6 minute read
If You Are An Ecommerce Seller DREAM BIG!
There is a saying that to have a big dream requires the same effort as having a small dream. So dream big! When you think about the eCommerce industry, marketplaces like Amazon, eBay, Shopify, Magento, etc. all have created windows of opportunities for sellers to dream BIG. What does it mean to dream big in the Ecommerce world? It means GOING GLOBAL!
Being an entrepreneur my whole life has taught me that this saying couldn’t be more true. The name of the game to achieve your BIG DREAM is EXECUTION. I have come to learn that the real problem is (almost) never the idea, but actually the commitment to time, money and energy that it takes to make this idea become a reality. Having worked closely with Amazon Sellers and eCommerce Sellers for the past few years, I’ve seen many businesses either succeed or fail to achieve this global expansion…. And I want to share some of that experience with you here.
CREATING A GLOBAL MINDSET
Developing a Global mindset is the first attribute that differentiates Amazon Sellers that have achieved success. They work to develop relationships, partnerships, and alliances with suppliers, service providers, management tools that have the capability to support your quest of becoming a global company. Some examples here are inventory management systems, global shipping companies, warehouse infrastructure (Amazon Sellers can count on FBA, which is huge), payment platforms among others. Sometimes this means saying goodbye to long-time companies or providers that were good enough for the company to sell locally but doesn’t have the capability to support your business world-wide.
IDENTIFYING LOCAL NECESSITIES
Other times, it will be the exact opposite. You will have to find suppliers or providers that can address a local demand also have the local knowledge to do so. Examples here are: lawyers, accountants, listing specialists, tax advisors, among others. Knowing when to opt for a local provider is a must and can save you of a lot of trouble.
CREATING YOUR GLOBAL ROAD MAP TO SUCCESS
It may sound old-fashioned but creating your GLOBAL ROAD MAP (or business plan) gives you freedom. You may say “what do you mean will give me freedom? A ROAD MAP may hold my company and things will change a lot. I can’t have a plan?”.
I have always liked one simple analogy: A Ferrari has a lot of horsepowers and can probably go from 0 to 100 miles in 5 seconds. But have you ever looked at the size of its brakes THEY ARE HUGE. Do you know why? It is because you need to have control of what is going on and be able to maneuver it according to what happens around the car.
A GLOBAL ROAD MAP gives you the same ability. It allows you to understand where you are going and to control and maneuver your company if anything different than planned happens (and be 100% sure that it will happen). It will force you to prioritize and say no to (A LOT) of opportunities that will appear but will prevent you from achieving the goals you previously set. And achieving your goals and getting the expected return is what keep companies alive and healthy enough to keep growing,
This GLOBAL ROAP MAP must contain:
- 1. Goals for each market (so you can measure your results)
- 2. Actions that need to happen so you can achieve your goals
- 3. Responsible for each task (a lot of them will be yourself and this is fine)
- 4. Deadlines for each task so you can prioritize your company’s efforts and energy
- 5. Partnerships you need to establish to make it happen.
CREATING YOUR GLOBAL TEAM
If you are an Amazon Seller, you have one giant advantage on the Amazon FBA Service offered in a lot of Amazon’s Marketplaces around the world. This makes easier to jump-start your plan. But don’t forget to look for the right partner. Especially in the areas below:
- 1. Suppliers: search for a partner that know how to produce and pack your products according to the marketplace you will send your inventory to. This makes a BIG difference for the results you are expecting to achieve.
- 2. Supply-chain: have a partner that can handle your global shipping and understand local laws and regulations and especially Amazon FBA process. Being able to ship your products and deliver them according to Amazon’s requirement is a MUST. They should always handle any problems that (will) arise.
- 3. Branding and Marketing: Make sure that your brand makes sense in the markets you are entering and hire a specialist to modify your labels and listings according to local language and requirements. It is also nice to have a relationship with an agency that understands how to pilot your Amazon Advertising campaigns.
- 4. Payment Infrastructure: Having a partnership with a company that has a global presence and allows you to send and receive payments worldwide is a game-changer. If you are not looking for it, there is a lot of money being left on the table. Search for a company that can offer you good rates and fees, and a global wallet that allows you to manage it by yourself.
- 5. Working-Capital Solution: All that growth and investment can demand a lot of capital and probably, by the time your company goes Global, you shouldn’t be supporting your company by yourself. From our experience, traditional institutions do not understand (or take into consideration) sales from other geographies (unless you are a huge corporation) and will probably require a personal guarantee to give you funding. Also, if you are an international seller selling in other countries that are not your home country, you won’t be able to get working capital in any of these places from local institutions. So, try to find a company that understands your challenges and you’ll be in much better shape to keep up with the growth you will face worldwide.
COMPANIES MUST GENERATE VALUE
Companies exist to generate value. If you are pursuing the BIG dream of going global, you are going after an opportunity to increase your company’s value through expansion. And to expand successfully you must have the right plan and the right team to execute it. Once you have that in place, the value generation booms and you increase your profit and your company’s valuation. But bear in mind that, even though dreaming small (LOCAL) and dreaming big (GLOBAL) demands the same energy, implementing big demands a lot more EXECUTION. I’ve seen a lot of Amazon Sellers (and other eCommerce Sellers) fail and succeed. And what I can tell you is: to go Global, have a good plan and the right team (in-house and outsourced) to help you EXECUTE it.
And never forget, no matter what dream you are chasing, have fun doing so. We have only one life to live! Cheers!
This article was contributed by the Co-Founder of Sellers Funding
SellersFunding is a is a global lending solution for E-Commerce Sellers. If you are looking for credit solutions to leverage your expansion to other markets or launch a new product. You can apply for up to $500,00 and borrow in USD, GBP, or CAN!
There strategic partnership with PingPong is just another example of how resourceful companies can work together to bring clients AMAZING tools and results!