Optimizing the Local Market for International Selling

The cross-border commerce world is booming rapidly. With just a click of a button on smartphones, you can buy and sell anything across the globe. As per the Forrester study, the cross-border commerce is likely to double by 2021. This will bring a phenomenal increase in the outcome of sales and revenues. Thus, a majority of the online shoppers are going global in their search for sales and purchases. This has given a little run for money to the retailers. However, some of them have joined the bandwagon in the global marketplace.

For instance, the cross-border market of China will see a remarkable progress in 2021 with a huge increase in sales and purchases in this market. India and US are also following suit.

Let us understand the major considerations for the success in the global market.

Optimize local markets

As per research, a majority of online shoppers prefer using the globally recognized marketplaces. They focus on gaining a potential profit margin. This gives them a global recognition and a great customer outreach. It is necessary for these merchants to understand the market rates and values. Also, timely analysis of these helps them to increase their market.

Consumers should look out for multiple benefits to shop at marketplaces:

  • Best deals
  • Free shipping and delivery
  • Ease of searching what you what at one click
  • Wide range of products for all categories
  • Faster delivery time
  • Customer Loyalty Points
  • Quality products
  • Great customer experience
  • Brand loyalty

Cross-border market strategies

Marketplaces have crossed international divides. There has been a substantial increase in the purchase of online marketplaces. This ratio is high when compared to retailer websites.

These cross-border market strategies succeed based on a lot of factors:

  • Retailer’s market presence
  • How much risk a retailer has to undertake?
  • What difference lies between a marketplace’s and retailer’s own assortment?
  • Is the retailer fully aware of the cross-border policies and charges?

Be like the locals and pose like a foreigner

The US, China, and India have an astounding cross-border market. Whether it is clothes, cosmetic products, food products and electronic items, they hold their positions in the marketplace.

It is essential for these online shoppers to know the insights of the local markets. They have to be aware of the conditions of the local markets, policies and the tax benefits. They have to understand and analyze the demand and supply of their products in these areas. This is the biggest challenge though. But from the sell-side, it is the most important thing to consider while entering the global markets.

Participation in the national market

The online brands have to actively participate in the national markets. They have to continuously strive to build their presence. This gives a good exposure in terms of markets and the consumers. They have to keep the important things while expanding their business globally.

  • They have to understand the fiscal policies.
  • They have to be well prepared for regulatory challenges.
  • They should do proper calculations of the border taxes and custom duty charges.
  • They should ensure the import/export compliance.
  • They have to do accurate shipping and product costs’ calculations.
  • They have to manage logistics effectively and efficiently.
  • They have to process the data and conduct secured payments.

Focus on the brand and quality

It would be tough to survive in the global market if marketers rely completely on the brand. Product perception has to go hand in hand. As per a survey, 70% of the consumers make at least one cross-border purchase annually. This is because of the attractive pricing and discounts they get as well as the strong perception of the product aligned with local needs and quality expectations. Also because of the variety, they get in the products and its qualities.

It is quintessential to localize the brand. They need to create its online presence to enter the new global market. They have to deliver quality products and create a brand awareness to the local consumers. Thus, they have to look like an outsider but have to behave like the locals. The brand equity and the product quality matter among the consumers in countries such as India, China, and Hong Kong.

Manage the inventories and outlets

There are few of the retail brands that have managed to build empires. They have made the most of both cross-border and the domestic deals. These global brands do not enter the market directly. They have to plan and strategize cautiously. They have to manage the resources and the entire system. They have to be quick and efficient in delivering goods and services to their consumers.

Managing the inventory globally is one of the prime concerns for all the online retailers. They have to look into the challenges such as currencies, language, geographical distance, instant delivery and customer satisfaction. Regardless of the time zones and the cultural differences, they have to manage the inventories most effectively.

Conclusion

Brands have to evaluate the market position before entering into the cross-border commerce. As per the geographical and historical conditions, they might have to face huge challenges. But, they have to equally focus on the local brand perceptions to rise and stand out in this global market. Once they ensure compliance for all sorts of cross-border transactions, they surely can gain maximum success in multiple markets.

