New Zealand
#SmallBusinessAdvice

Start an E-Commerce Business with International Shipping and More

4 Mins Read
Share
facebook sharing button
twitter sharing button
linkedin sharing button
Smart Share Buttons Icon Share

Since the global pandemic, e-commerce activities have been on the uptick. Around the world, e-commerce sales grew an impressive 165% in the past five years alone. The same rising standard can be seen in New Zealand, with the Black Friday weekend netting an increase of 30% online spend in 2020 compared to the same period in 2019.

With strong mobile and social media penetration and a vastly improving digital infrastructure, e-commerce presents a wealth of opportunities for retail businesses. Based on insights from Statista, the New Zealand e-commerce economy is expected to reach US$6.9 billion in revenue in 2022, and projected to reach US$11.44 billion by 2025. 

Additionally, with the share of online shoppers in New Zealand expected to surge to 83% by 2026 according to Statista, global e-commerce sales will likely follow a similar trajectory. Therefore, it comes as no surprise that more companies are looking to expand their businesses internationally.

However, launching an e-commerce or global business requires a lot of planning and preparation. From marketing to international shipping, here are some ways to help you kickstart your e-commerce journey.

1. Develop your product

Businesses need to have a product or products to penetrate the market. There are many factors to consider – from market demand to competitors to pricing structures. E-commerce markets may have lower barriers of entry, but there are also many other companies selling the same thing and going after the same group of consumers.

Start with in-depth market research by reaching on potential target audiences, existing brands and even international shipping regulations. For example, the import of chewing gum is completely banned in Singapore. Laws like this will affect the types of products your company can offer. Despite the impressive rate of e-commerce growth around the world, doing your due diligence will help you stand out from the crowd and develop a product that has a footing in the market.

2. Know your customers

The next step before you start a business in New Zealand targeting an overseas market is to define who your consumers are and what they need. This can be done through market research or by first selling to a sample group of customers. By doing so, you will be able to collect feedback or revise your business strategy to match the consumer demand.

Subscribe to the Discover newsletter

Also, have a think about the consumers’ spending patterns and which countries they usually buy from. These factors will largely influence the success of your e-commerce business. Look into value-added services such as accepting a range of payment methods to provide greater convenience and flexibility for your customers.

3. Plan your  packaging

First impression sells, and this is why many companies focus on designing appealing packaging. Great packaging can lead to better sales, so one of the ways to entice a new international crowd is by creating an impactful one.

Apart from just the product packaging, the way the orders are delivered play a big role, too. As cross-border e-commerce inevitably includes overseas shipping, a reliable partner like DHL Express can ensure that your orders are shipped properly. This is especially crucial for e-commerce businesses which ship fragile or sensitive goods such as cosmetics and liquids.

4. Devise your marketing strategy

Another important point to consider is where the distribution and promotion of the brand or product. Some businesses sell their goods on their website, while others opt for e-commerce retailers. In many cases, small enterprises set up their e-commerce business on platforms like Amazon, eBay and Etsy.

Since international e-commerce is usually more complex than domestic sales, focus on overcoming common cross-border challenges. For a start, ensure that your order-to-delivery process is streamlined and can deliver orders to customers efficiently. You can also look into creating an omnichannel experience for your customers, which allows them to browse and shop from different platforms and marketplaces.

5. Reduce your logistics costs

Finally, international shipping rates and customs procedures can impact the performance of e-commerce businesses. For example, though economy shipping can be the cheapest way to ship a package, it usually takes longer and may not meet your customers’ increasing expectations for a fast delivery.  Problems such as failed deliveries or damaged packaging can all push up the overall logistics cost, and it can be challenging to manage such issues from another country.

Such unnecessary fees can be prevented by partnering with a world-class logistics service provider like DHL Express, which offers seamless international shipping services for businesses and consumers alike.

Start an international e-commerce business today

The international e-commerce scene is slated to perform better each year, and there are many benefits in riding this wave. Starting a cross-border retail business can be challenging, but international provider DHL Express offers many resources and tools to simplify the process. DHL Express Commerce, for example, helps you automate the shipping preparation, paperwork generation and other operational processes.

Whether you’re looking for standard international shipping or specialised liquid transportation, DHL Express is the best solution for e-commerce businesses. With DHL Express, business owners can efficiently transport their products across North America, Asia, and other countries around the world. Open an account with us today.