When it comes to charming the socks off global shoppers, there’s no universal ‘welcome’ tag you can slap on your digital storefront and call it a day. 

To reach the upper echelons of ecommerce success, sellers must adapt their websites and product offerings to speak their customers’ language — both literally and figuratively. That’s ecommerce localization at work.

Ready to master the art of ecommerce localization and captivate a global audience? Then grab your passport and prepare for a crash course in cultural etiquette. Here’s everything you need to know. 

What is ecommerce localization? 

Ecommerce localization is the strategic process of tailoring your online store to engage and serve diverse international markets effectively. It involves adapting various aspects of your ecommerce operation to cater to the specific needs and preferences of consumers in different regions. 

Primary considerations include:

• Website content
• Product offerings
• Payment methods
• Shipping options
• Customer support

For a masterclass in ecommerce localization, look no further than some of the world’s best-known brands… 

Titans like Amazon and eBay make every shopper feel right at home with localized websites, region-specific product assortments, pricing, and promotional campaigns. 

Then there’s IKEA, taking the world by storm one Billy bookcase at a time by making the language of interior design feel like a cozy Scandinavian hug in every corner of the globe. 

What are the benefits of ecommerce localization?

Forging connections across countries and cultures results in several bottom-line boosting benefits, including:

• Increased conversion rates – Remember, you’re not just selling products. You’re selling an experience. And good experiences lead to more clicks, more carts, and, ultimately, more conversions. 
• Better customer experiences – When executed correctly, ecommerce localization makes shoppers feel like your website was created just for them—because it was. 
• Expanded market reach — Ecommerce localization takes the mantra “Think global, act local” to another level, helping you dive headfirst into lucrative international waters.
• Enhanced brand reputation – Nothing builds trust faster than demonstrating a comprehensive understanding and respect for different cultures, values, and preferences.

Ecommerce localization 101: A step-by-step guide

We know what you’re thinking: That’s all well and good, but how do smaller businesses master ecommerce localization to compete on a global playing field? 

Don’t worry. We know the brands we mentioned above are big players with seemingly endless resources. But you don’t need a heap of zeros at the end of your bank account ledger to turn global browsers into buyers and lifelong fans. 

Here’s a step-by-step guide on how it’s done. 

Step 1: Understand local market dynamics

Before you can begin sprucing up your online store for global domination, you’ll need to thoroughly explore local market dynamics and get up to speed with cultural sensitivities and preferences.

Conduct market research

To uncover the secrets of your target audience, you’ll need to go a lot deeper than a run-of-the-mill Google. It’s all about finding out what makes them tick, what keeps them up at night – and most importantly, what makes them reach for their wallets! Here’s how to do it:

• Use analytical tools like Google Analytics and Hotjar to track website traffic and user behavior. 
• Conduct surveys and focus groups to get inside your customers’ heads. 
• Keep your ear to the ground by monitoring social media chatter and industry forums.
• Stay updated on local requirements for data privacy, import/export restrictions, etc. After all, nobody likes a surprise visit from the regulatory police! 

Consider cultural sensitivities and preferences

It’s time to switch your detective hat for your cultural anthropologist hat. Demonstrating an in-depth understanding of various cultures isn’t just a ‘nice-to-have’ accolade. It’s a serious game-changer. Get it right, and you’ll be hailed as a cultural connoisseur. Get it wrong, and you’ll end up in the Hall of Shame. Let’s examine a few examples.

• Language accuracy – Avoid language-related cultural blunders at all costs. Remember that time Pepsi tried to appeal to the Chinese market with a slogan that translated to “Pepsi brings your ancestors back from the dead”? Yeah, let’s not go there.
• Marketing messages – As Pepsi demonstrated, marketing messages don’t always translate across cultures. Take the time to understand local idioms, humor, and values, and tailor your messaging accordingly. 
• Tailored product offerings – Tweaking products to make them more culturally appropriate and appealing is a winning strategy—case in point: McDonald’s Teriyaki McBurger in Japan and the McSpicy Paneer in India.
• Customer satisfaction – Cultural differences within customer service account for everything from communication channels to response times. For example, the US market favors efficiency, whereas Europeans are often happy to wait longer for more personalized service.

