UK local SEO firm Movette shut down by regulators for deceptive sales practices

Firm falsely implied it was affiliated with Google and signed SMBs up to recurring annual contracts worth from $250 to more than $300.

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Please visit Search Engine Land for the full article.

Reblogged 2 months ago from feeds.searchengineland.com

6 sales tax truths every online seller needs to know

As a product seller, chances are high that one of your least favorite administrative hassles is dealing with sales tax. Collecting, reporting and filing sales tax is just one of those necessary evils you must master in order to get on with the fun and profitable parts of your business.

If you dread sales tax when your due date rolls around, or are just getting started, this guide will help you finally feel confident about sales tax!

Let’s dig in.

What is sales tax?

Sales tax is a small percentage tacked on to the sale price of a product or products. In the United States, forty-five states and Washington D.C. all have a sales tax. Sales tax is governed at the state level rather than the federal level, so each state gets to set it’s own sales tax rates, due dates, rules and laws.

Retailers (including online sellers) are required to collect sales tax when you make a taxable sale. Most tangible items that you sell will be taxable. In general, services are not taxable, though some states are attempting to change that.

Sales tax rates vary by state and local area. A few friendly states only have one statewide sales tax rate. But most states also allow local areas such as counties, cities and special taxing districts to collect sales tax as well. This makes sense when you realize that state and local governments use sales tax to pay for necessary budget items like schools, roads and public safety.

As a retailer, however, you need to make sure you’re collecting the correct amount of sales tax in each local area.

Example:

The Colorado state sales tax rate is 2.9%. But local areas are also allowed to tack on extra sales tax. If you were a merchant located in Centennial, Colorado, here is the combination of rates you should charge your customer:

Colorado State Rate 2.9%
Arapahoe County 0.25%
City of Centennial 2.5%
Regional Transportation District Tax 1%
Scientific and Cultural Facilities District 0.1%
Total 6.75%

 

Now that we know what sales tax is and why we’re required to charge it, let’s move on…

Who has to charge sales tax to which customers?

As a retailer, you are only required to collect sales tax from buyers in states where you have sales tax nexus. Sales tax nexus is just a fancy legalese way to say “significant connection” to a state. If you have nexus in a state, then that state considers you on the hook for charging sales tax to buyers in the state.

You’ll always have sales tax nexus in your home state, but you may find that certain business activities create nexus in other states, too. They include:

  • A location – an office, warehouse, store, or other physical place of business
  • Personnel – an employee, contractor, salesperson, installer or other person doing work for your business
  • Inventory – Most states consider storing inventory in the state to cause nexus even if you have no other place of business or personnel
  • Affiliates – Someone who advertises your products in exchange for a cut of the profits creates nexus in many states
  • A drop shipping relationship – If you have a 3rd party ship to your buyers, you may create nexus
  • Selling products at a tradeshow or other event – Some states consider you to have nexus even if you only sell there temporarily

To help you determine whether or not your business activities give you sales tax nexus, you can find out what every state’s laws have to say about nexus here.

If you do have nexus in a state, your next step is to…

Register for a Sales Tax Permit

Before you can legally begin collecting sales tax from buyers in a state, you are required to obtain a sales tax permit. You can do this with your state’s taxing authority, usually called the [State] Department of Revenue.  Here’s information on how to register for a sales tax permit in every state.

When you receive your sales tax permit, you will also receive instructions on when to file and at what frequency.

Most of the time, you will be required to file sales tax either monthly, quarterly or annually. The general rule of thumb is that the higher your sales volume in a state, the more often the state will want you to file a sales tax return and remit sales tax due.

Now that you have your sales tax permit in hand, your next step is to begin collecting sales tax from your customers.

How to collect sales tax as an online retailer

Most online platforms allow you to collect sales tax from your customers, though some platforms are more robust than others when it comes to allowing you to collect the correct amount of sales tax.

Origin vs. destination-based sales tax collection

Long story short – a handful of states are “origin-based” sales tax states. If your business activities are based in one of these states and you sell online, you’re in luck. When selling to buyers in your state, all you need to do is collect sales tax at your local rate. This means you only need to collect sales tax at a single tax rate (Example: 6.5%) if you are fortunate enough to live in an origin-based state.