 

 

Top 5 Strategies for Harnessing Cross-Border Commerce Success!

By 2021, the cross-border market will boom up to $1 trillion, as per recent Business Intelligence reports. There has been an exceptional rise in global purchases due to the ample reach, given by cross-border commerce along with its price and quality benefits. The driving force behind cross-border commerce has been the lack of access to goods domestically. Also, the better product pricing and affordable shipping contribute to its success. Thus, most of the consumers are turning to international vendors who are prevalent in local online markets.

Consumers in the countries like China and US import and export several products and services. For instance, people in China tend to everything from baby products to gadgets online owing to their lack of quality in some local markets. In response, merchants aim to expand their businesses to a global level, while making sense of the local sense, language, flavour, and preferences. They target the overseas market and expand their horizons to new global customers for obvious reasons.

Major Strategies that can leverage cross-border commerce benefits

Are you thinking about entering a new cross-border market or are keen to expand your eCommerce business globally? Here are some strategies you need to pay attention to.

  1. Select the market appropriate to your business

Do your homework. Determine who will be your international customers. Understand your product value in terms of their demands and your supplies. You can consider the following factors before finding the best product :

  • What is the condition of your selling product in the market?
  • Will there be a substantial growth of your business with your product?
  • Who are your competitors and your consumers?

Possibly, there is a solution for all your queries.

  • You can search for the most trending products on Reddit, Alibaba and more.
  • You can decide accordingly and refine your selection later.
  • Finally, dive into the data analytics to validate your idea.
  • Check out the competition in the global market on the basis of surveys and reports.
  • Analyze your sales and calculate the profit margin.

  1. Research on the trends in the international markets

A proper and efficient research always helps in providing effective results. For international markets, you have to be keen on the trending strategies and policies. You have to take into consideration the competitors, their product quality and the discounts they offer. You have to analyze your production rates and its corresponding market values. You have to focus on the product quality and its marketing so it can stand out in the international market.

You should not miss out on the data security and customer’s satisfaction. You can hire an international support in that case. These are going to be a real wealth of your company and its market value.

  1. Focus on the payment modes

There are multiple payment options available in the market. Some have global access, while some are limited to local markets. You have to be very careful and precise considering the most secured payment modes in eCommerce. The payment modes vary largely in terms of countries.

In order to successfully scale globally, you have to focus on integrating and accepting all payment options. But again, know what your target market prefers. You can always consider the standard secured payment options such as Visa, MasterCard. Later, as per the market and sales, you can add the appropriate ones. You also need to take account of the local currencies and conversions for cross-border markets. Most importantly, you have to promise the consumers about their money security.

  1. Be aware of the tax rules and regulations

This is the most important point when thinking about expanding your eCommerce across borders. You have to be well aware of the government taxes and how to apply them to your products. You have to investigate the custom duties charges and taxes. You have to inform about the additional charges to your customers.

You have to understand the free trade agreements before venturing to do business across the borders. You should also know the market policies and tax rules. Ultimately, these will be inclusive of the costs, packages, shipment of your product. Hence strategic pricing and quality based on local market conditions and competitions is highly important.

  1. Set up an International returns policy

When you think about the cross-border market, you ought to consider the international returns and policies. You have to understand the local laws and the overhead costs. You have to be transparent about the return fees or the restocking amount. Also, you have to be clear to your consumers about the full refunds or the store credits.

You have to consider the approaches for faster and secured refund options. For this, you can build partnership with the logistic services or set up a local returns center. These can offer a number of return options to the customers. This altogether, helps you manage and simplify the process efficiently.

Apart from all these, one also needs to take the ownership of the business. You have to upscale the entire process not as an individual, but as a team. So, it is better to appoint the right manpower, resources and logistics in the local region too. You should also focus on the technology and services for delivering a standard process. This will help your business get major visibility globally.

