Cross border ecommerce is becoming popular and there are many platforms that enable brands to sell their products in multiple countries. For Brand owners and retailers who want to sell their products on their own web site there are several challenges when it comes to cross border ecommerce
Goods crossing borders is always complicated. The transaction generally would be a B2C transaction where your business is based in the United States and your consumer is in another country. The complexity of this model increases when the destination country has import restrictions and high customs tariffs
Local partners bring their strengths (and weaknesses). As brands want to enhance their global reach, they can work with local partners in multiple destination markets to setup a process whereby products are imported on a B2B basis into the country and then fulfilled on a B2C basis by the importer.
Big investments are required for serious expansion. No doubt that this model requires huge investments in inventory, local marketing and local customer care but then who says that establishing a global presence is easy. For example, if you are retailer based in the United States with limited international presence you could establish importers in multiple countries who will import your goods and hold your inventory to be listed on your own web site.
Local payment options are important. When orders are received on your web site, a local payment gateway in the name of the importer would enable collection of funds not only using credit cards but also other local payment options like cash on delivery, payment wallets, debit cards, bank transfers and more.In emerging markets non credit cards transactions have a lion’s share of ecommerce volumes.
Invest in planning and execution.Easy as it may seem a global presence for a US brand using ecommerce requires significant planning and execution including identification of partners, setup of supply chain and logistics, customer care, warranties and after sales service and more. Appointment of local agencies for marketing, blogging, social media is also critical for the success of the business that depends so much on low cost of customer acquisition and highly targeted marketing.
Have a medium to long term view.A brand would need to have a two to three year horizon and perspective. Brands need to make investments that are not sub optimal. To that extent a prudent strategy would be one that has a roll out plan country by country.
Invest in a team.International brands needs to have a dedicated team at their headquarters to be able to undertake this global expansion using ecommerce. The team needs to be well versed with various geographies and the nuances in those geographies
Get local expertise.To know more about how you can expand your US brand into Asia Pacific using ecommerce and to get the assistance from a professional, experienced and qualified team with rich experience of working in USA, China, India and Singapore, please contact Tiger Pug Singapore (www.tigerpug.com.sg) – a professional ecommerce consulting firm with over a decade of ecommerce experience. Call us on +65 8388 6673 or if in USA, please call 212 380 1356 or email contact@tigerpug.com
