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~ e-CROSS ~

CROSS BORDER D2C AS

A TREND IN RETAIL:

TIPS FOR BRANDS LOOKING

TO INVEST IN THE

BUSINESS MODEL

Text: Rafael Sant’Anna // Photos: e-CROSS

The concept extends beyond Cross-Border Transport, encompassing Logistics, Legislation,
Finance, Go-to-Market strategy, and Compliance.

he accelerated digital transformation, Market Research
exponentially driven in recent years, has As in any other segment, it is crucial for brands to conduct
Tmade online shopping a habitual practice for market research to understand the peculiarities of the country
consumers. Leveraging technology for purchases they plan to access. This involves cultural differences, existing
has enhanced convenience, leading to the grow- laws and regulations, logistics, and consumer behaviour.
ing prominence of Cross Border D2C (Direct to
Consumer). This concept involves the logistics of After analysing and understanding the sector, businesses can
moving products from one country to another while tailor their marketing to offer a local shopping experience.
handling legal and compliance issues, unlocking the This includes personalizing strategies and communication,
cross-border e-commerce chain by adhering to cus- translating content, adjusting advertising campaigns, and
toms and tax regulations. Companies across various selecting appropriate social media platforms.
sectors are increasingly embracing this approach.
According to the E-commerce Trends 2023 report by Octadesk Legislation
in collaboration with Opinion Box, 61% of Brazilians prefer For brands to stand out in Cross Border D2C, compliance with
online shopping over physical stores. Additionally, the Global the current laws of each country is essential to avoid risks and
E-commerce Forecast 2023 by eMarketer and PayPal reveals fraud. It is imperative to adhere to necessary regulations, such
that nearly 75% of global consumers purchase items online as those from the Central Bank, tax, and customs authorities.
from other countries. The same study predicts that cross-border Compliance extends beyond the country’s Revenue services
e-commerce will reach $7.9 trillion by 2030. and includes regulatory bodies such as the health authority,
telecommunications agency, military, and others.
“First and foremost, it is essential to understand that Cross
Border D2C is not just about transporting a product from one Financial Solutions
country to another. It involves logistics, legislation, financial Effective financial solutions are vital for successful Cross
aspects, go-to-market strategy, and providing end-to-end Border D2C operations. These solutions should include
compliance and local shopping experiences,” explains Rafael payment splits, fraud prevention, foreign exchange operations,
Sant’Anna, co-founder and CEO of e-CROSS, the first Cross and local payment methods like credit card with instalments
Border D2C solution enabling brands and retailers to reach and PIX in Brazil, OXXO in Mexico and PSE in Colombia, for
Latin America countries. example. Given the global variation in payment systems, having
mechanisms that connect globally to streamline the process
Given the high demand from retailers and marketplaces to for users is important. Pricing strategies must also adapt to
benefit from the Cross Border D2C, e-CROSS offers some tips the market, involving local currencies, competitive prices, and
for those looking to invest into the sector: offering discounts or specific promotions.

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