By Timon van den Berg, Director of Fulfillment at Salesupply - For many Non-EU ecommerce brands, the latest DHL Globalmail suspension will feel uncomfortably familiar.

Five years after Brexit forced retailers to relearn the commercial impact of customs borders, another rule change is exposing the same weak spot: European ecommerce operations built on fragile cross-border parcel flows.

The market is talking about the €3 duty. It should be talking about the border. On paper, the EU’s new temporary duty on low-value imports looks like a cost issue. It is not. A €3 duty is visible. Operational fragility is not, until something breaks.

That is why the DHL suspension matters. It shows that the risk is not simply that shipping becomes more expensive. The risk is that a route retailers depend on can suddenly become unreliable, restricted or unavailable when the carrier model, customs requirements and duty-payment process no longer fit together.

That is a much bigger problem than a surcharge.

Once that happens, customs stops being a compliance process in the background. It becomes part of the customer experience.

A delivery promise changes. A parcel gets delayed. Tracking goes quiet. A return becomes complicated. Customer service gets flooded with questions nobody can answer cleanly. The margin on a small order disappears. The customer does not blame the customs process. The customer blames the retailer.

This is the pattern retailers should recognize. The border is not just a legal line on a map. It is a delivery delay, a refused parcel, a surprise fee, a damaged review and a lost repeat customer. What looks like an administrative change becomes a commercial problem.

It is happening again.

Not because this is Brexit 2.0. It is not. Brexit was a political border event. The EU low-value import duty is a customs and ecommerce reform.

But the mistake is the same: assuming that European growth can be built indefinitely on fulfilment models that only work when the border stays quiet.

That assumption is becoming harder to defend.

ILG’s UK Retail Growth Report 2026, based on a survey of 328 senior leaders across UK retail brands, found that 54% cite rising business costs as their biggest barrier to growth, while 53% point to fulfilment and delivery costs. Only 10% cited customer acquisition costs.

That is not an operational footnote. It is the new growth equation.

For years, ecommerce strategy has been dominated by the front end: traffic, conversion, paid media, marketplaces, social commerce and customer acquisition. Retailers became very good at creating demand. The uncomfortable shift is that demand is no longer the hardest part to generate. It is the hardest part to serve profitably.

The order may be won at checkout, but it is defended in the warehouse, at the border, with the carrier and through the returns process. That is where margin is protected or lost. That is where customer trust is either confirmed or broken.

Fulfilment is no longer what happens after growth. Fulfilment is deciding how much growth is possible.

That is the real context for the DHL suspension and the €3 duty. They are not creating the fulfilment problem. They are exposing it.

Consider the brand selling from a single UK warehouse into France, Germany and the Netherlands. The commercial logic looks clean. One stock pool. One fulfilment operation. One carrier setup. A European customer base served without the cost of European inventory.

It works until the border becomes visible.

Suddenly the cheapest route is no longer available. Duties need to be handled differently. Product data needs to be more accurate. Delivery promises become harder to keep. Returns cross the border twice. Customer service has to explain delays created by processes the customer never agreed to care about.

The business has not lost demand. It has lost control.

The strategic question is not “who absorbs the €3?”

The strategic question is: where is your inventory?

For a long time, too many brands treated inventory location as an operational detail. It was a warehouse decision, a cost decision, sometimes even a convenience decision.

That view is outdated.

Inventory location now determines delivery speed, customs exposure, returns complexity, carrier resilience, margin protection and customer experience. It determines whether growth in a market is scalable or merely possible.

For brands with serious European ambitions, cross-border shipping is no longer a strategy. It is a compromise that needs to be justified.

That does not mean every order must be fulfilled domestically. It means brands need to stop confusing market access with market readiness. Being able to sell into Europe is not the same as being operationally equipped to serve Europe.

The brands that learned from Brexit did not just switch carriers. They changed their operating model. They moved stock closer to demand. They improved customs data. They adopted Delivered Duty Paid models. They localized returns. They treated fulfilment as part of the customer proposition, not just the machinery behind it.

The real mistake is not underestimating a surcharge. It is building European ecommerce growth on the assumption that the border will stay invisible.

The post The €3 duty is not the problem. The border is appeared first on Cross-Border Magazine.

In today’s Spotlight On, Suzanne Pronk, founder of Yourshoppingstream.com, shares insights on the future of live commerce and what makes it successful.

Can you briefly explain what Live commerce is and why it’s gaining

traction in ecommerce?

Live commerce is the next wave in live shopping, it blends live video streaming with e-commerce creating an interactive shopping experience, where consumers can watch, interact, and buy instantly. 