That said, to make an impactful start in the cross-border markets, you need to identify the right marketplace. This can help you earn cool profit margins for your global business.

Devising International Payments for Cross-Border Commerce

Devising International Payments for Cross-Border Commerce

Selling internationally can be a thrill and a hassle as one needs to process international payments efficiently. The good news is that e-commerce sellers do have loads of options to make global sales easy enough for buyers and sellers.

Do US Merchants Accept Payments from Abroad?

In most cases, they do not accept international payments since the processing fees are high enough with huge risk of fraud and chargebacks. For working with customers in other countries, one would have to set up an account for those orders specifically.

International Merchant Accounts give owners dealing with cross-border commerce with multiple solutions meant for small businesses. These accounts have the ability to accept money and process varied payments automatically. They also feature fraud prevention and other attributes. These accounts also offer alternatives to payment aggregators like PayPal, and even present buyers a view of an established business along with currency exchange rates as part of fees.

Once you’ve opted for international merchant account for allowing international transactions, here are some things you need to do

  • One needs to pay set-up fee to obtain processing equipment along with relevant software.
  • After installing the software, and set account information, link the account with business bank account.
  • The money received through the merchant account will be converted to U.S. dollars and transferred to bank account.

Instructions to link international payment service with marketplace

To link the payment service with the storefront, follow the rules and create your checkout process. Here are some payment aggregators and services that would aid cross-border ecommerce and international payments.

  • PayPal

Being the most popular payment processor for online sales, PayPal now operates in a staggering 190 international markets and even accepts payment in 24 currencies without one needing a merchant account. Transaction fees are mostly lower than the fees levied by banks, most transactions are also swift and secure. It can be set up with an email account and a credit card only and there are several free tools for shipping and tracking reports.

One does get charged per transaction, withdrawals and currency conversions and one can set out adequate product prices for including those fees.

Set pricing for international customers in relevant currencies that are available for you to accept and the money can get transferred to the local bank account within a couple of days. Consider a dedicated merchant account if there are consistent transactions along with a dedicated chargeback department for the services.

Payment comes in default currency through PayPal based on account preferences. One can convert money at the standard rate to account for any wayward currency fluctuations. PayPal monitors foreign exchange rates and adds its own fee of 2.5 percent to the transaction especially when funds are moved from PayPal to bank account.

  • Individual credit card firms

One can work directly with merchant accounts including the popular Visa, MasterCard, and the like. But these provide limited international buyers’ options and thus limit sales.

  • International money orders

Your customer from another country can purchase money orders from their bank, and are mostly considered secure. Fees are minimal, but payment process takes up 8-10 days. Also these international money orders are liable to frauds!

  • International wire transfers

If one has forged a relationship with an international customer, international wire transfers can be swift although expensive at $35 – $60 per transaction.

  • Google Wallet

This wallet is available in limited countries and the UI is uncluttered and boasts of a good online presence, and many cross-border commerce organizations have started using it.

  • Telegraphic Transfers between banks

These transfers have been used for several decades and now they are losing importance owing to convenient payment options.

  • Personal check

Major marketplaces discourage use of personal checks owing to huge chances of fraud. One can even consider the checks on a case-by-case basis if you are the prime decision-maker and comfortable with varied taxes, currency exchange and ancillary fees.

Conclusion

Payment terms and methods are few and far between that actually work in an online marketplace. Check out the best mode of payment for your cross border commerce strategy although do encourage every channel for hassle-free payment for customers.

Top Considerations While Accessing New Global Markets

It is easier than before to leverage global markets today. Social media scales geographic borders, highlighting brands in international markets more easily than ever. Although gaining visibility is comparatively easy, SMBs need to establish a strong foundation in place for long-term scalability in global ventures.

 Merchandise Products for New Markets

Neglecting merchandising process is a huge mistake for those entering new markets. With local elements in creative visualization, customer service and order processing, merchandising needs to be accorded huge importance too. Investing in people and collaboration tools can help entrepreneurs strike good relationships with the new markets.

