Decoding the cross-border eCommerce puzzle
Cross-border eCommerce is to grow 1 trillion dollars by the end of 2020 from previous years as per the report from the global consulting firm Accenture and AliResearch.
The technology is one of the prime driving factors of cross-border eCommerce gaining popularity among the shoppers. Notably, the APAC countries have seen a significant change in consumer buying behavior.
The high demand for international products among buyers has invited several new sellers in the market, providing end-to-end needs of the customers.
Adopting cross-border trade is a great way to reach a vast audience globally and to keep yourself ahead of others in the curve.
All this has been made possible due to technology
It has compressed the distance and has made great deals crack in seconds. The consumers in Malaysia, for instance, want to buy a product in Singapore can now buy it from their own country.
The B2C affair is gradually overlapping the B2B segment as customers are willing to purchase products directly from foreign manufacturers and retailers.
The Current landscape
The world of eCommerce is shrinking to a fingertip. But with its vast expansion to geographical boundaries and great opportunities has also invited various challenges.
The local retailers are also getting smart with proper infrastructure, logistics, and services that have raised the bar of competition.
Here are a few ways which will help you decode the cross-border eCommerce maze.
Lack of market analysis
Market analysis is a pivotal component for the growth of any business with all the essential information. Often sellers fail to understand the significance of the market study.
- It helps you understand the complete detail of your local customer as shopping trends vary from region to region. The study gives you the insights of market size, demand, location, gender, and payment methods preferred. For example, people Southeast Asia pacific countries like India, Malaysia opt for cash on delivery, whereas Americans prefer card payments. Thus, market research with data-driven insights can be useful for your business.
- It is the most significant weapon to analyze the strategies of your competitors, such as the kind of responses they are receiving on their products from their customers, the campaigns they are adopting, and your scope of improvement.
- Market insights are beneficial for your product launch. It won’t be sensible to jump into the market without knowing its performance.
Foreign rules and regulations
Every country has its own sets of rules and regulations that you should be aware of before shipping your products.
Some states have restrictions regarding products like tobacco, leather, flowers, fruits, and more. You should also keep your documents clear to have seamless business flow.
It requires effort, time, and complications due to which traders fear taking their business cross-border.
Shipping and logistics
The cross-border eCommerce logistics is a tedious job with multiple distribution chain, forming various network links, warehousing, and sea transport risks.
It also involves damage to goods and delay in delivery. Apart from this, it is a costly affair that adds to the pricing of your products, so look for the logistic partnership in the local area that has excellent and quality service.
The better and fast shipment services add value to your business as customers demand hassle-free returns and deliveries.
Pricing and payment options
The consumers go through different platforms before buying a product and choose a cheaper deal. Therefore, the pricing strategy is also a way to decode successful cross-border eCommerce.
The shipment, marketplace fee, and other factors alter the price of your product, so make sure to calculate everything and decide the cost. Also, be clear to the customers about the final pricing of your product as thy hate paying extras.
Meanwhile, the payment method varies from region to region. Implementing a smooth payment process is a tough job and sometimes can result in losing potential customers.
As we have seen above in the market analysis that Asian countries prefer CODs, and Americans opt for card payments, hence you need to facilitate vis-a-vis payment options.
Sometimes it does get expensive but ultimately, it’s about making the consumer’s buying behavior convenient and seamless.
Adapt local promotion and marketing
Localize your content as much as possible because English is not the language followed in every country. Customers tend to abandon the site if it is not in their language due to a lack of trust.
To promote your product and target your audience, you need to understand the local culture, festivities, and other specialties. For example, McDonald’s offers a “Samurai Pork Burger” in Thailand that is unique to that area.
They have made changes in their universal meals, with some customization in almost all of the countries it owns its chain for the consumers they serve.
You can also make use of influencers as they can quickly promote your product in the area to their thousands of followers.
Although selling cross-border has its own sets of challenges, but it is a blooming opportunity right now, with several consumers looking forward to buying goods from a foreign entity.
Countries like Southeast Asia, Mexico, and Australia are gradually expanding and becoming a lucrative opportunity for cross border e-commerce.
Hence frame customer-driven strategies and being technology advanced can help decode the cross-border eCommerce puzzle.
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