On the other hand, most states are “destination-based” sales tax states, which can be a real nightmare when it comes to collecting sales tax. In destination-based states, sellers are required to collect sales tax at the rate of the buyer’s ship-to address. States can have hundreds or thousands of local taxing jurisdictions. Remember, each county and city may have a sales tax, plus any special taxing districts. This is where collecting the right amount of sales tax can get a whole lot more complicated.

To even further complicate matters, most of the time you are required to collect sales tax using destination-based rules in any state aside from your home state. You can read a much more detailed explanation of origin vs. destination based sales tax collection here.

Product taxability

When collecting sales tax, you should also keep your product’s taxability in mind. Most tangible products are taxable, but some states make exceptions for necessities such as grocery items or clothing. If you have sales tax nexus in more than one state, you may find that you charge sales on clothing to buyers in one state, but should not charge sales tax on clothing to buyers in another.

Shipping taxability

Also, if you charge your customers for shipping, you may also need to consider sales tax. Some states require sales tax on shipping charges, and some do not. Here’s a list of states that do and do not require sales tax on shipping charges.

If this all sounds overly complicated, don’t worry. Even if you have built your own online store, or use a shopping cart like Magento, a smart sales tax collection solution like TaxJar’s SmartCalcs sales tax API has you covered!

Once you’re collecting sales tax, your sales tax filing due date will roll around before you know it. When that happens…

Report how much sales tax you’ve collected

When it comes time to file your sales tax return, your first step is to figure out how much sales tax you collected from buyers in your state. This includes breaking down how much sales tax you collected from buyers in each city, county and other special taxing jurisdiction. As you can imagine, this gets more difficult the higher volume you are or if you sell through multiple online channels.

Sales tax automation can help here, too. Just link up all of you sales channels – from marketplaces like Amazon FBA or Etsy, to shopping carts like Magento or Shopify, or even a POS like Square – and technology will take care of the rest. We’ll product a return-ready report that you can use to fill out your sales tax filing forms in minutes, not hours.

If you truly never want to see a sales tax return again, you can also AutoFile your sales tax returns in most states. This allows you to spend time on the parts of your business that truly matter.

Once you’ve determined how much sales tax you’ve collected in your nexus states (either with a sales tax automation solution or tediously, with a complicated spreadsheet) your next and final step is to…

File your sales tax return

When you registered for your sales tax permit, your state gave you a sales tax filing frequency and due dates. You can check your sales tax filing due dates here.

When it’s time to file, you can file online at your state’s department of revenue, or AutoFile using a sales tax automation solution.

There are a couple of important things to consider when filing your sales tax returns:

  1. Always file a sales tax return by the due date – This is true even if you didn’t collect a penny in sales tax. States consider your sales tax filing a “check in” and if you fail to file you may end up with a monetary penalty or even having your sales tax permit revoked.
  2. Don’t discount discounts – About half the states with a sales tax realize that asking you, the retailer, to serve as tax collector places and extra burden on your business. If you file on time, they’ll allow you to keep a small percentage (usually 1-3%) of the sales tax you’ve collected. It isn’t much, but it’s free money!

And that’s it! You’ve filed your sales tax return and you’re all set.  Need more info? Check out our Sales Tax 101 for Online Sellers Guide, or join over 6,000 of your fellow sellers and sales tax experts over at the Sales Tax for eCommerce Sellers Facebook Group.

The post 6 sales tax truths every online seller needs to know appeared first on The Email Marketing Blog.

Reblogged 9 months ago from blog.dotmailer.com

Ecommerce email marketing – Best practices to triple your sales

Unlike the one-to-many communication model used across social media platforms, blogs and advertisements, ecommerce email marketing works on a simple, one-to-one basis. If you perfect your email campaigns, you’re almost guaranteed to boost sales, improve customer loyalty and build your ecommerce brand image within no time.

Whether it’s a monthly update, a welcome email or an upcoming sale notification, these tips will put your business ahead of the curve.

