What is eCommerce localization? Strategies for success

eCommerce localization is the passport for your online store, allowing it to travel across borders, languages, and cultures with ease. The internet might be a global village, but you need the right documents to be welcomed and resonate with the locals.

Juniper Research predicts cross-border eCommerce will hit $3.3 trillion by 2028. That's trillions worth of opportunities to connect with customers ready to buy – if you speak their language. The question is: how much of that money are you leaving on the table by sticking to a one-size-fits-all approach?

This in-depth guide demystifies eCommerce localization and provides a clear path to expand your reach and capture international sales.

What is eCommerce localization?

eCommerce localization is the process of tailoring your online store to meet the unique expectations and preferences of customers in different countries. It covers every aspect of the online shopping experience – from language and currency to cultural nuances and payment options.

How does localization work?

Say you're a US-based online vintage clothing retailer looking to expand into France. An effective localization strategy would involve:

• Translating all website content into French
• Paying close attention to cultural differences and reflecting the French appreciation for fashion terminology
• Displaying prices in Euros
• Integrating popular French payment gateways
• Featuring imagery and lifestyle shots that resonate with French fashion sensibilities
• Ensuring compliance with French data privacy laws, particularly the GDPR

Localization strategy advantages and challenges

eCommerce localization is a ticket to worldwide success. But before you dive in, let's break down the benefits and the challenges you might face.

Advantages of a localization strategy

1. Fuel growth

Localization goes beyond simply reaching new customers; it unlocks substantial growth. 

While focused on SaaS businesses, Paddle's research shows that companies prioritizing localization experience a 30% faster growth rate than their counterparts. Their average growth rate continues to climb as they expand into more localized markets, demonstrating the compounding benefits of a global approach.

2. Gain a competitive edge

The internet is a crowded marketplace – a sea of sameness. Localization is your chance to break through the noise. It provides a significant competitive advantage because it caters to the deep-seated desire for personalized experiences. 

A CSA Research study, Can't Read, Won't Buy, found that 76% of consumers prefer buying products with information presented in their native language. Moreover, 40% refuse to engage with websites in other languages. 

3. Expand market reach

A localization strategy opens doors to a vast and diverse pool of potential customers. With global eCommerce sales projected to surpass $8 trillion by 2027, expanding your reach is indispensable for sustained success.

Google's data underscores this point: about half of all Google searches are multilingual, with users often seeking information in languages different from their default settings.

4. Elevate customer experience

A localized experience transcends mere convenience; it cultivates trust and loyalty. You can nurture lasting relationships that generate repeat business and positive word-of-mouth referrals by demonstrating respect for lifestyles and making customers feel valued.

Challenges of a localization strategy

1. Navigate complexity and cost

A comprehensive eCommerce localization requires significant financial and human resources. Translation, website development, ongoing maintenance, and cultural adaptation demand careful planning and budgeting. 

Naturally, the potential for high upfront costs can be a disadvantage of a localization strategy, particularly for businesses with limited resources

⚡ Pro tip: To offset these initial costs, consider alternative funding options like revenue-based financing. This model aligns repayments with the revenue generated from your localized markets.

2. Maintain brand consistency

Balancing localization with a consistent global brand identity can be challenging. While adapting to local preferences is crucial, preserving the essence of your brand across all markets is equally important.

3. Ensure legal and regulatory compliance

Every country has its own set of rules and regulations. You must navigate the complexities of data privacy laws, import/export regulations, and consumer protection standards in each target market for long-term success and risk mitigation.

10 key aspects of an eCommerce localization strategy

We've established that eCommerce localization is key to global success. Now, we’ll unpack the essential elements that form a winning strategy.

1. Language and translation

Language forms the bedrock of communication, especially in eCommerce, where it bridges the gap between you and your global customers. However, a simple word-for-word translation won't cut it.

