Europe has a large population of 743M people. This country offers great growth potential for U.S.-based eCommerce companies.
With 703B USD vs. 891B USD (2019), EU eCommerce is nearly as large as U.S. eCommerce. However, it is very difficult to reach all of Europe at once as the continent is divided by languages and cultures. We market to each country, not Europe. This allows us to maximize performance and achieve a better ROI per euro invested.
We have spent more than 175,000 hours managing digital campaigns for clients in Europe since 2013. This has given us a lot of valuable experience that we can share with our clients.
It is crucial to plan your business in Europe. You need to be familiar with the markets, your competitors, and the details of each country in Europe. You will be severely affected in the short- and long term if you do not follow these steps. We have compiled a list of the top mistakes eCommerce businesses make when entering Europe. These mistakes can be avoided if you want to improve your success rate and grow the business.
Mistake 1: One domain for all EU countries
Customers are sophisticated. Before making a purchase, they will often compare prices, offers, and companies. Potential customers will notice if you have a domain at.com and your competitors have domains in their area. People don’t purchase online because they fear problems with a delivery, payments, returns, customer service, and so on. Online purchases are risky. This is especially true if the item is similar in price or if the customer has had bad experiences buying from overseas.
MasterCard research shows that three-quarters of European shoppers (74%) are more inclined to shop locally. When entering Europe, it is important to remember the principle “Think globally, Act locally.” You might consider buying domains in the domain areas you are targeting. Local businesses are rated highly by consumers as they offer*:
- More personalized service: 96%
- Trust – Treating customers fairly: 91%
- Better customer service: 80%
- 86% Quality workmanship
- 79% – Reliability – Delivering what is promised
- Professional staff: 75%
This list of European domain zones will help you to identify the right domain/s.
Mistake 2: Website only in English
Google research shows that 56% of Europeans don’t want websites written in another language. Harvard Business Review, however, says 72% of customers spend the majority of their time visiting websites in their language.
The second mistake is closely related to the first. A website written in English will not be successful as visitors compare it with local products and proposals. Websites written in English only will cause a lot of confusion about returns, delivery, support, payments, and so on. People don’t want to waste their time searching for answers. They simply choose to buy from a local competitor whose website was written in their native language.
Yes, English is the most widely spoken language in Europe. However, cross-border sales within Europe (e.g., customers from Germany purchasing a product from the UK) have become more popular every year. We are referring to local competition within each country. You must ensure that your eStore is written in local languages to achieve sustainable growth.
If you have a unique proposal, one of the reasons your eStore may not be acceptable to write in English is that it’s only English. You can still keep your website in English, but you need to put more effort into the preparation phase to ensure that you meet trust factors (social proof, etc. ).
Mistake 3: PayPal is the only payment method
You should offer different payment options when you target countries by country. PayPal is the most used payment method in many European countries. However, if PayPal is your only option, it will reduce your growth and impact your ROI. Many people in Europe use alternative payment options because most countries have local providers like PayU in Poland and PayDirekt in Germany. Klarna in Norway and Carte Bancaires France.
Before you begin any marketing activities, it is important to identify the most popular payment providers and integrate them into your eStore checkout. This will improve your store’s conversion rate. It is a great way to determine the best payment options and methods by spying on market leaders in your area.
Mistake 4: You are not offering local delivery options
While it’s fine to offer DHL delivery, you could be limiting your growth if that’s all you have. You should also be familiar with your local market and the most preferred delivery options. Deutsche Post, DHL, and Hermes are the top-rated delivery companies in Germany. If you don’t offer delivery via Royal Mail, DPD, or Hermes in the UK, you risk losing customers and money. If you are based in France, it is a good idea to offer shipping via Colissimo, Chronopost, and/or DPD.
To our clients exporting eCommerce, we say that users don’t search for reasons “why to purchase” when they visit a new website. They are looking for reasons “why they shouldn’t buy”. Websites that lack trust factors or offer no option for delivery methods are great “why not buy” signals. You should ensure that you offer at least one of the most popular delivery methods in each country where you are operating.
Mistake 5: The website is translated rather than localized
Even the most skilled translation agencies can fail to get it right. Many marketers will remember the Electrolux U.S. market entry with the translated slogan “Nothing sucks as Electrolux”. It’s funny, but it doesn’t make sense when it comes down to your business or your ROI.
Many websites have had the text translated by “native speakers” who work in translation agencies. This can hurt your business in Europe. The Ad copy and website text must be translated by a native linguist in the country you reside. A local linguist can help you proofread your text. Here are some comments from our local linguists regarding website text translation from Czech to German (translated well agency in Czech).
Mistake 6: There is no local customer support
Forbes reports that 84% of companies that improve customer service report increased revenue. This statement is a complete agreement.
People will contact your support team once you have started marketing and operational activities for a country. People rarely contact you to say “Thanks for the great product and fast delivery”, but they are looking for answers to critical questions, such as pre-purchase, order delivery status, or technical issues. Likely, they won’t receive prompt answers from a native speaker, and your business metrics will be considered poor. You can sometimes solve this problem with an FAQ section, but it isn’t ideal because people don’t want to spend too much time searching and reading for the answer to their questions.
People won’t trust you as much if you are new to the market. This is because you don’t have any history or social proof from that country. This situation can be significantly improved by local support and will allow you to scale your business faster.
On average, we see a 27% increase in conversion rates when clients add local support to their websites. If you are looking for one, be sure to check out our top e-commerce agencies within the UK directory.