Keep it personal

Emails are a direct form of marketing communication, so you’ll want to keep your messages light and personal. And it all starts with the greeting. Sending out countless detached, irrelevant emails isn’t going to get you or your business very far; customers like to feel as though you’ve carefully crafted an email specifically for them.

Something as simple as adding the customer’s name in the greeting is a good start. Consumers would much rather open an email to read something like, “Good morning, Karen!” instead of a general mass greeting. With the right email marketing provider, a simple automated personalization tool can make this task easy.

Another way to keep your emails personal, yet professional, is to add dynamic content. Dynamic content is content that changes based on the preference or the demographics of your customers, which allows your business to target individual subscribers. Adding dynamic content to your emails could be as easy as switching the image that is displayed for your male subscribers versus your female subscribers.

Make it clear as to who you are

Once you’ve selected a personal greeting, let your customers know who you are. The more information you provide, the less likely your email will be tossed into the spam pile.

Every person wants to know the following three things when they receive an email:

  • Who is writing to me?
  • Why are they writing to me?
  • What to do they want me to do?

You want to make sure the “who” part is answered almost immediately upon opening, as this is the basis for legitimizing the rest of the email.

Grab their attention

Think about the subject line before shooting off an email with something generic. It should be engaging and interesting enough for the receiver to open the email. Remember, your email is competing against several other “unread” messages sitting in their inbox, so why should they open yours? The subject line is the first thing readers see – think of it as a first impression.

Keep it short and sweet

Keeping your emails concise is crucial. While you may be tempted to cram in as much information as possible, do refrain. Follow these three rules: make your email:

  • Exclusive – let your readers know they’ve received this email because they’re special. For example, let them know they are the “first to know” about your newest products or offer them an “exclusive discount.”
  • Urgent – try and make the proposition a limited-time offer.
  • Simple – don’t crowd the email with too many visuals or information. Stick to one or two calls-to-action and one or two key messages.

Remember: People want to know who you are, why you are contacting them, and what you want them to do, all within a few sentences or paragraphs.

Double and triple check everything you send out

Sending an email with broken links or out-of-date information sends the wrong message. Be sure to check your links and proofread your copy before it’s sent out.

In addition, redundant coding and an excessive use of links, text, and images are practices that should be avoided. If you’re unsure about your emails’ link or image-to-text ratio, try running your email through a spam checker before sending it out.

A top email marketing platform includes spam check and preview tools so your email not only appears at its best, but also reaches its intended audience. These checks also ensure everyone in your team (or appropriate stakeholders) can review before you hit send.

When done right, the direct and personalized nature of email marketing means you’re likely to see a boost in online sales. By following these tips, you’re setting yourself up for a successful marketing campaign.

The post Ecommerce email marketing – Best practices to triple your sales appeared first on The Email Marketing Blog.

Reblogged 11 months ago from blog.dotmailer.com

Darryl, the man behind dotmailer’s Custom Technical Solutions team

Why did you decide to come to dotmailer?

I first got to know dotmailer when the company was just a bunch of young enthusiastic web developers called Ellipsis Media back in 1999. I was introduced by one of my suppliers and we decided to bring them on board to build a recruitment website for one of our clients. That client was Amnesty International and the job role was Secretary General. Not bad for a Croydon company whose biggest client before that was Scobles the plumber’s merchants. So, I was probably dotmailer’s first ever corporate client! After that, I used dotmailer at each company I worked for and then one day they approached a colleague and me and asked us if we wanted to work for them. That was 2013.  We grabbed the opportunity with both hands and haven’t looked back since.

Tell us a bit about your role

I’m the Global Head of Technical Solutions which actually gives me responsibility for 2 teams. First, Custom Technical Solutions (CTS), who build bespoke applications and tools for customers that allow them to integrate more closely with dotmailer and make life easier. Second, Technical Pre-sales, which spans our 3 territories (EMEA, US and APAC) and works with prospective and existing clients to figure out the best solution and fit within dotmailer.

What accomplishments are you most proud of from your dotmailer time so far?

I would say so far it has to be helping to turn the CTS team from just 2 people into a group of 7 highly skilled and dedicated men and women who have become an intrinsic and valued part of the dotmailer organization. Also I really enjoy being part of the Senior Technical Management team. Here we have the ability to influence the direction and structure of the platform on a daily basis.