• Embrace cultural nuances: Recognize the subtle differences in humor, tone, and communication style across countries. A phrase that resonates well in one region might fall flat or offend in another
• Prioritize linguistic precision: Engage professional translators who are native speakers of your target language and understand nuances. They ensure your messages are authentic
• Decode technical jargon: Selling specialized products? Your translators must grasp the relevant technical terminology to maintain accuracy and clarity

⚡ Pro tip: While automation and AI tools can assist with translation, especially for large volumes of text, human oversight is crucial to ensure accuracy, cultural sensitivity, and overall quality.

2. Domain

Your domain name is your online address, and in the world of eCommerce, first impressions matter. 

While .com might seem like the universal choice, many international shoppers feel more secure with a domain that reflects their location. TrustedSite research shows that 92% of consumers hesitate to buy from websites they perceive as unfamiliar.

So, how can you project a trustworthy image across borders? Consider these domain strategies:

• Subfolders (e.g., brand.com/de): A cost-effective way to offer localized content while maintaining a centralized website structure
• Subdomains (e.g., de.brand.com): A balanced approach that allows for dedicated regional sites while preserving brand consistency
• ccTLDs (e.g., brand.de): A powerful signal of local presence that resonates with shoppers and can boost search engine visibility within that country

The best choice depends on your business goals and target markets. If you're targeting a particular country, a ccTLD often makes the most sense. For broader international expansion, subdomains or a well-structured website with language targeting might be more suitable.

3. Currencies and payment options

Imagine landing on an eCommerce website only to find prices displayed in a foreign currency and payment options you've never heard of. There goes your excitement, replaced by confusion and mistrust.

Don't make your customers do the math. Several tools and plugins can detect a user's location and display prices in their local currency.

Every market also has its preferences. Credit cards, digital wallets, bank transfers, cash on delivery – the options are endless. Do your research. Find out what your target market uses and make it available.

Imagine you're a US-based online retailer looking to expand into Brazil. Here's how you can tailor your currency and payment options for Brazilian shoppers:

• Currency: Display prices in Brazilian Reais (BRL) instead of US Dollars (USD)
• Payment gateways: Integrate popular Brazilian payment methods like:some text
  • Boleto bancário: A voucher-based payment system widely used in Brazil by those without credit cards
  • Pix: Brazil's instant payment system, which allows for quick and secure transactions using QR codes or unique payment identifiers
  • Local credit card installments: Offer the option to pay for purchases in interest-free installments, many Brazilians rely on this payment method

4. Product pricing

Since we've mentioned currencies and payment options, let's dissect another critical element of eCommerce localization success: product pricing. A localized pricing strategy introduces a labyrinth of cost considerations, from import duties to cross-border shipping.

So before setting international prices, analyze the cost structure for each target market. Consider product costs, shipping fees, import duties, taxes, and potential reverse logistics expenses. By the way, learn how to write an airtight return policy for your eCommerce in our step-by-step guide.

Generally speaking, avoid the temptation of a uniform global pricing strategy. Instead, tailor your pricing to each target market's unique economic landscape. Factor in average income levels, purchasing power, competitor pricing, and cultural perceptions of value.

5. Product descriptions

Your product descriptions are your online salesforce. They must inform, entice, and convince customers to hit that "buy" button. When localizing for a global audience, remember these points:

• Adapt your product descriptions to connect with the local culture
• Emphasize product features and benefits that address the target market's needs and lifestyle
• Factor in cultural sensitivities when describing products
• Enhance your visibility in local search results by incorporating relevant keywords into your product descriptions

⚡ Pro tip: Don't underestimate the power of social proof. According to a CSA Research study mentioned earlier, 73% of consumers crave product reviews in their native language. Translate existing customer reviews or encourage reviews in the local language to build credibility with new audiences.

6. Imagery

A picture speaks a thousand words, but those words can change dramatically across cultures. When it comes to an eCommerce localization strategy, images that work well in one country might even offend in another.

Keep in mind the context of your target market and choose visuals that align with their values, beliefs, and preferences. For example, a website targeting a market where family values are paramount might feature images of families enjoying meals together.

