Online entrepreneurs are constantly seeking opportunities to grow their businesses. One of the avenues business owners consider for scaling their business is global selling.
Tarik Yayla
Last Updated on 13 September 2022With the rise of global eCommerce, more and more entrepreneurs are motivated to expand their businesses beyond their borders. Business owners show great enthusiasm for increasing the profitability of their business by introducing their products to consumers worldwide.
However, global selling has its own set of challenges. Similar to local businesses, you will encounter a myriad of challenges before obtaining business success.
Here are some essential insights concerning global selling to give you an idea of what you might encounter when selling internationally.
What is Global Selling?
In the context of retail eCommerce, global selling can be interpreted as the process of taking a product from a locality to the global market.
Selling internationally allows sellers to introduce their brand to consumers from other countries. It enables a consumer to purchase products that are likely more expensive or unavailable in the consumer’s region.
Challenges Sellers May Face When Global Selling
Global selling means reaching more audiences for your product and brand. However, some challenges may come your way when you venture into international selling. Outlined below are some of the commonly encountered concerns by sellers new to global selling.
Selling Platform
When you sell internationally, it means choosing what platform you want to venture into. There are two main options for global eCommerce.
If you are a local business owner wanting to expand your brand influence internationally, you either utilize business-to-consumer websites (B2C) such as Amazon or create your own eCommerce site.
The latter can be pretty tough, for technical know-how is required in website creation. Such an approach can become extra challenging for business owners who lack the knowledge and skills to create a professional website.
Alternatively, Amazon is the go-to platform for online sellers who want to start selling as soon as possible. You can take advantage of Amazon’s established website, 19 marketplaces worldwide, and efficient logistics and warehouse facilities.
However, you will have to deal with Amazon seller fees when using Amazon Global for international selling. These fees include monthly recurring payments, storage, and shipping fees.
Retail Pricing
Retail pricing is one of the concerns faced by online entrepreneurs selling in the international market. There have been instances of cart abandonment due to uncompetitive price offers or the dull currency conversion process.
If you sell on Amazon and want to obtain competitive listing prices for your products, you can utilize an AI Amazon repricer. The AI repricing software can automatically adjust listing prices to a competitive level, making it more appealing to global shoppers.
Regarding currency conversion issues, Amazon allows listing prices to display the local currency equivalent. The sellers also have an Amazon Currency Converter that will enable them to receive the net proceeds of their earnings into their local bank account.
On the other hand, if you operate your own website, you can enable the local currency for the country or region you are selling into. Since currency rates frequently change, it is best to automate the currency updating process with the help of plugins or apps.
International Taxes
eCommerce and taxation can be quite tricky, even for experienced online entrepreneurs. Your business can be susceptible to multiple or discriminatory taxation if you are not cautious of it. The borderless nature of eCommerce makes taxation extremely challenging.
If you are new to global selling, it is best to consult eCommerce accounting services and tax solutions to deal with tax concerns. These tax experts can make eCommerce sales taxes easier for your business. They can also protect you against the risk of double taxation through double taxation treaties.
Furthermore, if you want assistance with VAT compliance, you can also seek help from VAT compliance experts like hellotax. We have expert local tax advisors that can keep you VAT compliant in Europe and inform you of any tax rate updates.
Language Difference
Another challenge faced by sellers when selling internationally is the language barrier. Some product detail pages are sometimes lost in translation, making it difficult for local consumers to relate to your brand.
To avoid confusion among consumers, be sure to hire a translator or consult native speakers when translating a product message. It will prevent confusion among consumers and help effectively connect with your local audiences.
Fulfillment
Selling internationally means dealing with international shipping issues. These issues include but are not limited to shipping delays, damaged items, fulfillment costs, and even product returns.
To mitigate issues relating to international shipping, you should search for a reliable fulfillment partner that offers a reasonable price for their services. Moreover, it would help if you consider negotiating a discount for bulk international shipping.
Always set the expectations of your international shoppers. Try to offer your customers a wide range of shipping options, including premium shipping for those who want a relatively quick delivery.
Territorial Differences
Like any other business, global eCommerce is influenced by politics, laws, and territorial relationships. Since you will be operating in international territories, you will likely encounter unique foreign issues that could impact your business.
For example, a political or legal pronouncement can affect various aspects of your business, such as labor, customs regulations, material costs, shipping costs, and so much more.
It is always advantageous to be in the loop of any news impacting your business operation in a particular country. You can make better strategic decisions by staying well-informed about the local situation.
Preparation and Flexibility
The eCommerce landscape has provided online entrepreneurs opportunities to grow their businesses and increase profitability. In particular, global selling has piqued the interest of online sellers.
Global selling can lead a business towards substantial organizational growth. However, ample preparation is needed when venturing into the international market, for various challenges are always present.
From fulfillment to territorial differences, you must be prepared to make the necessary adjustments to mitigate issues concerning global selling. With experts’ assistance and the use of advanced seller tools, your business can have a smooth debut in the international market.
Author’s Bio:
Junel Ayala is a writer at Seller Snap. Over the past years, he has been engaged in project management, SEO content writing, and local SEO marketing for various firms in the United States and Europe.