MyAlpaca’s B2C E-commerce Development Strategy
MyAlpaca
Implementation of Internationalization E-export Service
For MyAlpaca, we prepared a strategy for B2C e-commerce development in EU countries and helped the company identify target markets for the implementation of an e-export service.
About the client
MyAlpaca is a leading manufacturer of luxury alpaca wool textiles. The company has been successfully operating on the Polish B2B and B2C market for 7 years. In response to growing consumer interest in natural fiber products, MyAlpaca has decided to launch a new international e-commerce site for residents of EU countries.
Challenge
MyAlpaca encountered a number of challenges while working on building an international shopping platform. The rapid changes in EU regulations caused by the Covid-19 pandemic and Brexit required a rethink of the entire e-commerce project and issues related to building the online store traffic. The key challenges were:
Verification of the business model
Optimization of the e-export implementation strategy
Matching the right technological solutions
"We export MyAlpaca products to more than 15 countries, primarily in a B2B model, working with agents and distributors, interior designers, but mainly with brick-and-mortar shops. The pandemic slowed down exports due to the closure of many interior design stores and the shift of sales to the online channel. It was a natural step for us to create our own online store for foreign customers. The store was created in English, with the British market in mind. Unfortunately, Brexit and the new conditions for B2C exports to the UK meant that we had to revise this choice and we needed support".
The course of the project
Our cooperation with MyAlpaca included consulting on how to increase the effectiveness of implementing an e-commerce channel abroad.
As part of the work on the implementation strategy for the e-export service:
- We identified the local potential of online sales of luxury goods in the home&living category;
- We prepared Customer Profiles taking into account the analysis of e-consumer behavior in selected markets;
- We developed a clear and specific proposition of values,
- We prepared a competition analysis with the identification of key competitors;
- We examined the target group’s behavior in the areas of payments and logistics,
- We analyzed the purchasing process in terms of UX in the B2C market,
- We held consultations on legislative changes in the EU regarding e-commerce tax requirements.
During our weekly meetings, we also discussed best practices for effective selling with the Voice of Customer (VOC) in mind together with the client. Our recommendations included:
- promotional models aimed at attracting new customers for the luxury product category in the e-commerce channel;
- methods of working on the customer base, such as encouraging them to buy again, and optimizing promotions aimed at existing customers,
- ways to reduce shopping cart abandonment rates,
- optimizing communications according to marketing consents.
"The great model of collaboration in weekly sessions allowed us to divide the project into stages. It was crucial to choose the markets we should focus on, as this required ordering translations and planning advertising support. It was also important to get practical advice on the planned changes to VAT accounting in EU e-commerce in order to correctly set up processes in the store and know how to prepare for registration and settlements with the Tax Office before the new legislation was even implemented".
Project outcomes
Based on our work and analysis, we prepared a set of conclusions and recommendations for optimizing B2C e-commerce development strategies in selected EU countries, including:
- analysis of existing data taking into account conclusions and recommendations regarding the criteria for identifying the target group in Poland;
- a plan to implement the e-export service in EU countries in the B2C e-commerce channel including:
- a report with a summary of the selection of the target market (research on desk and interviews with experts);
- recommendations on the strategy of e-commerce activities in the selected market, a specific list of activities in the form of TO DO lists;
- a report with conclusions on the identification of the target group in the selected market, taking into account the Customer Profile and Value Proposition;
- a checklist of areas and processes that require adjustment;
- a list of benchmarks and a set of best practices for building feedback and recommendations on a B2C e-commerce platform with Voice of Customer in mind.
International expansion through the e-commerce channel is a natural way for a company to grow. The Internet has no borders and by learning about consumer behavior and the potential of local markets, a company can better adjust its operations and offer foreign customers a better Customer Experience (CX) than local suppliers. As much as 70 percent of Europeans who shop online choose to buy from foreign online stores.
In Poland, only one in ten SMEs use online channels to trade with business or institutional customers, and only 5% sell their products abroad. The global value of business-to-business cross-border trade is expected to grow by 30% by the end of 2022, reaching $35 trillion. Going abroad and diversifying sales destinations can have a positive impact on the company’s financial standing and provide stability and resilience to macroeconomic turmoil.
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