Global Growth Unleashed: The Multilocal Commerce Revolution

In the dynamic landscape of online commerce, where the pursuit of consumer attention is relentless, a new approach is emerging, Jonathan Sheard, Vice President, Sales at ESW explains.

Globalisation has reshaped the contours of online shopping, compelling retailers to seek innovative strategies that not only penetrate new markets but also guarantee an unparalleled shopping experience that transcends geographical constraints. Enter the era of multilocal commerce, a strategy designed to seamlessly integrate buying experiences for customers worldwide.

Trends in play: the rise of multilocal commerce

Two pivotal trends have converged to drive the ascent of multilocal commerce. Firstly, domestic ecommerce markets are reaching saturation, compelling brands to expand beyond national borders to sustain growth. Secondly, advancements in processing power empower brands to not only make multilocal strategies feasible but also highly profitable. This convergence facilitates the rapid cultivation of demand and service levels that meet the expectations of customers in every market.

Multilocal Commerce for global high performance

Multilocal commerce symbolises a steadfast commitment by brands and their service providers to deliver a purchasing experience equivalent to domestic standards, regardless of where in the world the shopper is buying. While it is not a one-size-fits-all solution, it is an essential aspiration for brands that are really dedicated to customer-centricity.

Diverge from the norm: multilocal commerce vs. cross-border challenges

From the consumer's perspective, cross-border shopping often falls short in terms of cost-effectiveness, delivery efficiency, customer service, and returns processes. Multilocal solutions step in to address these pain points, establishing local return centres, optimising supply chains, and orchestrating assortment planning to reduce costs and streamline shipping times. Unlike static cross-border initiatives, a multilocal strategy demands an ongoing commitment to optimisation, adapting to the evolving global demand for the brand.

Harvest the potential: opportunities revealed by multilocal strategies

Analysts project that cross-border transactions accounted for approximately 22% of global ecommerce in 2022, a figure on a steady upward trajectory. The opportunity lies in bridging the gap between current international sales and roughly 25% of the global gross merchandise value. Closing this gap demands an investment in demand generation supported by logistics, payments, and service partnerships. Crucially, the integration of data into an ongoing optimisation plan becomes the cornerstone of a robust multilocal approach.

Navigate the maze: challenges and triumphs in multilocal commerce

Entering new markets without sufficient demand justification poses a significant challenge. Relying on marketplaces and wholesale distribution as guides can help identify viable multilocal opportunities. Avoiding a one-size-fits-all approach is imperative, given the diverse behaviours and preferences of customers worldwide. Harnessing the power of AI and real-time omnichannel data, particularly through a modern CRM, becomes instrumental in tailoring shipping costs and times for each order, minimising friction and maximising conversion rates.

Manage complexity: ensure all these elements are present

• Merchandise planning to ensure relevant local products making search easy for customers.

• Checkout experience must be seamless, to include billing and shipping addresses, payment methods, shipping options, and completing the purchase.

• Transparent pricing so that carts are not abandoned in the face of hidden fees.

• Payment methods that are familiar and provide consumers with choice

• Warehousing and fulfilment with the right mix of regional distribution hubs, omnichannel fulfilment networks, or multi-origin inventory pools.

• Reverse logistics backed by a localised, branded return portal as part of the online store.

• Customer support that gives a positive experience to create lifelong customers, and so prioritises customer-preferred communication channels, agents who are native language speakers, staffing in local business hours, and deploying AI chatbots for after-hours support.

Beginning the journey: launching multilocal strategies

The prospect of international expansion may seem daunting, but a transparent evaluation by solution providers can determine the opportune moment for investment. For those ready to take the plunge, the rewards can be exponential, leaving an enduring impact on global brand awareness and revenue.