What Makes Cross Border eCommerce Sales Go Up
With the positive global market scenario and progress of eCommerce, cross-border retail sales are expected to grow twice as fast as the domestic sales sector. With new provisions and regulations in place, retailers have now come out of the hindrances related to cross-border retail and are really enjoying great returns. With increased dependence on social media and digital penetration, international business has eased and more retailers have come up with ideas. With increased interaction on social media, people are able to share their knowledge more than before.
According to a recent report, cross-border is expected to make up around 20 percent on eCommerce by 2022. However, the process still seems a bit complicated. For example, there are products that cannot be sold in certain markets and there are differences in payment preferences as well. We also have tax issues and other country wise regulations, such as trade duties, customs, and shipping issues.
Considering the present scenario, online retailers should be prepared for fluctuations and changes in the currency market and should also be able to fulfil the local payment preferences. While lots of customers and shoppers make use of credit cards and PayPal, there are plenty of people for whom cash on delivery is still the preferred mode of transaction. People in some countries also prefer payments through bank drafts.
Two of the biggest hurdles that retailers face when it comes to cross-border sales are shipping and logistics. Barring digital downloads; there is a need to develop a strong logistic process. Effective logistics is always considered to be a great boon for not only online retailers but also offline retailers. However, a complicated logistics process that includes reverse logistics may hinder the whole process. For SMBs and small retailers, expenditure related to costs, customs duties and related factors may hinder their effort to offer reverse logistics.
Retailers can adopt the following strategies to become profitable by utilizing cross-border businesses. They can take help from third-party agencies and utilise their expertise for better delivery and performance. To cater to the downward pressure on the prices in the online world, the relationship between the e-retailers and partners should be strong enough to meet the needs and demands of customers.
Moreover, retailers need to opt for a logistics partner that has the ability to facilitate international access and provide that level of customer trust. This factor is quite significant when it comes to payment and prevention of fraud. The partner also needs to provide support when it comes to paperwork related to cross-border sales and payments.
With all these processes in place, cross-border retail is expected to grow at a fast pace and retailers will enjoy a competitive business advantage.