A brief discussion on common pitfalls in cross-border sales

Global e-commerce sales are expected to exceed $6.5 trillion by 2023. Technological advances , trade agreements , and increased interconnectedness of supply chains have made global markets more accessible.

According to the " Global Voice 2021 : Cross-border Shopper Insight Research Report " , 68% of the consumers surveyed made cross-border e-commerce purchases on shopping platforms in 2020 , and consumers' demand for cross-border products is obvious .

In recent years, cross-border e-commerce stores have sprung up like mushrooms after rain, but some common problems and traps in the cross-border e-commerce journey cannot be ignored. The editor has sorted them out as follows:

Store content is not localized

When entering new international markets and customer groups, localization cannot be ignored . Localization aims to provide international customers with a shopping experience that is consistent with their culture and language.

Failure to localize can have many negative effects. If shoppers cannot easily understand the store content, conversion rates and store revenue will be affected , and there may even be jokes due to cultural differences .

Inconvenient checkout system

One of the biggest mistakes merchants can make when targeting international customers is using the same checkout method as they do domestically , which can increase cart abandonment and reduce sales. Make sure you support payments in your target market’s local currency and further personalize the shopping experience by offering multiple payment methods .

Failing to consider tax complexities

As the saying goes, there are only two things that are certain in this world: death and taxes. When selling across borders , sellers will inevitably face the tax issues that come with it , such as the possibility of additional taxes such as import duties or consumption taxes . Not understanding tax policies can cause many problems for sellers and customers.

First, customers may be subject to hidden taxes that they were not informed of when making their purchases , which could affect international customers ’ return rates and brand loyalty.

Additionally, sellers may receive notices from fiscal authorities regarding unpaid income taxes or levies that they may not have been aware of . These unforeseen expenses can reduce profit margins and lead to a host of problems.

No consideration of logistics issues

The last point to note is the importance of logistics planning . Sellers need to know how to deliver goods to customers and how long it will take for the logistics to arrive . Customers value the seamlessness of the entire shopping experience from online browsing to receiving the goods . Without logistics planning, the customer experience will be very poor .

As globalization advances , cross-border e-commerce will become the norm for shoppers around the world. Sellers need to conduct market research and invest in early planning. A seamless cross-border sales strategy can help sellers expand their customer base , increase sales, and improve global brand awareness.

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