In an era of constant inflation and market unpredictability, many entrepreneurs are considering finding additional sales channels. In the context of online sales, one of the most frequently chosen directions is international sales. Cross-border, meaning e-commerce sales outside the entrepreneur's home country, is dynamically gaining popularity among sellers. This is evidenced, among other things, by the creation of the cross-border.pl service in cooperation with the National Chamber of Commerce and Amazon. However, international sales are not only about quick benefits and potential profits, but also a series of challenges that the entrepreneur must face. In this article, I will share my thoughts on why it is worth considering marketplaces in a cross-border strategy and why this is crucial when starting international sales.
Modern shopping centers
To understand what marketplace selling is, it's worth recalling the old Latin maxim „Nihil novi sub sole” (Nothing new under the sun). Marketplaces are essentially shopping malls or marketplaces transferred to the internet. Their operating principles are very similar to those we know from ordinary shopping malls. We have a building (in the case of the internet, a website), whose owner allows their partners to sell products for a specific fee. The best-known „online shopping malls” in Poland are Allegro and Amazon.
It's time to conquer Europe!
There are approximately 30,000 online stores operating in Poland. Increasingly, their owners are thinking about selling not only in the domestic market but also abroad.
Entrepreneurs considering cross-border expansion have at least two options (it's important to emphasize that they are not mutually exclusive!). The first is to adapt your online store to allow purchases by people outside of Poland. The second is to utilize „online marketplaces.”.
It's worth knowing that several marketplaces operate in Europe in practically every market. Although not all are monopolists like Allegro, definite leaders can be identified in each market. Interestingly, there is no single platform that has dominated all markets. Amazon is a significant marketplace in many countries, but it also faces competition that is developing more dynamically year by year, such as cDiscount in France or Kaufland and Otto.de in Germany. In my opinion, it's worth starting international sales on marketplaces. Here are a few reasons why.
Store technology
Anyone who runs an online store knows that the store's technology is its key element. Often, the choice of the right technology determines whether the store succeeds or fails. Unfortunately, an online store is often created on impulse, and the choice falls to the cheapest or most recognizable solution. In the case of international sales, this can have even more negative consequences. Regardless of the technological solution we use, it will be necessary to adapt the store for foreign sales, which entails additional work and costs. In the case of a marketplace, there's no need to change anything in your store. Most Polish stores use Baselinker, which enables integration with marketplaces and order management from multiple sources. Of course, Baselinker also requires proper configuration. However, these costs are usually lower than in the case of your own store.
Marketing costs
Anyone involved in online sales knows that traffic to a store's website doesn't appear for free. It always requires work — whether in the context of SEO, digital campaigns, social media, or other activities. If we want to sell abroad, we'll have to carry out the same activities in different markets, which involves costs. Few agencies in Poland will be able to conduct marketing activities abroad, so it will often require local cooperation and higher costs. Marketplaces handle this for us — their main task is to attract buyers. Of course, marketplaces don't do this for free; their marketing budgets are sourced from sales commissions.
Logistics
Customers increasingly expect immediate shipping, ideally for free or at the lowest possible cost. The situation abroad is similar. Unfortunately, most current logistics solutions do not allow for delivery faster than two days after placing an order. However, it is important to take advantage of the logistics solutions offered by marketplaces. Practically every platform provides logistics services that are known in the local market, which is a great convenience for foreign buyers.
Payments and trust
Internet users' awareness of the security of their money is growing. Customers are realizing that online store scams are happening more and more frequently. It is important to offer payment methods that are secure and recognizable in local markets. Marketplaces offer many popular payment methods at no extra cost, which is a great convenience and builds customer trust.
Marketplace Challenges
Do e-commerce platforms have only advantages? Of course not! One of the main problems is dependency on the marketplace. If the platform has problems or ceases to operate for any reason, we are left with nothing. Another issue is the drive of marketplaces to offer the lowest prices, which leads to unhealthy competition and price gouging. Additionally, some platforms sell products themselves, which raises questions about fair competition.
Start with the marketplace, but diversify.
Considering the above facts, I believe that starting international sales with marketplaces is a good idea. Firstly, it involves lower costs, secondly, it allows for faster foreign sales, and thirdly, it offers the opportunity to use well-known and reliable solutions. Marketplaces are a good option to start with, to check if our products will be in demand abroad before we make the costly decision to expand our own store. It is also worth diversifying sales channels by selling on different platforms and considering our own store when the initial experiences gathered are positive.
Grow your business without borders!
Super Merchant operates on 57 marketplaces across 25 international markets. With us, you can reach 500 million customers! Thanks to shumee, you can leverage the dynamic growth of the e-commerce market and gain new sales channels. Our experience and extensive presence on numerous international platforms offer a great opportunity to expand your business effectively and profitably. See how easily and quickly you can acquire new customers worldwide by tapping into the potential of global markets with Super Merchant!