More and more private label brands are becoming market leaders. Lucy Marshall, e-commerce sales at World First USA, Inc., takes a look at how.
What is the opportunity for brands trying to expand globally? It was a question I found myself asking regularly 2 years ago while working for a small private label brand in Washington DC. We had terrific brand presence in the States, a strong customer following, and a great product. However, we found ourselves getting road-blocked every time we made an approach to the global markets.
Our biggest hurdles were: How would we manage our fulfillment? Do we have someone in-house to manage our multiple selling channels? Do we have the inventory to support fulfillment to another marketplace? And most importantly, are we going to get the financial return necessary to make this worth it? Now that I’m working alongside many private label brands, I find myself perpetually quantifying what that global opportunity looks like for them. With this experience, and working very closely with experts in the field of VAT, Shipping and Logistics, and Analytics, I would adamantly make the case that the opportunity for your business globally is huge.
Retail as we know it is rapidly developing as more and more products are bought online rather than in-store. Internet Retailer is calling for online sales projections to triple in 2017, and eCommerce still only makes up for 10% of overall commerce. The opportunity? Massive.
Sellers have been taking advantage of the global eCommerce marketplaces for years, and we are now seeing more and more private label brands become market leaders. Brands like Anker manage their own eCommerce storefronts and are relatively unknown in the brick and mortar space. But by optimizing their listings and expanding their brand across multiple channels they’ve become a titan on global marketplaces. On Amazon, the UK/EU are collectively the same size as the Amazon.com market. In China, it’s projected that more than a quarter of the population will be shopping from foreign products on eCommerce platforms. For those of you counting at home, that’s roughly 455 million potential customers.
In terms of getting set up, there are some extra steps to plan for and go through. First, you will want to get set up with VAT, figure out your pricing, shipping, and logistics. Then, you will have to do a bit more work in terms of getting your listings translated, and confirming that your product doesn’t have any restricted ingredients in it. That said, once you get through the set-up process, you have a much greater opportunity than other resellers. You will have less competition, the ability to control your pricing, and a product that could be completely unique in a new market.
With marketing resources like Facebook, Instagram, Amazon PPC advertising, and Google AdWords, it’s becoming easier and easier to promote your product internationally. The world is becoming much smaller, and the logistics of selling into new storefronts infinitely easier. Why not put your product in front of that many more people?
As the eCommerce space becomes more accessible to sellers, it’s becoming easier to make cross border distribution a reality for your business. Rather than looking at the hurdles in getting set up, look to what the revenue opportunity is once you’re in those marketplaces. You could potentially grow your business by 5-10% in the first year, and then reinvest the profits in your business to promote continued growth.
Along the way, World First USA, Inc. can help you pay suppliers, vendors and partners overseas. We can set you up with a local receiving account in the countries where you’re selling, allowing you to collect funds in the local currency. When you’re ready to bring your earnings back home, we’ll convert and send your money home quickly with our competitive exchange rates and award-winning service. We’d love to help you take hold of the global markets. Register with us to get started.