On top of that, diversity is key. Showcase models that reflect the ethnicities, body types, and ages present in your target audience.

7. Customer support

You already know stellar customer support is crucial for your English-speaking website. Now, amplify that importance as you venture into the global market.

Shopping online should be a breeze, not a linguistic obstacle course. When you offer support in your customers' languages, you erase those barriers and build trust. It shows you care enough to meet them on their terms.

You can offer support in your target customers' languages through various channels:

• Email: Ensure timely responses to customer inquiries in their preferred language
• Phone: If possible, provide phone support with representatives fluent in local languages
• Live chat: Implement multilingual live chat functionality on your website for real-time assistance

⚡ Pro tip: Let AI handle the routine questions. Deploy the best AI chatbots on your website to provide instant support in multiple languages – a key element of successful multilingual site localization – freeing your human agents for more complex issues.

8. Country differences

We've mentioned communication nuances many times throughout this guide, and for a good reason. It's such a critical aspect of eCommerce localization that it deserves a dedicated focus.

Consider these additional examples:

• Dates: The date format "MM/DD/YYYY" is common in the US, but in many other countries, the format is "DD/MM/YYYY"
• Units of measurement: The US primarily uses the imperial system (pounds, feet, Fahrenheit), while most of the world uses the metric system (kilograms, meters, Celsius)
• Sizing: Clothing and shoe sizes vary between countries, even when using standard systems. For instance, a men's shoe size 10 in the US might be a 43 in Europe or a 28 in Japan
• Languages: Websites targeting audiences in right-to-left languages like Arabic or Hebrew should have a mirrored layout with navigation menus on the right side of the screen
• Colors: Color associations vary across cultures. For instance, while white often symbolizes purity and cleanliness in Western countries, it can represent mourning in some Asian cultures

9. Privacy laws and local regulations

Entering the global market ignites excitement, but don't let it eclipse the crucial importance of legal compliance. Countries establish distinct laws governing data privacy, consumer protection, and import/export regulations. Neglecting these laws can result in substantial fines, legal entanglements, and damage to your brand's reputation.

Data protection is non-negotiable for eCommerce localization. Get consent before collecting data and keep it safe. Your customers have rights. They must be able to access, change, and even delete their information.

Consumer protection? Another minefield. Product liability, advertising, contracts – each country has its playbook. Returns, refunds – what flies in one market might get you sued in another.

And don't even think about shipping that product without understanding import/export regulations. Licenses, labels, restrictions – dot your i's and cross your t's.

10. Marketing localization

A localized marketing strategy is just as vital as a localized website. While we've already covered elements like product descriptions, imagery, and cultural differences that apply to this section, you’ll learn additional tactics specific to marketing localization.

Optimize for search engines

Don't overlook international SEO. Conduct keyword research in your target language to pinpoint relevant search terms and optimize your website content. If you're looking to boost your rankings, read our guide on eCommerce SEO for strategies and best practices.

Look for local influencers

If you have the resources, find digital influencers who embody your brand and genuinely connect with your target audience. Look beyond follower count; seek engagement, authenticity, and shared values. Then, collaborate and show how your product fits into their world.

Adapt your marketing channels

The popularity and effectiveness of different channels, especially social media platforms, vary across markets. Research which channels your target audience uses most actively and tailor your marketing mix accordingly. 

For example, in some regions, social commerce (selling directly through social media platforms) might drive online sales, requiring a dedicated eCommerce localization strategy.

Naturally, all of your marketing efforts will depend on your overall approach. For instance:

• If you leverage content marketing, translate and localize blog posts, articles, and other resources to attract and engage your target audience
• When using paid advertising, research relevant paid keywords and phrases in your target language, then tailor your ads

⚡ Pro tip: Maximize your marketing impact by staying ahead of the curve with a holiday calendar. Anticipate and capitalize on major shopping events in different regions, tailoring your campaigns and promotions while remaining respectful of the cultural significance of various holidays.