Meet Darryl Clark – the cheese and peanut butter sandwich lover

Can you speak a bit about your background and that of your team? What experience and expertise is required to join this team?

My background is quite diverse from a stint in the Army, through design college, web development, business analysis to heading up my current teams. I would say the most valuable skill that I have is being highly analytical. I love nothing more than listening to a client’s requirements and digging deep to work out how we can answer these if not exceed them.

As a team, we love nothing more than brainstorming our ideas. Every member has a valid input and we listen. Everyone has the opportunity to influence what we do and our motto is “there is no such thing as a stupid question.”

To work in my teams you have to be analytical but open minded to the fact that other people may have a better answer than you. Embrace other people’s input and use it to give our clients the best possible solution. We are hugely detail conscious, but have to be acutely aware that we need to tailor what we say to our audience so being able to talk to anyone at any level is hugely valuable.

How much of the dotmailer platform is easily customizable and when does it cross over into something that requires your team’s expertise? How much time is spent on these custom solutions one-time or ongoing?

I’ll let you in on a little secret here. We don’t actually do anything that our customers can’t do with dotmailer given the right knowledge and resources. This is because we build all of our solutions using the dotmailer public API. The API has hundreds of methods in both SOAP and REST versions, which allows you to do a huge amount with the dotmailer platform. We do have a vast amount of experience and knowledge in the team so we may well be able to build a solution quicker than our customers. We are more than happy to help them and their development teams build a solution using us on a consultancy basis to lessen the steepness of the learning curve.

Our aim when building a solution for a customer is that it runs silently in the background and does what it should without any fuss.

What are your plans for the Custom Tech Solutions team going forward?

The great thing about Custom Technical Solutions is you never know what is around the corner as our customers have very diverse needs. What we are concentrating on at the moment is refining our processes to ensure that they are as streamlined as possible and allow us to give as much information to the customer as we can. We are also always looking at the technology and coding approaches that we use to make sure that we build the most innovative and robust solutions.

We are also looking at our external marketing and sharing our knowledge through blogs so keep an eye on the website for our insights.

What are the most common questions that you get when speaking to a prospective customer?

Most questions seem to revolve around reassurance such as “Have you done this before?”, “How safe is my data?”, “What about security?”, “Can you talk to my developers?”, “Do I need to do anything?”.  In most instances, we are the ones asking the questions as we need to find out information as soon as possible so that we can analyse it to ensure that we have the right detail to provide the right solution.

Can you tell us about the dotmailer differentiators you highlight when speaking to prospective customers that seem to really resonate?

We talk a lot about working with best of breed so for example a customer can use our Channel Extensions in automation programs to fire out an SMS to a contact using their existing provider. We don’t force customers down one route, we like to let them decide for themselves.

Also, I really like to emphasize the fact that there is always more than one way to do something within the dotmailer platform. This means we can usually find a way to do something that works for a client within the platform. If not, then we call in CTS to work out if there is a way that we can build something that will — whether this is automating uploads for a small client or mass sending from thousands of child accounts for an enterprise level one.

What do you see as the future of marketing automation technology?  Will one size ever fit all? Or more customization going forward?

The 64 million dollar question. One size will never fit all. Companies and their systems are too organic for that. There isn’t one car that suits every driver or one racquet that suits every sport. Working with a top drawer partner network and building our system to be as open as possible from an integration perspective means that our customers can make dotmailer mold to their business and not the other way round…and adding to that the fact that we are building lots of features in the platform that will blow your socks off.

Tell us a bit about yourself – favorite sports team, favorite food, guilty pleasure, favorite band, favorite vacation spot?

I’m a dyed in the wool Gooner (aka Arsenal Football Club fan) thanks to my Grandfather leading me down the right path as a child. If you are still reading this after that bombshell, then food-wise I pretty much like everything apart from coriander which as far as I’m concerned is the Devils own spawn. I don’t really have a favorite band, but am partial to a bit of Level 42 and Kings of Leon and you will also find me listening to 90s drum and bass and proper old school hip hop. My favorite holiday destination is any decent villa that I can relax in and spend time with my family and I went to Paris recently and loved that. Guilty pleasure – well that probably has to be confessing to liking Coldplay or the fact that my favorite sandwich is peanut butter, cheese and salad cream. Go on try it, you’ll love it.