When merchandising, the top considerations should be:

  • Climate – Be sure to account for the climate of the target market
  • Competition – Look at how the competition has positioned itself with the products they are selling through different channels
  • Consumer Trends – A product that is popular domestically doesn’t always succeed internationally. Do thorough consumer testing and surveys in the region before launching the product there. Most businesses target regions where they have witnessed sales before they launch the product, specifically in that region.
  • Religious Affiliations– Religion in some markets play a huge role in using some products. The products should not be in way marketed to offend religious sentiments

A Sound Cross-Border Commerce Strategy for Success

Some factors need to be respected and aligned with, for consistent success in cross-border commerce for accessing certain geographies for business. Some of those factors include:

  • Hire International Support

Hire high-value team members, in-house or freelance. Outsource the support work to them for competent international support services. Likewise you might need language support in some countries, especially if the local language is something else than English.

Support your lean business when it goes global, maintaining brand standards elsewhere too. Hire competent freelancers only for your business tasks.

  • Double Check Product Restrictions in each Country

While most products are inherently safe to sell across borders, double-check to see if there are any product restrictions in any country.

Some verticals like apparel, beauty and cosmetics, consumer electronics and health goods have particular restrictions by country.

  • Ensure the Technology is Scalable

Make sure that you have an e-store powered by technology that is scalable and not at all cost-prohibitive. One should select a platform that features out-of-the-box attributes required for standard processes in cross-border commerce without having to incur additional monthly costs.

The technology should be able to incorporate basic functionalities that can process discounts, coupons, emails for abandoned carts, analytics, customer groups, shipping, and payment etc. Going global without having the support of a strong technology platform is the onset of a huge disaster. You may be able to sell products, but rising costs, inefficiency in efforts and even result in lower margins would hinder you consistently.

  • Divide Processes and Hire Resources

For SMBs, going global is a big step and as they grow, the workload grows too. SMBs are usually lean and managed by a handful of stakeholders.

One needs to take ownership of the business but one should also understand it is not a one-person job. Do not restrict bringing on help for scaling processes and one can use assistance where the internal team lacks in terms of skills and resources.

While exploring cross-border opportunities, the right manpower and resources in the local areas are extremely important in getting the business major visibility

 

Cross Border Commerce Taxes when selling to the US and China

Most countries embrace a VAT or GST tax system that defines how cross-border commerce works there. It is essential for entrepreneurs to get the tax rules and regulations sorted before doing business in a particular country.

Taxation for cross-border commerce in the US

United States is an OECD country that embraces a final sales tax system wherein sales tax is consumption tax based on the final transaction of the offerings – product or service.

More than 12,000 taxing jurisdictions apply sets of rules for specific products and buyer location. This makes it difficult for enterprises elsewhere to promote trade of their offerings in particular locations.

  • In US tax laws, ‘NEXUS’ describes a situation that showcases an out-of-state business with a physical presence in a US state and is required to pay income taxes and collect sales taxes within a particular state.
  • The Nexus determines the actions that a company needs to pursue in a state before it is supposed to pay taxes. As a foreign seller, exceeding $20,000 turnover or more than 200 orders is a requirement.

For example, if a particular buyer and seller are located in a US state, the seller can collect taxes for the buyer and remit them to the state. This applies even if both parties are in different US states, and the seller has some presence in the form of a warehouse or office in the buyer’s state. If buyer and seller are in different states, the buyer is required to pay sales tax to his state only.

Taxation for cross-border commerce in China

The Chinese Enterprise Income Tax (EIT) is levied on income gained by any Chinese enterprise that has been initiated and managed in China. This fact includes physical presence and even websites of foreign enterprises and any income sourced in the country.

China has invested in different rules related to new business dynamics so that it does not lose tax revenue. Online stores are required to register and disclose identification for taxation of e-commerce by the government.

  • In general, VAT is levied in China at 17%.
  • Other taxes applicable to goods sold in China include consumption tax along with taxes mentioned by PwC. One can look for a breakup of taxes from the General Administration of Customs of the People’s Republic of China website.
  • The State Administration of Taxation administers VAT, while the customs collect import VAT on their behalf.

