Challenges with Multiple Currency, Warehouses and International Shipping in cross border ecommerce
Sellers who are dealing cross border e-commerce come across many challenges apart from managing inventories. This post deals with the challenges and ways to deal with them.
Apart from understanding trade policies and inventory, there are multi currency issues, managing multiple warehouses and handling international shipping.
If you are using a multi-channel order and inventory management software, these challenges can be resolved quite efficiently.
Provide multi-currency payment method
The best way to attract international consumers is providing prices in multiple currencies.
Storefronts and marketplaces are calibrated with respect to the local currency itself. This is done to make the purchase process convenient for the buyer.
As a seller, you may be located in any part of the world and may have a desired currency in mind for easy accounting practices. This is when your multi-channel order and inventory management software should come into play.
While creating Orderhive, we have kept this factor in mind. In Orderhive, you can set your desired currency of exchange. You can opt for a free trial and find out for yourself.
When you are selling cross-border, irrespective of the currency your customers are paying with, the amount is always accrued in the currency you desired.
Providing the multi currency option may need more hard work on the seller’s part but can definitely simplify the process of payments for the buyers.
Apart from easing the process for multi-currency the seller should explain the details for International shipping and taxes to the consumer. At these times, one can come to a decision quickly without any misunderstanding.
Legal issues with certain product categories should also be explained. There are countries who charge high customs fees for some products. Detailed and accurate information will bring trust in your consumer and help them arrive at the right price.
Use globally accepted payment gateways
One of the many reasons for consumers abandoning their carts is uncomfortable payment methods. It is necessary to mention all the details regarding payment and give the available modes of payment which can make it easier for the buyer.
Everybody believes that paying online could be risky. In order to attract more buyers and gain their trust, you must implement trustworthy and globally used payment gateways. Make sure you are choosing a global payment gateway which is trustworthy and chosen by the majority.
Using American Express, Paypal, Stripe and Google Checkout can be very beneficial since they are widely used and trustworthy. It is important to know the widely used methods in the country you are selling.
For example, if you are selling in China, providing an option of Alipay could be better since it is highly popular in China.
Once you see consistent growth in your business, you can get a merchant account which permits you to accept credit and debit card payments. Collects and stores your money before transferring into your personal account. It provides safe payment options, secures sensitive data and prevents fraud.
As far as Orderhive is concerned, our integrations feature leading accounting tools and payment gateways to ease your entire selling experience.
Manage multiple warehouses
Nowadays sellers use multiple warehouses in order to store their goods. When you are selling in different countries, storing in multiple warehouses is beneficial.
The purpose of having multiple warehouses is to reach out to a larger number of people and manage stock efficiently.
When dealing cross border, multiple warehouses save time and cost which can help you to provide products at a lower cost to your customers.
However, dealing with multiple warehouses situated in different locations across the globe, The sellers might not be able to keep the record and manage all the warehouses and inventories stored in it.
Using an efficient software to manage your multiple warehouses and inventories. Orderhive helps to administer different stock policies for your selling channels based on your product availability in warehouses. Integrated inventory tracking system tracks inter-warehouse stock transfer and provides access to an accurate level of physical stock and inventory control.
It is important to know the demand for your product and the frequency at which it is being sold. If you are out of stock every now and then, it leaves a negative impression. On the other hand, if the products are not being sold soon enough, you will be in the loss since you will be paying rent for all that time for the warehouses.
You can divide your products into different warehouses. In times of natural calamities, if one of your warehouses gets affected, you still have a spare one through which you can continue your business.
According to Baymard, 61% consumers abandon the shopping carts because of high shipping costs and extra charges and 16 % deny due to delivery being too slow.
Multiple warehouses can solve this problem by bringing the labour and shipping cost down. At times, offering free shipping or discount in shipping charges on placing an order beyond a certain amount can do wonders for your business.
There are a lot of shipping options. International shipping companies like FedEx, United States Postal Service (USPS), DHL express etc. Companies like these take care of custom and duty charges which are a rather complicated process.
In case of small businesses or recently started businesses, opting for Amazon FBA and Ebay Global could be a better service to get good international shipping services along with customer services and much more. You can ship the products in your country’s eBay or Amazon’s warehouses and they will ship it to your customers situated in various countries. This enables you to keep a quick inventory turnover rate while the reputation of your business shines.
You can also get a warehouse in other countries through FBA and ship your products to your consumers in the same country. It can save time and cost.
If you are selling cross border, set up a warehouse in that region to cut down the shipping cost. You can save 35 to 40% if you get a warehouse set up in one those regions where you are selling. If you are running a small business, you can use facilities like eBay global and Amazon FBA.
You can avoid most of these issues by using Orderhive which provides you a single place where you can maintain a record of all your inventories. Through inventory control, you can control and monitor your inventories stored in warehouses along with its pricing.
You can choose an appropriate shipping service for your products, manage multiple online marketplaces and avoid complicated customs procedures by using one of these international shipping services.
Cross-Border eCommerce is poised to become one of the growth driver for the e-commerce industry. And as this happens, your business must be ready to face these challenges to felicitate a successful eCommerce venture on an international scale.
Darshi Shah joined Orderhive as a Content Writer who is very enthusiastic when it comes to writing. In her spare time, she enjoys reading books, painting, baking and writing about life and experiences.
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