How to Expand Your FMCG eRetail Business Globally

FMCG is one of the most dynamic global market verticals. How can merchants expand successfully to new markets – and what role do payments play?

In today’s interconnected world, expanding your eRetail business globally is easier than ever before and can unlock tremendous growth opportunities. As consumers worldwide embrace online shopping, venturing into international markets has become a strategic imperative for retail brands.


The Fast-Moving Consumer Goods (FMCG) sector represents a significant opportunity for eRetail businesses seeking global expansion. FMCG products, such as food, beverages, personal care items, and household essentials, have a high turnover rate and strong demand, making them ideal candidates for online retail.


In this comprehensive guide, we will explore the global trends shaping the FMCG eRetail landscape, discuss payment challenges and solutions, and shed light on the vast potential of emerging markets such as Latin America, Africa, Eastern Europe, and Southeast Asia. Learn from the success stories of global retail brands and discover the key steps to take your FMCG eRetail business to new heights.


Table of contents:

Global Trends in eRetail

Optimize your Payment Solutions

Unlocking the Potential of Emerging Markets



Global Trends in eRetail:

The eRetail sector is witnessing remarkable global trends that are reshaping the industry:


a. Mobile Commerce (mCommerce) Surge

With the proliferation of smartphones and improved internet access, mCommerce has become a dominant force. Retailers must optimize their websites and payment systems for mobile devices as consumers now prefer to shop on their mobile devices due to the convenience and accessibility it offers.


b. Personalization and Customer Experience

Tailoring the shopping experience to individual preferences is paramount. Utilize customer data, advanced analytics, and AI-driven technologies to deliver personalized recommendations, offers, and a seamless shopping journey across all touchpoints.


c. Omnichannel Strategy

Consumers expect a seamless shopping experience across various channels, such as online stores, social media, and marketplaces. eRetailers are adopting an omnichannel approach to integrate all these channels and provide a cohesive and consistent shopping journey.

Social media platforms are evolving into vibrant marketplaces. Integrating your eRetail business with social commerce channels enables you to tap into a vast network of engaged consumers, increase brand visibility, and drive sales.


Optimize your Payment Solutions:


Expanding globally entails navigating various payment challenges, but with the right solutions, these obstacles can be overcome:


a. Cross-Border Payment Complexities:

Currency conversions, international regulations, and diverse payment preferences require comprehensive payment solutions. Partnering with payment service providers like PayU Global Payments can simplify cross-border transactions, offering a wide range of payment options, localized methods, and fraud prevention tools.


b. Security and Trust:

Consumer trust is essential for success in eRetail. Employ robust security measures, including encryption technologies, PCI DSS compliance, and fraud detection systems, to protect customer data and ensure secure transactions.


c. Payment Localization:

Adapting to local payment preferences is crucial for expanding into new markets. Offer region-specific payment methods, such as mobile wallets, bank transfers, and local cards, to enhance the checkout experience and build trust with customers.


d. Optimizing Approval Rates for Global Expansion

One crucial aspect of expanding your eRetail business globally is optimizing approval rates for payment transactions. Approval rates refer to the percentage of successful payment transactions processed without any issues. Improving approval rates is vital for maximizing revenue and enhancing customer satisfaction. Here’s how you can optimize approval rates:


Partner with Reliable Payment Service Providers


Collaborating with trusted payment service providers (PSPs) like PayU Global Payments can significantly impact approval rates. PSPs with established networks and strong relationships with financial institutions can negotiate better transaction rates and improve approval rates for your eRetail business.


Understand Local Payment Preferences


Different regions have varying payment preferences. By conducting market research and understanding the preferred payment methods in your target markets, you can offer a tailored checkout experience that resonates with local customers. Providing popular local payment options alongside global methods can boost approval rates and reduce cart abandonment.


Optimize Fraud Prevention Systems:


While preventing fraudulent transactions is crucial, overly strict fraud prevention measures may result in false declines and negatively impact approval rates. It’s essential to strike a balance between robust fraud prevention systems and minimizing false declines. Analyzing transaction patterns, implementing machine learning algorithms, and leveraging AI-powered fraud detection tools can help reduce fraud while optimizing approval rates.


