The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
International selling tips for small businesses: How to sell online for beginners
Whether you’re selling erasers or auto parts, we can probably guess your biggest business concern — finding and attracting new customers. The good news is that a world of potential customers is out there, just waiting to buy what you’re selling. But to find them, you need to think globally.
If you have any doubts that selling internationally is a real opportunity for your business, just look at the numbers. In 2023, global retail e-commerce sales reached an estimated $5.8 trillion and are expected to surpass $8 trillion by 2027, according to Statista.1 Thanks to broadened internet availability, buyers in both developing and established markets have better access to businesses that sell products online around the world. If you apply the right international selling strategy, your business could be among them.
Before you open your doors to sell products domestically and abroad, you’ll need to have a solid plan in place. We’ve outlined five critical areas of planning for international selling, so you’ll be well prepared to give your customer base a major boost as you get started.
Identify your target markets to sell internationally online
Like any new venture, selling internationally online requires you to do your homework. Your first step is to learn who your ideal international customers are, what they buy, and how they shop. These customers may or may not be similar to the ones you sell to domestically. It’s important to explore the nuances in your customer personas between various markets you plan to serve so you can target them appropriately.
Gather market intelligence
Start by looking at your own data to see who already buys your products. Are there patterns that speak to geographic or cultural trends? If so, try expanding your reach into markets that align with your existing shoppers, even if only to test selling specific products.
You can also conduct surveys of your existing customers to try and figure out what they like about your products, as well as what could be improved. Be sure to include optional questions about their backgrounds and demographics — if respondents choose to share this information, you’ll be better equipped to make assumptions about which parts of the world might be receptive to your products.
Research demand for your product and local buying trends
To help inform your target markets, analyze the top countries that have strong demand for your product and niche specialty. Is there a gap in the market? Are there specific holidays or times of the year when your product might be more popular?
While you’re at it, try to learn as much as you can about what sells in the markets you’re looking to expand into, as well as consumers’ spending patterns and from which countries they typically buy. This will give you a better chance of narrowing down your target markets to those that are truly the right fit.
Don’t forget to evaluate specific online selling platforms like Amazon, eBay, or Etsy to see which perform well in the geographic markets you’re considering. You might want to sell your products on your own website domestically and on Amazon internationally, for instance, or offer Amazon purchases both domestically and internationally. Let your research be your guide.
Consider how customers want to pay
Your next step is to start thinking about how customers will pay you when they order from your store. As you research payment providers, consider how buyers prefer to pay in the global markets you’re targeting and a given payment provider’s reputation in those places.
Research local buyers’ preferred payment methods
It’s critical to know the preferred payment methods in the markets you’re looking to expand into. Keep in mind that they’ll likely vary significantly depending on the country.
Most people prefer paying in their local currency. Some payment providers allow you to list products in several different currencies. If you can’t offer payment in local currency, make sure to give a currency conversion so customers can easily see what they’re paying.
Larger selling platforms may handle payment processing in local currencies — as well as the sales tax on purchases — on your behalf. It’s important to evaluate these features before selecting a payment platform, as dealing with currency conversion and sales tax can take up a lot of your time down the line. Customers may also choose to shop elsewhere if they don’t see an option to buy in their local currency.
Choose a payment provider with a reputation for security
Look for a payment provider with a strong global reputation. You’ll also want to target one that offers services to help you proactively prevent fraud. In turn, this can protect both your customers and your business, as well as help ensure you remain compliant with the Payment Card Industry Data Security Standard (PCI DSS). This is a set of rules for preventing, detecting, and reacting to security incidents. Need tips on choosing the right payment processor for your international sales? Check out our helpful guide.
Pay close attention to fees and regulations
Selling internationally brings a whole new set of rules. Once you’ve decided where you’ll sell, take the time to investigate specific rules and regulations for that country. This can be quite complicated, so you may wish to choose a selling platform that handles these things on your behalf. Following are a few key areas to consider.
Fees
Take note that accepting payments internationally can come with different fees depending on location, currency, payment type, and more. Read this for more information about international taxes and fees.
Duties and taxes
Find out if duties and taxes will affect the prices of items you plan to sell in target markets. Make sure you understand the rules that apply to your products so you can let your customers know about any expenses they’re expected to pay from the outset.
Customs
All of your international shipments will have to make their way through customs, the agency that regulates shipments entering a country or region. Each package will need a customs form on the outside; some shipping services even help take care of this — be sure to research if yours does.
Free-trade agreements
These agreements are good news for international sellers because they help reduce or eliminate tariffs on some products. The U.S. has agreements with 20 countries, and while taking advantage of these agreements might mean more recordkeeping work for you, the savings may be worth the extra effort.
Think about shipping and returns
The best practices you already apply to shipping are even more important when learning how to sell online internationally. Check out this article for more helpful information on shipping best practices.
Set clear delivery expectations
International shipping can take longer and cost more for customers, so it’s vital to keep them in the loop. Give accurate delivery estimates based on country, and list shipping costs in an easy-to-find place on your website or selling platform to set expectations from the outset.
Establish a clear return policy
When putting your online shipping policy together, consider:
- Any requirements as detailed by local consumer laws.
- Refund stipulations, like when you’ll issue them and whether you’ll give store credit or a cash refund
- Time limit for returns
- Restocking, return delivery, or other fees
Plan your international shipping market entry
When you sell products online, you have several options for entering the international market.
Start small on an existing online marketplace
Established international selling platforms like eBay, Etsy, and Alibaba can often give you better reach for a lower cost. They allow you to test demand for your products before committing a large sum to redevelop your site.
You should also consider other international selling sites that may be popular in your target market, such as Amazon, Shopee, AliExpress, Rakuten, Mercado Libre, and Walmart. To determine which might be popular where you’d like to sell, ask your existing customers via surveys, rely on focus groups, do market research, check what your competitors do, and see what products sell well on any international selling platform you’re considering. It will likely take a bit of trial and error to determine the best combination of places and platforms for your business.
Optimize your current website
A slightly more advanced option is to optimize your current website for international buyers. You can start by simply highlighting your ability to accept international orders with information on the countries served and the shipping costs.
Once you have more experience, you can explore listing your products in local currencies for those with a non-U.S. IP address, and maybe eventually install a multi-language toggle for your website.
Create a custom website for certain markets
The most advanced option is to build a website designed to appeal to specific overseas customers. This can include investing in a local domain name. The products and strategies that work in the U.S. may not necessarily work in other countries, so a targeted website gives you full flexibility to test the best presentation of your items. It’s also a chance to optimize for the most popular search engine in the country in which you’re selling.
Google is a big name in SEO, but you may need to appease other search engines, depending on where you’re planning to sell internationally online. Don’t forget newer technologies, like AI search optimization, when building your website and content strategy.
If you take this route, remember to test the experience to ensure elements like text translation, currency conversion, and calculation of online shipping costs work correctly.
Your future customers are waiting
Like traveling, selling products abroad is an adventure we highly recommend. It has the potential to expose your business to new countries, cultures, and most importantly, customers.
How to accept international payments
Learn more about how you can easily accept payments from around the world with PayPal.
FAQs
Related content
Sign up for the PayPal Bootcamp.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.