Are you ready for e-commerce? Find out how to internationalize your company in digital markets.
Globalization, facilitated by the internet, has opened doors for companies of all sizes to reach new markets, diversify their customer base and increase their revenues. At the heart of this transformation is e-commerce, which has become an indispensable channel for the internationalization of companies. But how can a Portuguese company take advantage of the opportunities of international digital markets?
Are you ready for e-commerce? Find out how to internationalize your company in digital markets.
Globalization, facilitated by the internet, has opened doors for companies of all sizes to reach new markets, diversify their customer base and increase their revenues. At the heart of this transformation is e-commerce, which has become an indispensable channel for the internationalization of companies. But how can a Portuguese company take advantage of the opportunities of international digital markets?
According to a Nasdaq report, e-commerce is growing rapidly worldwide and trends suggest that by 2040 around 95% of purchases will be made via e-commerce. This is therefore an opportunity that any Portuguese company should take advantage of to start exporting or to strengthen or diversify its presence in international digital markets.
What is E-Commerce?
E-commerce is an online sales channel that allows you to reach customers all over the world. Whether sales are made to other companies (B2B) or to the end consumer (B2C), e-commerce can be carried out through the company's website (own store), with total control of the process, greater flexibility of business margins, but with greater investment; through presence on online sales platforms with other sellers (marketplaces), with less risk and less investment, but with greater dependence on third parties and lower margins; through social networks taking advantage of the interactions of its users; or a combination of these options.
The Importance of Online Sales in the Expansion of the Portuguese Market
E-commerce represents a golden opportunity for Portuguese companies wishing to expand into new markets. Portugal, with its relatively small population, has natural limitations in terms of market size.However, through e-commerce, companies can easily overcome these geographical barriers, promoting their products and services to customers anywhere in the world.
For companies wishing to expand internationally, online sales are a crucial tool. A digital presence allows Portuguese brands not only to increase their customer base, but also to strengthen their image and credibility in foreign markets. Through an E-Commerce platform, companies can sell in different countries, adjusting their offers to the preferences and needs of different markets.
According to recent studies, the volume of online sales in Portugal has been growing consistently, with more and more consumers preferring to shop online, especially in sectors such as fashion, electronics and beauty products. According to AICEP - Agência para o Investimento e Comércio Externo de Portugal, online shopping in Portugal represents 3.64% of GDP and 62% of the population who use the Internet on a daily basis have already shopped online.
This growth reflects a change in the behavior of consumers, who are looking for convenience, speed and variety when shopping.
USA and China: the giants of global market
In order to successfully internationalize a company, it is essential to understand the digital markets and their specificities.
The European Union offers an integrated and regulated market, facilitating the entry of companies wishing to expand between its member states. Countries such as Germany, France, the United Kingdom (despite Brexit) and Spain stand out as the largest digital markets in Europe, with consumers highly accustomed to online shopping. According to the report produced by AgileIntel Research in 2020, North America and Europe had a 15% and 6.6% share in 2020, respectively.
Outside of Europe, China and the USA are the two largest and most experienced global markets in terms of B2B e-commerce adoption, accounting for 43% of the global market share in 2020. The Asia-Pacific region dominated the global market with a share of just over 78% in 2020 and is expected to increase to 81% by 2025.
The US has an extremely developed E-Commerce culture, with companies like Amazon leading the sector. China, on the other hand, is the largest E-Commerce market in the world, with platforms such as Alibaba and JD.com dominating transactions. These markets offer enormous potential, but require in-depth knowledge of their cultural, regulatory and logistical specificities.
Entering international markets requires a detailed analysis of consumer preferences, legal issues (such as data privacy and tax regulations), as well as linguistic and cultural adaptation. For example, consumers in Germany value quality and trust in brands, while in China, the focus may be on speed of delivery and customer service.
The role of marketplaces in digital business transactions
One of the most effective ways for companies to enter international markets is through online marketplaces. These are digital platforms where various sellers can list and sell their products, and are extremely popular with consumers as they offer a wide range of options in one place.
The best-known marketplaces worldwide include Amazon, eBay and Alibaba. In Europe, platforms such as Zalando (for the fashion sector) and Cdiscount (popular in France) also have a strong presence. These platforms already have a robust logistics, payment and marketing infrastructure, making the internationalization process easier for the companies that use them.
By using a marketplace, companies benefit from the immediate visibility that these platforms offer, as well as the trust that consumers already have in them. In addition, marketplaces take care of many technical and operational aspects, such as payment management and logistics, allowing companies to focus on the quality of their products and customer service.
However, it's important to note that marketplaces also present challenges, such as high competition and tighter profit margins due to the fees charged by the platforms. Even so, their importance in digital commerce is undeniable, and they are an excellent gateway for companies wishing to test new markets without large initial investments.
The Digital Transition: An imperative for Portuguese companies
With the digital transition advancing by leaps and bounds, it is essential that Portuguese companies take advantage of the tools and platforms available to expand their reach. With a well-planned strategy that includes careful analysis of markets, adaptation to local needs and the use of global marketplaces, companies can not only survive but also thrive in the competitive global digital world.
The covid-19 pandemic has accelerated the demand for digital solutions and companies with B2B business models will gradually invest in adopting technological systems to support online sales. According to a report produced by AgileIntel Research in 2020 and released by AICEP, the global B2B e-commerce market is expected to grow to just over 35 billion dollars by 2025.
In Portugal, the need for a digital transition has been widely recognized, especially after the COVID-19 pandemic, which accelerated the adoption of digital tools and online commerce. However, many companies, especially SMEs, still face challenges in digitalization, such as a lack of knowledge, resources and adequate infrastructure.
