Ecommerce Localization: The Ultimate Guide

Simply put, ecommerce localization is making your online store suitable for a new culture, language, geographical region, or other specific group of people.

But this isn’t just using Google Translate on your website and social media. It’s about taking the time to understand a group’s culture and how that impacts how they shop online.

We’re all better communicators when we’re curious about others. And if you invest a little time, paired with ecommerce best practices, you can reach a potential huge audience in ways most of your competitors aren’t doing.

Sounds good, right?

There are so many benefits to ecommerce localization. Here are just a few:

More Money

The more people you appeal to the more you make. A great example is how customers use the search engine in your online store – up to 70% of ecommerce sites don’t give useful results unless the customer uses exact wording. Knowing and providing the actual words your new audience would use will dramatically improve conversion.

Scalability

You determine the pace of your online store’s ecommerce localization. As your business grows, you can expand your brand identity to any size audience that you want when you want it, no matter where they are. Find out other ways to scale your ecommerce business here.

Better Customer Service

Imagine being able to better predict what your new audience will want, what they need, and the best way to let them know about it. A business that learns about its customers and their needs is the kind that creates loyalty and attracts customers to its store time and time again.

Collaborations

Being an entrepreneur or business owner is so much more than the bottom line! Exciting things happen when we collaborate, and ecommerce localization opens you up to a brand new world of businesses and creatives and customers who you wouldn’t normally have access to. Valentino collaborated with Chinese giant Alibaba, which led to a successful pop-up store and further collaborations. The Valentino brand is now one of the most beloved brands in China.

Let’s get to the business side of things. There are some key steps and areas of an ecommerce store that can be localized, including:

Market Analysis

People are happier to buy from online businesses that are localized whether its color schemes, buying patterns, how language is used, cultural rules, or a host of other elements. It’s all information that when correctly applied can deeply strengthen and broaden your market presence. Read our guide to learn how to conduct market research.

Language

Language is really important in your ecommerce localization. 75% of online customers are more likely to buy again if customer service is in their native language. There’s not really much point in converting your goods and services to a new audience without the correct words to reach that new audience in the first place.

SEO Meta Data

This is another arena where it’s not just about translating terms. There is really specific info about how keywords should be used in their own context, because depending on the microlocation, word choice and order can change.

Payments and Prices

Price sensitivity is essential because you won’t sell anything that’s overpriced, and you will make smaller profits on things that are underpriced. And payment methods are important too!

Not everyone has a credit card, and some people need paper methods of payment even in an ecommerce store. Plus, different countries favor different payment methods – offering familiar payment options can help to build trust with your customers. This chart from Shopify shows the variety of payment habits in different countries.

Shipping

The more you know about the reliability of local postal and delivery services, what types of pick up and drop-off locations are best, and how local events and weather impact shipping, the happier your customer will be. Read about ecommerce shipping best practices to become a master at it.

Logistics

As an online store owner, you’re part of a supply chain. So are your potential customers. Is your target region logistically feasible from where you are? It’s not that you shouldn’t deliver to the research center in Antarctica, but should you be offering them next day delivery? You can even use AI in logistics to help you improve your operations, providing analysis such as route optimization and predicting trends.

VAT

Tax is always a tricky one for any owner of an ecommerce business. Do your research on international tax laws and import and custom fees because you can inform your customers up front about costs and you’ll be protected from nasty legal and financial surprises.

There are more than business and logistical considerations in ecommerce localization. There are key cultural aspects to think about that will vastly improve your results including:

Currencies

Want an easy way to increase your conversion by 40%? Provide prices in local currency or add a currency selector on your website. Customers prefer prices in their currency so that they know right away if it’s affordable. Ecommerce localization legend Zalando provides prices in home currencies.

Slang Terms and Jargon

Have you ever heard a tourist try to speak your language with old-fashioned, formal words? Or have you done that while traveling internationally? A lack of culturally-aware slang is a flashing sign that you’re a novice. Take the time to learn the slang and you’ll communicate better and show you care. Bonus: slang can be hilarious.

Dimensions

People in the USA might be used to miles, gallons, and inches. But just about everyone else (except Myanmar and Liberia) prefers metric. You want your buyers to understand exactly what they’re getting or you’ll be faced with expensive returns.

Time Zones

No one wants a customer calling their service line at 3:54am. So whether you plan on having a chatbot take down your international customers’ feedback or questions, or you open up a specific window of communication for them, be aware that international customers might have needs outside your usual 9-5.

Date Formats

If your special holiday sale ends on 1/3, that means January 3rd to you, right? But to most people around the world, it actually means 1st March. Make sure your dates automatically convert or make it foolproof by writing them out.

Popular Regional Brands

The competition might be low where you are, but what’s it like in the new regions you’re got your eye on? What do the most popular regional brands do? How do they reach their audience? How do they present their products, prices, and company?

Considering all the tools and information available for online businesses that are considering ecommerce localization, it seems to not do so would miss out on huge financial and social benefits.

It’s more than that, though. Ecommerce localization is a chance to not only increase your customer base, but to get an advantage over your competition, and to create new friendships and collaborations with amazing people you might have never met otherwise.

There aren’t many things that both broaden your horizons and your wallet, so why not give it a try?