Why Now is the Perfect Time to Expand Your E-Commerce Brand into New Markets
Expanding your e-commerce brand into new markets can be a game changer for your business. With the rapid growth of online shopping and increasing consumer demand for health and wellness products, there’s never been a better time to take the leap. Let’s dive into some key statistics and trends that highlight why now is the perfect time to expand.
The Booming E-Commerce Industry
The e-commerce industry in Europe has seen impressive growth over the past five years. In 2023, the European e-commerce market was valued at approximately $1.1 trillion, with a compound annual growth rate (CAGR) of around 10% from 2019 to 2024 (Source)
The COVID-19 pandemic accelerated this shift, pushing many consumers to shop online, leading to a significant increase
in e-commerce sales.
In the UK, e-commerce sales accounted for around 32.5% of all retail sales during the pandemic in 2020. By 2022, this proportion was 26.5%, more than double the level compared to 2012. It’s predicted that by 2025, 38.1% of all UK retail sales will be made online, amounting to a value of £152 billion ($194.1 billion) (Source)
Key Factors for Success
To successfully expand your e-commerce brand into new markets, it is worth considering these key factors:
Market Research: Understand the target market’s preferences, cultural nuances, and purchasing behavior.
Regulatory Compliance:
Adhere to local laws and regulations, as these can be troublesome.
Localization:
Adapt your website, marketing materials, and customer service to the local language and culture.
Logistics and Supply Chain:
Ensure efficient and reliable delivery options.
Is You Sector Set for Success?
Certain sectors have shown higher success rates when expanding into new markets:
Fashion: The fashion industry has a global appeal and can easily showcase products online.
Electronics: Consumer electronics are in high demand worldwide, with innovative products often succeeding. The industry has been growing steadily, driven by the launch of innovative devices such as AI smartphones and XR devices
Beauty and Personal Care: This sector benefits from strong brand loyalty and effective social media marketing.
Home Goods: Products like furniture and home decor have seen success due to the convenience of online shopping.
Toys: With toys being sold all over the world, there is a huge market, for example the US exported approx. 1.33 billion U.S. dollars’ worth of toys, scale models, puzzles, and parts to the rest of the world. (source)
The Growing Demand for Food Supplements
The food supplement industry is also thriving, driven by increasing consumer awareness about health and wellness. Here are some successful segments within this industry:
Vitamins and Minerals: These remain a staple in the supplement industry.
Sports Nutrition: Products like protein powders and amino acids are popular among fitness enthusiasts.
Herbal Supplements: With a growing interest in natural and organic products, herbal supplements are gaining traction.
Beauty and Anti-Aging: Supplements like collagen and biotin, which promote skin health and anti-aging, are in high demand.
Immune Health: The COVID-19 pandemic has heightened awareness of immune health, leading to increased demand for supplements that support the immune system.
Key Trends
E-commerce Growth: Online sales channels are crucial for reaching new customers and expanding market presence.
Health Consciousness: Increasing consumer awareness about health and wellness drives demand for supplements.
Innovation: Companies that innovate with new formulations and delivery methods tend to succeed.
Time to Take Your Brand Overseas
Expanding your e-commerce brand into new markets can unlock significant growth opportunities.
By focusing on market research, localization, and leveraging the booming e-commerce and food industries, you can position your brand for success.
Now is the perfect time to take advantage of these trends and expand your reach.
Where to Start When Expanding into New Markets
Expanding into new markets can be a daunting task, but with the right tools, it becomes much more manageable. A unique platform such as Expandly can offer a comprehensive solution to streamline and simplify this process. By centralizing management of multiple sales marketplace channels where you can manage all your products listings in multiple languages, businesses can save time and reduce errors. The platform’s scalability ensures that as your business grows, your operations remain efficient and effective.
Moreover, Expandly’s features extend beyond just sales management. There are experts on-hand to assist with product compliance by ensuring products comply with safety and quality standards and to advise on the correct product labels for the region in which you are selling. For businesses expanding into the UK and EU, Expandly provide a required regional Responsible Person to oversee regulatory compliance.
Tax and VAT management is another critical area where Expandly excels. The platform simplifies VAT compliance by assisting with registration, filing returns, and managing obligations across different markets. This includes support for the One-Stop-Shop (OSS) scheme in the EU, which streamlines VAT reporting for cross-border sales.
In addition, with warehouses based in the US, UK and Europe, all with a comprehensive Warehouse management system, and extensive shipping options, managing orders, inventory, stock and deliveries to customers is simple.
By leveraging these features, businesses can ensure they meet all regulatory requirements, manage their listings and orders, maintain product compliance, handle their tax obligations, and get orders to customers on time in pristine conditions. This allows them to focus on what truly matters: their brand growth and expansion into new markets.