“Expanding your sales worldwide with Google Shopping” is the topic of the latest expert interview with Herbert Knibiehly, Chief Marketing & Product Officer at Glopal.
Today almost 60% of worldwide online shoppers purchase from overseas with the highest percentage in Europe (63.4%). According to Forrester’s estimations, international sales will exceed national sales by 17% by 2022.
As Google Shopping offers retailers ever-increasing global sales opportunities, the untapped sales potential is definitely there. Thus, by targeting international markets via Google Shopping, merchants can open new opportunities and achieve lower acquisition costs.
In this video Herbert shares his expertise about how to leverage Google Shopping for selling internationally and discusses:
- Minimizing acquisition costs
- Optimizing international Shopping campaigns
- Maximizing sales conversions and much more.
Why sell abroad with Google Shopping
There are a number of valid reasons to expand online sales on international ecommerce markets. Among those reasons are:
- High competition on the retailer’s domestic market. Established markets, such as the US or the UK, are large, but also saturated and showing a tendency towards a slowdown in growth.
- Reaching a plateau on the merchant’s local market. By expanding abroad, merchants can increase their market size and achieve lower acquisition costs, e.g. cost-per-click (CPC). New markets are especially effective when there’s a limited availability of specific products or unmet demand for unique products from overseas.
- All-year-round sales of seasonal products. For instance, if merchants offer bathing suits and it’s downtime in winter in the northern hemisphere, countries in the southern hemisphere, such as Australia, can help keep sales of bathing suits up and running in the low cold season.
- More trading hours and unlocking the “365 days per year, 24/7” potential. For example, when American buyers fall asleep, Europeans may just start browsing for products.
How to lower ecommerce acquisition costs on Google Shopping
Going global is especially effective if the level of competition is high domestically.
Paid marketing campaigns tend to reach a plateau at some point in a given market. When this happens, increasing CPCs further to grow traffic tends to decrease campaign clicks, sales and overall profitability. What helps to increase profitability is lowering CPCs.
The possibility of satisfying the unmet demand for unique products from overseas is one of the biggest worldwide opportunities for ecommerce retailers. This is how conversion rates can go up and CPC (cost-per-click) can go down due to a lower level of competition.
For example, comparing CPCs in the USA, Europe and Canada, the average CPC in Europe in some product categories can be even 5 to 7 times lower than in the USA. This implies lower acquisition costs and much higher profitability on selected European markets.
Expanding Google Shopping campaigns abroad allows retailers to tap into new markets that are full of profitable sales opportunities. This is due to the additional visibility to international buyers and the low CPCs on these markets. All combined, the new audiences can typically generate a profitable sales upside of 15% to 30% for merchants.
According to Herbert:
Launching products in new countries allows ecommerce retailers to reach new audiences at a lower CPC. This way they can significantly increase sales whilst maintaining or improving their ROAS.
Easy & efficient way to increase sales on Google Shopping
Launching your business in new markets is an easy way to increase your sales and profitability almost immediately. The best way is to translate and localize your Google Shopping feeds, sort out international shipping options and international taxes & duties. The most effective & efficient way is to automate this process.
Glopal’s automated solution ensures that the merchant’s store qualifies for Google’s requirements, including language & currency. It identifies the best international opportunities, lowers average CPC and increases global traffic. It truly allows ecommerce retailers to scale their businesses internationally without adding overhead. Get started now!