This trend is booming due to its mix of entertainment, interactivity, and instant purchasing, making online shopping more engaging and trustworthy. It drives customer engagement, increases sales, and boosts loyalty. While mainstream in China, live commerce is growing rapidly in the US and Europe.

What’s social commerce vs live commerce?

Social commerce focuses on short, direct sales moments with a strong call-to-action on social channels. It is highly effective for impulse buys and transaction-oriented content. 

Live commerce centers on premium branded content, where storytelling and entertainment deepen brand experiences and foster long-term engagement. Instead of simply promoting products, we create formats that blend storytelling and experiences with conversion.

How have consumer behaviors shifted towards video-based shopping experiences in recent years?

The rise of short-form video content, social commerce, and influencer marketing has made video a preferred medium. Video commerce, in its essence, is not new, branded content on platforms like YouTube has been around for some time.

However, live commerce is innovative because it introduces interactivity, allowing for real-time engagement and a more personalized shopping experience. Consumers now crave authentic, engaging, and interactive shopping experiences.

What industries or product categories benefit the most from live commerce?

Live commerce benefits industries based on their goals, whether it’s brand engagement, community building, or driving conversions. It’s especially effective for visual, demonstration-driven sectors like fashion, beauty, electronics, home décor, luxury, and travel, as well as services that can generate leads through strong calls to action.

How do AI enhance the shopping experience?

AI enables features like virtual try-ons and personalized recommendations, improving efficiency and stream performance. While AI generated hosts can optimize streams, human authenticity remains vital for connecting with consumers.

What are the best platforms for businesses looking to integrate live shopping into their strategy? 

Live commerce on your own platform offers greater control over content and audience engagement. Social platforms like Instagram and TikTok are better for quick, transactional moments. Both approaches can complement each other, social commerce for quick engagement and live commerce for long-term brand storytelling and connection.

How does live commerce impact cross border sales and international consumer trust?

Research shows that live commerce helps reduce return rates, benefiting cross-border sales.By offering real-time product views, interactive Q&As, and engagement with hosts, it builds trust and transparency. While studies on return rates are limited, many brands find that the immersive nature of live commerce reduces hesitation and fosters confident purchases, making it easier for brands to sell globally.

What challenges do brands face when using video commerce in different markets?

The same challenges brands already face when selling cross-border, including cultural differences and language barriers. To reach a broader audience, an English-speaking host and subtitles are essential, both of which YSS provides. However, live commerce offers cost-efficiency by enabling brands to run a single stream for multiple countries. 

Are there localization strategies that help make live commerce more effective globally?

To optimize live commerce across different markets, brands can supplement their streams with regional influencers or collaborate with influencers who have a broad European audience.  

The interactive nature of live commerce is key to engaging diverse audiences, but understanding cultural nuances and local preferences remains important for success. Using an English-speaking host with localized content, along with subtitles, can help bridge language barriers.

What are the common mistakes brands make when implementing live commerce?

The biggest challenge is treating live commerce as an innovative, ongoing project rather than just a series of pilot tests. Brands need to commit to running weekly or monthly live streams to build momentum and allow consumers to adjust to the new format. It’s essential to give it some time to take off.

Additionally, brands should focus on creating high quality video content and utilize data from each stream to optimize future broadcasts. Testing, optimizing, and refining content based on audience engagement will ensure continuous improvement and success.

What are the key elements of a high-converting live shopping experience?

A high-converting live shopping experience requires authentic content, seamless technical execution, and a strong brand fit. It should be engaging, entertaining, and create a sense of exclusivity with special discounts or products, driving viewer engagement and loyalty. 

How can small and medium-sized businesses compete with big brands in the video commerce space?

While larger companies benefit from a bigger audience and brand recognition, live commerce creates opportunities for smaller businesses, too. Since live stream production costs are relatively fixed, larger brands can cover them more easily, but smaller businesses can succeed by focusing on communities, using targeted paid media, collaborating with micro-influencers and using cost-effective live commerce solutions.

What role do influencers and live shopping events play in the future of ecommerce?

Influencers play a dual role in live commerce, now they are primarily used in live commerce for influencer marketing, acting as traffic generators and brand ambassadors. In addition to traditional influencers, we see the rise of Key Opinion Leaders (KOLs), experts who excel at live presentation, interaction, and building trust, making them highly effective in this space.

How do you see live commerce evolving in the next 5–10 years?

In five years, live shopping will be fully integrated into the marketing mix of brands and retailers, while broadcasters and publishers have developed new propositions in live commerce. AI will drive personalized shopping experiences, increasing customer engagement and loyalty. It will play a major role in e-commerce and entertainment.