Speaking of holidays, is your eCommerce business ready for the biggest shopping weekend of the year? Get prepped for Black Friday & Cyber Monday with our guide.

How to localize your eCommerce? Best practices and tips

You've grasped the essential groundwork of eCommerce localization. Now, explore the best practices and tips you need before launching your global takeover.

1. Market research for expansion

Don't set sail without a map. Before translating a single word, understand the territory.

• Not every market will resonate with your brand. Focus on those with a strong demand for your products or services. Look for economic stability and a digitally engaged population
• Step into your customer's shoes. What are their aspirations and pain points? Uncover their cultural nuances, shopping habits, and purchase drivers.
• Know your rivals. Who else competes for your target audience's attention? Identify their strengths and weaknesses to reveal your unique selling proposition

A deep understanding of your target market guides your eCommerce localization journey. It ensures you speak to the heart of your customer, not just their language.

2. Start small, scale gradually

Instead of spreading your resources thin, pinpoint one or two key eCommerce markets to target. Select countries with a proven demand for your products that align with your business goals.

For example, if you sell winter apparel, consider targeting countries in the Southern Hemisphere during their winter months. As you gain experience and generate sales in these initial markets, expand your localization efforts to new regions. Overall, also keep an eye on eCommerce trends in your target country.

3. Test the process

Before you unveil your localized eCommerce store to a new market, test it relentlessly.

Verify flawless functionality across all browsers and devices. Ensure payment gateways process transactions seamlessly. Enlist native speakers to refine your message, guaranteeing cultural relevance and linguistic precision.

4. Leverage technology and automation

Don't just localize; optimize. Leverage technology and automation to streamline workflows, cut costs, and conquer the global market.

Besides the ones you’ve seen throughout this guide, here are a few eCommerce tools to get you started:

• Localization platforms: Crowdin or Phrase for managing translations and adapting content to specific regions
• Multi-currency pricing apps: Shopify Multi-Currency for displaying prices in the user's local currency
• Global payment gateways: Stripe or PayPal for accepting various payment methods worldwide
• AI-powered content generation tools: Copy.ai or Jasper for adapting product descriptions to different languages
• Marketing automation platforms: Mailchimp or ActiveCampaign for personalizing email marketing templates, automating workflows, and nurturing leads
• Shipment software tools: Sendcloud or Aftership for tracking shipments, managing orders, and simplifying logistics

5. Build a network of local partners

Local partners are your shortcut to success in eCommerce localization. They help you navigate the complexities of new markets, build trust, and create a brand that thrives internationally.

From logistics partners who streamline your supply chain to experts who fine-tune your messaging, these local allies provide the on-the-ground knowledge, connections, and cultural fluency that would take you years to acquire. 

Overall, they bridge the gap between your global vision and the cultural intricacies that make all the difference.

6. Be transparent about shipping and taxes

A customer, eager to buy, fills their cart, only to abandon it at checkout. Why? Unexpected shipping costs or hidden taxes.

Show shipping costs early in the customer journey, ideally on product pages or in the shopping cart, before checkout. Offer multiple shipping options with varying delivery times and costs to cater to different needs.

Also, be upfront about import duties or taxes. These vary by country and product value. Be aware of changing regulations, like Brazil's recent import tax adjustments, which can significantly impact your business.

7. Localize your inventory

Don't underestimate the power of proximity. Customers want their orders fast and don't want to be slapped with exorbitant shipping fees. Localizing your inventory means positioning your products closer to your international buyers. This strategy unlocks:

• Faster shipping: Customers receive their orders quicker
• Lower shipping costs: You can offer more competitive shipping rates
• Easier returns: The returns process becomes smoother for everyone

You can opt for your own regional warehouses that offer maximum control over inventory and fulfillment. You manage everything, from storage and picking to packing and shipping. But this option demands capital (think eCommerce financing or inventory financing) and ongoing operational costs.

