Cross-border E-commerce is the process of selling trade items to consumers overseas. Both physical stores and online platforms can participate in cross-border E-commerce.
Why Cross-Border E-Commerce Is So Important
- International opportunities
- Increase your brand awareness to oversea markets
- Gain an edge over your domestic competitors
- Gain access to more customers
- Year-round demand
- Utilize different market cycles based on global trends
- Collect data to make more informed decisions about seasonal demand
- Sell products with low domestic demand
- Products that sell poorly domestically may sell better in international markets
- Transfer slow moving inventory to somewhere they’re better utilized and make room for faster moving inventory
- Build solid customer relationships
- Expand your customer base with cross-border E-commerce
- Foster trust with customers based on your global performance
First Steps of Cross-Border E-Commerce
- Find markets that work with your business
- Identify markets favorable to your current products or services
- Expand your business one market at a time
- Check legal requirements and restrictions
- Different countries have varying restrictions and legal requirements on specific products. Have your legal team research the required documentation and guidelines for your products
- Some products may be restricted in specific areas or countries
- Research local currencies and taxes
- Research the tax requirements for each location
- Be prepared to handle foreign and domestic taxes
- Utilize third-party logistics services
- Ask if your domestic shipping company handles international shipping requests
- Find a shipping service that will ship to your intended markets and handle delays
