Cross Border Commerce: Challenges & How We Help!
In the previous part, we had explained to you the global growth scenario and opportunities in Cross-Border Commerce and the role of technology in it. If you haven’t checked it yet, here is the link.
In this part, we will define what cross-border selling is, analyze what risks lie ahead for you and what we can offer to assist you in your journey. But, before we go any further, let us first establish what Cross Border Selling actually is.
Cross-Border selling is, in simple terms, the buying and selling of goods and services internationally. It requires a smooth flow of orders and goods, adaptability to local laws and currencies, getting customer and market insights and selection of suitable partners.
So, let us assume that now you’ve decided to sell across borders. But before you start dreaming, take a look at what issues you might face in the foreign land.
Challenges in Cross Border Commerce
- Channel Identification that involves scanning and identifying markets and channels to find the best fit so as to build a profitable business within an acceptable time-frame
- Business Scale & Brand Positioning which includes shortlisting and finalizing business models and opportunities to scale & determining the best brand positioning based on evaluation of the consumers
- Order Fulfillment involving identification of the best logistics solutions that ensure speedy, dependable, cost-effective delivery and efficient inventory holding
- Managing Payments either submitted to marketplaces or to the logistics partner for cash on delivery orders
The challenges may seem intimidating but no need to worry! The following five steps can empower you to sell across borders.
5 Steps to Succeed at Cross Border Commerce
- Identification of Target Markets and marketplaces, with which you collaborate, identification of channels to use, channel product mapping, pricing and positioning strategy and identification of elements in supply chain
- Identifying Partners that includes shortlisting and finalizing the warehouse partners, and assessment and partnerships with marketplaces and brand distribution companies
- Local and Legal Tax Compliance to abide by the regular changing laws
- Integration Through Tech Platforms which involves integrations with marketplaces and 3PLs / Distribution Partners
- Provision of Support in terms of order and inventory management, payment reconciliation and returns management
The thorough understanding of the local market is of utmost importance in order to develop a strong cross border strategy. With 150+ ready integrations with multiple Marketplaces and 3PLs/distribution partners across 30+ countries, Vinculum is just what you need to take the next step towards going cross border.
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An MBA marketing graduate from IIM, Akash Jain works at Vinculum group, where he manages product marketing, content and social media marketing. An ardent learner of new things, he is passionate about scaling up marketing operations, implementing new-age marketing automation and customer psyche.
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