While importing goods, the taxes applicable as mentioned by Dutycalculator.com include:

  • Duty Rates – Duty rates range from 0% to 100%, with average duty rate levied at 12.47%. Laptops and some electronic products are free of duty.
  • Sales Tax – Imported goods are subject to VAT at 17% or reduced rate of 13% for specific products
  • Minimum thresholds – Duty and VAT are charged when together they take up RMB 50 or the import is exempted from both taxes.
  • Other taxes and customs fees – Consumption tax is imposed on alcohol, petrol, jewelry etc. The rates vary from 1% to 45%. The taxes are calculated based on CIF value and its duty.

In recent years, the importance of cross-border commerce in China has grown drastically thus boosting online trading in logistics, customs, and shop registration. Several barriers have been significantly eased in many respects.

  • The government has launched pilot zones for cross-border e-commerce, in Hangzhou, Shanghai, and Chongqing. The Pilot Zone in Hangzhou tries to reduce online transaction costs by making use of VAT, postal tax and even export tax refund in some respects.
  • The country’s regulations for foreign investment in e-commerce have been liberalized off late. The regulations council has set a deadline in 2020 for China to achieve unified, competitive, and reliable e-commerce market. The government strives to lower the barriers to market accessibility, reduced tax burdens and proper streamlining of registration processes.

The Ministry of Industry and Information Technology has eased foreign ownership restrictions in cross-border commerce according to a note in 2015. To view a detailed report and rules and regulations of promoting cross-border commerce in China, check out the PWC China website.

The Cross-Border Commerce Boom – What will Matter in 2018!

Now we can buy anything from nearly anywhere in the world just by clicking a button on our smartphones. Yes, cross-border commerce is actually booming, and one can expect the juggernaut to continue in 2018 and beyond until the foreseeable future.

Smartphones have made shopping easier. One can expect more shoppers coming out of their self-imposed abstinence from online shopping owing to minimal security concerns nowadays. A Forrester study revealed that cross-border commerce is expected to double by 2021 with staggering revenue of $424 billion expected by that time. Cross-border sales shall include 15% of online purchases too. China’s cross-border market is expected to grow to a whopping 40% in 2021 and the country can easily fuel growth in the domain.

The McKinsey report revealed that most wealthy people in China, buy foreign clothes and gadgets that are mostly not available in China. Baby formula is quite popular here.

Why? Because cross-border shopping helps them in deriving better prices, and good protection from counterfeit goods too. Now that is a major point!

The Leader in Cross-border Commerce and the Future Prospects

The US is touted as the world leader of cross-border commerce trade – including imports and exports. The country has a trusted cross-border market worldwide and known for its product quality too. A DHL survey revealed that 75% of respondents who make foreign purchases selected the US as their ideal destination for online shopping. Now that says a lot about the US as a major cross-border commerce.

How does it augur for other countries though? Pitney Bowes recently disclosed its Global Online Shopping Survey that reported 66% of shoppers who shopped the web locally have made purchases from other countries in their recent past. Singapore, Australia, and Hong Kong are top countries with most number of cross-border shoppers. On the other hand, Japan has grown its cross-border confidence tremendously in the recent years.

Smoothening the path of commerce locally!

Although the predictions are fantastic and rightly so, cross-border e-commerce is far from easy, for retailers owing to huge competition and diverse trade laws in every country. A 2016 survey by Paypal revealed 30% of consumers from different countries buying from the US, abandoned their cross-border purchase midway since they were unaware of the taxes or customs fees involved in the purchase. Here is what every cross-border commerce provider should know:

  • The exact kind of taxes and fees incurred through cross-border sales
  • Right communication to local customers in the country about the products.
  • No customers should get lost along the way, so multiple processes should work in harmony – the ordering process on site and payment methods along with calculation of taxes and alignment of government regulations
  • Communication of returns should be in clear words including the fulfillment clauses and delivery mode.
  • The return process should look seamless. For the seller, problems arise from the fact that each of the parties involved has a different level of understanding, motivation, and sense of urgency when it comes to getting the goods from one country to another.

