What do you think about Cross-Border E-Commerce Business?
It sounds very complex and opportune, isn’t it?
Hi ACE Buddy! In this article, we will focus on discussing and analyzing how the challenges for entrepreneurs who are still beginners or who have experience in running a cross-border e-commerce business. An economy that is now supported by digital technology makes the spread of trade routes faster and more effective. The submission of information as a support for business economic growth has also increased rapidly. But hold on, previously for those of you who are still curious about what Cross-Border E-Commerce Business really is? Let’s go find out!
What is Cross-Border E-Commerce?
You could say this business is an online trade between businesses that fall into the category of SMEs (or) do have a brand, towards end customers that we often hear as B2C (Business to Customer) or it can also be traded between business and business (B2B), or even it can be between Customers / Individuals (C2C). In this kind of era, everyone can take part in Cross-Border E-Commerce, even if the pocket is not that deep. The existence of technology development can make a small-medium business can expand outside the country. Shifting to its goal, for Cross-Border E-Commerce is really quite simple: how to create more orders from customers and how to sell more products. Sellers must have a broad portfolio but at the same time its crucial to be able to predict the cost end-to-end shipping, marketplace fee and how the storage, fulfillment of goods and delivering process works.
Alrighty ACE buddy, these are 5 challenges that you have to face for running a Cross-Border E-Commerce Business, check this out!
1. Demand and Supply of Goods
This is indeed, very common in the business world. Basically, dynamics in cross-border business markets can increase in terms of demand or even decrease demand, as well as in terms of the supply. Unexpected market conditions make E-Commerce businesses must be prepared to face this. These can be called opportunities for you, and this can produce two conclusions: benefit or nightmares, so it’s better to analyze first and prepare more folks!
2. Cost and Fee of Goods Delivery
At this point, the role of finance and accounting is crucial in facing the possibility of fluctuation in the cost and fee for distributing goods. Especially because of the value of a currency that continues to change at any time. So you have to know how the shipping details system if by sea, land or air, and also the shipping calculation based on the weight of the goods. To prevent mistakes and be able to grow your business, the completeness of product listings from E-Commerce must be detailed and able to meet the demand and the offering criteria in the market. One other important thing, related to cost and fees, is the pricing and payment methods that you must to adapt and to provide services that can facilitate your customers or clients in the transaction.
3. Varied Policy and Permit Rules
The policies implemented by a country, including those for cross-border trade policies, it’s depending on their individual interests. This raises problems because policies and permits that are applied by countries can differ. Guidelines included in regulations can be types of products, consumer rights protection, labeling and discounting, and taxation.
4. Security Conditions of Trade Routes
The term “time is money” is not a mere figment, and of course, this term applies in cross-border business. Customers always emphasize the effectiveness and timely demands of the cross-border e-commerce business, but the problem is that every distribution process there are still obstacles that arise whether it is from weather conditions or international political disputes between countries. Then the question is asked, what’s the solution? When the requirements of country policies relating to your business have been fulfilled, then it is very important for you to prepare and implement the process and distribution system of goods as well as possible based on the selection from the analysis. Focussing on the estimated possibility of the safest trade routes.
5. Potential Customers/Suppliers Fraud
This is something that should be prevented and avoided guys! Because cross-border businesses are synonymous and identic with cross-country trade, even connections that can reach to distant continents. The role of your foresight in choosing a reliable supplier as well as how to see trends that are hype in the market with the aim to observe the pattern of cooperation undertaken by your prospective customers or clients, so you can be careful especially the price value in the transaction, the nominal is large.
Those five points about the challenges for running a Cross-Border E-Commerce Business, was very important knowledge isn’t it? Lucky for you! There are recommendations for those of you who are looking for solutions to do cross-border business that is guaranteed safety in terms of supplier options and the process of shipping goods, AsiaCommerce Network is here to solve your problem and to support you, and become a successful entrepreneur with business to go international! Join AsiaCommerce Membership HERE
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