Is your market’s growth reaching its saturation point? International expansion could be the key. Outsourced fulfilment can eliminate many of the challenges that come with selling overseas.
Breaking into new territories is challenging. Our outsourced fulfilment solutions can help you deal with some of these challenges, saving you time and helping you focus on other important tasks.
From efficient cross-border shipping to strategic local stocking, our experts can give you the best advice to succeed internationally.
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When expanding internationally, the choice between local fulfilment, international shipping, or a combination of both significantly impacts logistics, costs, and customer experience.
Below are the advantages and disadvantages of each option:
Local fulfilment involves storing your stock in the country where the order is placed. For international expansion, this is the only way to offer the same conditions (cost and time) as local competitors.
⇒ Reduced delivery times
⇒ Potentially lower shipping costs
⇒ Reduced carbon footprint for shipping
⇒ Better inventory control (e.g., quicker return processing)
⇒ Balancing stock levels across different locations
⇒ Requires precise forecasting to avoid stock transfer costs
International shipping involves fulfilling orders from a central location and shipping them to customers globally.
⇒ Easy access to a global customer base
⇒ Simplified inventory management
⇒ Longer delivery times and higher shipping costs
⇒ Customs and import duties
⇒ Increased risk of damage or loss during shipping
⇒ Complex return management
A hybrid approach combines local fulfilment centres in key markets with international shipping to other regions.
⇒ Access to a global market: use local fulfilment centres as hubs to reach more markets via international shipping
⇒ Better delivery times, costs, and customer satisfaction
⇒ Managing multiple fulfilment centres and shipping channels
⇒ Balancing stock levels across different locations
Talk to our team to explore all the options to grow your business internationally.
Get ready to reach a global audience.
We’ve got everything in place to help you reach more customers in more places. Check out why to fulfil from our fulfilment centre network.
Expanding your business internationally requires careful planning and strategic decision-making. Below are some essential points to consider.
The first step in international expansion is identifying the right markets. Consider the following:
Market Research: Identify markets where your products or services are likely to succeed. Factors such as market size, growth potential, competitive landscape, cultural differences, and consumer behavior can provide valuable data.
Current Sales: A more pragmatic approach could be to identify regions where you already receive a significant number of orders or have a growing customer base.
Stability: Ensure that the markets you’re considering are stable politically and economically.
Each country has its own set of laws and regulations that can impact your business.
Legal Entity: Determine whether you need to establish a legal entity in the target country. This may be necessary for tax purposes, compliance, and gaining local credibility.
Economic Blocs: If the country is part of an economic bloc (such as the European Union), understand how this affects trade regulations, tariffs, and business operations.
Special Categories: If your business deals with regulated products (e.g., alcohol, cosmetics, batteries), check the specific requirements or restrictions in the target market.
Building a local presence? Not necessarily – here’s why:
Outsourcing: If you’re testing a new market, outsourcing can be a cost-effective solution. This allows you to minimize fixed costs while entering the market.
Hiring Local Staff: If you decide to establish a local team, be mindful of local laws, which can vary significantly from one country to another. Understand employment contracts, working hours, benefits, and termination rules, or find a partner that manages this for you.
Some countries have specific regulations governing customer support, such as mandated response times or the need for a local language support team. Ensure you are aware of and compliant with these regulations.
Returns and exchanges can become a complex issue in international markets due to shipping/return costs and times.
English is the global language, but if you want to grow in a specific market, using the local language has a significant impact.
Even in English-speaking countries like the UK, USA, and Australia, subtle differences must be considered. For example, we market our services using “fulfilment” in the UK and “fulfillment” in the US.
You need to adapt to the local currency and payment preferences.
Currency Conversion: Determine how you will handle pricing in local currencies. Consider fluctuations in exchange rates, which can affect profit margins.
Payment Methods: Research the preferred payment methods in your target market. Offering multiple payment options can enhance customer convenience and increase sales. In some countries, paying on delivery is also an important option.
Payment Gateways: Choose a payment gateway that supports local payment methods and complies with local regulations. Some countries have a high fraud rate, so fraud protection should be a high priority.
Tax Compliance: Investigate the local tax laws. Ensure that your business complies with all local tax obligations to avoid penalties.
Double Taxation Treaties: If your home country has a double taxation treaty with the target market, you may be able to avoid paying taxes twice on the same income.
Accounting: It might be worth hiring a local accountant or partner. If you are expanding into more than one country, consider working with a global firm.
Trademarks and Patents: Safeguard your intellectual property by registering your trademarks, patents, and copyrights in the target market. It’s important to understand local requirements and take proactive steps.
Domain Names: Secure local domain names to protect your online presence in the new market, even if you’re not planning to use them.
