Six things you need to know before you start selling online to customers overseas

More than 50,000 new ecommerce companies are registered each year in the UK and more than twice that number are also believed to start selling online as sole traders. It’s not hard to understand why it’s so popular. 

It’s remarkably quick, easy and cheap to start selling online, while demand continues to grow ever stronger. According to the ONS, online purchases constituted just 3% of UK retail sales in 2006, while they now reportedly make up 25%. Almost 90% of UK adults are estimated to have bought online in 2025, confirming the UK's position as one of world’s most digitally active consumer markets. 

Many other offline businesses (including bricks and mortar retailers) also sell online, of course. It can provide a much-needed additional income stream, which can fuel significant growth, especially if you sell to customers overseas. But it brings distinct challenges and responsibilities, so, what key facts do you really need to know before you start selling online to customers overseas?

Just because your product or service sells like hot cakes in the UK, doesn’t automatically mean it will prove as popular overseas. Whether slightly or significantly, you may have to change it to maximise its appeal in other countries. That could include your brand or product names, packaging, sizing/measurements, product descriptions and policies. And they could all require translation. 

Need to know! You should also display your prices in local currencies, while ensuring they’re still attractive when compared to local competitor prices. Carry out thorough market research to find out essential information about customers, competitors and prices in other countries. 

UK marketing tactics might not deliver the same results overseas. Once again, having specific local market knowledge is a must. Spend time researching and devising a specific digital marketing plan for each overseas country.  

Beyond translation, localising language can require adapting meaning, tone, humour and cultural references. Your messaging and images may need to be localised, too. You also need to be mindful of local search engines (eg Yahoo! Japan, Baidu in China, etc) and region‑specific social platforms (eg LINE in Japan, KakaoTalk in Korea, etc). 

Need to know! You may need to answer customer enquiries from non-English-speakers. Your customer service must always be highly professional and responsive. 

Overseas buyers may have to pay a local goods and services tax (like UK VAT), which you collect and pay after you’ve registered (if necessary). Alternatively, having your customers pay tax due on delivery could be easier for you, although it could impact your conversions, with many customers preferring to pay tax on purchase. Applying local taxes and customs duties can make your products/services more expensive than local alternatives, so you might need to set lower prices to compete with local sellers. 

Need to know! Government website GOV.UK provides support and a wealth of information for UK SMEs that want to start selling overseas. 

You must be able to accept payments in other currencies, of course, which can be easier if you use international payment gateways such as Stripe, PayPal, Worldpay, etc. Customer preferences vary from region to region. For example, while credit cards, PayPal and Apple Pay are popular in the USA, customers in Asia prefer Alipay, WeChat Pay, etc, while in Europe, Klarna/Sofort and Bancontact are popular. Give your customers the payment options they prefer to use. 

Need to know! Offering familiar payment methods can significantly increase your sales conversion rates. All transactions should be seamless, secure, quick and cost-effective. 

Countries throughout the world have their own consumer protection laws, safeguarding buyers’ rights regarding returns and refunds, warranties and cooling‑off periods, while there can also be product labelling and safety standards. Some legislation extends across many nations, for example, in the EU. Make sure you research these and comply fully, because non-compliance can lead to fines or blocked shipments. 

Need to know! EU consumer rights are among the world’s strictest, including a 14‑day cooling‑off period for online purchases, full refund within 14 days of return, two‑year minimum legal guarantee on goods, clear pricing, taxes and delivery information, while hidden fees or pre‑ticked boxes are not allowed.

Late deliveries and lost consignments are top bugbears for online buyers, which can lead to bad online reviews and customers heading off elsewhere, so you need to ensure that you use reliable delivery partners. Delivery times can vary a lot between countries and regions, so be transparent about delivery dates and prices, because it helps to build trust.  

Need to know! Offer tracked shipping where possible. It provides customers with real‑time updates, estimated delivery dates and proof that their order is on its way, which will reduce “where’s my order?” messages. It also protects you by providing clear evidence of dispatch and delivery, which can prevent disputes and refund requests. 

Selling online to customers overseas could be a highly effective way to boost your turnover and grow your business, but it requires hard work and you need to manage the specific challenges it brings. It can be wise to start with one or two countries and learn from your successes and failures before you move on to other territories. Who knows where that could take you and your business? 

Tech Adoption for Growth is a new, government-funded pilot programme offering free, practical digital support to help SMEs and sole traders in the South West get more value from digital tools. Eligible businesses are assessed and then randomly allocated to receive either one-to-one expert support or the opportunity to take part in expert-led workshops. To find out more click here.