Getting fulfillment right is the key to successful cross-border commerce and retailers know it. According to the Chinese Cross-Border Sellers survey by The Payoneer, 71% said fulfillment is highly important and logistics play a major role in this respect.

If 2018 is the year you plan to initiate cross-border commerce, ensure that the products are available locally with a good distribution in place in an international market. Also, ensure that your logistics partner is clear about the bigger picture. While consumers are driving the demand for cross-border e-commerce, get the right add-ons for your e-stores and the right domain experts to everything runs smoothly at the local level.

How E-Retailers Manage Inventory and Fulfillment Across All Outlets

 

Few retail brands have managed to build empires by making the most of both local and cross-border commerce deals. Global brands do not dominate by fluke. In fact, they have to weave an intricate web of strategy, manage the system and even bring about perfect execution. They are required to deliver goods to consumers exactly when they need it.

Managing inventory effectively and efficiently is one of the prime concerns of all retailers, regardless of time zones or channels. Even if common challenges like language, currency and geographical distance are put aside, it is important to manage the inventory considering cultural differences and overall brand perceptions, making it a complicated affair.

Retailers who deal with cross-border commerce need to understand the complications and recognize consumer needs holistically and geographically too.

Regional Perceptions

Just because a brand boasts of a strong presence in one part of the world, it does not necessarily translate into quick popularity elsewhere.

For example, a U.S. based retailer might be known to offer quality brand products at low prices. But distribution issues crop up along that forced the retailer to hike prices in another country. The brand promise changes in this regard, and affects the retailer’s identity too.

Successful global brands develop strategies that support their brand promise universally while considering the varied challenges offered by these markets. They may need to chalk out another brand promise or modify its original one based on the new geographical markets.

Real-Time Insights and Transparency

Real-time visibility and insights into the inventory is challenging for most cross-border operations compared to local operations. This is because of wide customer preferences, cultural differences, geographical diversity, and much more. Retail fulfillment does not work in the sense of a one-size-fits-all model, and hence real-time data is pivotal for inventory management. Leveraging Shopify, some ecommerce solution providers have successfully delivered add-ons that aid in ensuring real-time sales insights on more levels than one.

Retailers need to optimize logistics and processes with latest tools and technologies.

  • Lidl, a European retailer consolidated its routine operations across 10000 stores in 26 countries with a robust, centralized IT system to process large data sets in real-time.
  • The synthesis of this data helps the company to fine-tune their supply chain management and also anticipate consumer preferences in any region.
  • Additionally, the central system ensures timely product availability and profitability across borders too. 

Inventory Optimization to Fulfill Demands

Beyond the required visibility into inventory, every cross-border retailer needs to optimize their operations, as one style does not fit all. Brands need to optimize inventory to sell the products effectively across multiple regions at acceptable price points too. How can one manage this?

Size, color, and style pose significant challenges especially when retailers are keen to leverage inventory across multiple geographies.

Brands optimize inventory and refine product assortments based on buying behaviors witnessed in each region. Inventory that does not sell well is promoted elsewhere or to the online channel to prevent extra stocks and price reductions. The sale is likely to happen through, if the inventory is shifted to the region where it sells well. This is tricky in terms of cross-border commerce.

For example,

  • A consumer in Ohio could order a hoodie that is stocked in Vancouver in Canada.
  • The distribution center then ships the product to the customer’s house or a pickup store in the local region.
  • But the shipment is crossing borders and hence as per compliance regulations, the retailer has to include import and export documentation, along with accurate product classification before the sale can be made.

Varied brands now take recourse to automation to expedite the product clearance through customs, and also avoid noncompliance in any measure. This automated implementation reduces costs of cross-border commerce drastically. An automated customs management system enables retailers to classify products and then calculate taxes and duties involved in selling their products beyond borders. The solution could embed import and export documentation aligned with the strict compliant standards.

