In our last blog post, we looked at which regions present the greatest growth opportunities for online retailers seeking international expansion in 2015 – but what about the rest of the world?
Every ecommerce company has its own agenda, which makes certain geographies more suitable than others. Product categories, demographics in existing markets, channels, budget and infrastructure are just a few of the influencing factors when businesses decide to widen their reach, and these variables shape which areas are more appealing than others.
However, the question is, are there any regions that could prove particularly tough nuts to crack in 2015? Areas where retailers may risk wasting their time and resources, without making a major impact?
Analyst IDG Connect has outlined the difficulties some territories are experiencing currently when it comes to ecommerce success, which could stand in the way of retail success during 2015. Here are a few examples:
Spain
It may have faired better economically than some of its Eurozone counterparts in recent months, but Spain’s consumers aren’t planning to part with the money left in their pocket for the sake of online shopping. Trust is a major issue when it comes to the Spanish and ecommerce, and many e-tailers also suffer from running non-responsive websites in a nation full of smartphone users.
Japan
The simple fact is, outside of the main cities, many Japanese people do not own credit cards – either because they don’t need one, or mistrust the concept of credit. Pay-on-delivery is very popular in Japan, so many ecommerce retailers are turning to this service instead, and it’s unlikely an e-tailer who insists on card payments up-front will thrive in this market.
UK
You may wonder why we’ve included the UK above other, developing regions, as British ecommerce market has matured and continues to grow. However, in this country, e-tailers face an entirely different problem: shopping cart abandonment. The number one reason that British consumers go online is to compare prices, and if the cost isn’t right, a sale won’t be made. This makes entry to the market challenging for those who aren’t competitive within their sector, unless they have a particularly strong USP.
What other cultural trends will impact ecommerce in 2015?
Even outside these highlighted countries, there are common problems that could stand between online retailers and commercial success this year. Payments culture is one of the biggest, as preferences can vary wildly from country to country.
In developed ecommerce regions, the rise of multiple device use is also a hindering factor, as consumers lose interest as they move between digital platforms – or grow frustrated if they can’t begin transactions in one virtual location and complete in another.
All these trends, and the positive developments we outlined in our previous blog, point to one overarching theme that e-tailers should heed in 2015: every market is unique, and the only way to know if it’s right for you is to do your research.