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Cross Border ECommerce - Things You Must Know
One of the best things about internet is that it stands completely in way of the
concept of Nation State. In words, it allows one to access information from any
part of the world. Your Facebook feed might be directed from a server located in
Europe and your Gmail might be bouncing off from several countries before
reaching you. The technology working behind it has brought a revolutionary
change in retail world in form of e commerce. The industry works on a single
premise - ‘sell anywhere’. Sellers just target markets that fall under common
jurisdictions with the most simply available and pocket friendly logistical support.
As cross border e commerce is on rise, barriers have been coming down all over
the world. An ecommerce portal from Hong Kong can now deal with wholesalers
sitting in Iceland and sell it to consumers sitting in Scotland. This kind of working
is supported by a global shipping network and best-in class marketplace logistics
solutions that are available for all small, medium, as well as large sized businesses.
The example we gave above is a perfect example of cross border e commerce that
currently accounted for a yearly revenue of $300 billion in 2012 in terms of sales
alone. The same figure rose to $1.4 trillion in 2015 and is still growing at an
exponential rate.
Cross border e commerce is the practice of selling offerings entities and services
across borders to end users. Directly, it helps the seller expand their market and
buyer base. They will recognize and get recognized in new markets and enjoy a
better profits and sales ratio. From a consumer’s point of view, it is beneficial as it
allows them to purchase products from offshore places at most reasonable prices.
Both parties can consider it a win win situation. Looking at another side of the
story, it also poses some challenges for traders. Firstly, they will need to establish
a partnership with a beneficiary sitting in another country for a better
understanding of local laws, consumer preferences, cultural differences, and
customs. They will also have to settle differences in terms of currency which will
again need assistance in foreign land. For medium and large size customers it is a
simple task, but for small traders it can be a big challenge. And finally, the logistics
issue would also need resources and attention. Overseas shipping is an expensive
task that includes customs and duties. One will have to look into taking care of all
these issues.