Selection of adequate markets
The first question before even thinking about localization should be: What markets offer reasonable chances to set up a profitable business within a feasible time frame? Blindly investing in expansion to new markets is dangerous. Often, the obvious choices – for example the large ecommerce markets such as the UK or Germany – are not the only options: the true potential for individual players can very well be situated in smaller or emerging markets. There is no one-fit-all approach. In order to select the right markets for an online expansion, the target countries should be profiled in order to determine their potential. Sellers should also include an analysis of the search frequencies of the products they wish to sell in the new markets. Another important step is a comparison of product prices, CPC (Cost per Click, average costs when running an AdWords Campaign) and CPO (Cost per Order, quality of a marketing measure).