Attracting customers from abroad22 March 2005
Although you may be using your online shop or catalogue to sell to customers all over the UK, it can also be the launch pad for extending your business abroad.
If your market research shows there is demand for your products or services overseas, you can start looking at how to adapt your website in order to attract overseas customers. Key issues for you to think about will be:
- Overcoming the language barrier
- Exchange rates and payment
Overcoming the language barrier
The simplest way to overcome the language barrier is to translate the relevant parts of your website. The languages you choose will depend on your budget and target markets.
- German and French are the most commonly spoken languages used in two of the wealthiest and largest European markets, and are often spoken as a second language by other Europeans who don't speak English.
- As well as providing product information in another language, you will need to translate your terms of sale if you plan to allow payment online.
- The Institute of Linguists offers a register of experienced and qualified translators working in most major languages.
- Although a minority of overseas customers looking to buy from a UK business will use English keywords to trawl the search engines, it's worth considering keywording the translated versions of your web pages.
- Foreign search engines are also something to consider - most countries have their own search engines and business directories, so you should think about submitting your site to those in the countries you plan to target. Try AllSearchEngines.com for a list of international search engines.
Exchange rates and payment
Exchange rates and payment are more difficult issues, and you may need to adapt your prices according to demand.
- There's nothing wrong with charging in sterling, but if you want to make purchases as easy as possible for the customer, it will be worth quoting prices in the local currency of the market you are targeting. Use an online currency converter to help work this out.
- Using a payment processing bureau such as WorldPay may be a more straightforward option, as these services offer the opportunity to sell in multiple currencies. Payment details are immediately converted to the local currency for customers, and they are also able to pay in their selected currency.
- Bear in mind the exchange rate between sterling and the euro (used in 11 countries) varies from week to week. If you decide to take payment in euros you may find yourself making a loss should the pound strengthen unexpectedly.
- Don't forget that VAT rules are different depending on which country you're trading with - see the Your Europe portal for a breakdown of the different rates across Europe.
Related links
- The UK Trade and Investment's guide to European markets (link opens in new window)
