What will you read about?
1. Cross-Border E-commerce – the Meaning and Value of International Sales
2. The Opportunities offered by Cross-Border E-commerce and How to Use Them
3. The Opportunities and Challenges of Cross-Border E-commerce and Logistics
4. E-commerce Sales Strategy
What’s the best definition of cross-border e-commerce environment? In short, cross-border e-commerce refers to the sale of goods or services outside of the country, usually through an online sales platform. To be successful in this field, the cross-border e-commerce business owners must have a deep understanding of their target market. They also need to know the unique needs and preferences of their potential customers. This may include research into the consumer behavior, local payment options, and delivery logistics. Below, we’ll explain in details how the cross-border E-commerce in Europe actually functions.
It is undeniable that in recent years, the global COVID-19 pandemic has dominated the economic development. Then, the outbreak of war in Ukraine in 2022 affected the global supply chains. The prices of gas and products such as food had the biggest impact here. This the reason why the global industries have been experiencing disruption and instability.
For e-commerce, there’s one key question: it’s whether the pandemic or the Russian-Ukrainian war will have a long-term impact on strategic investments and growth. Undoubtedly, the cross-border e-commerce growth is not going to be as fast as predicted before the war begun. The pandemic of COVID-19 has heavily affected the retail as well, and will continue to do so.
What are the cross-border e-commerce advantages and disadvantages? The development of e-commerce has created new opportunities for companies of all sizes to reach a global customer base. The constant development of international payment systems is a significant improvement here. Another one is the facilitation of the cross-border shipments process. The potential of the cross-border sales has also been noticed by the companies that create software for online stores. Lately, more and more popular marketplaces started to offer their users ways of improving their international sales. These include, among others, integration with online sales platforms from around the world or the companies offering fulfillment services for e-commerce.
Entering the arena of cross-border e-commerce industry can seem overwhelming at first due to different regulations and cultural features. Nevertheless, the potential benefits are promising, with a projected growth rate of 15% per year in the years to come.
One of the key challenges of cross border e-commerce in Europe is understanding the complex regulations of international trade. Each country has its own regulations and taxes for import and export. Sometimes, it might be hard to keep up with them. Before entering a new market, you need to know when the obligation to register VAT in a given country arises. You should also know how it is settled, or how to organize a shipment to Great Britain regarding the taxes. Moreover, it is important for you to be aware of the local consumer protection laws, such as data privacy regulations. Only then, will you ensure the compliance and secure your company’s reputation. However, you don’t have to navigate the cross-border e-commerce framework of standards on your own! Contact us – we’ll help you find the answers to the above-mentioned issues and develop your sales strategy!
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Logistics is essential in international sales. An efficient and affordable delivery is the key factor in the consumer purchasing process. Cross-border e-commerce in Europe often encounters barriers and complications related to the logistics of the transport of goods. For many companies selling internationally, it is definitely difficult to compete with local sellers in a given country. Which is why it is so important to counsel an expert beforehand.
When conducting individual shipments, it is a big challenge to deliver them faster than a seller from a specific country would. A great solution to this problem is e-commerce fulfillment, widely used by the leaders of the e-commerce industry.
In the e-commerce fulfillment, the external e-commerce distribution warehouses provide the entire logistics service related to the storage and shipment of the orders. Thanks to the agreements with international companies, they are able to carry out foreign shipments much cheaper and faster than the individual stores.
How to embrace it all and be able to carefully plan the sales process? A solid preparation is crucial in order to meet the formal requirements of a specific market and comply with its legal regulations. It is recommended to use a cross-border e-commerce platform such as Amazon Global Selling or Alibaba Tmall Global. They offer an existing infrastructure and support for the companies looking to expand internationally.
The analysis of the business environment is the fundamental element of developing a sales strategy for each business. It is crucial regardless of which markets you operate on. It consists of:
Cross-border e-commerce trade in Europe creates many opportunities for the companies willing to expand their reach and enter new markets. A thorough research, collaborating with local experts and using the opportunities offered by technology are crucial factors. Thanks to them, the companies can address these challenges and reap the benefits of this exciting and fast-growing industry.
If you are considering starting the cross-border selling, we recommend focusing on only one market at a time at first. The international e-commerce customer service in your first country must work flawlessly. Only then should you consider expanding to the next one. It is also necessary to analyze the actions that have been taken so far. Moreover, you should also consider what can be improved on your further potential outlets.
When implementing a cross-border development strategy, it is of great importance on which sales platform you plan to operate. The key is to pick one that enables creating various language versions or displaying prices in different currencies. Therefore, analyzing the technical capabilities of each specific marketplace is a crucial element here.
The cross-border e-commerce consumers’ intention to shop on foreign websites has significantly grown in the past years. According to the research, Polish consumers grow more and more interested in purchasing foreign products online. The reason for this is the wider availability of various goods, as well as their favorable prices. Clothing and fashion accessories, as well as jewelry, cosmetics and toys are the most popular goods there. The customers rate relatively high the Customer Experience of international transactions.
To sum up, cross-border e-commerce in Europe is a prospective direction of sales development both in Poland and on an international scale. The changes that have taken place at the turn of the last few years show that e-commerce has gained momentum, especially in crisis situations. The forced closure of stationary stores due to the prevailing COVID-19 pandemic had an international impact on selling. Online commerce allowed sellers to conduct sales, and gave customers the opportunity for safe shopping, including foreign online stores.