Types of Market Testing for Global eCommerce Success

Introduction: the Importance of Market Testing

Entrepreneur defines market testing as follows: to test multiple marketing scenarios and select the most promising for expansion. In other words, market research involves putting a product or service in front of a target audience – usually your potential customers – to determine which one resonates with the target market the best. Wise Amazon sellers rely on market feedback to help them scale and grow – and, yes, expand to other countries.

This week, we’ll understand more about market testing and feedback, how to use the insights gained from market testing to help you expand to other countries, and how market testing can refine your localization approach in each market you expand to.

Spoiler alert: yes, market testing is a powerful tool when expanding. Here’s an example. Let’s say you want to sell on Amazon UAE, but you don’t know if your product concept will resonate with your new demographic. Getting feedback on the specific aspects of the product will help you refine potential issues that will hurt conversions. You’ll tailor-fit your product to your new demographic. Isn’t that fantastic feedback? It removes clumsy guesswork, and helps you refine your expansion strategy with real data.

Let’s get started, shall we?

I. Market and Product Testing for Global eCommerce

Market testing is defined as a strategic process used by businesses to evaluate the potential success and viability of a new product, service, or marketing campaign before it’s launched on a full scale.

The process involves gathering data through different methodologies like surveys, focus groups, and beta testing to gauge customer response and market readiness. In the context of global eCommerce, market testing becomes crucial as it provides insights into different regional preferences and market conditions that could affect conversions and engagement.

Market testing serves as a roadmap for understanding diverse consumer behaviors, preferences, and potential barriers to entry. It helps to assess how a product or service may resonate in different cultural contexts, which is vital for tailoring marketing strategies and product offerings to suit local tastes and expectations.

Eliminate the Challenges Faced by Amazon Sellers in International Markets

Expanding internationally? The potential success of a product is contingent on a lot of factors beyond the usual Amazon product life cycle. We’re not just talking about inventory management and SEO; we’re talking about cultural sensitivity, how to find your competitors and see where they’re winning, and much more.

Cultural Differences: Navigating cultural diversity is a significant challenge as consumer preferences vary widely across different markets due to cultural norms and traditions. Market testing helps Amazon sellers identify and adapt to these differences, ensuring their products are culturally relevant and appealing.

Regulatory and Compliance Issues: Every country has unique commerce regulations, including consumer rights, product safety, and taxes. Let’s say you’re selling electronic goods and you want to explore European eCommerce. A good market test would be to send small-scale product shipments to different EU countries, in order to understand specific compliance requirements, which include safety standards, environmental regulations like RoHS (Restriction of Hazardous Substances), and CE marking that signifies compliance with EU legislation. By identifying issues prior to the full launch, you make sure your electronic goods pass customs smoothly without delays, contributing to a better customer experience and reinforcing your brand’s reputation as compliant and reliable.

Language Barriers: Effective communication is crucial in winning and retaining international customers, necessitating accurate translations and culturally resonant content. Market testing evaluates the effectiveness of localized content, ensuring it engages the intended audience properly.

Logistical Challenges: Managing logistics across borders adds complexity, requiring efficient, cost-effective shipping solutions to meet customer expectations for timely delivery. Market testing provides insights into logistical challenges, aiding in the planning of robust supply chains.

Payment Preferences: Different regions favor different payment methods, impacting conversion rates significantly. Market testing is essential for understanding these preferences, allowing Amazon sellers to optimize checkout processes and enhance customer satisfaction.

Competition: Entering new markets often pits Amazon sellers against established local competitors with a deeper understanding of market dynamics. Market testing enables sellers to analyze competitive strategies and discover opportunities to stand out through innovation, pricing, or customer service.

II. The Role of Market Testing in Localization

Localization for Amazon involves adapting a product, content, and business strategies to meet the specific cultural, linguistic, and consumer needs of customers all over the globe. It goes beyond mere translation to encompass a thorough understanding of local customs, purchasing behaviors, and regulatory requirements. The end goal of localization is to make sure that the product and marketing efforts feel as though they’ve been created specifically for the local market, to enhance the customer experience and increase relevance.