What advice would you give to brands that want to stay ahead in video commerce?

Brands should stay innovative, experiment early, gather insights, and optimize continuously. Integrate live commerce for consistency and recognition. Manage data and inventory effectively; a strong brand fit with the format, the right hosts, and influencers for authenticity. Clearly defined goals will guide strategies for social commerce, partnerships, and maximizing reach.

The post Spotlight On: Suzanne Pronk 'The Future of Live Commerce' appeared first on Cross-Border Magazine.

In the dynamic world of e-commerce, expanding your business across borders presents both opportunities and challenges. Two key players that can help businesses navigate this complex landscape are ChannelEngine and Salesupply. Together, they offer a comprehensive solution to streamline marketplace operations and fulfilment, ensuring that brands, retailers, and distributors can scale effectively on a global stage.

The Role of ChannelEngine in Marketplace Integration

ChannelEngine specializes in connecting brands and retailers to a vast array of global marketplaces. Their platform acts as a bridge, seamlessly integrating with existing e-commerce systems and automating the distribution of product listings across multiple channels. This integration is crucial for businesses looking to expand their reach without the administrative burden of managing each marketplace individually.

One of the standout features of ChannelEngine is its ability to synchronize inventory and pricing in real-time. This ensures that customers always see the latest information, reducing the risk of overselling and enhancing the overall shopping experience. Additionally, ChannelEngine provides advanced analytics, allowing businesses to make data-driven decisions and optimize their marketplace strategies.

Salesupply: Enhancing Fulfillment for Global Reach

While ChannelEngine simplifies marketplace management, Salesupply focuses on the fulfillment side of the equation. Efficient and reliable fulfillment is vital for maintaining customer satisfaction and loyalty, especially when dealing with international orders. Salesupply offers a global network of fulfillment centers, enabling businesses to store products closer to their customers, which reduces shipping times and costs.

Salesupply's expertise in cross-border logistics ensures that businesses can navigate the complexities of international shipping, including customs regulations and import duties. Their localized approach means that customers receive their orders faster and with fewer complications, which is essential for competing in the fast-paced e-commerce environment.

Synergy for Success

The partnership between ChannelEngine and Salesupply provides a synergistic approach to global e-commerce. By leveraging ChannelEngine's robust marketplace integration and Salesupply's efficient fulfillment solutions, businesses can scale their operations seamlessly and focus on growth.

For example, a retailer looking to expand into the European market can use ChannelEngine to list their products on major European marketplaces like Amazon, eBay, and Zalando. Once the orders come in, Salesupply takes over, ensuring that products are delivered quickly from their European fulfillment centers, bypassing many of the logistical challenges associated with cross-border shipping.

Case Study: A Success Story

Consider the case of a mid-sized fashion retailer that wanted to expand from the US to Europe. By integrating ChannelEngine, they were able to list their products on multiple high-traffic marketplaces, significantly increasing their visibility and sales. Simultaneously, Salesupply managed their inventory across strategically located fulfillment centers in both regions. This collaboration resulted in a 40% increase in international sales within six months, with customer satisfaction scores hitting new highs due to faster delivery times and reliable service.

Future Trends in Global E-Commerce

As the e-commerce landscape continues to evolve, the importance of marketplace integration and efficient fulfillment will only grow. Trends such as personalized shopping experiences, faster delivery expectations, and sustainability are shaping the future of the industry. Businesses that can adapt to these trends by leveraging advanced technology and global logistics networks will have a competitive edge.

ChannelEngine and Salesupply are at the forefront of these developments, continually enhancing their services to meet the changing needs of the market. Their partnership represents a powerful combination for businesses aiming to master the complexities of global e-commerce and achieve sustainable growth.

Conclusion

Navigating the complexities of global e-commerce requires a strategic approach to both marketplace management and fulfillment. The collaboration between ChannelEngine and Salesupply offers a comprehensive solution that simplifies these processes, allowing businesses to focus on what they do best – providing great products and experiences to their customers. By embracing these tools and strategies, businesses can achieve marketplace mastery and thrive in the competitive world of international e-commerce.

The post Marketplace Mastery: Navigating the Complexities of Global E-Commerce appeared first on Cross-Border Magazine.

By Cinzia Barberis - Sales periods provoke mixed feelings in the industry. Do we love them? Do we hate them? Do we need them?

We are aware that there is a huge pool of customers that love them. In fact, they will only buy in sales periods. Maybe that’s why we are already seeing retailers starting their sales even before the general “go % off” dates.