An alternative is partnering with third-party fulfillment centers in your target markets. They handle storage, fulfillment, and shipping so you can focus on other aspects of your business.

8. Maintain a consistent brand identity

Venturing into new markets demands adaptation. But don't sacrifice the core values that define your brand. Find the balance:

• Craft clear brand guidelines: Create a blueprint. Outline your brand's visual identity (logo, colors, typography) and messaging (tone, values, key messages)
• Don't reinvent your brand name: Resist the urge to localize your brand name unless absolutely necessary. 
• Speak with a unified voice: Let your brand's personality shine through in every language. Provide clear guidelines to translators on your desired tone and voice

Prioritize brand consistency throughout your localization strategies. Cultivate a strong, recognizable identity that transcends borders.

Localization strategy examples and case studies

Want to see localization in action? From adapting to rural markets to streamlining multilingual product launches, these localization strategy examples reveal the power (and the nuances) of a well-executed global approach. 

Amazon localization

We'll start with a giant. A company that needs no introduction, but whose approach to localization deserves your full attention.

Amazon didn't just test the waters of the Indian market; they dove in headfirst, recognizing the potential of 800 million rural customers. The company embarked on a comprehensive eCommerce localization strategy, transforming the entire shopping experience in rural India.

The retail giant reimagined its app, making it accessible on even the most basic smartphones. Product descriptions transformed into a symphony of local languages, accompanied by videos for those untouched by literacy.

And the logistics? The company established cash on delivery (COD) as standard, built warehouses closer to rural communities, and transformed local shops into package depots. 

As a result, Amazon achieved a 49% revenue growth in 2021, a testament to the power of speaking the customer's language.

Simba

Launching in 2015, Simba quickly triumphed in the UK with its mattress-in-a-box concept. However, instead of rapidly expanding globally, Simba adopted a measured "Localize, don't internationalize" approach to prioritize a deep understanding of each new market.

• Extensive research: Simba invests heavily in researching cultural sleep habits, preferred payment methods, and other market nuances
• Culturally tailored approach: Before launching in Germany, Simba discovered the prevalence of pushed-together single beds. Their German website imagery and product suggestions reflect this, unlike their other Western markets
• Localized payment: They prioritize "invoice after purchase" options for German consumers, recognizing its importance there
• Local engagement: Simba sends representatives to new territories, conducts local surveys, and partners with local retailers to gain a deeper understanding of customer behavior

Simba’s eCommerce localization strategy builds trust and loyalty. It has fueled their growth to over $100 million in sales, proving that thoughtful localization, rather than rapid internationalization, is key to global success.

Ellos

Ellos, a leading Nordic e-commerce group with brands like Ellos, Jotex, Stayhard, and Homeroom, confronted a unique challenge. With 150 new products launching daily across four brands, plus 700 external brands in their marketplace, speed wasn't optional. Speed was survival.

The potential for chaos was real: thousands of product descriptions, each requiring translation into Swedish, Danish, Norwegian, and Finnish, all without delaying the product launch. A logistical nightmare loomed.

Ellos partnered with Summa Linguae Technologies to build a system that manages their volume while maintaining quality. Twice daily, the system sprang to life, automatically analyzing and translating product information, and then seamlessly uploading it to the correct product page. 

For other website content, Ellos implemented a streamlined system. They used customized web forms to connect internal teams to the translation workflow. Marketing materials, site updates – everything – stayed in sync across all languages.

Ellos didn't just keep pace with its growth, it set the pace. New products hit the market instantly in every language, maximizing their window of opportunity.

When should localization be used?

If your domestic sales have plateaued, you're already seeing interest from international customers, or your competitors are expanding globally, the answer is clear: it's time to localize your online store.

Are you ready to claim your share of the projected $3.3 trillion in cross-border eCommerce? Localization is the key. It's the bridge between your product and a world of customers. But maybe you're thinking, "Easier said than done. I need working capital to make that happen."

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