Market testing plays a crucial role in guiding localization efforts in global eCommerce. By conducting targeted tests in specific markets, businesses can gather valuable insights into how well their products and marketing strategies resonate with their local customers.

When you test market receptiveness to your product or service prior to launch, you cover many bases and eliminate so much guess work:

1. Cultural Adaptation: Market testing allows businesses to evaluate whether their product or service’s cultural references, imagery, and messaging align with local norms and values. For instance, color schemes that work well in one culture might have negative connotations in another. Market testing helps identify such cultural nuances, enabling businesses to tailor their offerings accordingly.

2. Language and Communication: Through market testing, companies can assess the effectiveness of their language use, including idioms, slogans, and product descriptions. This testing phase can reveal if the language used is appealing and clear to the local audience or if it potentially causes confusion or offense.

3. Consumer Preferences and Behavior: Market testing uncovers local consumer preferences regarding product features, pricing, and marketing channels. It can reveal specific regional tastes and shopping behaviors, such as a preference for mobile shopping over desktop or vice versa, allowing companies to adjust their product features and marketing tactics.

4. Regulatory Compliance: By including regulatory checks in market tests, companies can ensure their products meet local standards and legal requirements before a full-scale launch. This proactive approach prevents costly legal issues and supports a smooth market entry.

You can even test the entire user journey from product discovery to after-sales relationships. See how your competitors are doing, and what customers like about their main image, copywriting, and other details. Now, either you improve the product to appeal to your market in a very specific way, or you identify target market demographics based on the research you’ve collected.

For example, let’s say you’re selling stationery for girls. But based on your market testing initiative, you discover that your Japanese demographic is young women – much older than your American demographic – because of the kawaii aspect of your product. That will help you tailor your approach to your new customers much better, improve your overall market positioning, and lead to a successful market launch.

Tl;dr – the data don’t lie.

III. Key Components of Effective Market Testing for Amazon Sellers

Convinced? We thought so. Anything that removes the guess work from a costly expansion, therefore saving you valuable time and money, is a very good thing. Here’s how to get started.

Market Segmentation: Identifying and Analyzing Target Demographics and Behavioral Patterns in New Markets

Market segmentation in global eCommerce involves dividing potential customers into groups or target market segments that share similar characteristics and behaviors, which can significantly influence their purchasing decisions. You can go really specific here, like sports moms living in the UK, to test the receptiveness to your folding chair for sports.

This process starts with gathering data on various attributes such as age, gender, income, education, cultural background, and shopping preferences. Advanced analytics and consumer insight tools can further dissect this information to understand behavioral patterns, such as purchase frequency, brand loyalty, and product preferences.

Effective segmentation allows you to tailor your product offerings, marketing messages, and overall strategy to meet the specific needs and preferences of different consumer groups in new markets, ensuring more targeted and effective market penetration.

Research Objectives: Setting Clear, Actionable Goals for Market Testing in Terms of Effective Localization

Setting research objectives for market testing involves defining what the business aims to achieve through its localization efforts. These objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

Common goals include identifying which product features need to be localized, determining the most effective marketing channels and strategies for engaging local consumers, and understanding the competitive landscape. These objectives guide the market testing process, ensuring that the activities align with the strategic goals of effectively adapting the business for new markets. They help ensure that every element tested, from product specifications to promotional tactics, is geared towards optimizing local relevance and consumer appeal.

Word to the wise: YLT Translations is your partner for all things localization, but our job will definitely get easier when you’ve done the work beforehand. Use market research to identify market trends, and eliminate guess work with AMOR (Amazon Product Opportunity Report), so you can tailor-fit your product to the market even before going through the translation of your product listing. Not even the best SEO and the best copywriting will help you scale globally if the target market doesn’t like your product to begin with.