Monitor and Analyze Transaction Data:


Regularly monitoring and analyzing transaction data can provide valuable insights into approval rates. Identify patterns, trends, and factors that contribute to declined transactions. By monitoring metrics such as decline codes, chargeback rates, and transaction success rates, you can identify areas for improvement and make data-driven decisions to enhance approval rates.

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Unlocking the Potential of Emerging Markets:

Expanding into emerging markets can significantly boost your global eRetail strategy by accessing a large customer base, creating new revenue streams, and increasing brand awareness globally. Early entry can provide a competitive advantage and foster innovation and adaptation to meet diverse market needs.

Let’s explore the potential of key regions:


a. Latin America:

With a rising middle class and increasing internet penetration, the region offers substantial opportunities.

The payment landscape is characterized by a mix of cash dominance, high smartphone penetration, and a growing fintech sector. Cross-border remittances play a significant role, and regulatory challenges exist across different countries. Having a relatively lower Credit card penetration, Latin America is fragmented with varying preferred payment methods, leading to broad variety of APMs.

Despite challenges, the market is dynamic with significant growth opportunities, making it an area of interest for businesses and fintech startups aiming to tap into the region’s evolving ePayments landscape.

To give an example, Walmart, the American retail giant, has achieved significant success in expanding into emerging markets. Walmart’s entry into Mexico began in 1991 through a joint venture with Cifra, a local retailer. Through strategic acquisitions and localization efforts, Walmart Mexico grew to become one of the country’s leading retailers, capitalizing on the growing middle class and expanding its footprint across the region.


b. Africa:

Rapidly growing economies and a burgeoning young population make Africa an attractive market. Mobile payments and innovative fintech solutions play a pivotal role in catering to the unique needs and limited banking infrastructure of various African countries.

Spar’s, the Netherlands-based supermarket, entry into the African market involved adapting its store formats and product offerings to cater to the preferences and needs of African consumers. By incorporating local products and brands alongside their international assortment and offering local payment methods (mobile money), Spar has created a unique shopping experience that resonates with African customers.


c. Eastern Europe:

Countries like Poland, Russia, and Ukraine exhibit a strong appetite for eRetail. Offering localized payment options, understanding local regulations, and leveraging popular marketplaces can be key strategies for success in this region.

As a reference, Carrefour embarked on an expansion strategy in countries such as Poland, Romania, and Bulgaria. By tailoring its product offerings to suit local tastes and preferences, Carrefour was able to resonate with consumers in these markets. The brand also focused on developing an extensive network of hypermarkets and supermarkets, establishing a strong physical presence.


d. Southeast Asia:

Boasting a vast and digitally connected consumer base, Southeast Asia presents immense potential. Embracing popular e-commerce platforms, providing local payment methods, and navigating cultural nuances are vital to capturing market share in countries like Indonesia, Thailand, and Vietnam.

Alibaba, the Chinese e-commerce giant, has experienced remarkable success in emerging markets. With its flagship platform, Taobao, and payment solution Alipay, Alibaba established itself as the leader in China’s e-commerce market. Additionally, Alibaba expanded its influence in Southeast Asia by investing in local e-commerce platforms like Lazada, capturing the fast-growing consumer base in countries such as Indonesia, Thailand, and Vietnam.

Global Local Payment Methods PayU Website


The FMCG eRetail industry is continuously evolving, and staying up to date with the latest payment advances and consumer preferences is essential for eRetailers to remain competitive and relevant in the global market.


Expanding your FMCG eRetail business globally is an exciting endeavor filled with immense potential. By staying abreast of global trends, addressing payment challenges through solutions like PayU Global Payments, and targeting emerging markets, you can position your brand for international success, increasing customer satisfaction and improving conversions. Learn from the triumphs of global retail brands, embrace localization, prioritize customer experience, and forge strategic partnerships to unlock new horizons of growth in the global eRetail landscape.