What can go wrong?

Less than 40% is no longer considered a sale (and I am being generous). The downside? that impulsive buying due to the “bargain effect” will raise and so will do our returns rate.

It is true that sometimes we need discounts to place those items that were not so welcomed or that they were at the wrong price point. But we should definitely be careful with our margins.

Discount won’t be the only thing to take into account when setting a new price point respecting your margins, save some space for returns. 

Let’s be honest, as per a recent study done by the returns digital solution Reveni, 90% of consumers won’t buy if not offered the chance to return the product. There is no way to avoid them 😉

What can go right?

There is no ying without yang and no downside with a brightside. AI comes to the rescue.

Not just as a buzzword. As an extra pair of eyes to watch closely our customers and be able to clusterize them to predict their behavior. At least try to!

A great example of it is Vtex, they recently introduced AI in their returns module bringing 20% revenue to returns. 

What? Not losing money with returns? Is that possible?

Yes. 

Loyalty beyond returns

A great purchasing experience is a never ending story. It shouldn't be if you wanna increase your lifetime value. And a return is just a step of the way.

Step 1- Cluster your customers: serial returners apart, when we buy we want to keep the product. If we need to return it, it’s because something is wrong.

Step 2 - Make it easy: the easier the process the sooner you will have the product back to your stock to be sold again.

Step 3 - Give options: instant refund if it’s for buying another item, offer the chance to pick up the returned product when receiving the new one, return to shop or think about a most convenient option for you and your customer.

Step 4 - Information is power: keep your customer up to date with the process and when everything is ready. If they order a new product in exchange, ask them how the experience was. Make them feel part of it.

With all this said.

Are you ready for the summer crazy sales period? May a lower return rate be with you.

The post Sales and returns, what can go wrong? appeared first on Cross-Border Magazine.

Curious about what sets the e-commerce markets of China and the West apart? It's not just about the size of their populations. Cultural preferences, payment practices, and what consumers value when shopping online play a huge role too. These factors have uniquely shaped the e-commerce landscape in each country. Dive into today’s episode to get a closer look at these differences and learn how they're guiding businesses to tailor their strategies. Let's explore together!

1. Platforms and Ecosystems: 

In China, the online shopping world is mostly controlled by big platforms, offering a wide variety of products and services: 

• Major Platforms: Alibaba's Taobao and Tmall, and JD.com dominate, selling everything from consumer goods to electronics and fashion. 
• Integrated Services: These platforms also provide additional services such as payment options, delivery solutions, and marketing, creating an all-in-one ecommerce ecosystem. 

In contrast, the West’s online shopping landscape is more diverse, with a mix of smaller and larger players: 

• Diverse Market: Western countries feature a mix of smaller online retailers and marketplaces alongside big platforms like Amazon and eBay, making its market more fragmented.

2. Market Size and Penetration: As of 2023, China was the largest e-commerce market in the world by a significant margin, reflecting its high market size and penetration rate compared to other countries. 

China 

Market Size: China's e-commerce market size was estimated to be over $2 trillion USD, making it the largest e-commerce market globally 

Penetration Rate: A significant portion of the Chinese population shops online, with estimates suggesting that over 50% of the population engaged in ecommerce transactions. The penetration rate is among the highest in the world, partly due to the widespread adoption of mobile payments and a robust logistics network. 

United States 

Market Size: The United States is the second-largest e-commerce market, with a size of approximately $800 billion to $1 trillion USD. 

Penetration Rate: The e-commerce penetration rate in the U.S. is also high. However, the rate is slightly lower than in China, partly because of a more diverse retail landscape and slower adoption of mobile payments compared to China. 

3. Consumer Behavior and Preferences:
   1. Western Consumers: Value quality, reliability, and excellent customer service. Look for detailed product information and transparent pricing. Need trust in the seller. 
   2. Chinese Consumers: More price-sensitive, seeking discounts and promotions. Depend on user reviews and influencer endorsements for purchasing decisions. Expect instant and 24/7 customer service. Want fast shipping, including 1-day or even 12-hour delivery on platforms like Tmall and JD.

4. Mobile Dominance: Chinese consumers prioritize using their smartphones for various online activities, from shopping to social networking and making payments. This trend is often described as "mobile first" and is evident in the country's high mobile e-commerce rate in 2023:
   1. China: 95.8% of e-commerce sales were made through mobile devices.
   2. Germany (West): 60.5% of e-commerce sales were mobile. 

