Internationalization is The New Conversion
Going global will increase your revenue more than CRO. Why do ecommerce sites strive for 0.1 to 0.3 increases instead of 2X their revenue?
This post isn't going to be popular with most ecommerce marketers.
Because ecommerce webstore owners spend a lot of money time optimizing their websites.
I think they will see better results from exploring a new market.
Because expanding your gross revenue is always larger than any percentage increase in your conversion rate.
For example: You're selling socks in the Netherlands for €50 each. You get 100 visits per day from paid search. You're conversion rate is 1%. That's 3000 visits per month and 30 sales per month. One per day.
A (unbelievable?) 50% conversion rate optimization brings you a huge increase with the following math: 30 sales + (30 X 0.50) = 45 sales per month.
Let's assume that increase costs you a month of time and 1000 Euros.
Using the same website and traffic resources to enter into an international market that is the same size (or bigger) than you with the assumption that you get approximately the same amount of sales on a per capita basis.
Example: Expand your webstore into Germany. You get 100 visits per day from paid search in Germany. You're conversion rate is 1%. That's 3000 visits per month and 30 sales per month.
For a total of 60 sales per day. That's almost twice as much than what comes with a 50% conversion rate increase. All for the same time and costs.
Expanding into a new country isn't free. But the effort involved may be far less than what's involved in A/B testing a new website layout.
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Sources and Attributions:
1) This article's title was inspired by a similar title from Des Traynor's talk "Retention is the New Conversion" at TNW 2018 found here: https://www.intercom.com/blog/videos/onboard-signed-users-satisfied-users/