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Profitable growth in a foreign countries (part II)
The document outlines the localization process and strategic considerations for businesses looking to expand into international e-commerce, particularly in the Baltic region. It emphasizes the importance of market analysis, competitive benchmarks, and targeted marketing investments to optimize conversion rates and build trust with customers. It identifies five phases of launching successfully in a new market, detailing factors like payment systems, logistics, and customer service tailored to local needs.
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Profitable growth in a foreign countries (part II)
- 2. Choose right direction Localisationprocess Business cases Your road to international e-commerce
- 3. Who am I? •Donatas Gudelis (linkedin.com/in/donatasgudelis) • Working with e-commerce since 2010 • Experience in government agency, marketing agencies, web shops, own business. • Founded MakesYoulocal offices in Lithuania, Latvia and Estonia in 2014
- 4. Choose right direction Localisationprocess Business cases Your road to international e-commerce
- 5. Are there anymarkets for your business?
- 6. Are the marketsaccessible?
- 7.
- 8. Be Baltic companyinstead of Lithuanian
- 9. • Euro zone. •3 separate languages with two general (Eng & Ru) • All three countries has more similarities than differences • Open to foreign based web shops • Low competitive level • One web shop- three countries • Launch in 6-8 weeks See it as one country
- 10. •Currency issue •Local paymentsand Banks issues •Zelando, etc •±40% higher marketing costs •Very well developed web shops •Expensive delivery and return process •Price level very depends on products
- 11. Choose right direction Localisationprocess Business cases Your road to international e-commerce
- 12. ……in the beginningour focus was on localization (payment methods, trust marks, translations etc.)
- 13. • Choose theright country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 14. Market scan Roadmap Localisation Growth plan Sitecheck Market report Manual Norge What tasks we can solve Customer support Online marketing Shop management Text translations Launch
- 15. • Choose theright country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 16. Successful expansion abroadis not a sprint, it's a marathon
- 17. Launch Decision phase Market Scan RoadMap Main online competitors in the new country A benchmark of your competitors’ web shops Price comparison of your most important products and brands Insights in the marketing environment, important channels An estimate of the online marketing cost for promoting your products Input on customer expectations on delivery and return
- 18. IPOCalculating earnings per order Realized Estonia Estimate Latvia Comments AverageOrder 150 150 Realised average order the last 3 months, excl. shipping + Shipping income 3 4 Realised average for all orders 3 months -Taxes 31,5 31,5 We all have to pay VAT and income taxes -Items price 71,1 71,1 Your price for products -Shipping cost 3 6 Your cost for shipping -Online payment cost 1,5 1,5 We all payment % out of payments made online -Warehouse operation 2 2 Pick and pack price -Customer service operation 1 2 Labor costs and software expenses divided by the number of orders -Return expenses 0 3 Calculate the return cost and total benefit per. order -Packaging 1 1 Overall packaging costs broken down by. order Earning pr. order 41,9 35,90 Earnings per order (before marketing costs) Calculating earnings per order Realized Estonia Estimate Latvia Comments Average Order 150 156 Realised average order the last 3 months, excl. shipping + Shipping income 3 4 Realised average for all orders 3 months -Taxes 31,5 32,76 We all have to pay VAT and income taxes -Items price 71,1 71,1 Your price for products -Shipping cost 3 6 Your cost for shipping -Online payment cost 1,5 1,5 We all payment % out of payments made online -Warehouse operation 2 2 Pick and pack price -Customer service operation 1 2 Labor costs and software expenses divided by the number of orders -Return expenses 0 3 Calculate the return cost and total benefit per. order -Packaging 1 1 Overall packaging costs broken down by. order Earning pr. order 41,9 40,64 Earnings per order (before marketing costs)
- 19. Launch Localisation process Market Scan RoadMap Translations Product text translations Legal package Payment & trustmarks Logistic Local “Look & Feel” Search bar Virtual office Build a trust
- 20.
- 21. Launch Virtual office Market Scan RoadMap Translations Product text translations Legal package Payment & trustmarks Logistic Local “Look & Feel” Search bar Virtual office Local phone number Local address Local return address Native customer support speaker
- 22. • Choose theright country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 23. Choose right direction Localisationprocess Case studies Your road to international e-commerce
- 24. Online Retailer Service Provider BrandOwner Service/Product provider B2B Case Studies
- 25. Harmonylife.lt - Onlineretailer
- 26. Markets around us 5phases in a successful international launch What companies have difficulties abroad and who do it well Tract the numbers A local hero MTTC.lt - Service provider
- 27.
- 28.
- 29. Select.lt - Retailer,Localised companies
- 30.
- 32. About Bodylab • Leadingtraining nutrition brand in Denmark since 2001 • Sells more than 610.000 kilo protein powder a year • In 2014 they sent over 350.000 orders to Danish customers • Online shop online in Denmark until January 2015, when Swedish webshop launched
- 37. In January wetried again using only Facebook… Proteinella (Nutella with less sugar and high level of protein) was introduced in december 2015 with very little interest.
- 38. 48 likes 66 comments 3shares 30.134 reach Sales: $
- 39. Meta posts 2.000+ likes 2.000comments 134 shares 647.741 reach Sales: $$$
- 43. So far… 264 likes 187comments 16 shares 140.000 reach Sales: $$
- 47.