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 logistic 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.
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