In today's retail environment, geographical distances are no longer a barrier. By 2030, forecasts predict the global B2C cross-border eCommerce market to reach $7.9 trillion.

For business owners, this spells a huge opportunity. You have the tools and technology to reach customers from all corners of the planet. It's exciting, and you're keen to capitalize. But with new markets comes new challenges—from tariffs and customs to global eCommerce fulfillment processes.

Here's what you need to know.

 

What Is Cross-Border eCommerce?

You run an eCommerce business. When someone purchases your product from another country, this is called cross-border eCommerce.

It's a win for you—you can reach a broader audience, tap into new markets, and reach your growth ambitions.

It's a win for your customers too. They have access to a larger range of products, which means they can find precisely what they're looking for.

 

Key Challenges in Cross-Border eCommerce

Despite the mutual benefits, cross-border eCommerce is more complex than selling domestically. Challenges include:

Compliance and Tariffs

Every country has regulations and tariffs that may or may not apply to international sales. You need to figure out what these are and how they apply to your business—it's a time-consuming undertaking, but one that's essential to protecting your business and its reputation. Failing to adhere to the rules might result in delays, fines, or the seizure of goods. Custom clearance services from a third-party logistics partner can solve these problems—we'll touch on this in more detail below.

Duties and Taxes

In addition to tariffs, different countries have import taxes and fees. You'll need to calculate what these are and come up with a viable strategy to cover them. On the one hand, you need to protect your profit margin—otherwise, selling internationally might not be financially worth your while. But on the other hand, you don't want to marginalize overseas buyers with excessive markups.

International Shipping

International shipping takes longer and is more expensive. The journey is more complex too, with more touchpoints resulting in an increased risk of delays and damages. You'll likely need freight forwarding for eCommerce to manage these potential roadblocks.

 

What Impact Does Cross-Border eCommerce Have on eCommerce Fulfillment?

Shipping items internationally can put a strain on your existing warehousing and order fulfillment processes.

For one, you'll need warehouses located closer to your international customers. This cuts shipping costs and keeps delivery times to a minimum.

In addition, you'll need to adapt your last-mile delivery processes. Delivery expectations and challenges vary from place to place. It's your job to meet your customers where they're at by providing a shopping experience that's in line with or better than what they're accustomed to.

To achieve the above, you'll need to coordinate multiple shipping partners and maintain accurate inventory across several locations.

 

How Can Businesses Handle Duties and Taxes in Cross-Border eCommerce?

There are a few strategies you can use to manage duties and taxes when selling overseas:

  • Use tools like duty calculators to determine how much you'll need to pay when selling to an overseas market. You'll need to do this for every destination, as rates vary.

  • Stay updated on the latest trade agreements, customs, and international shipping regulations. The easiest way to do this is to partner with a third-party logistics provider. They can keep you updated on evolving rules so you can sell with confidence.

  • Be transparent with your customers. Give them the total landed cost at checkout—this should include duties, taxes, and shipping fees. Open communication reduces cart abandonment and lifts customer satisfaction. In contrast, surprise fees can drive would-be purchasers away.

 

What Role Do Logistics Providers Play in Managing Cross-Border eCommerce?

The right logistics partner can take the guesswork out of cross-border eCommerce. You can sit back and reap the rewards of global expansion while they take care of the complexities.

An international eCommerce logistics partner gives you the best of both worlds. They have local market knowledge—they know what your customers expect and how to deliver on those expectations. They're also globally aware. They understand what you're up against: taxes, fees, duties, and so on. They leverage the latest technology to ensure your products clear customs, reach their destination, and find their way into the hands of your buyers on time, without damage, and for a price that makes sense.

Logistics providers can also help you understand your performance in international markets through performance reporting and direct API integration. You get full, 360-degree visibility over your supply chain and gain access to insights that inform smart, growth-enabling decisions.

Here at SEKO Logistics, we partner with cross-border businesses like yours seeking truly seamless cross-border eCommerce solutions. Freight forwarding, eCommerce customs compliance, global supply chain management—you name it, we take care of it.

 

What Technologies Support Cross-Border eCommerce?

Innovations in technology are empowering businesses of all sizes to take advantage of an increasingly globalized eCommerce marketplace. Solutions like automated customs clearance systems, real-time tracking and reporting, and global fulfillment platforms have made international sales more profitable than ever.

But these are just the tip of the iceberg. At SEKO, we've invested in the latest logistics innovations to help our customers thrive in their next phase of growth. For example, our OmniParcel shipping platform integrates with your preferred eCommerce platform. You can quickly and easily add international shipping options to your website.

 

How SEKO Logistics Helps You Overcome Cross-Border eCommerce Challenges

SEKO Logistics offers a global network backed by local market knowledge. You can reach new markets knowing that your logistics provider understands the challenges that lay ahead and has the foresight to overcome them.

Our end-to-end service includes multi-carrier solutions and performance reporting. Plus, a personalized, branded experience enables you to deliver a consistent experience across all the markets you serve.

Yes, cross-border eCommerce is challenging. But with SEKO by your side, you can overcome the hurdles and open the door to global success. Keen to get started? Reach out to our team, and let's talk.