Published on March 12, 2008 Use the Internet for online exporting
Selling online can be an ideal way of breaking into the tough US market. You can even use US suppliers and distributors.
If you’re an Australian looking to break into the US market, e-commerce could be the solution for you.
Americans are heavy Internet users and frequently look to the Internet for ideas and products to purchase. As at the end of December 2007, Nielsen/Net Ratings reports 212 million US Internet users which represents 70% of the US population. Other sites report even higher figures. A report published by Forrester Research in May 2007 predicted that total online sales (excluding travel) would break $259 billion for the year ($174 billion excluding travel). This represents a huge potential for any business looking to export online.
Australians can take advantage of the heavily developed logistics industry in America. Warehousing, merchandise storage and even drop shipping are very developed in the US market and in many cases more developed than in Australia. For example, the US have a number of fulfillment warehouses, which are large warehouses that store products from multiple suppliers and industries and allow you to outsource the distribution element of your logistics.
If you are selling online to the US, think carefully about the shopping cart software you purchase. Can it be reconfigured for multiple currencies, international tax, can it add American payment methods? Ozcart is tailored for Australians but can be easily re-configured for the US market. Just ask us.
If you are looking to use ecommerce to export to the US, think about the following:
- Once you have gained purchases from US based customers, you could use permission-based email marketing to continue to keep them informed about your products and services and come back to buy more. Encourage trial, as in many industries the US market is nervous about new products until they are proven
- Try contact the Australian Trade Commission (Austrade). They have a section on their website devoted to helping people exporting online.
- Research the US market you are selling to. You’ll usually find plenty of information by searching for your product market and adding the words “online sales”, “statistics”, “market size”, “market information” or combinations of these words. Look out for 2008 versions of the reports referred to in this article and visit the Internet World Statistics website for up-to-date statistics on worldwide Internet usage and patterns.
- Give it time. Exporting case studies often report it takes three years for the American market to build sufficient trust in your products to generate enough regular repeat buyers.
There are many success stories about online exporting to the US market. Is it time for you to take advantage of this business opportunity?
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