Online shopping abroad is the order of the day. A recent survey by Flow Commerce, a company that helps e-commerce brands expand into international markets, found that 76 percent of online customers in the top eight global markets placed an order on a website outside of their own country with Gen Z buyers even higher.
Apparel and accessories were the best-selling items outside of a brand’s home country. To learn more about this trend, FashionUnited spoke to Flow Commerce CEO Rob Keve about the mistakes brands make when it comes to attracting overseas buyers and how they can use the latest technology to build a global presence , especially with Generation Z.
Flow was founded in 2015 by Keve and Mike Bryzek, who previously founded online fashion giant Gilt. They met at a fashion show and realized that they shared a common vision of the future of online retail. According to the Flow Commerce website, some brands have increased their international sales by 400 percent using the company’s cross-border solutions. Customers include Ulla Johnson, Good American by Khloe Kardashian, Paige, Rowing Blazers, and Universal Standard.
The pandemic is driving cross-border shopping
“The traffic and cross-border sales have exploded in the past eighteen months,” says Keve. People unable to visit brick and mortar stores have started shopping internationally like never before, and with the ongoing pandemic and new varieties emerging around the globe, there are no signs that this is about to change will. However, companies need to change their behavior so as not to undermine the shopping experience.
“Brands are very focused on delivering a great customer experience, but that is usually domestic,” he says. “When 20 percent of website traffic comes from overseas, brands think it’s easy to generate income, but it usually goes wrong.” The most common vulnerabilities are easy to pinpoint. On the one hand, the pricing: “Are the prices well rounded and given in local currency?” Asks Keve. Payment options are also important. “Do you only offer cards and PayPal? If so, that is not a well thought-out shopping experience for customers in many countries who do not have international cards and do not use PayPal, ”says Keve.
Another area where consumers are needlessly disappointed inside is shipping. It is often not free and takes a long time. When it comes to customs duties and taxes, it is also difficult to get everything right. “They vary from product to product and from country to country, and it is a terrible shopping experience when a freight forwarder is at the door with the product you ordered two weeks ago and $ 50 for duties and taxes who you knew nothing, demanded. “
Countries that are one step ahead in international retail
“If you look at the ranking of countries where consumers shop inside, it has fluctuated a lot over the past 18 months,” says Keve. “It largely has to do with which countries are in crisis and the level of unemployment.” Before the pandemic started, the ranking was relatively static, and the top countries for a US retailer were Canada, the UK and Australia, followed by a combination of high GDP countries like France, Germany, Korea, Japan or Hong Kong. But the rankings and rankings have since changed, which has revealed one of the most interesting lessons the pandemic has to offer for trade: the importance of diversification. “There’s such a thing as geographic risk, not just economic risk,” says Keve. “If there is a strong lockdown in the US and a different situation prevails in other countries, a diversified retail company can take the revenue from overseas for itself.”
According to Flow data, the more unique products are the most sought-after internationally. Haus Labs, Lady Gaga’s beauty brand, is one of Flow Commerce’s clients. “It’s not available in any regular store, and if you’re a fan, you buy it on their website no matter where you are in the world.” He says that people are willing to shop for more expensive items internationally that are not readily available are available in stores. “
Determining the sales that can be made abroad is a real issue because brands only need to look at the number of visitors to their website and IP addresses. But Keve says brands often fail to realize how much potential for international growth their businesses already have. “You can increase your sales by 10 to 20 percent overnight just by making sure the shopping experience is good.”
After all, it is important to understand that people all behave differently internationally, that it is not a single homogeneous market, but 200 different countries with different expectations. He advises brands to identify and focus on the 30 to 40 most important countries that are likely to make up 80 percent of the volume. This represents enormous potential for the brand without having to build up additional structures or your own team.
This is a translation of an English contribution by Jackie Mallon. Jackie Mallon teaches fashion in New York and is the author of the book ‘Silk for the Feed Dogs’, a novel set in the international fashion industry. Translation and editing: Barbara Russ.