5 tips for expanding your digital business to new market
There are so many things to think about before you start selling your products in new country. You have to be sure that all internal assessment prior to the launch has been done. Here are some challenges you should prepare for before going to new market.
Before you expand, you have to determine what your competitors are already doing in this country. Understanding the competitive landscape can be of the great value before trying to sell in another country. A detailed competitive analysis should be conducted through various online tools available. Set up Google Alerts on top competitors so that you get an e-mail every time they get a mention online. Monitor social media such as Twitter for mentions of your competitors’ names. Such all-in-one marketing tools as Serpstat and Semrush are of great value too since they provide unlimited access to analytical data, custom reports and many others.
Think globally and act local when it comes to pricing. Most companies completely fail to adjust prices in new markets as good as they do in their domestic markets. Some products they sell too cheap and others too expensive. Also, evaluate yours and your competitor’s pricing approach.
You also have to mind tax excluded and tax included scenarios. Tax Included pricing means you sell at the same price in all countries. The excluded tax price will be all time the same. But tax will be calculated before payments and added to the excluded tax price depending on your customer’s country.
Prepare a list of potential markets that would be a good fit for your product. Then, narrow this list down to the top three or five. Focus on one market or one small region and its problems, and solve those before moving onto the next market.
Find local partners
Partner companies who are used to operate in the local market can provide useful outsourcing from translation and localisation of product to efficient distribution.
Mind Tax Rules
Digital tax rules are changing rapidly and companies need to know how these new legislative approaches affect their growth planning. Every year several countries are introducing new laws to tax digital transactions. For instance, New Zealand consumers now can now fall under penalty up to NZ$25k for using VPNs for trying to hide their country location to avoid GST.
Above are five important steps to be always in the loop:
- Register your company for VAT in the countries you sell
- Identify your customer correctly using applicable local tax rules
- Submit quarterly VAT returns
- Keep records of all the data for 5-10 years (depends on the country)
The best way to ensure you correctly navigating in local VAT matters is to find an experienced agent within that country. Contact LOVAT to be sure you’re compliant.
After four years of preparation and debate the GDPR was finally approved by the EU Parliament on 14 April 2016. The GDPR strengthens the rights that individuals have regarding personal data relating to them and seeks to unify data protection laws across Europe, regardless of where that data is processed. Learn the GDPR requirements that will most impact achieving GDPR compliance for your business here https://ec.europa.eu/info/law/law-topic/data-protection_en.