Want to meet more of the dotmailer team? Say hi to Darren Hockley, Global Head of Support, and Dan Morris, EVP for North America.

Reblogged 1 year ago from blog.dotmailer.com

Meet Dan Morris, Executive Vice President, North America

  1. Why did you decide to come to dotmailer?

The top three reasons were People, Product and Opportunity. I met the people who make up our business and heard their stories from the past 18 years, learned about the platform and market leading status they had built in the UK, and saw that I could add value with my U.S. high growth business experience. I’ve been working with marketers, entrepreneurs and business owners for years across a series of different roles, and saw that I could apply what I’d learned from that and the start-up space to dotmailer’s U.S. operation. dotmailer has had clients in the U.S. for 12 years and we’re positioned to grow the user base of our powerful and easy-to-use platform significantly. I knew I could make a difference here, and what closed the deal for me was the people.  Every single person I’ve met is deeply committed to the business, to the success of our customers and to making our solution simple and efficient.  We’re a great group of passionate people and I’m proud to have joined the dotfamily.

Dan Morris, dotmailer’s EVP for North America in the new NYC office

      1. Tell us a bit about your new role

dotmailer has been in business and in this space for more than 18 years. We were a web agency, then a Systems Integrator, and we got into the email business that way, ultimately building the dotmailer platform thousands of people use daily. This means we know this space better than anyone and we have the perfect solutions to align closely with our customers and the solutions flexible enough to grow with them.  My role is to take all that experience and the platform and grow our U.S. presence. My early focus has been on identifying the right team to execute our growth plans. We want to be the market leader in the U.S. in the next three years – just like we’ve done in the UK –  so getting the right people in the right spots was critical.  We quickly assessed the skills of the U.S. team and made changes that were necessary in order to provide the right focus on customer success. Next, we set out to completely rebuild dotmailer’s commercial approach in the U.S.  We simplified our offers to three bundles, so that pricing and what’s included in those bundles is transparent to our customers.  We’ve heard great things about this already from clients and partners. We’re also increasing our resources on customer success and support.  We’re intensely focused on ease of on-boarding, ease of use and speed of use.  We consistently hear how easy and smooth a process it is to use dotmailer’s tools.  That’s key for us – when you buy a dotmailer solution, we want to onboard you quickly and make sure you have all of your questions answered right away so that you can move right into using it.  Customers are raving about this, so we know it’s working well.

  1. What early accomplishments are you most proud of from your dotmailer time so far?

I’ve been at dotmailer for eight months now and I’m really proud of all we’ve accomplished together.  We spent a lot of time assessing where we needed to restructure and where we needed to invest.  We made the changes we needed, invested in our partner program, localized tech support, customer on-boarding and added customer success team members.  We have the right people in the right roles and it’s making a difference.  We have a commercial approach that is clear with the complete transparency that we wanted to provide our customers.  We’ve got a more customer-focused approach and we’re on-boarding customers quickly so they’re up and running faster.  We have happier customers than ever before and that’s the key to everything we do.

  1. You’ve moved the U.S. team to a new office. Can you tell us why and a bit about the new space?

I thought it was very important to create a NY office space that was tied to branding and other offices around the world, and also had its own NY energy and culture for our team here – to foster collaboration and to have some fun.  It was also important for us that we had a flexible space where we could welcome customers, partners and resellers, and also hold classes and dotUniversity training sessions. I’m really grateful to the team who worked on the space because it really reflects our team and what we care about.   At any given time, you’ll see a training session happening, the team collaborating, a customer dropping in to ask a few questions or a partner dropping in to work from here.  We love our new, NYC space.

We had a spectacular reception this week to celebrate the opening of this office with customers, partners and the dotmailer leadership team in attendance. Please take a look at the photos from our event on Facebook.

