Expanding Into International Markets: A Guide for Shopify Stores in NZ
Are you selling your products locally in NZ and looking at how you can expand into international markets like Australia or USA? Here is my strategic guide on how Shopify stores in NZ can efficiently and effectively expand into new international markets.
Step 1: Before You Get Started
Before you get started, there are a few simple things you should do to set yourself up for success:
- Use Shopify Markets: If you aren’t already on Shopify and using Shopify Markets to expand to international markets, you probably are going about it wrong (or doing it in a very expensive way). With Shopify Markets, you will simplify complicated tasks like currency conversion, content localisation, managing product pricing in different countries, etc.
- Secure a global domain: Ideally, you will be able to register the .com version of your brand domain, as well as local domains for local markets (e.g. .com.au for Australia). Getting your global domain early can potentially help you avoid the trouble of paying much more for it in the future if you establish a wide-reaching brand.
- Don’t rush into it: This may be counter-intuitive for a guide focused on how to expand internationally, but for most Shopify stores, you should figure out your local market in New Zealand before adding other countries to the mix. This includes building a following your brand locally, having a successful advertising strategy in NZ that’s giving good returns (we can help you with that), and having a website that converts well to your local market. Without these in place, you are setting yourself up to learn some expensive mistakes if you try to expand to international markets too early.
Step 2: Market Research
The next step before investing heavily into your new market is to conduct market research. At it’s core, you want to know there will be demand for your products if you sold within the market you are evaluating. The ways you could confirm that are:
- Look for competitors: Are people selling similar products in this market, and are they popular? How will your products stand out from these competitors?
- Use demand forecasting tools, such as Google Search Trends or Google Ads to see if people within your market search for your product or related product search terms.
- Speak and interact with your potential customers: Is there a place or event your customers will be at, such as a trade-show in your new market? Go to it, talk to your potential customers, and get their thoughts & feedback on your products (you could also consider bringing free samples or demo products if applicable).
Aside from product demand, you also want to research any other possible issues or challenges with selling within this new market, such as regulations, taxes, import/export restrictions, and operational requirements (e.g. to get a .com.au domain you need to be a registered AU business or have a registered AU trademark).
Bonus Tip: Targeted Advertising Campaign
One way you can test the waters for selling into a new market is run a targeted advertising campaign within that market only which directs people to a landing page. This landing page should say you are shipping to their country soon, showcase the features of your product with photos & videos, and collect emails so that they can be notified when you launch.
This way, you have a fairly inexpensive way of seeing if there is any demand for your products in a new market, and can potentially start creating a mailing list of customers to kickstart your launch.
Another Bonus Tip: Build Brand Reach With Stockists
Here’s the deal, expanding into a new market is expensive. Very likely, customers in your new market won’t know your product exists, this will make acquiring your first few customers in this new market a lot more costly than it is in your local market, because there is no established demand.
Stockists will have an established customer base in your market, and by partnering with the right stockists that align with your product offering, you can tap into that customer base and gain immediate visibility without needing to build brand awareness from scratch. Working with credible stockists will also give credibility to your brand by association.
Since stockists will handle storage, distribution, and usually even marketing for you - this will avoid you needing to invest heavily in local distribution, giving you a way you can test demand for your products in this new market and make some money doing it.
Finding and working with the right stockists can be a skill in it’s own that deserves it’s own post, but here are a few points:
- Find competitors selling similar products in your target market, and see who stocks them.
- Network with stockists at events such as trade-shows.
- Leverage directories and marketplaces online such as Dropped
- Consider offering stockists an initial low-risk order or consignment model to entice them further.
Step 3: Setting up in your new market
Now that you have done your research, and hopefully used our bonus tips, the next steps is to get set up in your new market.
One of the key considerations for this is shipping. You could consider shipping from NZ internationally into your market, but this will mean your shipping will be slow and expensive, which will limit your potential for success in a new market.
The alternative is getting a 3PL (or setting up your own distribution warehouse). By finding a reliable 3PL partner, you can deliver fast and low cost shipping to customers in your new market, with a lot less hassle. Make sure to look for a 3PL with a good track record, and that provides software that integrates with Shopify directly.
For your online store, you should have a Shopify market set up for your new market that displays prices in their local currency. You should also register a domain for your market if you have not already (e.g. .com.au for Australia). Make sure your website clearly communicates shipping rates and policies for this new market, and complies with any local laws such as GDPR.
Step 4: Selling in your new market
Now that you are set up in our new market, the next step is to create demand for your products.
This can be done a number of ways, but the most common approach is through advertising. We have an article that touches on how you can successfully advertise internationally which we recommend reading.
Other forms of outreach you can invest in would include influencers, social media, press, and building a presence at local events.
Need more advice?
We help Shopify stores in New Zealand expand successfully into international markets. If you’re interested in getting help with that, please reach out to us.