Popular apps like Taobao and WeChat play a crucial role in facilitating these ecommerce transactions in China. For brands across different sectors, this trend underscores the importance of focusing on mobile-first strategies. This means marketing efforts, shopping experiences, and digital assets should be optimized for mobile usage to effectively engage consumers.

5. Payment Methods: The way people pay for online shopping is quite different in China compared to the West.
   1. Here's a simple breakdown:
      1. In China: Mobile payment apps like Alipay and WeChat Pay are the top choices for paying online. They're used for almost everything. Paying with cash on delivery or credit cards is not as common. 
      2. In Germany/US/UK: Credit cards, bank transfers, and PayPal are the main ways people pay for their online purchases.

About Us

Genuine is a leading Shanghai-based agency that specializes in bridging brands and Chinese commerce. We provide hassle-free, responsive, and dependable services to facilitate a swift entry and soft landing into the complex Chinese market. With our team of digital natives and extensive expertise in China, we offer a holistic approach to long-term brand building and strong ties to local sales channels.

https://www.genuine-asia.com/

The post How is E-Commerce in China Different from the Western World? appeared first on Cross-Border Magazine.

Invitation to AI Empowerment Workshop by Vor der Welle AI

By Johanna Mager - AI literacy is becoming a key competency that individuals and organizations must embrace to navigate and master the evolving technological landscape. As readers of the Cross Border Magazine, you are well aware of the importance of staying ahead in the global market. Understanding and applying AI daily can free you up to focus on what you are truly good at, thus fostering innovation and efficiency.

It is a fact that AI and its capabilities are growing exponentially and that virtually every organizations feels that pressure to do something with it.  Despite this pressure most organizations seem paralyzed (to not say ignorant), some others have some kind of AI initiatives going on that are, honestly speaking, surprisingly underwhelming in their impact. And then there are a few others that are doing it in a really innovative and smart way - they ask themselves: how do we become an AI Literate Organisation?

What is AI literacy?

AI literacy encompasses a range of competencies that enable individuals to critically evaluate AI technologies, communicate and collaborate effectively with AI, and use AI as a tool in various contexts—online, at home, and in the workplace. It builds upon existing literacies such as:

• Digital literacy: The ability to use, understand, and critically evaluate digital technologies.
• Computer literacy: Understanding and using computer programs, including basic programming knowledge.
• Scientific literacy: A basic understanding of natural sciences and their methodologies.
• Data literacy: The ability to handle, analyze, and interpret data, and make informed decisions based on it.

AI literacy expands these literacies by adding specific skills and knowledge about artificial intelligence, such as understanding how AI systems work, recognizing the ethical implications of AI, and knowing how to utilize AI effectively in various aspects of life and work.

AI literacy is for everyone

The idea that AI literacy is not only for tech enthusiasts or specialists but for everyone is essential. AI is now integrated into so many areas of our lives, from virtual assistants to recommendation systems. If we understand how these technologies work, we can use them better and more responsibly.

Knowledge of AI empowers individuals to make informed decisions, whether it's evaluating news sources, understanding privacy implications, or leveraging AI for personal productivity.

By integrating AI into their workflows, individuals can unlock new levels of creativity and innovation, solving problems more efficiently and exploring new opportunities.

Why organizations need AI literacy

For organizations, integrating AI is a transformative challenge. It’s a shift in thinking and a profound change of how things are done. Viewing AI only as a tool for tech enthusiasts misses the chance to leverage significant market opportunities and outpace competitors.

The change begins with small, often repetitive tasks that burden our daily lives. By automating these through AI, we create room for creativity and efficiency. The real magic lies in delegating these small tasks to bring forth our actual strengths and qualities.

How can AI literacy look in daily life? For instance, by understanding how AI tools can support our work processes, whether it's in brainstorming, writing texts, or even structuring projects.

AI is not a technical challenge, it is a transformative one 

Organizations must overcome common barriers such as privacy concerns, job security fears, and resistance to change. This requires a mindset shift toward seeing AI as a partner in a dynamic and creative dialogue, rather than a threat. Away from ‘prompts’ towards having an actual ‘dialogue’ with AI, as if it were human. 

By understanding the basics of AI, we can identify and evaluate its applications in our lives, address ethical questions, and comprehend its impact on society. This shift from feeling overwhelmed to taking informed action is crucial in regaining control in an ever-faster world.

Join our upcoming AI Empowerment Workshop

To support your journey in AI literacy, join our interactive AI Empowerment Workshop on July 11, 2024. This workshop is designed to provide practical insights and strategies for integrating AI into your business processes. Register now at Unleash AI Workshop and use the exclusive code CBM50 for a 50% discount. Don’t miss this opportunity to stay ahead in the AI-driven world.

