lwinds well and truly turned into headwinds. For business owners, the show must go on in 2024. We still have the same bills to pay, and in tough macroeconomic conditions, we’re forced to look at other avenues to grow, revive or survive. Thus,international expansion enters the chat. Aussies want to explore the world; we’re great travellers, and great exporters. With a population of under 30 million, it’s natural for ambitious business owners to want to broaden their horizons, particularly to get a slice of that US pie. However, there are a few considerations for an e-commerce business that wants to go global. Here are some timely reminders for those looking to expand internationally in 2024. 1. Wait for some organic traction – don’t rush it Rushing into global markets without a solid plan? That’s a recipe for burning cash faster than I burnt the Christmas roast. If you’re not hitting $5,000-10,000 a month in an overseas market with no media spending, slow down. Good news travels, and organic traction is your golden ticket. Let your brand buzzwithout pushing too hard, and success will follow. In other words, follow the customers – always expandinto your strengths. If you’re doing less than $5,000 a month in the US, suddenly increasing your ad spend on Facebook is not going to work. 2. Address local currencies and payments If you want to sell internationally, get cosy with foreign currencies. If you’re on Shopify, it’s as easy as flipping a switch to Shopify Markets. Not on Shopify? No worries, you can piggyback off service providers like Reach, which white-label banking services to process your transactions just like a local entity. Airwallex is also a great option for taking payments in other currencies without needing to set up bankaccounts offshore. 3. Calculate your international pricing correctly Don’t let your pricing get lost in translation. Changing the currency symbol often won’t cut it. Consider converting prices to the new currency, rounding up for taxes and duties. If Australia has a 10 per cent sales tax but the UK has a 20 per cent tax, consider converting from AUD to GBP, then rounding up to allow for the extra tax, this is probably the fairest approach. Confused customers are not happy customers. The other consideration is where your product or brand sits in the market – if the above method gives you uncompetitive pricing, you may need to take a little haircut on the margin to gain traction in your new market. 4. Fast, affordable shipping is the real MVP Remember, you’re competing with local sellers now, not your Aussie ones. If you want to compete, you’llneed speedy, reliable, economical shipping options. It doesn’t have to be free, but it has to be competitive. The Aggregate Co is your go-to for sorting out international shipping headaches. 5. Easy returns to keep ‘em coming back Sending out orders like a boss is cool, but don’t forget the returns party. Make it easy for your customers. Use local returns hubs or 3PL wizards like Loop Returns for processing. No one wants to ship stuff across the country or wait forever for a return to get processed. Poor returns experiences will kill your repeat purchase rate. 6. Tackling taxes and duties with finesse Taxes and duties –the not-so-fun part. Just about nobody knows the rules. Planning to go to the US? Enjoy the state-based sales tax! Shopify Markets will give you a basic solution here, allowing you to collect tax, and also providing handy notifications and reminders when you need to start commencingpaying tax in certain US states. Collecting tax is easy – remitting tax is hard. Consider using Avalara tosimplify the end-to-end process here. 7. Target your native languages first It’s much easier to sell in countries where your customers speak the same language you do. Tackling a new country that requires translation is a tough task, not only do you need to translate your website, you also need to consider the appeal of your advertising and social media in countries where people don’t speak the same language as you. Going global is hard enough. Focus on where you can chat comfortably with your customers. It’s not unusual to see terrible conversion rates in new markets – language issues can make that worse. I see many brands rush into selling overseas – building new websites with new domains targeting each market without actually knowing why. But beware. Forced international expansion can lose you money for a sustained period of time. If you’re pushing into a new market and you don’t have existing organic traction, then you’re likely to experience a few problems. It’s important to understand that it is easier than it once was, but still not necessarily easy. Final thoughts: if you’re an Aussie business hitting $2-3 million a year in your home market, you might still have untapped potential at home. Focus on breaking the ceiling locally before diving into a new pool. I’m a big believer in strengthening your weaknesses in business and expanding into your strengths. In other words, if your domestic market is strongest, exploit that to its full potential before complicating matters. This story first appeared in the February 2024 issue of Inside Retail Australia magazine.