You’ve decided years ago that you were going to achieve your dream to start your own webshop. You’ve made plans, found partners, researched all sorts of transport and distribution possibilities and went live, how exciting. Your online business has just become real. Now, years later, business is booming. All of the time and effort you put into your webshop now start to pay off. Well begun is half done, right?

Even your marketing is totally up-to-date right now. SEA, SEO and Socials, everything is working the way it should. You almost start to wonder what else you could possibly do more. And as the businessman you are, you start to think about the next step, but which one?

The reason why starting a second national webshop is a bad idea

A lot of entrepreneurs start to aspire for a second webshop after having started a first successful one. Because the first one went well, why not do it all over again, this time with even more expertise? We can be bold about it: because it will cost you more money than you will earn. 

When you run a national webshop, with a great marketing strategy and high rankings in Google, organic as well as paid, you’ve evidently managed to outsmart your competition. You want to keep it that way. That is exactly the reason why starting a second national webshop is a bad idea. When you start a second national oriented domain, selling similar products as your original webshop, you form your own competition, it’s cannibalism!

For the simple fact that your webshops will fight the same battle to get a good position in Google. A new webshop could give you about 20% more profit, as support to your main webshop, but because you are pricing yourself out of the marketing market, your marketing budget will increase by about 150% percent! Purely because you can’t possibly market two competing webshops, expecting the costs will stay the same. You will lose money. 

Conquer Europe

So, how cán you expand your business? Easy, by broadening your horizon, conquer europe!

The national market has already been conquered, your target group of people knows about you and especially marketingwise, you’re at the top of your game. A second webshop will only act as a competitor to your existing webshop and thus, won’t be profitable. If you still want to expand your business, offering similar products, you’ll need to find a new, bigger market for it. That market is just over the border, no doubt about it. When you feel that you’ve gotten everything out of your national target group as it is, that’s the moment you need to gain the faith and start an international, .com domain. But how do you do that?

Create your own label

The moment entrepreneurs start to think about internationalization of their business, they face the same problem: a lot of products can not be sold over the border because of labels’ rulebooks. This might feel as a problem completely out of your control, but of course, there is a possible solution. By creating your own label, this dependence of other labels’ rules will finally belong to the past. You’re after all the boss of your own label, you make the rules! 

By doing a lot of research about the products that you already sell today, you can use that knowledge to produce a similar product yourself in a cheap production oriented country. Your own label will help you to increase your profit on a national level, which can help you to take that step to sell internationally. With your own label you can sell products with a margin of approximately 80%!

A good example of increasing your profit by creating your own label is Essimo.nl. This is a brandstore, which means it only sells it’s own label, that was created as an expansion of Fightshop.nl. Fightshop.nl is a customer of GMU. They really wanted to expand their business, we helped them accomplish this. We guided them during the startup of their own international brandstore Essimo.nl, which turned out to be a huge success.

Facts and figures never lie. There is one thing that all of the companies with a ten million euro profit have in common: they built their own label. It is the key to success on the international market, but it can also help you on a national scale. It will prevent cannibalism. The main national webshop can sell popular brands as well as your own label, the brandstore will only sell your own label. This way your webshops both have a clear proposition and the problem of cannibalism will no longer be relevant. 

Increase your market, decrease your product range

Creating your own label takes a lot of research beforehand. An important question is, for example, what products are best fit to get reproduced for the brandstore? Our experience teaches us that in the beginning of your internationalization, a bigger market is more important, than a large product range.

That’s why we advise you to begin with a small selection of your top-products. Even if you begin with just five products in different sizes, selling in five countries. This will keep your SKU low, but still, you will increase your profit because of the expanded market. When this profit has grown enough, you can upscale your market again. Instead of five countries, you will sell in ten countries, so on. When your profit grows even more because of this expansion, you can increase your SKU’s as well. If everything goes according to plan, the impact of increasing your SKU at this point will have even more impact because you already made a name for yourself in a lot of different countries. Sales will grow exponentially! And when sales grow, profit will too, which means you can upscale your product range and your market again. Because of this building strategy, you’ll never have unused stock and your business will constantly get a new boost.

Tips & Tricks

As hopefully made clear, you need to keep a lot of things in mind when starting a new international webshop. That’s why we’ve made a list of different tips and tricks.

Everything we discussed up till now, can be summoned in three simple steps:

  1. Create your own label
  2. Generate profit
  3. Internationalize

During this process there are a couple of important things you should keep in mind:

  • Start with trademark registration
  • Make your brandstore a .com domain, which will launch internationally from the get go
  • Pay attention to your product, they can’t be too much ‘China-remake’
  • Cover your new company legally and get the right insurance in case you’ll get that dreaded claim anyway
  • Keep your product stock small in the beginning
  • Make your own product pop-up when customers view a product from another brand on your original webshop, this way you can use their popularity in your advance
  • Only offer your own label on big market sites such as amazon.com

GMU is here to help

These are just a couple examples of the tricks we can help you out with. GMU has more than ten years of experience in this area. In a lot of cases we have managed to multiply the profit by 30! Because of our experience and unique software, we can take the right steps, at the right time.

We have big ambitions for your webshop and believe in the simple fact that a nice, selfmade, niche-product, offered on a large, growing market, has enough power of it’s own to help your company grow explosively. 

We too know that internationalization can be scary, because the bigger the market, the bigger the competition. But we are not afraid, GMU will go to battle with you!

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