In today’s unpredictable ecommerce landscape, brands are facing mounting challenges. From economic shifts and geopolitical uncertainty to changing consumer behaviours and fluctuating trade regulations. One effective strategy to navigate this volatility? Market diversification. This approach enables brands to reduce risk, expand revenue streams, and build resilience by entering new markets and reaching wider audiences. Here, we explore how market diversification can help brands tackle ecommerce challenges and unlock sustainable global growth.
Shifting economic sands are making it tough out there for brands and retailers. You’re grappling with changing shopper behaviour, supply chain disruptions, and the dynamic nature of marketing.
Add to that global events like political instability and conflict, and that always-present driver of demand volatility: changes in shopper preferences.
This year in particular, brands and retailers are keeping a close eye on the fraught situation around U.S. tariff changes.
Tariff fears
Understand how trade policies like U.S. tariffs increase costs and complicate cross-border commerce.
One notable issue is the rollback of the U.S. de minimis threshold, which previously allowed shipments under $800 to enter duty-free.
Now, as ecommerce retailers are grappling with trade policy volatility, they are also considering the potential effects for their businesses. Higher landed costs may impact if you rely on suppliers from China, Vietnam and the EU. This could result in higher import costs due to new tariffs.
Supply chain disruptions are another potential issue, as are unexpected fees and longer shipping times for shoppers. There is also the potential for higher product prices, which can slow demand and discourage international expansion.
Shoppers reduce spending
Track evolving shopper behaviours and budget constraints to guide market entry decisions.
Amid a cost-of-living crisis in many countries, shoppers are adjusting their budgets. ESW’s 2025 Global Voices report found that 40% of shoppers in France, Mexico, and Argentina plan to spend less than usual. Globally, 32% expect to cut back, up 25% from last year. However, significant opportunities exist. Shoppers in the growing markets of India, China, South Africa, the UAE, and Brazil plan to spend more than last year. Globally, 11% of global shoppers plan to spend more this year, with 57% saying they’ll spend the same as usual.
Those shoppers cite additional purchase options and better pricing as key drivers of increased purchases. For brands and retailers looking to expand into new markets, there are clear territories and opportunities to explore.
Market diversification matters
Market diversification offers several key benefits, including increased revenue streams, reduced risk, and enhanced customer reach, to create a more resilient and adaptable business model.
Through tapping into new markets or customer segments, you can effectively reduce your dependence on a single market. This can result in sustainable revenue streams across various markets.
This approach can help you to weather economic downturns, industry or regulatory changes, as well as any other uncertainties that could negatively impact revenue.
Cross-border considerations
Make data-driven, localised decisions when planning international ecommerce expansion.
Multiple factors need to be considered, and thorough planning and research should be undertaken.
Choosing the correct market to enter is essential. International ecommerce should be approached on a country-by-country basis, avoiding a one-size-fits-all solution. To understand the markets to enter, consider the data. Analyse your web, email, and social traffic, for example, to assess where shoppers and fans are located.
You should give thought to merchandising: consider seasonality, and the cultural relevance of your merchandise and imagery.
Think about how you will approach pricing, duties and taxes, and payments. Shoppers want to pay with the same methods they use every day, online and offline, so understanding local preferences matters.
Delivery and returns also need consideration: getting this right maximises conversions and decreases cart abandonment for international shoppers. Lastly, assess fraud risks in your chosen market, choosing a Payment Service Provider (PSP) that uses advanced fraud tools.
Broaden audience reach and brand visibility
Tap into niche markets and expand discoverability through targeted strategies.
It’s vital to seek access to different customer segments and niche markets. This helps to increase your overall exposure and offers sales opportunities beyond saturated or highly competitive environments.
With the Global Voices report identifying that 23% of luxury shoppers will increase their online purchasing this year, this is a valuable segment to target.
If you haven’t started selling beyond domestic markets, consider exploring other countries. For example, 51% of shoppers in Brazil plan to spend more online, viewing ecommerce as cost‑effective. Broadening your visibility can be done in a number of ways. You should aim to focus on enhancing search engine optimisation (SEO) so that your products can be easily found through a quick search.
AI-powered insights can help identify emerging customer behaviours and automate campaign optimisation, while GEO-targeting ensures your messaging resonates locally, even across international markets. Additionally, adopting AEO (Answer Engine Optimisation) can help position your brand to be surfaced in conversational search results, making it easier for customers to discover your products through voice assistants and AI-driven platforms.
Consider leveraging social media marketing, engaging with customers through content marketing, collaborating with influencers, or implementing referral programs.
