by Mona Abdulla
http://www.AutomatedNotes.com
©
2009
The fact of the matter is that almost 46 percent of
current Internet companies turn away international orders because they do not
have processes in place to fill them. Therefore, although the Internet makes it
possible for a company to sell items in an international marketplace, many companies
are not prepared to go global.
Many Obstacles to selling
across national boundaries exist. They include communication barriers, cultural
differences, global shipping problems due to a lack of sufficient infrastructure
and varying degrees of Internet capability in countries.
Companies
preparing to launch global e-commerce sites should keep in mind that a key step
is to prepare for international shipments. Smaller products mean air transport
is affordable and DHL Worldwide Express, FedEx And UPS offer excellent shipping
options. Larger merchandise normally is shipped by some type of freight forwarder.
Both
express delivery and freight forwarding companies usually will be of assistance
in shipping to countries they serve. These companies offer specialized logistics
software and also provide the proper documentation and forms to meet the regulations
of each country.
Making shipping arrangements is not all
that must be done. Internet companies must examine both export and import laws
in the countries involved. After working on the shipping, payment mechanisms must
be installed. Each country differs not only in terms of type of currency but also
in methods of payment. For example, in Europe, debit cards are preferred to credit
cards. Europe also has a high rate of credit card theft which increases the risks
associated with accepting them.
Another challenge in the
international arena is developing websites that appeal to the audiences of each
country. This entails adding information that someone in another country would
need such as the country code for telephone numbers. It also requires removing
or changing any colors, words or images that might be offensive to a particular
group of people in another country.
This might seem easy,
however, simply translating an English site into another language is not sufficient.
The company must have someone who understands both the language and the culture
of the target area in order to ensure no one is offended by a company's marketing
efforts. Also the cultural assimilator should check to make sure the proper meaning
is being disseminated for each communication effort. Using local firms to translate
the Web pages often prevents these types of communication problems from occurring.
Probably
the most difficult challenge companies face in the international market is the
technical side of the e-commerce site. Software compatibility is a major technical
issue that has not yet been resolved. Countries vary in terms of how they handle
e-commerce and these various technologies must be merged into one system. Information
Technology (IT) people must be involved in every step of an internationalization
process.
In the future, the growth of international e-commerce
is likely to be explosive. Firms that - - get in on the ground floor - - may have
a major marketing advantage in the years to come.