Take for example a seller that was making a killing in the USA with a line of graphic t-shirts. Wisely, they decided to expand to Germany, but they didn’t speak German. In spite of a well-localized listing, the shirts just did not sell. That’s because the German market just wasn’t into the design of the shirt. This seller would’ve saved a ton of time and resources had they presented the shirt to chosen test markets prior to launch, maybe even sending a product prototype to a small demographic in Germany, to test receptiveness.

Analyzing market dynamics prior to launch is a non-negotiable. A crucial part of effective localization? Adjust product offerings so your product feels more local, encouraging your new market to try your product out.

IV. Seven Types of Market Testing Methods for Amazon Sellers

There are a variety of data collection techniques available to gather crucial information from your target markets. Below are some effective methods and platforms you can use to explore customer behaviors and preferences:

1. Surveys and Focus Groups

Surveys and focus groups are vital for extracting detailed insights into customer preferences and expectations, especially in new markets. Platforms such as PickFu and SurveyMonkey streamline this process efficiently. PickFu provides immediate access to an online panel for fast and focused feedback, ideal for segmenting markets and testing preferences. For deeper insight, virtual focus groups conducted through platforms like Zoom or FocusGroup.com allow for detailed discussions, enabling a closer look into the consumer psyche through real-time interactions and qualitative feedback.

2. A/B Testing

A/B testing is an essential technique for comparing various localization strategies to identify which elements most effectively resonate with specific audiences. Tools such as Optimizely and VWO allow Amazon sellers to conduct A/B tests on different aspects of their online presence, from product descriptions to pricing models and promotional tactics. These tests help determine which variations perform best in driving conversion rates and engaging customers in different regional markets.

3. Usability Testing

Usability testing evaluates the user-friendliness of localized Amazon storefronts across diverse markets. In a typical usability test, participants are asked to complete specific tasks while observers take note of any difficulties encountered, helping sellers identify areas of their product listing that need improvement. Using platforms like UserTesting, sellers can receive direct feedback from users interacting with their localized interfaces. This feedback is crucial for identifying any issues with navigation, cultural alignment in design, and the overall shopping experience, ensuring the storefront is not only functional but also culturally tailored to enhance customer satisfaction.

4. Beta Testing

Beta testing involves introducing a new product to a select segment of your target market to collect advanced user feedback before a full-scale launch. Product Pinion provides a controlled environment where Amazon sellers can present their products to gather initial reactions and feedback. This step is critical for adjusting product features, pricing, and marketing strategies based on real user feedback, thereby minimizing the risks associated with market entry.

5. User Testing

 User testing involves observing and analyzing how real users interact with a product or service. This process helps identify usability issues, understand user behavior, and gather qualitative feedback. It’s used extensively to refine product design and enhance user interfaces based on direct user interactions and feedback.

6. Incrementality Testing

Incrementality testing measures the additional impact or “incremental” effects of a marketing campaign by comparing outcomes between a group exposed to the campaign and a control group that was not. This type of testing is crucial for determining the true effectiveness of marketing efforts, helping to understand how specific actions contribute to overall goals such as increasing sales or improving engagement.

7. Multivariate Testing

A type of A/B testing, multivariate testing (MVT) tests multiple variables at once to determine which combination is best. It’s used most in website testing, or when launching a new mobile app, but it can be used for Amazon listings, as well. Unlike A/B testing, which tests two different product ideas or concepts, MVT could test several elements at once to understand the compound effect of multiple variations. Here’s a multivariate testing example for your listing: see which banner images, layout designs, navigational links, and promotional graphics work best for your Amazon storefront.

V. Implementing Market Testing Strategies

Here’s a step by step guide to setting up and executive market tests in new and unfamiliar markets.

1. Define Objectives and Research Questions

   • Step 1: Clearly define what you want to achieve with your market testing. Are you assessing product appeal, price sensitivity, or marketing message effectiveness?
   • Tool: Use tools like Trello or Asana to plan and outline your market testing goals and milestones.

