How to set up your store to attract customers globally

Find global channels 

The first part to think of is to select a few channels first that are known to work well globally and learn them well. Google Ads and Facebook Ads are a great place to start. Google captures existing demand very effectively and Facebook generates demand while also providing awareness in a brand new market.

Also ensure that your marketing efforts are not solely based on paid campaigns. Work from day 1 with SEO (search engine optimization, the non-paid Google listings), and work with building followers and post content in your preferred social media profile (Instagram, TikTok). Over time this will increase your ability to invest more in paid advertising.

Choose the right campaign type

For the paid part of your online marketing, use campaign types that are easy to launch and geared to drive performance and learnings quickly, and campaigns that market all the products/items you have in your store. Since it is hard to know beforehand which products will take off in your new market, you will want to give them all a chance to succeed. If your bestsellers turn out to be the highest performers also in the new market(s) you can split them out into a more granular campaign structure.

The campaign types we’d recommend are performance max campaigns for Google and Advantage+ campaigns for Facebook/Instagram. They are simply put the future proof campaign types built for e-commerce stores, enabling quick setup, large product coverage and high sales/conversion performance (as opposed to optimizing for awareness/traffic/clicks).

Make sure you localize your marketing content

When it comes to the campaign types mentioned earlier, it’s especially important that your product titles are localized in a good way, meaning your titles include keywords that are native to the new market and have high search volumes.

Google Keyword Planner and Google Trends can help identify which keywords drive high click volumes. Use VPN to learn from local ads and get a feeling for the local market in Google for key search terms. (VPN allows you to browse Google as if you were sitting in that market). Use Facebook Ads Library to get a sense of what Facebook/Instagram creatives resonate in the local market.

Set a small Budget 

Start out with small budgets and not too high profitability targets (ROAS targets). Remember that you start from scratch in a new market, and initially - even though you want to drive profitable sales from Day 1 - it is also a matter of learning what works and what doesn’t work. If you are in a position to do so, then be willing to spend a little to gain early traction and document learnings, rather than set unrealistic profitability targets on day 1. Too high initial targets will make the Google and Facebook bidding algorithms struggle to learn and gain traction, and you risk losing valuable time with low click volumes and no learning.

Conversion rate as the key performance indicator

I recommend you pay the most attention to conversion rate% initially. Very simply put: how many of your visitors end up buying. Cost per click and average basket value are key components also, but a single minded focus on conversion rate% the first few days / weeks is often helpful to establish a foothold and a baseline revenue.

Because when you have a solid CR% it’s the best evidence you can get that there is demand in the market for your products/designs, and that customers like what they see. That is a great starting point to build from. Finally - be aware that what is deemed a good conversion rate differs greatly by country. In Spain 1% may be a solid conversion rate depending on the circumstances, whereas in Denmark or Norway you want to build towards double digits. So don’t jump to hasty conclusions - as long as you pay the right price for a click, there is no country where Gelato is locally present that doesn’t hold very interesting revenue potential.

International Expansion: Store setup

Taking your business to new regions introduces tons of new, challenging tasks

By Paulina Wehtje, Customer Success Director

How to manage international duties and indirect taxes

Potentially the most complex area, you have to consider indirect taxes, such as sales tax and VAT.  Your business income is not taxed on these transaction-related taxes.

Indirect taxes need to be considered both when you purchase your products from Gelato, and as you are charging your own customers depending on the country. Whether or not tax is due and the corresponding tax rate depends on: 

• Where your business is registered

• Your total sales in relation to registration thresholds

• The item purchased

• The shipping country and the buyer's registered location

• The production (printing) country - is typically the same as the destination country

If you use a print-on-demand supplier like Gelato, the tax you need to pay us is automatically calculated when an order is placed. This can often be offset versus taxes you collect from your customer at checkout.  Gelato is VAT-registered in 16 countries in Europe as well as in Australia and New Zealand, and registered for sales tax in 44 states, territories, and districts in the United States and Canada. 

To ensure your store is correctly set up for tax purposes, there are companies like Taxjar, Avalara, Sovos that specialize in this. As you are scaling your business, most customers also work with tax advisors on indirect tax, VAT, and customs services. 

If you like to know more about local taxes in the your markets, visit “Getting Started with Taxes”

Printing local means printing sustainably

If you want to scale internationally, you want your customers to get their products faster, greener, and cheaper. Producing as close to your customers as possible is the only way to ensure an outstanding customer experience.

By Amanda Chuang, VP Sustainability

When scaling, brands face several supply chain decisions. Our customers often ask us, “Where should I produce my product?” and “How much of my product should I produce?” Our answer is to produce as close to your customers as possible and to only produce what your demand requires. You can achieve a more sustainable business by successfully minimizing supply and delivery distances. Here's how Gelato can help.

Gelato has production hubs in over 130 locations around the world. Orders from your customers are routed to the nearest qualified production partner - often in the end-customer's country - on demand. The days of shipping overseas and holding inventory are over. By producing in-country and on-demand, we reduce the risk of excess production ending up in landfills or burned. This also minimizes transportation distances, leading to fewer carbon emissions. 

We can positively impact the environment by leveraging partnerships globally for local production and distribution. Global trade accounts for 25% of the world's carbon emissions, while international transportation accounts for 12%. As the EU states that 55% of carbon emissions must be eliminated by 2030, local production and matching supply and demand is essential. Legislation trends are favoring local production on demand, which is beneficial to both consumers and established merchants. By focusing on reducing international fulfillment, you can leverage more sustainable operations to contribute to the movement.