However, the digital transition is not just about creating a website or an online store. It requires the implementation of an integrated digital strategy, including digital marketing, data management, logistics and, of course, a constant focus on the customer experience. Digitalization allows companies to operate more efficiently, reach new audiences and compete on an equal footing with international companies.
Andreia Arenga
17.09.2024
According to a Nasdaq report, e-commerce is growing rapidly worldwide and trends suggest that by 2040 around 95% of purchases will be made via e-commerce. This is therefore an opportunity that any Portuguese company should take advantage of to start exporting or to strengthen or diversify its presence in international digital markets.
What is E-Commerce?
E-commerce is an online sales channel that allows you to reach customers all over the world. Whether sales are made to other companies (B2B) or to the end consumer (B2C), e-commerce can be carried out through the company's website (own store), with total control of the process, greater flexibility of business margins, but with greater investment; through presence on online sales platforms with other sellers (marketplaces), with less risk and less investment, but with greater dependence on third parties and lower margins; through social networks taking advantage of the interactions of its users; or a combination of these options.
The Importance of Online Sales in the Expansion of the Portuguese Market
E-commerce represents a golden opportunity for Portuguese companies wishing to expand into new markets. Portugal, with its relatively small population, has natural limitations in terms of market size.However, through e-commerce, companies can easily overcome these geographical barriers, promoting their products and services to customers anywhere in the world.
For companies wishing to expand internationally, online sales are a crucial tool. A digital presence allows Portuguese brands not only to increase their customer base, but also to strengthen their image and credibility in foreign markets. Through an E-Commerce platform, companies can sell in different countries, adjusting their offers to the preferences and needs of different markets.
According to recent studies, the volume of online sales in Portugal has been growing consistently, with more and more consumers preferring to shop online, especially in sectors such as fashion, electronics and beauty products. According to AICEP - Agência para o Investimento e Comércio Externo de Portugal, online shopping in Portugal represents 3.64% of GDP and 62% of the population who use the Internet on a daily basis have already shopped online.
This growth reflects a change in the behavior of consumers, who are looking for convenience, speed and variety when shopping.
USA and China: the giants of global market
In order to successfully internationalize a company, it is essential to understand the digital markets and their specificities.
The European Union offers an integrated and regulated market, facilitating the entry of companies wishing to expand between its member states. Countries such as Germany, France, the United Kingdom (despite Brexit) and Spain stand out as the largest digital markets in Europe, with consumers highly accustomed to online shopping. According to the report produced by AgileIntel Research in 2020, North America and Europe had a 15% and 6.6% share in 2020, respectively.
Outside of Europe, China and the USA are the two largest and most experienced global markets in terms of B2B e-commerce adoption, accounting for 43% of the global market share in 2020. The Asia-Pacific region dominated the global market with a share of just over 78% in 2020 and is expected to increase to 81% by 2025.
The US has an extremely developed E-Commerce culture, with companies like Amazon leading the sector. China, on the other hand, is the largest E-Commerce market in the world, with platforms such as Alibaba and JD.com dominating transactions. These markets offer enormous potential, but require in-depth knowledge of their cultural, regulatory and logistical specificities.
Entering international markets requires a detailed analysis of consumer preferences, legal issues (such as data privacy and tax regulations), as well as linguistic and cultural adaptation. For example, consumers in Germany value quality and trust in brands, while in China, the focus may be on speed of delivery and customer service.
The role of marketplaces in digital business transactions
One of the most effective ways for companies to enter international markets is through online marketplaces. These are digital platforms where various sellers can list and sell their products, and are extremely popular with consumers as they offer a wide range of options in one place.
The best-known marketplaces worldwide include Amazon, eBay and Alibaba. In Europe, platforms such as Zalando (for the fashion sector) and Cdiscount (popular in France) also have a strong presence. These platforms already have a robust logistics, payment and marketing infrastructure, making the internationalization process easier for the companies that use them.
By using a marketplace, companies benefit from the immediate visibility that these platforms offer, as well as the trust that consumers already have in them. In addition, marketplaces take care of many technical and operational aspects, such as payment management and logistics, allowing companies to focus on the quality of their products and customer service.
However, it's important to note that marketplaces also present challenges, such as high competition and tighter profit margins due to the fees charged by the platforms. Even so, their importance in digital commerce is undeniable, and they are an excellent gateway for companies wishing to test new markets without large initial investments.
The Digital Transition: An imperative for Portuguese companies
With the digital transition advancing by leaps and bounds, it is essential that Portuguese companies take advantage of the tools and platforms available to expand their reach. With a well-planned strategy that includes careful analysis of markets, adaptation to local needs and the use of global marketplaces, companies can not only survive but also thrive in the competitive global digital world.
The covid-19 pandemic has accelerated the demand for digital solutions and companies with B2B business models will gradually invest in adopting technological systems to support online sales. According to a report produced by AgileIntel Research in 2020 and released by AICEP, the global B2B e-commerce market is expected to grow to just over 35 billion dollars by 2025.
In Portugal, the need for a digital transition has been widely recognized, especially after the COVID-19 pandemic, which accelerated the adoption of digital tools and online commerce. However, many companies, especially SMEs, still face challenges in digitalization, such as a lack of knowledge, resources and adequate infrastructure.
However, the digital transition is not just about creating a website or an online store. It requires the implementation of an integrated digital strategy, including digital marketing, data management, logistics and, of course, a constant focus on the customer experience. Digitalization allows companies to operate more efficiently, reach new audiences and compete on an equal footing with international companies.
Andreia Arenga
17.09.2024
