Scott Fitzpatrick, AVP, Direct Selling & Integrated Payments
We live in this amazing time when customers can buy from virtually anywhere. Now more than ever, exploring global opportunities is a great idea as it opens a new, larger customer base and introduces even greater potential for higher profit margins. With relatively low cost of advertising (online and via social media), the world is your oyster! Now that you see the benefits of having a global presence, where do you start?
Prepare a Detailed Business Plan
As a direct seller, set your goals and evaluate the resources you are willing to invest in developing your business in foreign markets. Start with figuring out where your products fit in those markets and how you are going to get them where you want them to be. Understand how your industry works and who your main competitors are. Map out your strategy on how to enter these global markets. There are many ways to do it, so think of what way works best for you, whether it is exporting, licensing, a joint venture, etc.
Conduct Foreign Market Research
Conduct preliminary market research first using your own resources. Once you see the general picture, you can involve a local research organization to fill in the blanks. You need to be well informed to make educated moves. Each country has a chamber of commerce where you can get a lot of valuable information. There are also organizations whose main goal is to help foreign businesses that want to invest into the local economy and to help them navigate through local laws and regulations.
Pick a Distribution Channel
Think about how you’re going to enter the market. Will you use local companies (agents) to distribute your product or will you open a company owned branch? Understand the legal regulations and learn what’s involved. Finding a foreign distributor or partner would be the easiest approach. Social media and online resources are a great help. Make sure to ask for references.
Do Your Homework on Culture
Do you know how the local people prefer to conduct business? Do you know what is important to them and what is not? Get to know local customs and people you are dealing with before talking business. Be eager to learn about the new country and its history. Learn common gestures and style of communication. The North American way is only good for doing business in North America.
Accept Multiple Currencies, Plus Local and Alternative Payment Methods
Direct sellers can capitalize on multi-currency pricing (MCP) to price products and services in a variety of foreign currencies. With MCP, you can localize your website and cater to foreign clientele by pricing your products or services in a currency they feel most comfortable with. This reduces friction at the checkout, leading to potentially higher sales volume.
In some countries, credit cards are not the dominant form of transacting online. Different regions and countries tend to favor different methods of payment. These can include transfers from local banks, digital wallets that allow customers to pay through smartphones or in online marketplaces, and prepaid cards or cash vouchers. To ensure you maximize revenue potential, seek out a payment processor with the capability to help you seamlessly accept local and alternative payment methods.
For more information, download Nuvei’s Direct Selling online Payments Guide.
Author:
Scott Fitzpatrick
Nuvei’s AVP, Direct Selling & Integrated Payments