2. Identify Your Target Audience

   • Step 2: Determine who your potential customers are in the new market. Segment your audience based on demographics, behaviors, and preferences.
   • Tool: Utilize Google Analytics to analyze demographic data and user behavior on your existing sites to help identify potential customer profiles.

3. Select Appropriate Market Testing Methods

   • Step 3: Choose the research methodologies that best fit your objectives, such as surveys, focus groups, A/B testing, or usability testing.
   • Tool: Platforms like SurveyMonkey for surveys, FocusGroup.com for virtual focus groups, and Optimizely for A/B testing.

4. Develop Testing Materials

   • Step 4: Create the materials needed for your chosen testing methods, such as survey questions, discussion guides for focus groups, or prototypes for usability testing.
   • Tool: Use Canva for designing survey layouts and promotional materials for engaging focus group participants.

5. Conduct the Market Test

   • Step 5: Execute your testing plan by deploying surveys, moderating focus groups, running A/B tests, or observing usability testing sessions.
   • Tool: UserTesting offers a platform for real-time usability tests across different demographics and locations.

6. Analyze Data and Gather Insights

   • Step 6: Collect and analyze the data obtained from your market tests to draw conclusions about your product’s potential in the new market.
   • Tool: Tableau or Microsoft Power BI can help visualize and analyze data for more in-depth insights.

7. Refine Your Strategy Based on Feedback

   • Step 7: Use the insights gathered to refine your product features, marketing strategy, and overall approach to better align with local market expectations.
   • Tool: Slack or Microsoft Teams for team collaboration and strategy adjustments based on testing feedback.

8. Implement Changes and Plan Full Market Entry

   • Step 8: Make the necessary adjustments to your product or marketing strategy based on the market test results and prepare for a full market launch.
   • Tool: Asana for project management and to ensure all team members are aligned with the new strategy and launch plans.

9. Monitor Performance and Make Continuous Improvements

   • Step 9: After entering the market, continue to monitor performance and customer feedback to make ongoing improvements.
   • Tool: Google Analytics and Hotjar to track user engagement and feedback post-launch.

VI. Analyzing and Utilizing Market Testing Data

Now it’s time to interpret the results.

1. Consolidate and Organize Data: Start by gathering all the data collected from various market testing methods such as surveys, focus groups, A/B testing, and usability tests. Use data organization tools like Microsoft Excel or Google Sheets to categorize the data based on different variables such as demographic information, responses, behaviors, and other relevant metrics.

2. Statistical Analysis: Employ statistical tools to analyze the data. Use basic techniques like mean, median, and mode to understand average behaviors or responses. For more complex insights, consider variance, standard deviation, or regression analysis. Tools like SPSS can be used for deeper statistical analysis to identify correlations and causations.

3. Visualize Data: Convert complex data sets into visual formats that are easier to interpret. Use data visualization techniques such as Tableau or Microsoft Power BI to create graphs, heat maps, or pie charts that highlight key trends and patterns.

4. Extract Key Insights: From the visualized data, draw out key insights that are relevant to your market testing objectives. Look for patterns or anomalies that answer your initial research questions or offer new directions for further investigation.

5. Report and Document Findings: Prepare detailed reports summarizing the findings and insights from your analysis. Use clear and concise language to outline potential impacts on product localization and market entry strategies. Documenting these findings helps in referencing and future strategizing.

Strategies for Implementing Findings from Market Testing to Refine and Improve Localization Efforts

1. Adapt Product Features: Based on customer feedback and preferences identified during market testing, adapt your product features to meet local needs prior to product launch. For instance, if customers in a particular region prefer eco-friendly products, consider adjusting your product design to include sustainable materials.

2. Customize Marketing Messages: Tailor your marketing campaigns to reflect the cultural nuances and preferences highlighted in your market testing data. Use local languages, appropriate cultural references, and region-specific benefits in your advertising to resonate more deeply with the target audience. This is when you reach out to YLT Translations to help you tailor your content to local markets.

3. Optimize Pricing Strategy: Analyze price sensitivity data from market testing to set prices that align with local purchasing power and competitor pricing. Consider local economic conditions and customer perceived value to optimize your pricing strategy.

