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Challenges of international e-commerce

There can be downsides to international e-commerce, although most experts believe that the positives far outweigh the negatives. Here are some of the challenges you might face:

1. Loss of the personal touch

In traditional face-to-face shopping, the personal contact between customer and salesperson can help to make the sale. You can make up for the lack of that personal touch by providing a user-friendly web site and top-notch customer service.

2. Inability to experience the product

Your customers have to judge the product based on the pictures and descriptions you provide. This can tip the balance against a purchase, although a good return policy may tip it back.

3. Security concerns

Concerns about security and credit fraud can make consumers cautious.

4. Duties and taxes

International transactions are more complicated than domestic ones because of import taxes, duties and other customs charges.

5. Logistics

Delivery to international markets is usually slower and more complicated.

6. Returns

You must provide returns that can handle reverse logistics and currency refunds.

Seller Spotlight: Budget Electronics

Nadia Shuaib was a practicing solicitor in Scotland before she married a Canadian man and put her career on pause to begin a new life in Toronto, Canada. While adjusting to life in her new home, she began selling cellphone accessories on eBay. The inventory sold quicker than she expected and her part-time project suddenly became a full-time business. Four years later, Nadia and her husband have created a multi-million dollar business through leveraging online channels like eBay.

Advice from an expert

“E-commerce does make exporting easy,” says Andrea Stairs, “but there is a learning curve with engaging in cross-border e-commerce, particularly around pricing and managing the logistics. And on platforms such as eBay and others, your reputation is critical, so you want to start slow and steady, put your best foot forward and look at it as a learning opportunity. Always focus on delivering good customer service so you’re managing your reputation from the outside.”

Date modified: 2019-02-04