Is Your Business Ready For International Expansion?

“Sell International – Ship Locally”

Look Abroad For Growth

•  U.S. brick/mortar retail sales are down; e-commerce up •  U.S. Dollar fluctuations make International look attractive •  Key markets to look at are Canada and Europe/UK

–  Large markets and established marketplaces –  Good transportation modalities –  Growing online and e-commerce penetration

•  Key questions –  How to sell internationally? –  Risks and rewards of entering these markets –  What to sell in these markets? –  How to build a “business engine” in these markets?

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Where to Sell? •  Follow Internet usage. •  What nations are wired. Source: ComScore “Canada

Opportunities” 4/09

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Retail Metrics for Retail/E-commerce

•  Retail around the world (ComScore World Metrics 2009)

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Internet Usage World-Wide •  Consumer Internet usage world-wide •  Source: ComScore “Canada Opportunities” 4/09

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What to sell overseas •  Comscore US Market Q1 ’09 •  E-commerce by market •  Parallels global buying patterns

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How to Attract Buyers •  Canada, U.K. and key European markets have established

marketplaces •  Canada and U.K. populations heavily rely on Search

(Source: ComScore “Canada Opportunities” 4/09) •  Take your U.S. best practices on search and apply to local

markets

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Expand Overseas •  Two models for expansion

– Direct shipping – Move products in bulk to local market and “sell

locally” •  Set goals and roadmap your expansion •  Product selection •  Prepare In advance •  “Sell Internationally – Deliver Locally” •  Testing the market

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Direct Shipping from U.S. is Complex

  Good for merchants with DEEP catalogs that can’t focus on best sellers

  Expensive shipping & returns nightmares   Long time delays for buyers and CDT issues on buyer   You will not “look local” to the buyer   Save with: Consolidators, zone skipping

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Fortune 500 model •  Goods stored locally •  Save cost and time on import •  Competitive local shipping options •  Fast delivery times •  Less customs, duties and tax implications on buyer •  Local returns handling

Set Goals •  Past sales review

–  What have you sold internationally? –  What buyers did you turn away? –  Focus your international product catalog

•  Pick one market and focus •  Focus & local research

–  What marketplaces will drive buyers to your website or listings?

–  Any local keywords or “phrases” that describe your products?

–  Pay-Per-Click prices for regional keywords –  Directories and marketplaces to seed your keywords –  Local comparison shopping sites

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Focus on Select Products

•  Questions to ask yourself – How complex is your product catalog? – What are your top sellers? – Will your top sellers do well overseas?

•  Start small and focused –  Identify the top 5-10 products in your catalog – Reduce your inventory requirement – Higher value products that are hard to get

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Get Products Into Market •  Move a small amount of product into the local market •  Move products in bulk through customs

–  Trusted “National” customer broker –  Customs, duties and tax –  Know your “fully landed” product cost

•  Send to your outsourced order fulfillment provider in the local market

•  Preparation –  Customers, duties and tax –  Business registration (aka “Tax ID”) –  Tax advisor if necessary

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Power of Local Fulfillment •  Focus on growth •  Happy customers

–  Known shipping rates –  No surprise Duties –  Faster delivery –  Local Returns

•  Scale without hassles •  No infrastructure investment

–  Pay for what you use –  Keep cash in your pocket –  Scale or retreat sales as needed

•  Build a machine and repeat in new marketplaces

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Small Business Retail Revolution

•  1996 Home business re-invented

•  2000 Instant online store introduced

•  2002 Online payments start getting easier

•  2003 Finding new customers made easy

•  2005 China trade barriers reduced –  Imports by SMBs surge:

5000 containers/day into LA port –  Storage & shipping is still do-it-yourself!

•  2008 Storage and shipping solved

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Elegant Process Simplifies the Complex

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Fortune 500 model

•  Immense cost savings

•  Delight buyers •  Local

–  Carriers –  Returns –  Storage

•  An engine for GROWTH

Resources •  Full write-up of “Go International – Ship Local”

–  http://www.practicalecommerce.com/blogs –  http://www.practicalecommerce.com/blogs/post/498-Sell-

International-Deliver-Local-Part-1 –  http://www.practicalecommerce.com/blogs/post/498-Sell-

International-Deliver-Local-Part-2 •  Shipwire would like to advise your expansion

–  http://www.shipwire.com –  info@shipwire.com –  888-SHIPWIRE

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