The cross-border e-commerce industry has been gaining popularity for the past two years, ever since consumers started buying products outside their borders. A recent Bloomberg data report shows that just in China, the cross-border e-commerce worth is about $60 billion. However, it states that legislation could get affected for making cross-border payments.
Nonetheless, you could say that the cross-border industry has steadily increased its sales since 2012. Now, the industry is figuring out how to expand its operations to greater heights.
Here are the 10 most useful and practical tips for managing cross-border e-commerce.
Market analysis: Do some research and find out what market works well for your business. It is also an advantage if you learn and understand how people buy products in other countries.
Local rivalry: After you have selected a favorable market for your business, analyze your local competition. This research could help you grasp the uniqueness of your products. In time, it could also lead you to connect and work with your potential partners.
Cost: It is the final step of analyzing the market that best suits your business. Start by investigating the local prices for similar types of products. You can also see that your competitors are willing to sell the same products for a lower price, which affects the business strategy.
Product delivery: In some countries, international orders are not sent directly to the customers. Instead, it is sent to the customs office that takes safety measures to deliver the goods to the consumer.
Regional carriers: Contacting your local carriers for delivery is always a requirement for transferring international shipments. And the customers must track the order meticulously in case the freight goes missing.
Escrow: How does escrow work? What is it? It is often seen in cross-border payments and implies a third-party that has power and control over the two parties’ funds involved in the transaction. Escrow creates a safe environment for both parties. It is also one of the best ways to transfer money overseas.
Order estimated arrival time: Yes, there might be some complications when it comes to international deliveries. And for this reason, the sellers should provide ETAs for delivering the order which does not have to be precise.
Insurance: For domestic orders, insurance is not a necessity. But, it makes a massive difference to the international shipments. Giving the customers a sense of security can increase the trust in vendors.
Tax: Laws for taxation differ from country to country. However, local carriers keep a record of these laws, and they only deduct the required amount.
Returns: Cross-border returns have proved to be challenging for many vendors. The best option here is to return the defective or damaged goods to the local carrier for exchange or refund.