Step 2: Decide on your domain structure

As your primary digital address, your domain structure isn’t just a technical detail. It’s an essential consideration in ecommerce localization as it determines how easily customers find – and trust – you. 

Not sure which domain structure to choose? Here’s a list of options and some pros and cons to ponder:

.com – The most popular choice of Top-Level Domains (TLDs), .com websites are universally recognized, versatile, and scalable. However, securing one can be challenging, especially for popular keywords.

Other TLDs – Exploring alternative TLDs like .net, .shop, .digital, .biz. can be an effective workaround for keyword availability. However, they are not as widely recognized, meaning you’ll have to work harder to gain consumer trust.

ccTLDs – Country Code Top-Level Domains like .co.uk (UK), .de (Germany), and .fr (France) show customers you’re a homegrown brand. However, managing multiple ccTLDs can be costly and complicated – and domains may not be available for every country.

Subfolders – The middle ground compromise of using subfolders like /uk/, /de/, or /fr/ allows you to create region-specific website pages without splintering your brand identity across multiple domains. However, there’s always a risk they might dilute your brand’s global presence.

Subdomains – uk.yourdomain.com, de.yourdomain.com, fr.yourdomain.com, etc. formats create distinct sections of your website for different regions. They offer flexibility and scalability, but might confuse users navigating your site.

Step 3: Establish your infrastructure

Building a robust infrastructure for your ecommerce localization strategy is a bit like constructing a skyscraper—you need a solid foundation to support your lofty ambitions! 

Let’s dive deeper into the key components.

Assess your local warehouse needs

As the beating heart of your ecommerce operation, effective warehouse management and inventory control considerations take center stage. 

Warehousing — Your first major decision is whether to set up local warehouses or partner with fulfillment centers in key markets. Third-party storage solutions can save you time and resources, but in-house warehouse management allows you more control. 

Inventory Management — Imagine trying to navigate a maze blindfolded—that’s what managing inventory without the proper tools feels like. Investing in inventory management software eliminates uncertainty by providing real-time visibility into stock levels, order statuses, and fulfillment workflows. 

Offer local payment solutions

Accepting payments using the most popular local methods simplifies checkout processes, instills confidence and trust, and, most importantly, prevents your sales from falling flat at the last hurdle. 

There’s a lot more cultural variance in preferred payment methods than most people think, and research shows 59% of customers abandon carts when their preferred payment is unavailable. So, variety is essential for ecommerce localization success. 

Here’s an extensive list of common payment solutions:

• Debit/credit cards like Visa, Mastercard, American Express, and Discover. 
• Global mobile wallets like Apple Pay and Google Pay.
• Regional favorites like Alipay and WeChat Pay (China), Trustly and Klarna (Europe), and PIX and OXXO in Latin America.
• Crypto wallets
• Payments gateways like PayPal, Stripe, Square, and Braintree.
• Bank transfers
• Cash on delivery 

Localize price

Tackling pricing for ecommerce localization is like a high-stakes game of chess—you need to think several moves ahead to come out on top. 

From consumer-driven price preferences to navigating currency conversion headaches and nailing down the specifics of local taxes, pricing products for international markets requires careful strategy and a keen eye for detail.

• Taxes and duties – Working out regional taxes and import duties can be a real head spinner. Look for pricing tools and plugins that automate currency conversions and tax calculations to save time and minimize errors.
• Cross-border shipping costs – Business isn’t done the same everywhere, so, you’ll need to pay careful attention to carrier-specific fees based on distance, shipping method, weight and dimensions, etc.  
• Consumer price points – Be sure to account for factors like differences in per capita income and short-term exchange rate fluctuations – just because something sells for $9.99 in the US doesn’t mean you can run a quick conversion and charge the direct equivalent elsewhere.
• Competitive pricing – Monitor competitors’ pricing strategies, analyze demand trends, and adjust your prices accordingly to stay competitive while maintaining profitability and transparency.

