There are plenty of benefits to expanding your business internationally. For one, there’s the potential to earn higher profits, especially if you tap into the right markets. If you supply items or services that only work in specific seasons, you’re assured of revenue throughout the year. You may even find foreign investors interested in your business.
Before you start your expansion into a foreign country, you need to perform research on the various markets. Some are still emerging and developing in other lands, while others already have them in place. To ensure that you access the full potential of foreign marketplaces, you need to consider various factors:
- Affordability and expansion costs
- Employment and tax regulations
- The political and economic stability of the country
- Demographics
- Demand for your products and services in that location
- Free trade agreements
- Solid foundation and marketing techniques
- Hiring of new employees to support overseas expansion
Which e-commerce destinations should you sell to?
If you’re ready to expand your business overseas, here are the markets you should consider:
1. China
China has the second-largest economy in the world, where 2021 saw a GDP of US$17.7 trillion. It contributes about 25% towards economic growth, with a massive increase in high-tech manufacturing investments. There’s also been a strong demand for export services. With a population of about 1.45 billion, you’ll find plenty of e-commerce opportunities.
As a matter of fact, China ranks the highest when it comes to digital and e-commerce markets. There’s also a high demand for packaging due to the exports that rose in the last quarter. Some of the most attractive features of this market is the relatively high internet penetration rate of 57.7% and an increasingly significant percentage of 15% going online to shop. There’s also a huge requirement for translation services as Chinese companies market their products to foreign clients. You will also see plenty of requests for international money transfer companies thanks to the rise of international transactions.
2. United States
The United States holds the largest economy at the moment. The end of 2021 saw a GDP of about US$23 trillion, and it’s expected to grow in 2022. There was a massive rise in investment in private inventories, which saw large scale revenue in retail trade industries. Increased imports and sales from motor vehicle dealers also had huge parts to play. There’s a large market to tap into with about 334 million citizens in the country.
Some other products that perform well include digital entertainment and media, home and office equipment, toys, and health products. The only challenge is setting up fast international money transfers so that you can manage your cash flow every month to deliver products and services on time.
3. United Kingdom
The United Kingdom had a slight decline in GDP towards the end of 2021, which saw it amount to about US$3 trillion, leaving it currently fifth in the world standings. With a population of 67.44 million, some of the top-performing markets included vehicle repairs, transport services, manufacturing, exports, and digital services. Travel has mostly seen a decline due to the pandemic, while there’s an increase in demand for online products, specifically in the entertainment industry.
4. Japan
Japan stands third in the markets with a GDP of US$5.1 trillion. There has been a massive growth in B2B, B2C and e-commerce industries. With political stability under control now, it’s expected that we will see digital expansion in the country, which is excellent for online retailers. There’s a population of 125 million, so you’ll have plenty of opportunities to expand your business and services overseas.
5. South Korea
Coming in tenth in the market rankings with a GDP of US$1.8 trillion, South Korea is still a worthy contender for one of the top e-commerce destinations. Towards the end of the year, the top industries in the country included telecommunications, vehicles, chemicals, electronics and steel. The population comes in at about 51 million, with the electronics market possibly the easiest to enter for overseas companies due to the high demand.
Expand successfully with Opal’s multi-currency and cross-border payment solutions.
As you can see, there’s sufficient potential to expand your business overseas. You will probably have the most success with digital or online services, as it involves fewer export costs and time. However, you will need to make sure you have appropriate international business money transfer systems in place so you can securely receive the payments.
That’s where Opal comes in. We offer cross-border payment systems that are cheaper than most banks and completely safe to use. You can set up multi-currency accounts, making the process less complicated than most platforms available online. You can also send and receive funds to and from over 100 countries, including the ones listed above.
Start a conversation with us to discuss our services.