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How to Subdue the Challenges of Cross Border eCommerce


March 27, 2020
6 MIN READ
Vinculum
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Vinculum
Cross Border eCommerce
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In the last few decades, selling process has gone through a logical advancement. Initially, the brick-and-mortar model brought in the local e-commerce which is now blaring across the globe. Today, consumers are much more astute at comparing goods and services online and making informed and cognitive purchase decisions based on their research. They now look beyond their country to avail the best offers.

Cross border e-commerce or International ecommerce allows the merchants to sell their products and services to consumers located in other countries. Ecommerce is the fastest growing market, but the repressions are a big issue internationally, predominantly in the logistics. Cross border e-commerce may seem confusing and intimidating at first, but it is not an impossible job. There is no challenge that cannot be triumphed over. Apps can be created which are ready for cross-border shipping by approaching MobiCommerce who offer complete ecommerce app development solution that will give assuring returns.

Cross border e-commerce services require effective logistics processes, keen understanding of rules and regulations, market knowledge and accurate money management system.

1. Logistics

Cross border delivery process are usually more cumbersome than domestic deliveries. These journeys tend to involve multiple delivery exchanges between postal and commercial logistics partners for each leg of the journey. Differences in infrastructure and warehousing can be difficult to manage. Consumers prefer the retailers which have credible brand name with reliable logistics service provider. Delivery times are uncertain, also due to potential delays at customs.

Therefore, logistics processes need to be optimized for both customer transparency and detailed logistics reporting:

Ensure your customers are kept in the loop with farsighted updates on the delivery’s journey.

Cross-border deliveries have more volatiles involved to bring a parcel from supplier to the customer’s doorstep. From supply importing delays to potential delays at each border’s customs, Transparency in the logistics process is the need of the hour.

This extra knottiness extends to the back-end reporting. Each carrier involved multiplies the complexity of how carrier services can be examined and how it can become an issue if not managed properly.

If each carrier has their own logic of exhibiting and reporting on tracking events, ensuring each carrier’s respective tracking events map to the same stage of the delivery journey with a common, standardized event mapping approach.

2. Learn about the shipping regulations and customs of different countries

In cross-border shipping, the problem is that each market has its different unique rules and regulations that have to be strictly followed to avoid delays in the delivery process. Retailers must be well aware of the differences in the legal and financial rules of each market to ensure glitch-free trade.They must also learn and explore issues around data privacy that may arise. Care has to be taken of the data processing and its storage.

Some logistical and legal considerations for cross-border shippers to bear in mind:

  • Proper documentation regarding the order and its value, shipping details from the suppliers and all necessary information from the customers must be present
  • Information about the latest security regulations for each country the sellers are shipping through
  • Thoroughly examining the local government and taxation needs to ensure customers are not surprised by additional government taxes when items arrive at their final destination

3. Make the content usable for the customer

One of the important things to do when entering a new market is to get sensitized to the culture and local language while building marketing campaigns and product descriptions.

According to a report, nearly 87% of consumers are not fluent in English and refuse to purchase from English sites. Therefore, a crucial work is to first translate the website a critical first step is to translate and tailor the website, related post-checkout tracking pages into the local languages.Language barrier is one of the most challenging aspect in serving customers across the ecommerce platform.

4. Deliveries, returns, and refunds

Before preparing for cross-border deliveries, check whether the product is fine to be shipped there as certain products are either restricted or require a special license to be imported while others may be strictly prohibited.

  • Always prepare beforehand for the duties and taxes to be paid for shipping.
  • Stay updated with local logistics regulations in each country and abides by local security laws
  • Ensure an active tracking system, quick delivery, and offer types of carrier options. Along with increased online purchases, so too come more returns and to prevent loss of customers, return policy and services have to be much in favor of the customers only
  • Ensure that the customers consider the return policies seriously and understand it well so that no confusion or trouble arises during the time of returning
  • Always mention the return period clearly along with the product to avoid any disputes
  • Always offer pre-printed returns labels and re-sealable packaging in proper parcels.
  • Make available an option to return merchandise to the nearby physical location, and inform them regarding the time for the refund to reach customer

This is one of the most serious concerns for almost all cross border ecommerce .This policy is unique for companies. Some cross border companies may not favor product return policy as it involves reverse logistics. The quality of the product received at customers end may face quality issues.

5. Seller’s end

Sellers also require to have a systematic arrangement of the diverse inventory to ensure a smooth trade through various cross-border markets. Partnerships with global logistics partners become a necessity, as it is the only solution to ship products across countries. Last-mile delivery still is a far off dream for many of the sellers in the absence of a reliable 3PL partner in the destination country.There are various Multi-marketplaces that are into the practice of trading in applications such as SelluSeller and Anchanto. The benefit is that they bring the marketplaces of seller under one roof and help them to manage it smoothly through a centralized inventory system.

Network design plays a vital role for promoting cross border e-commerceservices. Traditional network design became inefficient due to complex structure of internet logistics. There is no network that can fit all origination in cross-border ecommerce. With increase ecommerce entering new market, it faces new challenges in participants of cross border delivery. The idea is to truly expand the target market of a merchant to its limits. The leading cross border companies has varying strategies to reach customers world window.

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