[Step by Step] How Does Cross-Border eCommerce Work? (Feat Jason Nyhus, SVP of Global Sales at Digital River)
Future Commerce · with Jason Nyhus · March 21, 2022 · 36 min
Summary
This episode breaks down the complexities of cross-border eCommerce, moving beyond simple website translation to cover the essential operational and financial considerations. It highlights that brands are inherently global today and provides a framework for evaluating the two major categories of cross-border complexity: product movement and payment processing. The discussion emphasizes avoiding negative customer surprises and building an ecosystem for international growth.
Key takeaways
Brands are inherently global today; accept that your product has international reach from the start, whether you plan for it or not.
When expanding internationally, consider both product logistics ("Where is the product coming from? Does it have to cross the border?") and payment processing ("Where is the payment being taken? Does that also have to cross the border?").
Prioritize 'onshore' solutions for products and payments where possible to improve delivery times and ensure appropriate local payment methods, which enhances the customer experience.
Don't 'price and pray' with international shipping; haphazardly adding high shipping fees without accounting for duties and taxes will negatively impact customer satisfaction and brand perception.
Leverage an ecosystem of expert partners for cross-border expansion rather than attempting to manage all complex aspects (payments, fraud, tax, compliance, fulfillment) in-house, especially for growing or mid-sized brands.
Welcome to Season 7 of Step by Step! This season we’re partnering with Avalara to answer the question, “How can I take my brand cross border?” Tune in every day this week to hear from experts about what you need to know to begin selling internationally. Tune in now!
What does this episode say about supply chain & operations?
Brands are inherently global today; accept that your product has international reach from the start, whether you plan for it or not.
What does this episode say about finance & fundraising?
When expanding internationally, consider both product logistics ("Where is the product coming from? Does it have to cross the border?") and payment processing ("Where is the payment being taken? Does that also have to cross the border?").
What does this episode say about customer retention?
Prioritize 'onshore' solutions for products and payments where possible to improve delivery times and ensure appropriate local payment methods, which enhances the customer experience.
What does this episode say about brand & content?
Don't 'price and pray' with international shipping; haphazardly adding high shipping fees without accounting for duties and taxes will negatively impact customer satisfaction and brand perception.
What does this episode say about supply chain & operations?
Leverage an ecosystem of expert partners for cross-border expansion rather than attempting to manage all complex aspects (payments, fraud, tax, compliance, fulfillment) in-house, especially for growing or mid-sized brands.
