Online retailers approach globalization with caution

JupiterResearch analyst Zia Daniell Wigder recently authored a report on how more and more online retailers are showing interest in reaching global markets.

"At no time during the past few years has interest in international online commerce been higher," said Wigder, Web Globalization Analyst at JupiterResearch and author of "Global Online Retail: Navigating Successful International Expansion."

The slowdown in the U.S. economy coupled with low dollar values and shifting Internet populations are all drivers of what will be the biggest area of growth during the next five years, says the report.

However, online retailers are currently cautious about global expansion. They cite geographical obstacles, differing consumer behavior, regulations and a reluctance to pass control to local managers as being the main issues.

"Today, over 60 percent of companies with global transactional Web sites rely on a central globalization team to manage those sites," said David Schatsky, President of JupiterResearch. "A centralized staffing structure will only work if sites are developed and optimized through regular contact with local offices."

Tags: globalization, online retail