10 June 2016
Web Development

Why Entrepreneurs Should Launch E-Commerce Websites Locally

Online retail sites have been the main income generator for many businesses in the past decade. Currently, there’s a growing demand among new and aspiring entrepreneurs to launch their own retail websites targeting a large international customer base. This is not the smartest move for a new business. Unless the business is offering a one-of-a-kind product, like a flying car, new retail websites should first target a local customer base. For example, an e-commerce store headquartered in Sydney should first reach out to local residents, then gradually expand to residents in the state, and then to the entire nation. If the site is successful Down Under, then the owner can consider expanding internationally, starting with New Zealand.


There’s a reason why online businesses should think hard about catering to local needs first. For starters, renting a web server is less expensive. For the aforementioned new e-commerce site, choosing hosting Australia providers will be the most affordable choice in the beginning. If the site chooses to go international, there would be significant capital required to rent server space in other countries.

Also, e-commerce sites that need to ship physical products to customers will not need to worry about international packaging costs or finding cheap shipping lines. Businesses can easily combine local orders and deliver in bulk at extremely affordable rates.

Other areas where locally running an e-commerce store can save money include employee salaries, the number of employees one needs to hire and paying business taxes.

Why Entrepreneurs Should Launch E-Commerce Websites Locally

Better Reach

Perhaps the best perk of starting a retail site locally is the ability to target a unique local customer base. It’s much easier to create a highly successful marketing strategy that is specific to a certain geographical location. When catering to an international audience, retail websites might have to rely on generic keywords that are largely ineffective. Location-specific keywords, on the other hand, are far more effective in reaching the target customer base. Also, local customers are easier to retain. Buyers prefer to make purchases from local business rather than from international ones. Geographical proximity creates trustworthiness that an e-commerce business can easily capitalise on. Hiring a consultant for blogger outreach can take your e-commerce business to the next level.

Less Competition

Obviously, there’s less competition on the local arena than the international market. Therefore, it’s easy for a location-specific e-commerce store to corner a niche market or dominate the local industry. This is far more lucrative than cashing in little by little on an international niche market by competing with million other sites.

Limited Regulations

When you are launching locally, you only need to worry about local, state and national laws relating to commerce. When you are launching internationally, you have to worry about murky international laws in addition to the local ones. Doing so requires spending a lot of money on legal advice, which small online businesses can’t often afford.

Easy to Test Viability

Launching a retail website locally first is a great way to test the viability of a product. If the local customer base likes it, then you might have opportunities to expand. Also, it’s easy to get feedback from local customers to make products better in general.

From considering all of the facts above, it is safe to conclude that launching an e-commerce store locally, at least at first, is far more affordable and lucrative to entrepreneurs. Do not underestimate the local market. It’s where most big business got their starts.

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