By Torsten Schäfer
In this article, Torsten Schäfer explores how artificial intelligence is revolutionising global ecommerce expansion. From identifying high-potential markets to navigating regulatory hurdles and optimising supply chains, AI offers brands the tools to scale internationally with precision, efficiency, and confidence—transforming global growth from a daunting challenge into a tangible opportunity.
In a globalised economy, scaling overseas has become a crucial business strategy for reaching maximum success. A third of the world’s population shops online, so tapping into international markets is a rich opportunity for ecommerce brands to access millions of new customers and purchase prospects.
The global ecommerce market is projected to reach $8 trillion by 2027, representing staggering growth potential for brands that can position themselves within this. While growth in domestic markets, such as the UK, is somewhat tepid, the scene globally is vastly different. Turkey’s ecommerce volume surged by 115.5% between 2022 and 2023 and countries including India and Indonesia are experiencing annual online retail growth of over 20%. Failing to venture beyond domestic borders means brands miss out on the chance for exponential growth and essentially begin to move backwards as their competitors adapt to the digitally driven age.
In the past, international expansion has been a daunting prospect, viewed as fraught with regulatory complexities, cultural misunderstandings and logistical challenges. Fortunately, the advent of artificial intelligence (AI) has presented the golden ticket that brands have been searching for to mitigate these challenges efficiently and thrive all over the globe.
The role of AI in strategic market entry
The first step for successful international ecommerce is taking a strategic approach to deciding which markets hold the most promise for your business. AI-enabled tools play a crucial role in identifying high-potential markets as they process huge amounts of customer and competitor data quickly. Leveraging AI can reveal competition levels in specific regions so brands can understand how much friction there will be when entering the market and plan accordingly.
Another area to use AI in market strategy is analysing global trends and consumer search behaviours to support the crafting of data-informed go-to-market strategies. Insights can reveal local nuances that transcend intuition, for example, a preference for skincare products that use natural ingredients in a specific prospective region. With this information, brands gain an understanding of whether their products will actually appeal to the customer base in the region without costly trial and error. As well as this, brands can ensure their products, packaging and listings are tailored to meet local demand and tastes with precision.
Navigating regulation and operational complexities
With specific import and export regulations, customs duties, product safety standards, labelling requirements, tax laws and certifications for each market, there is a lot for sellers to consider when taking their products global. AI streamlines complex regulatory processes to make international expansion more achievable. Automated compliance checks and predictive insights that trigger alerts when changes arise alleviate the pressures on businesses and minimise the risk of associated fines and penalties. Language barriers may slow down launches in new markets, but translation AI models can be used to translate and localise legal documentation. This ensures that teams review and submit accurate information to help accelerate the process.
Boosting business with AI-powered supply chains
Another potential issue for businesses as they scale is running an efficient supply chain that spans multiple countries or continents; this is yet another problem that AI is exceptionally well-placed to address. Tools optimise inventory management, forecast demand and identify the most efficient transport routes so that sellers can be confident that products will be available to customers and arrive promptly. Implementing AI into supply chains also improves a business’s bottom line, with reports of revenue growth of up to 4%, inventory reductions of up to 20% and cost cuts of up to 10% as a result of autonomous supply chains. Partnering with third-party ecommerce logistics providers, many of which now have AI and machine learning baked into their operations, provides insider insights into the region and further reduces logistical headaches.
Crafting a winning selling strategy with AI
Once a brand has defined appropriate new markets and thoroughly examined regulatory and logistical demands, it needs to create a selling strategy that suits the region. Pricing must be optimised to ensure that products are competitive yet profitable. AI algorithms can analyse worldwide currency fluctuations and purchasing power to ensure that this balance is struck.
Localised storytelling is another aspect where AI is a valuable partner. Sellers cannot simply assume that what works at home will work in all regions. With 68% of consumers preferring to communicate with brands in their native language, brands need to not only have accurate translations, but also text that follows regional linguistic and context patterns. AI can be used to review content from new regions and analyse high-performing copy and image archetypes to create content briefs with cultural resonances that exceed simple translations.
The future of AI in global ecommerce
As AI becomes increasingly integrated into ecommerce models on domestic and global levels, only brands that are using the technology to their full advantage will remain competitive in the landscape.
Global expansion is now within reach for all ecommerce sellers as AI transforms how brands break into international markets. It is the cornerstone for successful expansion and ecommerce leaders must embrace these advanced solutions to navigate complexities and unlock new levels of growth for their brands.
Torsten Schäfer
