in action and interact with the host in real time. For sellers, it offers an opportunity to engage personally, unleash creativity, and foster strong customer connections.
For those aiming to capitalise on this trend, consider these essential tips: choose a suitable platform with a substantial audience, organise your content and schedule, promote your streams across various channels, interact with viewers, and assess performance using pertinent metrics.
Social Commerce
Worldwide sales from social commerce are projected to reach 2.9 trillion US dollars by 2026.
Social commerce involves the direct buying or selling of products or services through social media platforms like Facebook, Instagram, TikTok, and Pinterest, making it a potentially more accessible, cost-effective, and viral method of online selling.
To succeed in social commerce, it’s important to maintain consistent branding, produce engaging content, activate direct shopping options, partner with influencers, and effectively measure return on investment (ROI).