Efficient local delivery options

Choosing the right logistics provider is key to delighting customers with speedy deliveries. Depending on where you sell, you’ll likely have the option of using national, international, or regional carriers.

National and international carriers like UPS, FedEx, and DHL offer standardized service levels and advanced tracking. However, the rates tend to be higher than those of local couriers.

Regional carriers may offer more competitive rates and personalized service, but there will likely be a playoff in terms of resources, infrastructure, and tracking capacity.

Learn more about how to get better shipping rates for your ecommerce business. 

Invest in the right technology

Technology is the engine that drives ecommerce growth. Investing in scalable and flexible ecommerce tools empowers you to streamline operations, optimize workflows, and adapt to changing market conditions with ease.

Comprehensive ecommerce localization platforms like Linnworks centralize all the data you need, helping you run multinational operations from one intuitive platform. Key features and capabilities include:

• Warehouse operations
• Multi-channel management 
• Real-time inventory control 
• Automated order processing 
• Stock forecasting tools
• Advanced reporting and analytics 
• Shipping network integrations

Step 4: Localize your marketing efforts 

With the groundwork for your global ecommerce empire firmly laid, it’s time to fine-tune your marketing strategy for maximum impact. Here is a summary of the primary factors you’ll need to consider.

Language and translation

Just one tiny linguistic faux pas on a webpage, product description, or tagline could make or break a sale – and potentially damage your brand’s reputation in the process. 

Our advice? Leave the translation to the professionals! Yes, investing in high-quality translations may require a financial commitment. However, the payoff in customer trust and loyalty is usually well worth it.

Images

Images evoke emotions, convey messages, and shape perceptions. And while a picture may be worth a thousand words, that’s only true if your images speak the language of your audience. 

You’ll need to utilize culturally relevant images, colors, and graphics to create a connection. 

That might entail:

• Using diverse models in your photoshoots
• Adapting to cultural holidays and traditions
• Reflecting regional climate and environment
• Incorporating culturally relevant symbols and motifs
• Featuring local cuisine

Customer support

Catering to variances in consumer expectations is a must for penetrating the international market. From pre-purchase inquiries to resolving post-purchase issues, prompt and attentive support can turn hesitant or confused shoppers into loyal customers.

Best practices for seamless shopping experiences include:

• Ensuring responsiveness across all time zones.
• Providing self-service options in addition to helpdesk channels.
• Offering support via live chat, email, and phone assistance in local languages.
• Personalizing interactions to reflect cultural nuances. 

Ecommerce localization tips and best practices

Think you’ve got your ecommerce localization strategy nailed down? Congrats, that’s awesome. But let’s not rest on our laurels just yet. 

Tweaking your online store to cater to a global audience isn’t a “set it and forget it” deal. In the ever-evolving digital realm, staying ahead means remaining agile and adaptable. 

Here are some pointers to keep you on track:

• Monitor key performance indicators (KPIs) like website traffic and conversion rates across different markets. 

• Utilize analytics software to track user behavior and identify pain points.
• Actively solicit feedback through surveys, reviews, and customer support interactions. 
• Stay abreast of market trends, consumer preferences, and regulatory changes.
• Be prepared to adapt quickly in response to competitive developments and shifting customer expectations. 
• Leverage technology and automation tools to streamline ecommerce localization processes and improve operational efficiency. 

Need help with the technical side of ecommerce localization? Look no further. Linnworks offers comprehensive solutions designed to streamline your ecommerce operations and empower you to scale with confidence. 

Ready to wave gay goodbye to the headaches of manual processes and say hello to a world of efficiency and growth? Drop us a line or request a demo today to learn more.