Entering Global Markets
An online retailer with a well-established US market is ready to leverage the strength of their Internet presence to propel them into the global marketplace. To date, they have no experience with any currency but US Dollars.
While the overall goal is to gain customers abroad, more specific objectives provide insight into what that implies and clearer criteria for the measurement of success:
- Provide a reason for international shoppers to prefer this retailer’s site over competing offerings
- Reduce cart abandonment by international shoppers
- Reduce charge backs Avoid foreign exchange risk Minimize impact on systems – easy integration
- Continue conducting business in USD without opening multiple bank accounts or dealing with foreign currencies
Using E4X patented technology, a solution is selected that provides international shoppers with a local shopping experience. IP detection software is used to determine the locations of site visitors and prices are presented in their local currency as they enter the site. International shoppers shop, pay and are billed in their own currency.
E4X guaranteed exchange rates are used to allow retailers to price in USD and to provide them with payment in USD, avoiding foreign exchange risks and hassles.
Integration into standard e-commerce platforms is usually accomplished within 30 days.
- Overall results from the implementation of a strategy of this nature vary, but are typically:
- Dramatic increase in global sales, averaging 115-150% in the first year
- Sustained growth over subsequent years of xxx-xxx%
- Minimal impact on systems and IT operations
- Higher conversion and retention rates and reduced shopping cart abandonment
- Fewer returns and charge backs resulting from misunderstandings about pricing
- No currency conversion risks to both online retailers and customers