Ecommerce Localization Guide: Best Practices, Benefits, Strategy to Localize in New Markets and Win

Here's my confession: I love online shopping! Clothing, groceries, or appliances, nowadays you can shop practically anything online. And all while enjoying the comfort of your home and reliable (in most cases) delivery.

The ecommerce industry was born out of necessity and has now turned into a thriving marketplace of everything humanity has to offer, all just a few clicks away. Customers enjoy the convenience, while businesses find it easier than ever to sell. Especially when it comes to targeting new audiences and expanding to new markets. Key problem though? Making your products and offers available in local languages.

Localization is your solution here. Companies that seek to succeed in many regions around the world simultaneously turn to localization as the main driving force behind their efforts to conquer local markets and the global ecommerce market. But where do you start (especially if you know nothing about languages and translation), what is the best strategy to pursue, and what are the benefits of localizing your online store? All will be answered in this guide to ecommerce localization.

What is Ecommerce Localization?

Here's a textbook definition: ecommerce localization is the process of adapting an online store to meet the linguistic, cultural, and regional preferences of target markets. Simply put, localizing your online store and presence means becoming closer to your customer in a new market by translating and adapting everything that they interact with. What parts does this process have, you may ask. Here's the answer:

• Content localization: Product descriptions, images, about me page

• UI localization: Website and app interface

• UX localization: Adapting payment methods, shipping options, functionalities, and more

• Customer service localization: Offering support in local languages

• Marketing localization: Slogans, visuals, promotional materials

Companies that fail to localize effectively or localize at all are missing out on huge opportunities for growth and expansion. But we won't focus on them, let's instead look at Temu, a relative newcomer in the world of global ecommerce (launched in 2022) from China.

Temu has achieved global success particularly by customizing its platform to meet the specific needs of different regions (also aggressive marketing and low prices, of course). For instance, in Sweden, Temu localized its app by translating the name, subtitle, description, and screenshots into Swedish, which led to a noticeable increase in its visibility score from 80.6 to 86.32 between August and November 2023.

The company also relies heavily on custom-made marketing approaches for different countries, seizing the opportunity to promote the platform through local traditions and holidays (Singles’ Day in China or Diwali in India). Something to learn, huh?

Don't Just Translate Your Ecommerce Store, Localize It

A simple translation won't cut it here, I'm afraid. What your business needs is a more layered approach to presenting your store and products in a light that is familiar to international customers. What local holidays are celebrated in Brazil? How do online shoppers behave in Dubai? What gestures are a no-no in Vietnam? Questions like this will help you form a better approach to potential customers in a new locale. Localize your content with real people in mind. We all have preferences, tap into them to take your content from being a simple translation from one language to another to a full-scale localization that dazzles your target audience.

When you go this extra mile to produce effective localization results, be sure to expect positive developments for your business. Here they are:

• Expanded Market Reach: This is the most obvious thing. Offer something to new people and get more orders. Doesn't get simpler than that. On top of that, you'll get better conversion rates which look fantastic on year-end reports.

• Stronger Customer Trust: Entering a new market is difficult. No one knows you, your brand, or what you stand for. By presenting yourself in a local language with visuals and materials that resonate with customers and reflect the local way of doing business, you can expect a better response which will in time translate into loyalty and support for years to come. Amazon also started as a relatively small online store. And look at the ecommerce giant now!

• Enhanced SEO Performance: Localized content gets noticed by local search engines. With only 10 links on the first page (normally), it's a dog-eat-dog world out there. Respect keywords, use hreflang tags, rework your meta descriptions, rewrite SEO titles, and the results won't take long to come.

Benefits of Ecommerce Localization

What are they? The answer is two-fold: users enjoy what you offer more, while your ecommerce platform enjoys stronger business numbers. Ecommerce success is in the eye of the beholder, but certain benefits will make it objectively and verifiably true.

1. Improved User Experience:

   • Customers navigate your website more easily when content and payment methods are familiar. Consequently, they'll spend more time browsing your products and offers. Research shows the average customer time on a website to be 54 seconds, with the first 5 being the most crucial. Grab them while you can!

   • Excellent customer experience reduces the abandoned cart rate. With clear guidelines, convenient buttons, and seamless payment process (all in their native language), your audience won't have time to stop and rethink their purchase.

2. Higher ROI:

   • Investing in localization can yield significant returns. Studies note that every dollar spent can generate up to $25 in revenue. By localizing content, companies can effectively reach non-English speaking audiences, who comprise approximately 79% of global internet users.

3. Stronger Brand Loyalty:

   • Connect with customers through storytelling, emotions, and affection (respecting your tone of voice, of course) to foster mutual understanding and interest. This is only possible when you speak "the same language" (pardon the pun). These efforts will be rewarded when you form a community of loyal fans of your brand who will follow you for a long time, perhaps even a lifetime.

4. Competitive Advantage:

   • What sets successful businesses apart? The ability to recognize opportunities and seize them. We all know Amazon but did you know that it was not the first ecommerce pioneer? CDNow, the inventor of the online shopping cart (!!!), used to be a very promising company before struggles with its business model forced its founders to shut down international offices and later to outsource CDnow website operations to... Amazon! In other words, opportunities are always there, and localization is one of them. Don't wait for your competitors to beat you.

