Most businesses want to tap into new markets as a key growth initiative essential to the evolution of a company.

With the B2C cross-border eCommerce market expected to reach $7.9 trillion by 2030 (1), opportunities for brands to expand overseas will continue to increase.

The emergence of digital tools coupled with a burgeoning market have made establishing a global customer base more viable than ever. But viable doesn’t always mean better.

It’s a slippery slope from adding an international shipping service option to ending up in a regulatory disaster. With the accessibility of Shopify, Magento, and WooCommerce, cross-border capabilities seem as simple as a click of a button, but that couldn’t be farther from the truth.

Let’s dive into the benefits of cross-border eCommerce, some of the risks where you can get it wrong, and the systems you need to have in place to make sure you get it right.

Defining Cross-Border eCommerce

Cross-border eCommerce refers to online sales and commercial activity between businesses and consumers in different countries. 

Although it sounds like simply adding a shipping widget to your backend, making it a meaningful source of revenue requires forethought, precise implementation, and experience. 

Here are just a sampling of the extensive ground cross-border eCommerce covers:

• Cross-border logistics: Outbound/inbound freight, proper testing/compliance/labeling, designating an Importer of Record (IOR), potential tax deferral schemes  

• International payment systems: Merchant of Record (MOR), localized payment wallets and bank accounts, tax collection/remittance and fraud prevention

• Data Privacy & Insurance: GDPR/Data Privacy Framework systems for compliance as well as product, cargo, cyber, and corporate insurance 

• Localized distribution: Daily oversight of a vetted and trusted local 3PL with competitive pricing, multiple shipping solutions, and the capacity to provide oversight/auditing of their performance and invoicing   

  
  

While cross-border eCommerce is an effective means of establishing a global presence and expanding your customer base, it can cause adverse effects without the right systems in place.

International obstacles

Being able to ship from one country to another may allow you to “check the box” and tell your CEO that your company ships globally, but it’s important to analyze your cross-border solution from the customer’s perspective. 

Start by asking yourself these questions:

• How long will the delivery take? 

• What is the cost? 

• How will the customer return a product?  

• Will your current cross-border solution result in a repeat customer or referral? 

Businesses must consider the operational expertise required to provide customers with a best-in-class cross-border eCommerce solution. Not to mention – the time and resources that are required to establish, maintain, and grow the program.

Pressing “go” on international expansion without preparing to manage the components involved can cost you more than you bargained for. But, if you have the support of trusted experts who can cover all the bases, you can unlock long-term, lucrative opportunities.

How to Localize for The Long Haul

Does the plug-in of a simple shipping app sound like it’s going to provide your customers with a best-in-class global shopping experience? Not to us, either. 

That’s why Brand Access offers all the services, experience, and growth strategies necessary to expand globally. 

Whether you need a full suite of services or simply a Merchant of Record, Brand Access allows you to choose only the services you need:

• Local warehousing and fulfillment from the UK, EU, AU, CA, US & MX

• Product testing compliance & labeling for local territories

• Logistics management (outbound/inbound freight)

• Importer of Record 

• Merchant of Record 

• VAT/GST/Tax collection/remittance

• GDPR/Privacy compliance

• Fraud prevention

• Customer service

• US/International FBAmazon & Amazon FBMerchant services

No matter the customer’s location – ensuring the delivery of an order in a timely, economical manner that is secure, safe, and compliant will be the difference between a one-time purchase and a recurring customer.

Brand Access is a true partner – a team of experienced cross-border experts acting as an extension of your team. We can get you started on your journey and continue to guide you as you expand your global reach. 

–

References:

1. Statista

–