Matt Bullock
15 June 2011
Domain names are an important component of every ecommerce business. A catchy name or a well-crafted brand can help attract and retain customers, while regional domains can provide customers with a sense they are dealing with a "local" business.
According to a recent MediaPost report, one U.S. company may have used domain names in ways that are unacceptable to some. The retailer, according to the report, utilised .uk domain names in order to make customers think their business was based in the U.K.
In fact, the company is located in California. The U.S. Federal Trade Commission recently reached a deal with the company, under which it will stop using .uk domain names.
According to the report, one motivation behind the company's use of U.K. web addresses is that the U.K. has consumer protection laws that mandate return policies more liberal than those in the United States.
While this particular company may have used geographical customisation in a less-than-scrupulous manner, experts agree that localisation can be an effective ecommerce tool. This can be achieved in a number of ways, such as offering local products and accepting local currencies through an online payment gateway.