Streamline your Payment Processes

When setting up cross-border commerce, retailers need to understand transaction taxes for every country with a robust system in place that can ensure that consumers are conveyed about the charges involved transparently including conversion of their local currency, taxes involved and varied cross-border fees.

A brand can meet currency challenges by stating product price in multiple currencies and languages. This is a best practice that can address the labeling problems as well as address some cross-border commerce challenges.

Conclusion

Brands must also evaluate market position when opting for cross-border commerce to any country. Those who are doing well in the U.S. may also face huge challenges when expanding into countries like Australia, India, or even China. Brands need to pay heed to local brand perceptions, implement visibility of inventory, optimize sales processes and also ensure compliance for all sorts of cross-border transactions for maximum success.

Top Five Regulatory Concerns Plaguing Cross Border Commerce in the US

Cross-border commerce in the US is booming steadily with new customers aspiring to jump on the bandwagon to boost sales and orders. With this opportunity, a network of companies and providers have come to ease up the implementation process, in terms of facilitation; logistics, payment processing, fraud identification and much more. Every process for cross-border commerce is daunting enough for retailers especially when they are mostly unaware of regulatory considerations.

Multiple parties have to work in unison to make the process of cross-border ecommerce seamless and streamlined. Every party has different understanding, reasons, motivation, and even priorities before they are completely on board. One of the biggest hurdles of cross border commerce are regulatory issues that crop up owing to the following factors:

  • Inconsistency in regulations:

At the basic level, every online business requires regulation consistency. But the challenges with the growth of ecommerce have continuously baffled regulators causing volatile changes in policies. Even in developed countries like the U.S., it is being debated whether state taxes are applicable on ecommerce transactions. The inconsistency of legal regulations is widespread in its application too.

  • Domestic incorporation:

It is a common tendency in several countries to treat domestic companies differently if they are incorporated abroad. One should incorporate locally if they are keen on selling to customers. Local customers would find such companies reliable too since they are registered locally.

  • Legal limitations to sale:

Every country prescribes the do’s and don’ts of selling and the services to be sold through cross-border commerce. Most countries consider that any transaction with minors cannot be enforceable, and legal adulthood age varies by country too. Product categories have different requirements based on the type of food, alcohol, and antiques. As part of a business, one could be held responsible for not meeting those requirements. If a country enforces a regulation of packaged food to have certain ingredients, date of manufacturing, and expiration date on its label, then it should be made mandatory. If goods are shipped from another country without meeting these regulations, your license of doing business could be suspended in violation of the laws.

  • Clarity of legal frameworks:

One is required to meet local laws but one does find it difficult to find recourse to courts when required. Several countries have a weak legal framework and even if the framework is robust, one can expect endless delays in the overall judicial process. So, even if a company wants to conduct cross-border commerce in a country like the U.S and even fulfill regulations, it might still fail to defend its legal rights succinctly.

  • Compliance Costs:

The compliance costs involved in regulation are borne by businesses for ensuring good practices. There are high costs associated with meeting consumer concerns and privacy risks. Some compliance costs ill-serves responsible businesses, which put in extra efforts and money to address privacy concerns but ultimately get provoked by unwarranted legal requirements.

Conclusion

The above regulatory concerns need to be addressed before implementing full-scale cross-border commerce operations in any country including the US. The regulations, as well as the tax structure, need to be adhered to, for smooth performance of such operations.

The Role of Artificial Intelligence in Organizing Cross-border Commerce Translations

E-commerce translations are important in the present scenario of cross-border e-commerce since localization is possible only when local languages are considered for product descriptions.

Depending on inventory and its volatility, dealing with translations on your own can be quite a task.

But in reality, one does not really have to go through the hassles today. With automation and translation tools for ecommerce, it is evident that the development of Artificial Intelligence (AI) has transformed machines to be more human than before.

