Article
Micro-multinational and Internationalization
Victor AyacheLocalization Components to Selling Like a Native
Components such as Domain & Languages, Currency, Duties and import taxes, Channels, and shipping form the basis of a consumer-centric internationalization strategy. The starting point typically involves a multi-region architecture, which can be implemented through domain names (e.g., store.com, eu.store.com, us.store.com) or multi-store applications. Each approach has its pros and cons, but the overarching goal remains a customer-centric approach to commerce platforms. This architecture aims to customize languages, currencies, duties & taxes, and shipping solutions (including costs) for an enhanced user experience.
Customer Service: Timezone, Channels & Cultural Differences
Customized localization strategies are pivotal for effective customer service. Language translation typically marks the initial step for many small organizations today, followed by the implementation of more advanced but equally important components.
A research based curation is required for various communication channels, spanning platforms such as WhatsApp, LINE in Asia, or even SMS.
Addressing timezone disparities often necessitates strategic solutions; larger enterprises may choose to outsource customer service to specialized teams in target markets, while smaller brands can leverage AI automation response applications. These AI tools offer the advantage of learning from data or analyzing local customer interactions.
For a more sophisticated approach, cultural nuances, personality, and tone of voice, can be fine-tuned using AI to adjust tone and emotions within the customer service strategy.
Financial Consideration: Investment, Cost and Taxes
Venturing into overseas markets requires investments in preparing the business for internationalization, encompassing product adaptation, market research, staffing, training, and partnerships with third parties like shipping and fulfillment providers. Initial investments in consultancy services, technology, infrastructure, and deployment are also necessary. Cost analysis is essential, particularly in freight, insurance, import duties, and other landed costs.
Tax implications come into play once certain thresholds are reached, with businesses becoming liable for taxes in the markets they operate in. For instance, storing goods overseas may trigger tax liabilities in markets like the UK and EU. Assessing whether the business is ready for internal growth involves considerations such as internal organization, product maturity, logistics, and distribution.
Despite these challenges, the potential for returns on investment, especially in burgeoning markets like Dubai or Beirut, is significant and should not be overlooked.
— Data reveals the increasing prominence of online platforms for international trade.
— Amazon hosts approximately two million third-party sellers, while SMEs that export are notably higher on eBay compared to offline businesses of similar scale.