Learn more and register at Vor der Welle AI. 

Date: 11th of July 2024
Time: 09:00 - 13:00
Place: online
Costs: EUR 349,00 ex. VAT

Exclusive for Cross Border Magazine readers, use code CBM50 to get a 50% discount.

Please come! It´s worth the time investment and we promise you it will save you at least double of the time you invested already in the next month.

Do the work and learn AI

Doing the work and becoming AI literate is an essential component of education and understanding our world. It allows us to actively and knowledgeably participate in shaping our future. For organizations, this means fostering an AI-first culture that encourages innovation and positions them as leaders in their respective industries. By integrating AI into daily operations, companies can achieve efficiency gains, develop new solutions, and establish themselves as innovators in the global market.

This approach not only maximizes the potential of AI but also ensures that organizations are well-equipped to ride the AI wave rather than being swept away by it. Embracing AI literacy is not just about keeping up with technological advancements; it's about leading the way in a rapidly changing world.

I wonder, how many of us have already recognized the full potential of AI?
Are you ready to take this step and see AI as an ally instead of a threat?

About: Johanna Mager

Johanna Mager is a passionate strategic consultant with two decades of experience in marketing and sales. Originally from Germany and now residing in the Netherlands, Johanna combines her cultural insights and professional expertise to help businesses achieve holistic growth.

With a keen interest in emerging technologies, Johanna has recently delved into the transformative power of artificial intelligence. Johanna is dedicated to empowering professionals to leverage AI for innovation and success in the modern market.

The post Transform or fall behind: the urgency of AI literacy in modern organizations appeared first on Cross-Border Magazine.

By Màrius Rossell Rovira - In the fast-paced world of eCommerce, selecting the right platform is crucial for business success. But it's not just about the initial investment; understanding the Total Cost of Ownership (TCO) is key to optimizing profit margins. 

What is the TCO?

The Total Cost of Ownership (TCO) represents the complete cost associated with owning and maintaining an eCommerce platform over its lifecycle. It encompasses not only the initial purchase or subscription fees but also ongoing expenses like maintenance, upgrades, support, and training.

The basic formula is represented as simple as this: TCO = (cost/GMV) x 100.

The TCO is a percentage that, the lower the number, the better it is for your business. “Cost” is the sum of all the costs and expenses of implementing and maintaining your eCommerce solution that we will see in the following points. And “GMV” (Gross Merchandising Value) is the turnover without taxes, returns, shipping and other items.

Which are the costs that you must consider when calculating the TCO?

To calculate the TCO, we will divide the costs into two categories: the initial costs (CapEx) and the maintenance costs (OpEx)

Initial costs: Within the initial costs, there are four subcategories.

1. eCommerce software prices: The licensing prices of eCommerce platforms vary according to the pricing model adopted. Here's a quick overview of some common options:

• Software License: Monthly fee for usage with maintenance and update services.
• Commission or Revenue Share: Fee based on a percentage of generated revenues.
• Pay-per-Use: Monthly fee for software consumption or processed transactions.
• One-time License: Single payment for full access over a specified period.

2. Implementation costs: Implementation costs refer to the fees paid to an agency for customizing and implementing the solution to meet the unique needs of the company.
3. Integration costs: When setting up your eCommerce platform, it's crucial to consider the costs of integrating third-party applications like ERP, CRM, PIM or WMS.
4. Unexpected costs: Unexpected costs are a reality in any project and are often challenging to estimate due to their unpredictable nature. Therefore, it's important to include a contingency margin of between 10% and 20% in the budget to account for potential additional expenses. These expenses may include unforeseen integrations, new requirements due to a change or extension of the project scope, special training or external support, among others.

Maintenance costs: referring to expenses encountered on the platform post-implementation, encompass infrastructure, upkeep, support, and commissions.

1. Infrastructure costs: Infrastructure costs typically encompass hosting and security expenses.

• Hosting costs: Monthly fees covering hardware and software maintenance, server bandwidth, and support for on-premises or hosted solutions.
• Security costs: Vital for website launch, including server protection through Firewalls, intrusion detection, malicious bot prevention, and SSL certificates.

2. Maintenance: Software upkeep is crucial for ongoing business management, involving initial investment and expenses for updates, enhancements, and bug fixes to ensure operational efficiency.
3. Support: Costs vary based on service packages and support channels like email, phone, or chat. The quality of support can impact pricing, with options for emergency assistance having higher costs.
4. Commissions: Most of the eCommerce platforms may charge commissions and fixed fees per sale, affecting profit margins. For some businesses, these commissions are a small price to pay for the convenience that an eCommerce platform offers. However, for other businesses, commissions can be a factor that makes it difficult to make a profit because it directly attacks the margin.

