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~ ChannelEngine ~

MySale has built its business on this premise. opposed to human rights or sustainability?

• Build your brand. Use your chic appeal in overseas • Distribution agreements. You may be prevented from
markets to build brand identity and loyalty. The selling some goods due to exclusivity agreements.
popularity of your brand in other countries may
surprise you—65% of Chinese consumers and 49% • Payment methods. Secure payment that prevents
of Australian consumers have an overwhelmingly fraud is essential. Many countries still use cash as
positive view of US brands, for example. a preferred method, but online payments are now
almost ubiquitous.
• Cut out the middleman. Sell direct to consumer
(DTC) without relying on distributors for your • Last-mile delivery. This is critical. Some
brand reputation. By becoming the distributor for marketplaces require certain last-mile providers, and
your own brand globally, you gain full control over in some regions, the coverage is poor.
your branding, content, and customer experience.
• Complexity. You need tools that can help manage
• Control over methods. Freedom to use more the challenges of international sales, including
sustainable methods distributors don’t offer. This the logistics and fulfilment side. This is where
might include sustainable delivery methods or marketplace integration software is essential,
environmental certifications, which are increasingly enabling you to link all your backend systems to one
demanded by consumers. centralised dashboard.

• All the advantages of DTC. These include better How is cross-border e-commerce different to regional
margins and direct contact with consumers. expansion?
Cross-border e-commerce is more complicated because
Challenges of cross-border e-commerce there are more moving parts to consider, but it’s just as
Selling goods internationally involves some challenges achievable as selling within your own region. Compared
to ensure everything runs smoothly. Typical difficulties to regional expansion, selling in new regions is certainly a
associated with international e-commerce include: step up. Throughout the EU, for example, trading rules are
well-aligned for almost every product type, and there are no
• Understanding the market. This has legal and customs or import duties to worry about.
cultural dimensions to it. For example, in The
Netherlands, duvet covers are open at one end. Try Additionally, Free Trade Agreements (FTAs) help businesses
and sell these in other countries, and they’ll think it’s trade with less friction within a region, such as the
faulty, resulting in avoidable returns. agreement between Australia and Singapore. You can also
reach most other countries within a region using the same
• Assortment and content. Align with cultural norms network of couriers or fulfilment locations.
to ensure that your content isn’t offensive, too formal,
or too casual. Looking further afield, you need to start thinking about
whether to fulfil orders from your ‘home’ country/region or
• Legal regulations. Some products are restricted or use local warehousing and fulfilment in your target markets.
prohibited, while others must meet standards for By keeping your stock closer to customers, you can reduce
quality and safety. You must be authorised to sell as a import charges and offer faster, cheaper delivery. Local stock
registered trader and/or be a registered importer and locations also make it easier to maintain supply stability.
have authority from brands and trademark holders.
Four tips to succeed with cross-border e-commerce
• Sales taxes and customs. The taxes you need to pay • Tip #1: Partner up
depend on your setup. You might escape sales tax but You can achieve more with the established capabilities and
need to pay customs, or vice versa, or both. connections strategic partners can give you. Using strategic
partners makes it possible to outsource the most challenging
• Exchange rates. These can make a big difference to parts of cross-border e-commerce while you get established.
margins, and leveraging exchange rates at the right
time can generate extra margins. Once you have some momentum, you can start to take
more hands-on control if needed. However, in many cases,
• Branding and identity. Does your brand identity partners are good options for the long term, as they can
work with the target market? Do your values make secure better deals on things like shipping and warehouse
it hard to justify selling in countries with regimes space.

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