As businesses search for new and innovative ways to increase revenue, cross-border eCommerce is becoming an increasingly popular option. In this discussion, Jay Modi of Calgary, Alberta, will discuss the rise of cross-border eCommerce and how businesses can take advantage of this growing trend. We will also provide tips on selling internationally and overcoming some common challenges of selling products and services across borders.
What Is Cross Border eCommerce?
Cross-border eCommerce (also known as global eCommerce) is the process of selling products and services to customers in other countries. This type of commerce allows businesses to reach new markets and tap into new customer pools that they would not otherwise have access to.
According to Jay Modi, cross-border eCommerce is made possible by the internet and the globalization of the world economy. With the click of a button, businesses can now sell their products and services to customers anywhere. And with the rise of mobile commerce, customers can make purchases from anywhere at any time.
Why Should You Consider It For Your Business?
There are several reasons why businesses might choose to sell internationally, including:
To reach new markets and expand their customer base
Businesses can reach new markets and tap into new customer pools that they would not otherwise have access to by selling internationally.
To increase revenue
Selling products and services to customers in other countries can help businesses increase their revenue.
To diversify their business
Diversifying one’s business by selling internationally can help reduce risk and increase stability.
To take advantage of favourable economic conditions in other countries
To increase profits, businesses can take advantage of favourable economic conditions in other countries (e.g., lower labour costs and lower taxes).
To diversify their business and reduce dependence on their domestic market
Diversifying one’s business by selling internationally can help reduce reliance on the domestic market and make the business more resilient to economic fluctuations.
What Are The Best Products To Sell Internationally?
When choosing which products to sell internationally, businesses should consider many factors, including:
- The demand for the product in the target market
- The competitiveness of the market
- The price of the product – Can you compete on price?
- The shipping costs – Are the shipping costs prohibitive?
- The customs and import duties – What are the customs and import duties for the product in the target country?
- The regulatory environment – Are there any regulations prohibiting or restricting the product’s sale in the target country?
What Are The Challenges Of Selling Internationally?
There are some challenges associated with selling internationally, including:
Different languages and cultures
Businesses need to be aware of the different languages and cultures. They will need to ensure that their website and marketing materials are translated correctly and that they are familiar with the customs and etiquette of the target country.
Different legal and regulatory environments
Companies should know that different countries have varying legal and regulatory environments. They will need to ensure that their products and services comply with all applicable laws and regulations.
Different currency exchange rates
The fluctuating exchange rates between different currencies can impact the prices of goods and services. Businesses need to be aware of these fluctuations and account for them in their pricing.
Different time zones
When selling internationally, businesses need to be aware of the different time zones in their target countries. This can impact shipping times, customer service, and other aspects of the business.
How Can You Overcome These Challenges?
There are many ways businesses can overcome these challenges, says Jay Modi, including:
- Hiring employees who are familiar with the language and culture of the target country
- Working with local partners who are familiar with the legal and regulatory environment in the target country
- Using a currency exchange service to protect against fluctuations in currency rates
- Offering customer service 24/7 to accommodate different time zones
Managing Shipping And Customs Processes When Selling Internationally
Businesses need to know the different shipping and customs processes when selling internationally. They will need to ensure that their products are appropriately labelled and have all the required documentation. They will also need to pay attention to any restrictions or prohibitions on importing goods into the target country.
Tips For Optimizing Your International Ecommerce Sales Strategy
There are several tips businesses can use to optimize their international eCommerce sales strategy, including:
Offering free shipping – Free shipping is a great way to attract customers in other countries.
Using local currency – Use local currency on your website and in your marketing materials to make it easier for customers in other countries to purchase your products.
Localizing your website – Localize your website by translating it into target the country’s language entry and offering customer service in the local language.
Offering flexible payment options – Offer a variety of popular payment options in the target country, such as PayPal or bank transfer.
Cross-border eCommerce is an excellent opportunity for businesses to expand their reach and increase sales. However, several challenges are associated with selling internationally, says Jay Modi. Businesses can successfully market their products and services to customers in other countries by being aware of these challenges and taking steps to overcome them.