The importance of the eCommerce software when calculating the TCO

Calculating the Total Cost of Ownership (TCO) for an eCommerce business hinges significantly on selecting the right eCommerce software solution. In a market filled with options, Software as a Service (SaaS) solutions is the preferred choice for many businesses since it offers scalability, flexibility, and lower upfront costs, making it a compelling option for businesses looking to streamline operations and reduce TCO.

LogiCommerce, the headless eCommerce platform with 25 years of experience, offers a comprehensive and cost-effective SaaS solution for both B2B and B2C businesses. The platform provides a user-friendly interface, responsive 24x7 support, worldwide scalable infrastructure with robust security, and easy integrations with third-party systems. Together with these advantages, LogiCommerce maintains a transparent pricing policy with no hidden fees and all costs openly detailed on their website.Would you like to know more about the TCO on eCommerce platforms? Download this eBook now for free!

Màrius Rossell Rovira - CEO at TRILOGI - The eCommerce Agency | LOGICOMMERCE - The Headless eCommerce Platform

The post Maximizing profit margins: Understanding total cost of ownership (TCO) in eCommerce platforms appeared first on Cross-Border Magazine.

As always, it will depend. 

By Cinzia Barberis - As in any other detail in life, one size does not fit all, so let’s start going back to basics and get real without getting lost in general - and pretty scary - statistics.

The purchase: Planned vs impulsive buying

It’s pure logic: planned purchases are less likely to end up as a return than impulsive purchases, with technology, fashion and cosmetics being the industries with more impulsive purchases. 

Need vs Desire

So, what happens when you mix desire, impulse and sales periods? Crazy return rates after Black Friday, Sales and Christmas campaigns when 1 out of 3 purchases may end up in a return.

The reason: Why am I really returning?

Serial returners aside (yes, we will speak about them in another post), let’s understand the why behind every return. Let’s be honest, we don’t like to return stuff so, if we did, there might be a reason.

You can get key insights to improve your product, detect manufacturing defects, discover new products to offer, missing info in your product description or new solutions you didn’t know you needed for your ecommerce… not bad, right?

In the era of hyper-personalisation you will need all these details to deliver the experiences your customers are looking for.

The industry: Returns are fashion victims

What to say, returns are fashion victims… or the other way around? As per Statista, the most returned categories are: 

• Clothing: 25%
• Bags, accessories and shoes 18% each
• Food & beverages 13% (that’s a new entry in the top 5!)
• Consumer electronics 12%

Will the reasons be the same in all four categories? Of course not. 

This general picture leaves us more questions than answers and there is a reason. We talk about returns in a global way, when every product or category has its own reasons and needs. Not to say that we pay all the attention to the negative parts of returns and none to the opportunities behind them.

If we take a look at statistics we see billions of dollars spent and an increasing trend in returns. But we can also find opportunities in these numbers such as: more than 6 out of ten shoppers prefer to return in-store. 

Ok, it’s true that returns create a lot of challenges in reverse logistics, stock planning, incomplete sizing in fashion, the dilemma of whether to charge or not for returns… ad eternum.

But these are just the end of the list, and we are so focused on this part that we can’t see all we can do before.

Maybe it is time to rethink our approach to returns. And this is the real challenge for 2024. In the following posts I’ll try to think out of the box to find the hidden treasures and opportunities at every step of the returns process.

Cinzia Barberis / Head of Marketing & Communication at Naiz Fit

The post What are the real challenges behind returns? appeared first on Cross-Border Magazine.

By Roel Linssen - Imagine that you started a webshop for passionate amateur bakers in 2015. Shows like the Great British Bake Off kicked off a widespread baking frenzy, which was good news for your webshop. After that promising start, 2020 happened. Confined to their homes, more people started figuring out how to cure their boredom by baking bread.

E-commerce was booming while your enterprise was at the height of its power. To deal with the gargantuan demand, you increase essentially everything: stock, personnel, distribution. Now that we’ve returned to the ‘old normal’, people can go out again, and their ovens are running out of cakes to bake. Your sales drop and the stock continues collecting dust at warehouses. The costs of all the upgrades from the lockdown days remain, and growing competition drives up marketing costs. What are you going to do?

The secret ingredient is preparation. I’ll walk you through it. Brick-and-mortar stores, where people would usually get their rolling pins, had to close during the lockdowns. This accelerated the rise of e-commerce, where people had to make new purchasing decisions.

