The Challenges of Cross Border Trade & How To Beat Them!
Cross-border eCommerce is set to reach $1 Trillion in 2020, with around 848 million shoppers across the world. In this expansive eCommerce market where new sellers are coming into play almost every day, exploring international markets, commonly known as cross-border trade, is a great way to stay ahead of others in the curve.
However, every great opportunity is faced with challenges. Here is a list of 4 challenges posed by cross-border trade and how you can overcome them.
1. Lack Of Local Market Expertise
More often than not, sellers fail to realize the importance of proper market research. Not knowing the foreign market is the biggest challenge for any seller. Shopping trends vary from region to region, and it is essential to learn the different patterns, preferred payment modes, etc.
Also, the buying pattern is hugely influenced by festivals and important days. Sometimes sellers can face backlash as their campaigns do not align with the buyers’ demands.
Thorough market research done with surveys, paired with data-driven insights, your business will be better prepared to penetrate any foreign market.
2. Shipping & Logistics
Shipping and logistics management is a key factor when you take your venture to international waters. Since order fulfillment decides the fate of your package, your shipping partner must offer you top-notch shipping along with a wide reach and discounted shipping rates.
To overcome this roadblock, you must partner with the right shipping company to ensure you’re always getting the best rates, while maintaining access to all the locations your product is selling in, in a reliable way.
3. Additional & Overhead Costs
When setting up a business for the global market, you need to invest in various things that you otherwise would avoid. First of all, your website needs to be revamped to accommodate the international pricing model, different languages need to be added to ensure your buyer understands the products on offer, and you must also have a currency converter that lets them convert the website’s price into their currency.
4. Local Promotions & Marketing
Understanding the demands of your target audience before you market anything to them is extremely important. Sellers usually face difficulty when they want to attract people to buy from their store. The trends are dominated by various factors such as culture, festivities, specialties in the area, etc. Hence, interacting with the target audience before presenting them with an advertisement or piece of information becomes necessary. An ad that works in the US doesn’t have to work in the UK.
Also, another tip would be to get in touch with influencers in the area. They can quickly get your product across thousands of consumers. Be sure to collaborate creatively so that the output seems organic.
Cross border trade poses many challenges, but the opportunities it offers vastly outshine the difficulties. Trade carefully and devise intelligent strategies to make sure your approach is streamlined, and every campaign is thoroughly targeted.