Cross-border commerce & machine translation

The Rise of Artificial Intelligence

Artificial Intelligence indicates the simulation of intelligent behavior in machines for rendering complex tasks, and with reduced human supervision.

Machine learning is an intrinsic part of AI, wherein algorithms break down data, learn from it and then make fact-based predictions. These machines can be trained likewise to perform complex tasks.

Now coming back to international e-commerce, sellers are forced to handle manual work, match product categories, features, sizes, and so forth on a daily basis. But in recent years with big data analysis and AI, product tagging is now handled on a much larger scale owing to raw descriptions that aid AI to localize entire content, map the category, extract features or even transform sizes.

Now some vendors have introduced machine learning and machine translation, as previously humans were prone to make multiple critical errors despite companies hiring professional and trained translators. Now machines are taught to convert sizes based on diverse brands. Size conversion accuracy is now nearly pitch-perfect too. Mixing human expertise with machine learning has helped in accurately localizing product listings and maintaining consistent quality.

Role of AI & automation in international commerce!

Automation has benefitted retailers in a huge way, as many spend less time on managing catalogue and more time on clearing chinks from their business strategy, thus delivering great buyer experience.

  • Reliable automation solutions with rules and exceptions: Automatic solutions may work automatically, but creating a reliable automation-based solution is quite complex. Experts suggest that automation is not a straightforward task since one must make sure the machine understands specific rules and exceptions on a consistent basis. For example, machines shouldn’t avoid translating brand names. Otherwise, one is sure to experience hilarious effects since the brand name will be translated into different languages and named differently in diverse contexts.
  • Recognize exceptions to avoid problems: The role of AI is to teach the specific tool to recognize exceptions and avoid any faulty translation. To account for such scenarios, a human brain can teach the machine to perform the above task efficiently, correctly and precisely. A perfect blend of both machines and humans is necessary for optimal ecommerce translation. Humans carry wide knowledge but machines are fast and consistent. Technology combined with human factor can produce great results for the industry.
  • Identify right words based on SEO: The machine should also identify the right words to deliver ideal listing translations. Simply recognizing words and phrases or combining them will not suffice. The products should also contain keywords that would help in its sales too. Some things are referred to, by different words. The word you decide for use makes a huge difference considering conversion rates. For example, some online buyers might search for ‘trousers’ while some might search the same thing with keyword ‘pants’. Depending on location and language used, one of them might win over the other. Thorough e-commerce data analysis could establish the right keywords that will maximize sales of a given product.
  • Titles are of huge importance: All searchable terms on a platform owe much to the efficient titles. Use of big data techniques to examine the titles would help in correlating words/synonyms with revenue. Selecting the right words can boost transactions in more ways than one.

Using an AI-based e-commerce translation service

An ideal AI-based translation solution will leverage an AI-based, natural language processing solution to deliver affordable and automated translation efficiently. Some plugins connect to the domestic marketplace account, extracting product categories, titles, product descriptions and feature lists.

The process involves analysis of product to be localized, structure assessment, extraction of localizable components, inferences of important attributes etc. The elements of the product are localized according to the marketplace needs, length limitations, category, and sellers’ preferences.

The custom process can be fully automated with translation software tools that are based on adaptive machine translation.

Additionally, the translation systems learn from human feedback in a self-improving loop, and with time will need minimal human intervention.

Automatic translation has its own share of benefits in terms of speed and efficiency. For merchants who thrive on cross-border commerce in international markets and who need to change inventory on a regular basis, slow translation also entails losses in sales potential.

Conclusion

If you think literary descriptions of a product will guarantee successful sales, it is time to reconsider. Lengthy, full-sentence descriptions are useless without product attributes. Buyers are always looking for great product offers. The attributes and keywords form the core of strong and optimal e-commerce translation.

Automatic translation solutions might not be the norm for cross-border commerce in many e-stores, the immense growth in machine translation solutions will help boost revenue for many, who jump the bandwagon soon. A cross-border trade partner can also optimize translation processes and costs with efficient return-on-investment too.