A strong cross-border strategy is key to sustaining e-commerce growth post-pandemic
As globalization continues to rise, cross-border e-commerce, the online selling of goods to consumers in different countries, has become a core growth driver for e-commerce partners across the space. As global shoppers continue to connect and spend, merchants with international businesses need to be open to wherever their customers are. They need to offer their preferred payment methods and be flexible with how they operate in all countries. E-commerce is a great way to grow your business because you can reach a global audience. In fact. A lot of people are predicting that the growth in e-commerce will continue beyond the pandemic. If that’s true, then it could be great news for e-commerce businesses.
In 2020, cross-border e-commerce was a bright spot of the economy. In fact, according to McKinsey, Q2 2020 saw double-digit growth of over 10 percent compared to the stagnation of other industries.
Not only did the pandemic show how resilient cross-border e-commerce can be, but it also demonstrated how important it is for B2C brands to have a multichannel strategy. This approach should emphasize a D2C channel to reduce third-party reliance.
The pandemic caused a significant change in consumer behavior. Many were using D2C channels to purchase consumable items or nonperishable items. They also planned to continue this behavior after the pandemic.
Working out an efficient cross border ecommerce startegy
When expanding internationally, pay attention to what’s involved with cross-border payments. Localization is key to your cross-border e-commerce strategy. It can increase the number of successful transactions, but first there are several crucial aspects that need to be taken into account. Cross-border online shopping can be a success with a localized approach to processing.
Speak to the buyer in their native language, and be aware of cultural complexities. It’s not enough to just update your website with their culture’s imagery and copy, you must also update your product visuals to engage local audiences. This achieves two functions: making sure the website looks familiar to them, and engaging their expectations by filling in any gaps.
Shoppers expect to pay in the currency they are familiar with. This usually means paying in their local currency. To make customers more comfortable and likely to buy, many websites offer the one they know (along with other major world currencies). Consumers are more confident and eager to purchase when they see a product in a currency they’re familiar with, regardless of where that product is from.
Consumers expect to make purchases using the payment method they prefer. In order to keep up with this demand, brands must be flexible and offer a range of options. Consumers want to use their own bank, as well as mobile methods, to complete transactions. They also expect to be able to purchase with local payment networks.
Brands selling cross-border must also keep up with local tax laws and compliance. The complexities of international business can be intimidating, but they don’t have to be. Complexities like different tax laws, compliance, and import/export regulations can cause problems. Substantial knowledge of tax laws, compliance and import/export regulations is necessary. It’s crucial for brands selling abroad to understand local regulations.
Another key consideration when developing your strategy is being aware of data protection. Though many countries have adopted their own data-protection regulations, they are constantly changing. In compliance with these regulations, businesses should be prepared for their deadlines to change too.
Transparency is a great way to build customer trust. Make sure the customer knows exactly how much they’re spending, from start to finish. Displaying all costs for taxes, duties, and shipping at checkout will help you keep your customers satisfied and boost their loyalty to your business. You should let them know upfront what their total cost for the purchase will be, so there are no surprises or hidden fees. Showing all applicable taxes, duties, and shipping costs upfront will help you win over customers and get them to come back again and again.
When it comes to cross-border commerce, many businesses can’t afford to build out their own strategy or lack the expertise. Luckily, there are vendors that specialize in this area who can help take care of the hurdles. Cross-border ecommerce markets account for a substantial portion of the global ecommerce industry.