Engage in risk management and resilience
Anticipate global expansion risks and implement solutions to ensure operational continuity.
Along with significant growth opportunities, expansion into global markets can introduce a variety of risks spanning compliance, logistics, financial management, and customer service.
As a result, a strategic approach will be crucial for effective risk mitigation, and there are steps you can take.
Offering local fulfilment gives shoppers faster delivery times, lower shipping costs, and a more localised customer experience.
You can also leverage a variety of logistics models, including cross-border, in-region and omnichannel approaches. Having access to a multi-carrier network can help reduce risks associated with international shipping, customs, and regulations.
Working with a trusted partner such as ESW is one of the best ways to manage risk. Acting as a Merchant of Record (MoR) and selecting the most appropriate logistics partners to optimise customer experience and cost efficiency ESW assumes the risks of cross-border trading for your business through payments management, duty, tax and logistics structure from top to bottom.
Localisation
Adapt your ecommerce experience to local shopper expectations and market realities.
When entering new markets, localisation is non-negotiable. You may be succeeding in your local market, and assume the process is broadly similar when expanding globally.
However, operating internationally introduces new levels of complexity when catering to differing shopper demands, understanding local legalities, taxes, and the overall nuances of cross-border ecommerce.
From fully localising your website end-to-end, accommodating cultural preferences, and enabling preferred payment and security methods for the market, expert insight is required for success.
On an operational level, you’ll need to offer market-specific shipping and returns preferences via logistics partners, ensure smooth customs clearance without delays or unexpected hold-ups, as well as make sure the shopper has no hidden costs on delivery.
As per Global Voices, shipping, for example, is subject to differing expectations depending on the location. While 23% of Italians want their package in three days, 13% of Brazilians, Australians, and Argentines will actually wait two weeks or more. Shopper payment preference is also important. Optimise the checkout by staying on top of shoppers’ preferred payment methods. For example, in 2020, the Banco Central do Brasil (BCB) launched a payment method called Pix. Four years post-launch, it has overtaken cash to become the most widespread means of payment among Brazilians, used by 76.4% of the population.
You’ll also need to manage compliance with local laws and regulations. As a brand or retailer, allocating owned resources to put these systems and partnerships in place for each market you enter can be prohibitive.
Because this is such a highly specialised and intricate process, working with a localisation expert such as ESW is the quickest way to succeed.
With in-market expertise, a wide network of partners and resources, along with deep experience as a Merchant of Record, ESW simplifies the headaches associated with cross-border ecommerce.
Driving repeated growth
Focus on retention and loyalty to build sustainable long-term success in new markets.
Expanding into new markets is a major milestone, but sustainable success depends on more than just initial conversions. Long-term success hinges on retention and loyalty. The post-purchase experience is where loyalty is won or lost, yet many brands overlook this critical phase of the customer journey.
To build lasting value, brands and retailers should consider:
- Localised order tracking and proactive communication to keep shoppers informed and engaged.
- Loyalty incentives, reactivation journeys, and personalised offers that encourage repeat purchases.
- Integrated CSAT/NPS collection and A/B testing to continuously refine the experience.
- Global customer service infrastructure that meets expectations across regions.
Understanding local preferences is key. The Global Voices report found that 4 in 10 shoppers in Germany and Switzerland prefer a return shipping fee, for example. However, shoppers in Spain and Mexico prefer paying for a subscription service that includes free returns, and Spanish, Mexican, Brazilian, and Argentinian shoppers are least likely to place an order if there’s a charge for returns.
Offer new payment methods like buy now, pay later to split the cost of purchases. Or offer Buy Online, Pick-Up In Store (BOPIS) to cater to local shoppers.
Develop awareness of local holidays for flash sales, integrate relevant social shopping, and consider adding gift registries and wish lists to encourage repeat purchases and gifting.
These elements can help to build shopper trust, as can keeping up with changing preferences. For example, according to the Global Voices report, the pre-owned goods market is booming: 40% of shoppers worldwide reported purchasing a used or refurbished item online in 2024. Of those who bought used or refurbished items, 90% would buy again.
Conclusion
Market diversification in ecommerce is a strategic approach that’s essential for brands to sustain growth and stability while operating within the unpredictable dynamics of the ecommerce landscape.
It creates a more resilient business model by reducing dependence on any single platform or product, helps to mitigate risks from market volatility, and also opens up multiple revenue streams.
Want to know more about shopper behaviour? Check out the 2025 Global Voices Report here.
Or, reach out to find out how we can help your brand grow.