Roel Linssen / Director & Founder Tomahawk

The customer journey has always appeared to be a linear procedure where customers make step-by-step choices for purchase. The past years made clear that this is not the case: the process is not a predictable funnel. Google describes it as a ‘messy middle’. Calling it the messy middle implies that the steps the shopper takes from exposure to a product to the actual purchase are beyond our influence and unpredictable. 

The recent decline in brand loyalty is one of the elements that made the middle so chaotic. Consumers don’t have a clear journey in mind when they’re looking for products. They might have an idea of a product type or a brand in mind, such as a round baking mould.

But they’re still on their way to the actual purchase and everything can happen en voyage. Another webshop might offer free shipping or have better reviews. These nudges can motivate consumers to switch to another brand. You might lose some customers because of that loyalty, but there is also potential to attract new shoppers. 

Research has proven consumers nowadays are more willing to choose a lesser-known brand if buying biases are similar (or better) than a well-known brand. So this is what you can do to face the aforementioned challenges: you can have biases mise en place that influence the purchaser, such as free cake decoration samples and recommendations from regular shoppers. These biases tidy up the messy middle for the consumer. Compare it to baking – it is so much easier to do when all the supplies are already put in place.

But the real opportunity is beyond local markets. With the reduction in brand loyalty, it’s easier to convince new consumers in new markets to pick your brand without having to invest in brand awareness. Going international might sound ambitious for your e-commerce enterprise, but specialised marketing agencies can help you out with this.

Crossing borders with your webshop gives you a chance to boost your sales and decrease your dependence on the local market. Baking virtuosos in new markets are more than happy to relieve you of that extra stock you have left from the lockdowns. By simply being present with the right biases, you can nudge consumers from exposure to purchase. It’s almost a piece of cake. 

All the best,

Roel Linssen

Director & Founder Tomahawk

The post Claim your slice of the pie: Go International! appeared first on Cross-Border Magazine.

By Simeon Wynn - Looking at the state of world economic and geo-political affairs at the start of 2023, it’s hard not to approach this year with a decidedly less rosy outlook than perhaps we might have started recent years with. No matter where you look, it feels almost impossible to escape tales of economic woes, falling consumer confidence, and spiralling prices. Need I say more?

Of course, much of this is true, and down to real, world-changing events that have happened in recent months. As I sit here in rural Norfolk, deep in the UK countryside, I can think of at least a few country-specific decisions that have led to inordinately high prices in some areas here and a lack of supply in others. 

But, despite all this, there is one thing we should all be smiling about – whatever doom and gloom you may have heard about the e-commerce industry has frankly been greatly exaggerated. 

The e-commerce industry is still growing 

Yes, that’s right. Across almost all markets and in most major verticals, the e-commerce industry is still booming. On Black Friday 2022, total online sales were up 2.3% when compared to 2021. Shopify also reported over 52 million consumers worldwide purchased from a brand using their technology. Meanwhile, Barclaycard Payments have reported a 3.2% increase in transactions in the UK compared to last year. Across the EU, e-commerce sales are projected to reach over €600 billion in 2023.

There was a worry as we headed into the BFCM period that consumers were getting tired of online discounts and might prefer to look in-store for the best deals. But what did we see? Consumer habits didn’t just temporarily change over the pandemic; they permanently shifted, in a seismic way, to the point that over 80% of consumers now research products online as a first port-of-call, regardless of any deals they may have seen in person. 

So what does this mean for e-commerce brands? Well, there is certainly opportunity out there and space for growth, but only for the brands doing it right. The modern consumer is the best-informed, most active, and least-loyal iteration of a consumer we have seen yet. Successful brands know this and will be employing a few key strategies in 2023 to capitalise on the moment. 

First and foremost, you must focus on the customer. Now more than ever, consumers are looking for a seamless, convenient shopping experience and won’t accept anything less. With so much uncertainty around living costs, you need to be as honest as you can be about your shipping times, your return policies, and any changes to your operations. Something as simple as not offering a refund on import duties and taxes for cross-border trade can drastically affect sales, something Duty Refunds are poised to help you with. 

2023 will also be the year to embrace new technologies. From augmented reality to chatbots to the continued growth of social commerce on platforms like TikTok and Instagram, there is an increasing number of ways to reach your customers directly and make their experience as smooth as possible. 

Whatever you do this year, enjoy the challenge, and I wish you every success. 

The post Focusing on your customers has never been more important appeared first on Cross-Border Magazine.