7 Tips for Regional Commerce in Central American and Caribbean Markets

Regional commerce is a great way to grow your business, but it’s not as simple as publishing a website and expecting it to work in every market. Selling regionally requires localization—not necessarily of the product itself, but definitely of the checkout process.

Localizing currency and payment methods can make shoppers 70 percent more likely to complete a purchase. Your shopping cart design, the number of steps in the ordering process, and the information you require can make a difference in conversion rates. Expanding regionally is good for business because more markets mean more revenue—but also more nuances to address.

Here’s a quick overview of what you should consider when building a regional commerce strategy for local markets in Central America and the Caribbean. 

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1. Consider market size and popular products

Targeting the region’s largest markets can help you increase sales more quickly. However, certain markets may be better suited to specific verticals. 

For example, although some Central American and Caribbean countries may have smaller populations, they may have high demand for specific product categories. Understanding not only the size of a market but also what people there want to buy can help you succeed in regional commerce.

2. Adapt to local payment methods and preferences

Although Visa, Mastercard, and PayPal are the most popular payment methods worldwide, local payment methods dominate certain markets. Payment methods can vary significantly across Central American and Caribbean countries, so adapting to them is crucial to maximizing sales. 

For example, cash payments through convenience stores are very common in some markets. Other local preferences can also come into play beyond payment methods. Offering a payment plan can help you increase sales in markets where consumers are used to paying in installments. Displaying prices in the local currency can also make a major difference in sales conversions.

3. Explore other regional strategies

In addition to languages, payment methods, and currencies, shopper preferences can vary widely across markets. Different shopping cart formats, product packaging, and form lengths may perform differently in different Central American and Caribbean countries. 

For example, one test showed that shoppers in one country preferred a shorter checkout form, while shoppers in another country accepted longer forms. Make sure you test everything locally to achieve the best results. At the same time, some approaches do work regionally: displaying a support number gives shoppers the confidence they need to complete a purchase in most markets.

4. Sell more with smart payments

No matter where you sell, smart payment routing and revenue recovery can make a major difference for your business. Selling in the local currency and using account updaters and retry logic can help improve your payment authorization rates, renewal rates, and revenue. 

Validating your security with a system such as 3D-Secure can also reassure shoppers, although shoppers in different markets may have varying levels of familiarity with these methods. Make sure you use a smart system that can enable or disable features and tools like this depending on the markets where you sell.

5. Leverage indirect channels worldwide

As your business grows regionally, remember that you don’t have to do it alone. Central America and the Caribbean have resellers, distributors, e-resellers, VARs, and affiliates ready and willing to help you sell. The channels you choose may depend as much on your internal resources as on anything else. While resellers may deliver a higher average order volume, they may also require more work and commitment from you. 

It’s up to you to decide what works best for your business. One tip: If you sell subscription-based products, integrate partners into the renewal process, or they won’t be as invested in your success. When you’re ready, providing partners with a portal and tools can empower them to deliver better results for you and help grow your business.

6. Celebrate locally

Although many holidays resonate with shoppers worldwide, plenty of others are truly important only in specific local markets. 

Some Central American and Caribbean countries have their own local holidays that drive sales. Understanding which holidays matter in each country can help you create more effective promotions across the region.

7. Master the basics wherever you go

It’s easy to get excited about international sales and jump into fun promotions worldwide. However, don’t forget the basics. Providing localized support is essential to keeping customers happy in local markets, as is complying with local regulations on sales taxes, refunds, privacy, and customer communications. Take care of these essentials before moving too far along your online sales journey.

Remember that throughout your expansion into regional markets, you have a trusted partner that knows the journey: Tilopay. We offer the fast, secure, and hassle-free online payment solutions your business needs. You can create an account here. The process takes no more than 5 minutes.