The world of ecommerce is full of opportunity, but finding the right global ecommerce solutions for your ecommerce business can be a daunting task.
Common issues and cultural nuances can affect your business model when it comes to global ecommerce sales. These potential obstacles often combine to make the task of driving revenue and all that it entails—from the customer experience to complying with regulations and managing risks—anything but easy.
To simplify this task and help you maximize opportunities for international growth, below we break down 5 crucial strategies for optimizing your global ecommerce revenue.
What is Ecommerce Revenue Optimization?
First things first: what exactly does it mean to optimize global ecommerce revenue? Ecommerce revenue optimization refers to the process of maximizing the total income generated from online transactions across the world. This means implementing not only the right strategies but the right solutions to ensure that your business can seize the huge opportunities presented by global ecommerce.
And the opportunities are in fact huge: While the global market of B2C cross-border ecommerce held an estimated value of $785 billion in 2021, by 2030, the market is expected to reach an incredible $7.9 trillion.
To capture some of that growth, here are five ways to optimize your global ecommerce revenue by taking a local — and intelligent — approach to your global affairs.
5 Strategies for Optimizing Global Ecommerce Revenue
1. Show Local Currencies
When selling internationally, you can’t just rely on having the right products. To optimize payments and maximize revenue, you also need to offer the right experiences. And local currencies are a crucial part of that.
Indeed, a whopping 76% of international shoppers say they prefer to have the option of paying in their local currency. Not only that, but at least one in four shoppers will actually leave a website if their preferred local currency is not offered.
Optimize your shopping experience for conversion by ensuring that international customers only see their local currency both in the advertised price and in their carts.
2. Offer the Payment Methods that Local Customers Prefer
Payment optimization doesn’t end there. Brands need to not only offer the right currencies but the right payment methods. These preferences are as diverse as the shoppers that use them.
In China, for example, over a billion people utilize digital wallets AliPay and WeChatPay. In Brazil, as many as 47% of consumers prefer to use cash through solutions like Boleto. Meanwhile, in Germany, bank transfers remain popular.
It’s clear that a cookie-cutter approach won’t work. Optimize ecommerce payments by updating your checkout experience with the local payment options that global customers expect.
3. Process Payments Locally
When it comes to actually processing payments, brands need to establish a local presence to ensure more payments are actually authorized – and to save on costly fees. That’s because whenever a transaction is routed cross-border instead of locally, your processing fees can increase and cut into revenue gains. Or worse: your customers can get hit with unexpected foreign transaction fees. And there’s nothing quite like hidden fees and surprises to take a bite out of customer retention.
Working with a partner like Digital River, you don’t need to go through all the work of establishing a legal entity in a given market. Instead, all of the connections you need to process transactions locally are pre-integrated under one umbrella.
4. Route Them Intelligently Too
Transactions need to be processed locally and intelligently routed to keep authorization routes as high as possible. Here, the latest technology has a huge role to play in payment optimization. For instance, Digital River is able to rely on machine learning and a deep global banking network to determine which acquiring bank is most likely to authorize a transaction. By routing it accordingly, our tool is able to minimize involuntary churn and maximize subscription renewals.
5. Protect Yourself from Global Risks
All of the transactions involved in global selling come with added legal complexities, too. As a Merchant of Record, solutions like Digital River can shield your business from these risks. By taking on legal responsibilities, we can help protect your business from ever-evolving regulations across the globe—everything from data privacy laws to export rules and tax compliance.
Want to learn more about how Digital River supports ecommerce payment optimization and global growth? In this infographic, we provide five ways to gain the Onshore Advantage™ of acting local to optimize your global ecommerce revenue potential.
Want to learn more? Connect with us today to learn how Digital River can help you achieve your cross-border commerce goals.