Some Stats about Localization in Ecommerce

It's time to see some numbers and percentages to better understand what localization in ecommerce is all about.

• 67% of consumers prefer content in their native language.

• 73% of online shoppers are more likely to purchase from a site offering product information in their language.

• 40% of global shoppers will not buy products listed in a foreign language.

• Localized ecommerce platforms see an average increase in conversions of 20-30%.

These will look nice in your next board meeting presentation.

Ecommerce Site: What to Focus on

Let's explore what should be your main focus areas when it comes to localizing your ecommerce website for the global market. Here's a handy table:

Key Challenges When You Localize Your Online Store

When you make the decision to enter the uncharted territory of localizing your ecommerce store, expect a number of difficulties that you will have to overcome.

• Cost: High-quality localization demands significant investment.

• Time-Consuming: Researching, adapting, and testing content for each market takes time.

• Consistency: Maintaining a cohesive brand voice across multiple languages can be difficult.

• Regulatory Differences: Complying with local laws in different countries adds complexity.

Although daunting, they can all be addressed with a bulletproof strategy and a set of best practices from the industry.

7-Step Ecommerce Localization Strategy

An ecommerce business must have a full-scale localization strategy that is easy to follow by your team. Translation and localization themselves are just a part of this process, there is more to it. I've compiled a short 7-step guide that can be used as a checklist that forms a coherent strategy to localizing your site and more. Let's dive in!

1. Conduct Market Research

• Understand cultural nuances, consumer behaviors, and preferences.

• Identify regions where your product or service has potential demand.

• Use tools like Google Trends or local surveys to gather insights.

2. Localize Content Beyond Translation

• Adapt product descriptions, banners, and CTAs.

• Use culturally appropriate visuals and symbols.

• Consider local currencies, units of measurement, and date formats.

3. Optimize for Local SEO

• Perform keyword research in local languages.

• Include hreflang tags to signal multilingual content.

• Adapt meta descriptions, titles, and headers for target markets.

4. Localize User Experience (UX)

• Adapt payment methods, shipping options, functionalities, and user journeys.

• Ensure that navigation aligns with local customer expectations.

5. Localize Customer Service

• Offer customer support in the local language via chat, email, or phone.

• Train support teams on cultural sensitivities and local product regulations.

6. Localize Marketing Campaigns

• Tailor marketing content, visuals, and tone to resonate with local audiences.

• Utilize region-specific platforms and influencers.

7. Test and Optimize

• A/B test localized pages to identify what resonates best.

• Monitor analytics to track performance and refine strategies.

Best Practices for Ecommerce Localization Process

Certain approaches will make you stand out in different markets. New customers don't grow on trees and in order to seize their attention, you'll need to spend a lot of time improving every aspect of your plan, reviewing your competitors, and reading pages after pages of ecommerce translation and localization content.

Fortunately for you, I have written a short list of best practices in the industry split into groups. Here it is:

TMS

• Why spend time and resources on manual localization when you can leverage cutting-edge technology? Choose a Translation Management System (TMS) instead! For small to medium-sized businesses, software developers, or professional translators, Localit is the ideal solution. With flexible pricing, AI-powered translation services, and rapid processing speeds, your localization needs are met efficiently. Localit combines expertise, advanced tools, and a seamless process to adapt your content to any market without sacrificing quality. Don’t wait, explore Localit today and claim your free plan.

Content

• Be smart with your translation. Don't just feed content into a poor-quality, free machine translator and call it a day. Remember that localization takes time but it will be worth it in the end.

• Adapt your messages to match the tone of voice to the cultural expectations of the audience. For example, Japan is known for its politeness, which even is reflected in the language, while Brazil can have a more relaxed approach. Use this to your advantage when localizing to leave better impressions.

Design

• Ensure responsive designs that work for everyone. Layouts should adapt seamlessly for languages with varying text lengths. Make special provisions for right-to-left languages like Hebrew and Arabic and recalculate the space required to communicate messages in different languages: German likes long nouns that pile together, while Chinese will require fewer characters to say the same thing.

• Respect cultural taboos and avoid imagery or phrases that may offend local sensibilities. An image of a woman in a bikini on a beach is not the best way forward in the UAE or Saudi Arabia, for instance.

Legal Compliance

• Adhere to local laws on privacy, taxes, and shipping regulations. No one likes to deal with unexpected court cases.

• Include terms and conditions, return policies, and disclaimers in local languages. This way, you'll avoid possible misunderstandings, negative reviews, unnecessary stress, and, once again, court cases.

Better Shopping Experience with Localization

Want to expand into new markets? Speak your customers' language. Localization involves more than just translating words; it’s about understanding cultural quirks, adapting your store, and making every shopper feel at home. A localized store builds trust, boosts loyalty, and helps you tap into new opportunities. Whether it's tweaking payment options, reworking your website’s design, or tailoring marketing strategies, putting in the effort pays off. By stepping up your international marketing game, you’ll create an experience that stands out in every new language you conquer.