Expansion

This article was created by Expandeco exclusively for Heureka.

Why Expand?

The European Single Market and unified rules for mail-order sales provide a very simple and essential foundation for the overall European e-commerce ecosystem.

The terms and regulations for mail-order sales are nearly identical across EU countries, differing only in minor, yet non-negligible, specifications.

The overall e-commerce ecosystem, which has gradually emerged alongside the rising popularity of online shopping, relies on interconnected logistics, international payments, global marketplaces, and locally applied marketing.

Both Slovak and Czech entrepreneurs running successful e-shops have extensive experience in succeeding within a demanding and highly competitive market, which the Czech Republic undoubtedly is. This very experience and know-how are prerequisites for a successful expansion. As the saying goes, fortune favors the prepared.

However, there are fewer sellers who are also manufacturers of unique, high-quality products. Yet, it is precisely these kinds of products that are sure to find satisfied customers across the EU. Many success stories of e-shops, including those from the Czech Republic, prove that a well-chosen and thoroughly prepared expansion is the way to increase company value and ensure stable growth.

Expansion Within the European Union

The primary benefit of a well-managed expansion (besides the aforementioned increase in company value) is spreading the risk across multiple sales channels. To sum it up, when selling, the main priority is driving revenue growth.

Therefore, every seller must properly prepare for expansion, especially when it comes to market selection. They should ensure that new customers from the chosen country find the purchasing process just as simple and streamlined as they would with a domestic seller. The cornerstone, therefore, is high-quality localization.

The European Union constantly strives to function as a single entity, particularly in terms of harmonizing legislation. However, just as overriding laws exist at the national level, business is also influenced by the mentality and culture of individual nations.

During online shopping, issues can arise from unclear product descriptions and insufficient product photography. Customers are frequently interested in precise details regarding order delivery, return policies, warranty claims, or refunds. If the descriptions on the e-shop are confusing, poorly translated, or hard to find, it can lead to an unnecessary burden on customer support and financial inefficiency. It is also crucial for e-shops to provide accurate and detailed information about order status, expected delivery dates, and shipment dispatch.

Most customers do not hesitate to increase their order value by adding more items if motivated by the option to get free shipping or free returns. However, one of the main reasons people prefer domestic e-shops over foreign ones is high shipping costs or customs fees. Furthermore, if the return policy is complex or unclear, the customer will abandon the shopping cart without converting.

We also commonly see a reluctance to review services when customers are specifically prompted to do so, for instance, via automated emails. However, it pays off to motivate customers to fill out a satisfaction questionnaire by offering a special deal or a discount on their next purchase.

Doors to a new market can also be opened by local e-commerce associations:

• Hungarian: https://ecommerce.hu
• Croatian: https://ecommerce.hr/
• Romanian: https://www.gpec.ro/

Market Finder is a free tool by Google that helps you identify suitable markets and provides useful insights when expanding abroad. Simply enter your website URL, and Market Finder will show you where the highest demand for your products or services is.

The tool also provides information on how frequently people in a given country shop online and determines the barrier to entry for specific markets. Additionally, it offers estimated costs-per-click across different countries and detailed data on each market. By clicking on individual countries, you can get even more insights: tips on reaching your target audience, info on purchasing power, or the legal requirements for online businesses in that specific country.

For further up-to-date insights on the topic of expansion, we recommend subscribing to the Expandeco newsletter in Czech and following blog.heureka.cz.

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