6 Most Useful Tips to Manage Cross-border eCommerce
In today’s sometimes seemingly never-ending quest to get more products in stock and keep costs under control, many e-commerce businesses have been forced to think outside the box and look closely at cross-border eCommerce. Cross-border eCommerce grew on a large scale last year. It has become a growing source of business income for eCommerce businesses. This has resulted in a lot of innovation, from integrating warehouses with multiple countries linked with the platform to ensuring security via drones.
Cross-border ecommerce is experiencing a boom time due largely to the growing presence of online shopping channels such as Amazon, Lazada and others. More and more people are also moving towards such channels as it becomes easier for them to purchase goods from a neighbouring country with a lower purchase price with payment flexibility option like COD. Apart from these, there are other advantages of having such channels for your business such as lower shipping costs and easier returns.
At present, the trend is gradually gaining preferences in the Asia Pacific region. But what are some of the cross border ecommerce advantages?
Here are six practical insights you can utilise to manage your cross-border eCommerce well.
- Make knowledge your ultimate power:
- Do your research before you ramp up. Before launching a new product, the most important thing is to conduct research and understand how you can increase your sales and client base. You can save money in the long run by knowing what kind of product the market wants.
For example, instead of ‘search and buy, consumers in Southeast Asia prefer to ‘browse and buy’. This behavior may look different when compared to other markets.
- Know enough about each product category to be able to choose the best product for the customer.
For instance, if your products are mainly designed for ecommerce in the US, this means you should be aware of the types of products available in stores in your target country. Alternatively, you can specialize your products by country (e.g. a leather designer may only be interested in designing bags in India). Also, understand a few key differences between markets before jumping into one.
- Hire trained and skilled resources:
It’s crucial to hire the right kind of resources with the required training and skills to execute seamless cross-border eCommerce operations. When you don’t have a team of focused individuals who can prepare curtailed marketing campaigns, optimize catalogues, and help your products stand out across marketplaces, you obstruct your own global growth.
- Keep additional funds:
Do you have the financial capacity to handle unexpected problems and complete tasks? When you list your business in a Cross-border marketplace, with the increasing requirement, the cost for infrastructure and logistics also increase. Additional funds will help you to scale your business in such conditions for a temporary time-frame. It also helps you mitigate risks in different situations.
- Offer simplified shipping and flexible payment options:
Shipping your products to various parts of the world has always been a sea of confusion. There are several factors that come into play like price, delivery time, taxes and other added costs. The benefits and cost incurred by using courier services are often skewed towards the cons list.
To make things worse, customs regulations differ from country to country so you need to be completely aware of individual restrictions to avoid costs. However, there are still good options for you to choose from.
- It is important to ensure that the shipping model you choose is trustworthy and cost-effective. The postal network brings the last mile delivery closer to the customer, ensuring faster delivery than traditional couriers.
- One of the best ways to deliver globally without breaking the bank is to use a hybrid shipping service. Asendia’s innovative solution simplifies cross-border shipping and helps small online businesses compete with major retailers, by providing a cost-effective and flexible shipping option.
- One of the key concerns, when selecting a shipping partner for cross-border business is not only the cost of delivery but also the ease of transaction. As a Cross-border seller, you should always adapt to the payment options available in the particular market you are planning to serve.
- Cross border shopping within Southeast Asia is a more common way of purchasing products and services than ever. It is no doubt that rising internet penetration, cheap data costs and mobile usage are the factors to drive this growth. According to the World Bank, 74% of the population had access to the internet in 2016 which means there are 562 million users since there are 650 million people living in Southeast Asia. This demographic is quite open to buying products from sellers they can’t touch or test out, as long as they have faith and trust in the quality of their product.
- Invest in advanced technology:
To better manage your inventory and stock, always invest in good technology that will simplify your business challenges dealing with warehouse management, cross-border operation management, inventory management, tracking payment and shipping and more.
Vinculum is a global software company catering to Omnichannel retailing. Its Saas-based product helps you automate all your ecommerce processes from Catalog Listing and Order & Inventory Management to Master Data Management and from Cross Border Fulfillment to Payment Reconciliation and Warehouse management.
The bottom line-
The trend of cross-border selling is increasing at a rapid pace. If you are unaccustomed to the process, you may find it difficult to set up direct shipping services and deal with international regulations. However, this can be simplified through postal delivery services.
To help your cross-border ecommerce business to the last mile, reach out to professional consultants. For more information on how Vinculum Advanced Ecommerce Solutions can help you reach your business goals, reach out to us or visit our website at dev.vinculumgroup.com
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