Guests and the team at dotmailer's new NYC office warming party

Guests and the team at dotmailer’s new NYC office warming party

  1. What did you learn from your days in the start-up space that you’re applying at dotmailer?

The start-up space is a great place to learn. You have to know where every dollar is going and coming from, so every choice you make needs to be backed up with a business case for that investment.  You try lots of different things to see if they’ll work and you’re ready to turn those tactics up or down quickly based on an assessment of the results. You also learn things don’t have to stay the way they are, and can change if you make them change. You always listen and learn – to customers, partners, industry veterans, advisors, etc. to better understand what’s working and not working.  dotmailer has been in business for 18 years now, and so there are so many great contributors across the business who know how things have worked and yet are always keen to keep improving.  I am constantly in listening and learning mode so that I can understand all of the unique perspectives our team brings and what we need to act on.

  1. What are your plans for the U.S. and the sales function there?

On our path to being the market leader in the U.S., I’m focused on three things going forward: 1 – I want our customers to be truly happy.  It’s already a big focus in the dotmailer organization – and we’re working hard to understand their challenges and goals so we can take product and service to the next level. 2 – Creating an even more robust program around partners, resellers and further building out our channel partners to continuously improve sales and customer service programs. We recently launched a certification program to ensure partners have all the training and resources they need to support our mutual customers.  3 – We have an aggressive growth plan for the U.S. and I’m very focused on making sure our team is well trained, and that we remain thoughtful and measured as we take the steps to grow.  We want to always keep an eye on what we’re known for – tools that are powerful and simple to use – and make sure everything else we offer remains accessible and valuable as we execute our growth plans.

  1. What are the most common questions that you get when speaking to a prospective customer?

The questions we usually get are around price, service level and flexibility.  How much does dotmailer cost?  How well are you going to look after my business?  How will you integrate into my existing stack and then my plans for future growth? We now have three transparent bundle options with specifics around what’s included published right on our website.  We have introduced a customer success team that’s focused only on taking great care of our customers and we’re hearing stories every day that tells me this is working.  And we have all of the tools to support our customers as they grow and to also integrate into their existing stacks – often integrating so well that you can use dotmailer from within Magento, Salesforce or Dynamics, for example.

  1. Can you tell us about the dotmailer differentiators you highlight when speaking to prospective customers that seem to really resonate?

In addition to the ones above – ease of use, speed of use and the ability to scale with you. With dotmailer’s tiered program, you can start with a lighter level of functionality and grow into more advanced functionality as you need it. The platform itself is so easy to use that most marketers are able to build campaigns in minutes that would have taken hours on other platforms. Our customer success team is also with you all the way if ever you want or need help.  We’ve built a very powerful platform and we have a fantastic team to help you with personalized service as an extended part of your team and we’re ready to grow with you.

  1. How much time is your team on the road vs. in the office? Any road warrior tips to share?

I’ve spent a lot of time on the road, one year I attended 22 tradeshows! Top tip when flying is to be willing to give up your seat for families or groups once you’re at the airport gate, as you’ll often be rewarded with a better seat for helping the airline make the family or group happy. Win win! Since joining dotmailer, I’m focused on being in office and present for the team and customers as much as possible. I can usually be found in our new, NYC office where I spend a lot of time with our team, in customer meetings, in trainings and other hosted events, sales conversations or marketing meetings. I’m here to help the team, clients and partners to succeed, and will always do my best to say yes! Once our prospective customers see how quickly and efficiently they can execute tasks with dotmailer solutions vs. their existing solutions, it’s a no-brainer for them.  I love seeing and hearing their reactions.

  1. Tell us a bit about yourself – favorite sports team, favorite food, guilty pleasure, favorite band, favorite vacation spot?

I’m originally from Yorkshire in England, and grew up just outside York. I moved to the U.S. about seven years ago to join a very fast growing startup, we took it from 5 to well over 300 people which was a fantastic experience. I moved to NYC almost two years ago, and I love exploring this great city.  There’s so much to see and do.  Outside of dotmailer, my passion is cars, and I also enjoy skeet shooting, almost all types of music, and I love to travel – my goal is to get to India, Thailand, Australia and Japan in the near future.

Want to find out more about the dotfamily? Check out our recent post about Darren Hockley, Global Head of Support.

Reblogged 1 year ago from blog.dotmailer.com

Is Australia the land of opportunity for your retail brand?

