Written by Max Riis Christensen
Sometimes we meet clients who make this decision way too complicated.
At MakesYouLocal, we believe there are only three essential factors to consider before embarking on this journey.
To determine whether you can sell your products at competitive prices while remaining profitable, you need to assess your own business and gather insights from the target country. Start by calculating your Income Per Order (IPO) in your current home market over a significant period, such as three months.
Once you have the IPO for your home market, adjust the various elements to fit the target country. Consider factors like higher shipping costs, import taxes, or potentially higher average order values. Conduct market research to understand the price levels and estimated marketing costs in the new market. Seeking guidance from specialists can ensure you consider all important factors. This information will provide insights into your competitive ability in the new market.
Launching in new countries emphasizes the importance of an efficient warehouse. With increased volume and complexity, an effective warehouse with well-defined processes becomes crucial to keep costs low. Quality is also vital, especially when it comes to handling international returns. Seamlessly managing returns for customers can be expensive, so it's essential to avoid mistakes in your warehouse operations.
IT challenges often hinder international projects. It's important to thoroughly assess your IT systems to ensure your webshop and back-office systems can handle multiple currencies. While most webshops can support different currencies and languages, integration with ERP systems and payment methods can pose challenges.
Describe various scenarios, including price changes, campaign setups with different discount methods, order flows, return processes, and more. Examine these scenarios in detail to ensure your IT setup can handle them without excessive workarounds or manual processes.
If you can confidently answer "yes" to these three questions, you are ready to proceed. If you need assistance or further guidance on any of these elements, please don't hesitate to reach out to us. We are confident that we can help steer you in the right direction.