Lisa started by pointing out that ecommerce businesses are mistaken to think that they can only ship locally or domestically. She said that the world is open to opportunities.

According to DHL, one trillion U.S. dollars were spent on cross-border purchases. Lisa added that it is three times the figure for 2015. She continued saying that consumer behaviour is changing. Consumers now expect everything ‘on demand’. They want to buy products at any time and any place. As a result, there was a 25% YoY growth in emerging ecommerce markets.

Lisa presented more numbers supporting the growth of global ecommerce. The biggest country using ecommerce was China, raising USD 672 billion in sales. The second-largest country was America, raising USD 450 billion in sales.

Lisa went into further detail about the ecommerce situation in America.

• Over 200 million online shoppers
• 8 in 10 consumers shop online once a month
• 15% YoY ecommerce growth
• 13% of total retail sales are from ecommerce
• $800 duty-free threshold
• Products in-demand – men’s fashion, beauty, women’s fashion, games & toys, auto parts, vaporisers and sporting goods

Many Australian businesses prefer to first expand to America because of the de minimis, which is eight hundred dollars in USD. New Zealand is in a similar situation. Plus, the shipping costs are a little bit less.

Lisa presented more about the online preferences in America.

• Trend savvy, mature shoppers
• 85% of online shoppers review social media before purchases
  • Preferred social media platforms are Facebook, Twitter, YouTube and Instagram
• 23% of online purchases are made on mobile devices
  • Preferred ecommerce platforms are Amazon, eBay and Etsy

Next, we looked at the ecommerce situation in China.

• Over 589 million online shoppers
• Australia is China’s 7th most popular import market
• A growing middle class of 430 million people
• Concerned about health and quality
• Products in demand – pharmaceuticals, women’s fashion, health, books, men’s fashion, fashion accessories
• 90% online sales via marketplaces
  • Preferred marketplaces are Tmall and 360buy (JD)
• 27% of online shoppers use Alipay
• Increasingly use social media to make purchase decisions
  • Popular social media are WeChat, QQ and Weibo

Lisa went back to the topic of global opportunity for ecommerce businesses. She said that consumers are getting more familiar with buying products cross-border. Plus, cross-border ecommerce shows half the returns rate compared to domestic sales. This is because the consumers know that it is too difficult to send something back overseas. Therefore, they will be more careful in making decisions. According to Lisa, any business can benefit from this opportunity.

Cross-border ecommerce is growing at twice the rate of domestic ecommerce. Lisa shared an example of one of her clients. He was sending out three hundred to four hundred shipments a month domestically. He decided to reach out internationally to the U.S. and New Zealand one day. In his first month, he achieved five hundred orders!

Another benefit of international ecommerce is that you will get a higher shopping cart value. Customers who choose express or international shipping options have shown a higher value by up to 70%.

To get your international ecommerce right, you will need to know your customers’ habits. First, recent consumers expect speed, flexible delivery options and easy returns. Next, people are increasingly purchasing from their mobile devices. Third, the speed of delivery can be valued more significant than cost. Fourth, 68% of millennials would choose an online store solely because of its delivery options. Lastly, millennials are more open to shopping internationally.

Taking these facts into record, Lisa shared some ways to get involved in the international marketplace. The key is to make your customer’s experience better to increase the share of returning visitors.

• Offer international shipping (it doesn’t cost you anything to offer it)
• Offer an express delivery option (people are prepared to pay extra to get what they want to be delivered)
• Offer flexible delivery options
• Provide full tracking services
• Offer a simple returns policy

Here are some numbers to show how crucial delivery options can be for creating a competitive advantage.

• 91% of consumers look for the ‘Available Delivery Options‘ before reaching check out
• 74% of customers found ‘Convenience of Delivery‘ the most important
• 46% of cart abandonment is caused by limited shipping options
• Customers are twice as likely to re-purchase after a positive delivery experience

Now you know what to provide. Let’s start planning. Lisa said that she always says to her clients, “Charge the right costs.” As an ecommerce business, you have to ensure you can cover the shipping costs. You can integrate with real-time shipping carrier rates to plan your pricing table.

Here are some pricing strategies you can take to differentiate your shipping services.

• Flat rate shipping (E.g. $15 flat rate to the U.S.)
• Free shipping (E.g. Free shipping on all orders over $75)
• Subscription services (E.g. Product box delivered at 35$ per month)

Once you have decided on the charges, make your service offerings and charges transparent for your customers. It will help with your conversion rate.

As a part of transparency, Lisa mentioned order status. According to her, 49% of consumers expect an online retailer to communicate the status of their new order. It is about providing visibility and control.

Finally, Lisa shared a list to check your ecommerce website’s health.

• Do you sell internationally?
• Do you offer an express delivery option?
• Do you offer a ‘duties and taxes paid’ option? (Make use of plug-ins and properly declare your product values.)
• Is your website available in multiple languages?
• Do you apply currency conversion?
• Do you offer localised payment options?