4. Enhance User Experience: Use feedback from usability testing to enhance the user experience on localized websites or apps. Make navigational improvements, adjust layouts, and ensure that translations are accurate and culturally appropriate.

5. Implement Distribution Adjustments: Based on logistical feedback obtained during market testing, refine your distribution strategies. This might involve selecting local distribution partners, optimizing supply chain operations, or setting up local fulfillment centers to ensure efficient product availability.

6. Continuous Improvement and Feedback Loop: Establish a continuous improvement process where ongoing customer feedback is used to further refine localization efforts. Set up mechanisms like customer feedback surveys, social media monitoring, and community forums to continuously gather actionable insights.

VII. Common Pitfalls in Market Testing and How to Avoid Them

As you’ve probably surmised from this blog, market testing isn’t for the weak. It’s a long process with lots of moving parts – but the ROI is incredible.

Here are the most common mistakes that Amazon sellers make during market testing, and strategic tips to enhance the effectiveness of these campaigns – especially for successful localization.

1. Insufficient Sample Size or Testing Duration:

   • Mistake: Is the testing too short? Or is the select group too small?
   • Solution: A good test length is necessary to be statistically significant. Also, extend the testing period to capture a comprehensive range of consumer behaviors and seasonal variations.

2. Ignoring Cultural Nuances:

   • Mistake: Did you consider local cultural elements that can lead to misinterpretations of the data? Or worse, products that don’t resonate with the target audience?
   • Solution: Engage local experts or use detailed demographic studies to tailor your testing protocols, ensuring that your product and marketing approach align with local cultural practices and preferences.

3. Overlooking External Factors:

   • Mistake: External factors like local events, economic shifts, or changes in consumer technology usage can skew testing results.
   • Solution: Monitor local news and trends to schedule your tests during relatively stable periods, or adjust your analysis to account for these factors.

4. Using Incorrect Testing Metrics:

   • Mistake: Choosing metrics that do not align with ultimate business goals can lead to misleading conclusions and ineffective strategies.
   • Solution: Select metrics that directly relate to your strategic objectives, such as conversion rates, customer retention rates, and net promoter scores, to provide actionable insights.

5. Lack of Hypothesis or Clear Objectives:

   • Mistake: Initiating market testing without a clear hypothesis or objectives can result in data that is difficult to interpret and apply.
   • Solution: Define clear, measurable objectives and hypotheses before beginning any testing to ensure that the data collected is relevant and actionable.

We’ve already provided you with a bunch of tools and techniques to gather relevant data – so here’s the last one. Think about engaging with local influencers during beta testing to broaden your reach, gain authentic feedback, and grab those endorsements that resonate with the local audience. Influencer marketing isn’t just for post-launch, after all; the help of a good micro influencer can make all the difference from the get-go.

Conclusion: Involve Testing in Your Global Marketing Campaign for Easier Expansion

Whether you’re trying to improve product development or localize and optimize your product page, market testing is an amazing tool that can remove the guesswork, and help you rely on data to move forward. When you’re expanding globally, especially to countries where you don’t speak the language, focus on testing prior to product launch, so you can improve the probability of engagement and conversions.

Identify your hypothesis. Select testing methodologies that align best with what you’re hoping to uncover. Test scenarios tailored to your product and your target market. Test all sorts of things like product demonstrations, ease of use, or even initial marketing channels, so you know who your customers are, where they like to hang out, and what they expect.

Take that data and refine your approach. This is localization at its best: tailor-fit your product assortment, service, or marketing messages to the wants, needs, and lifestyles of your target audience.

Sure, market testing is a long process, and it’s pretty complicated, but the good news is that there are agencies out there (like PickFu and Product Pinion) that can help. Do you due diligence and find the one that answers your needs the best – and get on it! Market testing is a fantastic way to eliminate guesswork and cull the data you need to make educated decisions.

Tell us, have you ever used market testing before? How did it help you grow?