7 Strategies for Asian SMBs to Unlock International Growth This Holiday Shopping Season
The holiday shopping season presents a valuable opportunity for Asia-based small and medium-sized businesses (SMBs) to reach global markets. The scale of the opportunity is clear – Asia is home to 13 of the world's 20 largest trade corridors, many of which export goods to the West1. This volume and growth in cross-border e-commerce, supported by widespread adoption of digital and mobile payments, means Asian SMBs which position themselves to meet demand from Western markets will be setting themselves up for sustained success.
The opportunity for SMBs to take advantage of this peak shopping season is heightened, given that 54% of global consumers are planning to increase their international online purchases in 20242. To capture global markets, Asia-based SMBs must not only leverage tried-and-tested discount and promotion strategies, but also enhance them with seamless, customer-centric experiences that foster trust and build loyalty. Here are seven strategies to help Asian SMBs make a lasting impact this holiday season – and beyond.
1. Leverage data to anticipate global demand and personalize experiences
Understanding international consumers' demand can be the difference between understocking and missing out on sales or being stuck with unsold seasonal inventory. SMBs can analyze data from previous holiday seasons to identify best-selling products and buying patterns, tailoring their stock to meet anticipated demand.
Using data such as historical buying patterns across multiple retailers to personalize customer experience is also essential. By using predictive analysis and conducting the right market research to understand seasonal buzz, businesses can cater to unique consumer preferences that differ from market to market.
2. Prepare for Cross-Border Compliance and Reporting
Meeting compliance requirements is essential for Asian SMBs selling to Western markets, with different tax and regulatory expectations from their home markets. Regions like the U.S. and Europe can have complex tax, customs, and reporting standards, and non-compliance can result in costly delays or fines.
SMBs should establish partnerships with tax and compliance experts who understand these markets, and ensure they have access to tools that support automated tax calculations and transparent reporting. Planning ahead for compliance helps ensure goods reach customers on time, building trust – not to mention avoiding potential penalties.
3. Offer Rewards and Incentives
Loyalty is key to stand out in competitive global markets. To attract and retain international customers, Asian SMBs should focus on creating tailored loyalty and rewards programs, especially during major shopping events. This is all the more so given the global cost of living crisis, with 66% of people in high-cost regions like the U.S., Australia, and parts of Europe feeling financial strain3. The data bears this out – 62% of shoppers actively seek out rewards to maximize their budgets4.
By implementing incentives like cashback, discounts, or point-based rewards, SMBs can enhance customer engagement and encourage repeat purchases. This doesn't need to be hard – a trusted payment provider can help merchants implement a rewards system.
4. Provide Payment Options Tailored to Local Preferences
Having the ability to offer a diverse range of payment options is essential to maximizing international sales. Payment preferences vary by market – in markets like the U.S., for instance, consumers generally favor credit cards and mobile wallets5; whereas in Germany, PayPal is the most popular online payment method6.
Partnering a single payment processor that can offer multiple payment methods based on the customer's location is a key way for SMBs to boost conversion.
5. Optimize the Checkout Process
A smooth, intuitive checkout process is essential to reduce cart abandonment and drive completed purchases. Globally, the cart abandonment rate averages 74%7, representing a significant missed opportunity for SMBs during peak shopping seasons. Ensuring a smooth experience with features like guest checkout, mobile optimization, and autofill functionality can make the difference between a sale and a lost customer.
In high-traffic seasons, simplicity is key. Eliminating unnecessary steps and minimizing required fields helps maintain customer engagement, improving the likelihood of a completed transaction.
6. Build Trust Through Robust Buyer and Seller Protection
Buying from an unfamiliar brand halfway across the world can naturally raise concerns about fraud or delivery issues. By offering a globally trusted payment solution with buyer and seller protection, SMBs can provide the crucial reassurance an international customer may need to make their initial purchase from a merchant new to them.
For Asian SMBs, these protections serve as a trust factor in global markets, ensuring customers feel secure when shopping internationally—a crucial foundation for building long-term loyalty.
7. Work With a Reliable Shipping Partner
No consumer likes waiting too long for their purchases – all the more so for gift-filled holiday shopping carts. At the same time, seasonal factors like higher order volumes and winter weather-related delays can cause shipping bottlenecks. Taken together, shipping delays at this time of year are a sure recipe for upset customers and chargeback requests.
Working with a few reliable shipping partners can provide alternatives if any one carrier becomes overwhelmed. Additionally, choosing a carrier which offers real-time tracking is essential – when customers can track their orders, they feel more in control, and having that self-serve visibility into their shipment will also help reduce the load on your customer service team.
Thriving in the Cross-Border Holiday Market
The holiday season is more than just an opportunity for sales; it's a chance for Asian SMBs to expand their reach and establish themselves beyond their home borders. While entering international markets may seem complex, Asian SMBs can leverage the right tools, partnerships, and a customer-centric approach to tap into the growing demand of global markets and create memorable shopping experiences beyond the season.
