We know that e-commerce has emerged exponentially, allowing companies of all sizes to reach global markets. This reach, however, is not so easy to achieve. There is usually a strategy behind it that makes it essential to create an international e-commerce plan.
And why international? Because it’s one of the best ways for companies to reach different markets, scaling their profits to unthinkable heights with a local strategy.
To do this, we need to consider any public support that may exist. One of these, particularly for Portuguese companies (it covers the entire national territory), is the “Internationalization via E-commerce“, which is part of the Internationalize 2030 Program, approved by the Council of Ministers Resolution 20/2021. It is precisely this measure and the importance of drawing up an international e-commerce plan that we are talking about in this blog article.
Framework
This plan comes in the context of thandtional Recovery and Resilience Plan (PRR), where a number of investments and reforms have been outlined that should contribute to, among other dimensions, the Digital Transition, which in turn seeks to digitize the economy, empowering entrepreneurs and workers to make Portugal’s trade balance more favourable by increasing the number of exporters and exports.
E-commerce appears to be a fundamental way of achieving this, which is why the Digital Commerce program, which is part of Component C16 of the PRR, has taken center stage.
The main aspects are the internationalization of Portuguese SMEs through a programme that seeks to deepen the promotion of e-commerce and new support for digital promotion.
Who is eligible for international e-commerce support?
All small and medium-sized enterprises (SMEs) present in Portugal, including the autonomous regions, are eligible for this support.
Even so, proof of SME status is required through Electronic Certification.
In addition, the beneficiary must have a positive net worth in the fiscal year preceding the application.
How much support is available and what expenses are eligible?
There are minimum and maximum limits on eligible expenditure for two types: “More Markets” and “New Exporters”.
Competitors for the “More Markets” category, which covers internationalization projects with the best conditions for promoting export markets via digital channels, will have to score more than 75 points in the results of the Diagnosis previously carried out.
Those competing through “New Exporters” will have between 20 and 75 points in this diagnosis.
The amounts for the former are between €25,000 and €85,000. The second ranges from €10,000 to €25,000, and eligible expenses include UX design, CR, E-Commerce, creation of online stores, design, SEO, social networks, SEA, content marketing (like the one we wrote about here), technical staff costs and more.
Ineligible expenses, on the other hand, are primarily related to sales, such as taxes, financial charges, sales commissions, fees, and shipping costs, among others.
What is the financing rate?
The answer is simple: 50%! That’s right, half of the amount invested will be supported by IAPMEI.
However, the selection criteria for operations must be taken into account and must meet the objectives of this measure. If these are not aligned, applications will receive an unfavorable decision.
On the other hand, those who receive a favorable decision will be selected on a first-come, first-served basis, the clock is ticking!
What procedures should be carried out?
First of all, you must request the E-Comerce diagnosis on the website Portugal Exports. If you have already done so, you should update.
You must then submit your application, which can be done using the form available at Fund Deskwhere the SME must be registered.
Who reviews the applications?
The entities that analyse the applications are AICEP, EPE, the Managing Entity of the Internationalization Measure.
Applicants will be heard within a maximum of 10 working days and a decision will be taken by IAPMEI within a maximum of 40 working days of submission.
What are the results indicators?
Results will be contracted with the beneficiaries of this support. These results will be considered taking into account factors such as:
- Creating your own online store;
- Number of new services or functionalities introduced in the online store;
- Number of new subscriptions to marketplaces
- Number of markets embraced through digital marketing actions;
Payment conditions for Final Beneficiaries
Payments can be made for up to 95% of the support via an initial advance for funding (with a limit of 13% of the value of the total support), payment of invoices in proportion to the eligible expenditure invoiced (settled within 30 days) or through full reimbursement in proportion to the expenditure incurred by the SME.
Please note: payment requests must be submitted by the beneficiary and will be accompanied by an audit report from a Chartered Accountant.
What obligations do I have?
In addition to what is provided for in Article 18 of Ministerial Order No. 135-A/2022, the beneficiary’s obligations include communicating changes to the bank account, presenting results after 12 months from the date of signing the Acceptance Agreement and registering as an Effective Beneficiary, making the code available to AICEP.
These are, in a nutshell, the conditions necessary for an SME to apply for support from the “Internationalization via E-Commerce” measure. Even so, there are certain aspects that should not be overlooked when drawing up an E-commerce plan, which we must mention and which we can expand on in a future article:
- Market research;
- Regulations;
- Expansion strategy;
- Logistics;
- Payment strategy;
- Site location;
- Translation;
- Customer service;
- Risk assessment;
- Key metrics;
