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Small Countries, Big Monies - Let Amazon, Bestbuy dump their prices and laugh

Discussion in 'Making Money' started by subster, Apr 2, 2013.

  1. subster

    subster Elite Member

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    If you are into eCommerce you know how good prices are damaged cent by cent (No ecommercer? Read further, it is interesting also for every other money-makeing-model). Especially if you are from the three most dumping countries USA, UK or Germany.
    The ecommerce landscape seems to have just one selling argument which is the price. Brands like Amazon are binding trust and cheap prices to themselves and for the most of us, after the pricewar is nothing left in the basket as smaller sellers can't afford to go that low.
    Now even chinese sellers jump into many of our markets with free shipping from $10 worldwide and other funny things like that.

    But how to overcome this darwin-like evolution which will let nothing left over for smaller companies with not an enterprise state? How about... leaving the box? I will give you mine solution, step by step. It has to do with going international and find new markets. Thing is there are small countries and those are too small to be from interest for the big players. If we think of scandinavian countries for example, they have sometimes just 2-3 census metropolitan areas - the rest is faaar away from bigger civilisation. Amazon would never tap into this countries as the potential is not big enough for building up the brand there, pushing campaigns and so on. For them each new country is costing a fortune to settle in, so all this enterprise competition won't be in for that.

    If you look now for smaller untapped countries (sidenote: there are also bigger ones sometimes For example Brazil & Russia in the past - I went into this markets 4 years ago and got a standing there, now its to late to push in) there is big potential. Let me explain in a few steps what I do - it is my bread and butter and achieved me a high position in my company:

    1. Researching small countries with just a few built-up areas. Sometimes I also recognize a higher order volume from specific countries and I note those for the research.
    2. Adwords Tool: I put in all brand names i am selling (if your niche does not depend on brand names of course you can search more "category-ish") and look onto search volume and competition - last one is in those countries almost everytime ultralow (later more on that)
    3. If there is a small search volume for more than 1/4 of my brandnames, I skip the country and try another one.
    4. Good search volume (please dont compare with US volumes - it is much lesser in general), let go on.
    5. Buy webhosting and domain of your brand in this country. In some countries you need an agent for this, as only residents can buy it. You know the places to find one. I tried this method and had one in the particular country i know personally, but you can use trustee services like this from http://www.101domain.com (never used it). Personally I registered succesfully .dk domains with this provider: www.internationaledomains.net
    6. Mirror and dump your site / shop on your new domain/webspace
    7. Now I send the language files of the shop to a translator of onehourtranslation.com (it is amazingly cheap and good quality most of the times ).
    8. I start with just a few brands and not the whole whale and let the translator translate my category / product descriptions.
    9. Check the legals of this country like withdrawal rights and TOS and copy them accordingly.
    10. On Site for better conversions: I hide the telephone number as good as possible on the site, as long as I have no agent in the country, I check which payment methods are favoured in the target country and offer them, I check which trustseals are common and so on.
    11. I am hiring someone from a freelancer site for the email support. I am doing this modell succesfull at the moment, I used ex-customers for this. They answer my emails and get a free order shipped worth $400 - so they have goods with that value, i have costs of 200 + shipping.

    Now the best part: As in this countries is almost NO competition (Remember, we checked it before) you don't even have to worry about organic listings. They will come from alone if your onpage is right. We can push our whole SEO budget into SEM campaigns. I have click prices of a few cent (most likely below 0,10) because there is noone else bidding on my brandnames in this country.

    I am talking from ecommerce here, but you clever guys, know the potential for your adsense sites, cpa offers (that allow traffic from this countries) and all your others activities.
    I activated this for the first additional country and gross revenue is 1/2 of the origin shop in my country. Most biggest downside is the shipping factor. We have a good contract with great rates, but they need more effort to ship.

    Yes, it is not easy but the lazy guys won't get anywhere, so use your chance to grow.
     
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  2. jak19

    jak19 Elite Member

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    great advice OP
     
  3. prodiger

    prodiger Newbie

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    Thanks for great post. I'd like to add my own twist. I'm from small European country, so I think better option would be to find a product that is popular in other countries and has low competition in my country. Do you have any advice/recommendations/experience?
     
  4. subster

    subster Elite Member

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    If you actually are from a small country, it is a good idea to find requested and non saturated markets there, but you will obviously have tried that. This is more to extend a running business and increase the overall revenue.