Australia has a resident population of more than 24 million and, according to eMarketer, the country’s ecommerce sales are predicted to reach A$32.56 billion by 2017. The country’s remote location in the APAC region means that unlike European countries or the USA, traditionally there have been a lack of global brands sold locally.

Of course, we also know that many expatriates, particularly from inside the Commonwealth, have made Australia their home and are keen to buy products they know and love from their country of origin.

All of these factors present a huge and potentially lucrative opportunity for non-Australian brands wanting to open up their new and innovative products to a fresh market, or compete for market share.

But it’s not just non-Australian retailers who are at an advantage here: Australia was late to the ecommerce party because native, established brands were trading well without it. Subsequently, Australian retailers’ ecommerce technology stacks are much more recent and not burdened by legacy systems. This makes it much easier to extend, or get started with, best-of-breed technologies and cash in on a market that’s booming. To put some of this into perspective, Magento’s innovative ecommerce platform currently takes 42% of Australia’s market share and the world’s first adopter of Magento 2.0 was an Australian brand.

The GST loophole

At the moment, local retailers are campaigning against a rule that exempts foreign websites from being charged a 10% general sales tax (GST) on purchases under A$1,000. And in 2013, Australian consumers made $3.11 billion worth of purchases under A$1,000.[1]

While the current GST break appears to put non-Australian retailers at an advantage, Australian-based brands such as Harvey Norman are using it to their advantage by setting up ecommerce operations in Asia to enjoy the GST benefit.

Australian consumers have also countered the argument by saying that price isn’t always the motivator when it comes to making purchasing decisions.

It’s not a place where no man has gone before

Often, concerns around meeting local compliance and lack of overseas business knowledge prevent outsiders from taking the leap into cross-border trade. However, this ecommerce passport, created by Ecommerce Worldwide and NORA, is designed to support those considering selling in Australia. The guide provides a comprehensive look into everything from the country’s economy and trade status, to logistics and dealing with international payments.

Global expansion success stories are also invaluable sources of information. For instance, it’s not just lower-end retailers that are fitting the bill, with brands like online luxury fashion retailer Net-a-Porter naming Australia as one of its biggest markets.

How tech-savvy are the Aussies?

One of the concerns you might have as a new entrant into the market is how you’ll reach and sell to your new audience, particularly without having a physical presence. The good news is that more than 80% of the country is digitally enabled and 60% of mobile phone users own a smartphone – so online is deeply rooted into the majority of Australians’ lives. [2]

Marketing your brand

Heard the saying “Fire bullets then fire cannonballs”? In any case, you’ll want to test the waters and gauge people’s reactions to your product or service.

It all starts with the website because, without it, you’re not discoverable or searchable, and you’ve nowhere to drive people to when running campaigns. SEO and SEM should definitely be a priority, and an online store that can handle multiple regions and storefronts, like Magento, will make your life easier. A mobile-first mentality and well thought-out UX will also place you in a good position.

Once your new web store is set up, you should be making every effort to collect visitors’ email addresses, perhaps via a popover. Why? Firstly, email is one of the top three priority areas for Australian retailers, because it’s a cost-effective, scalable marketing channel that enables true personalization.

Secondly, email marketing automation empowers you to deliver the customer experience today’s consumer expects, as well as enabling you to communicate with them throughout the lifecycle. Check out our ‘Do customer experience masters really exist?’ whitepaper for some real-life success stories.

Like the Magento platform, dotmailer is set up to handle multiple languages, regions and accounts, and is designed to grow with you.

In summary, there’s great scope for ecommerce success in Australia, whether you’re a native bricks-and-mortar retailer, a start-up or a non-Australian merchant. The barriers to cross-border trade are falling and Australia is one of APAC’s most developed regions in terms of purchasing power and tech savviness.

We recently worked with ecommerce expert Chloe Thomas to produce a whitepaper on cross-border trade, which goes into much more detail on how to market and sell successfully in new territories. You can download a free copy here.

[1] Australian Passport 2015: Cross-Border Trading Report

[2] Australian Passport 2015: Cross-Border Trading Report

Reblogged 1 year ago from blog.dotmailer.com