3 key considerations for cross-border e-commerce start-ups
There is a clear advice for the entrepreneurs. You have to make your mind to go global from very beginning if you really want to market your products and services at international level. The message being conveyed during the Seedstars Summit held in Lausanne, Switzerland.
This workshop was attended by more than 30 entrepreneurs so that they could learn from the Managing Director of IT and chief technologist of FedEx Cross Boarder- Federico Lara, who is also the co-creator of Bongo International and passionate enabler of cross-border trade and e-commerce solutions for aspiring entrepreneurs.
What is cross-border e-commerce?
The cross border e-commerce means that your seller is in a different country than your seller who is in a different country. A lot of factors need be to considered to enhance cross border transactions where managing the complex data is vital.
Moreover, the sellers need to consider several factors before going off-borders. For instance, they need to consider the trade laws and harmonization of labeling requirements. Also, they need to consider the shipping costs, duty and taxes. These will eventually influence their pricing models, packaging and certifications. Lara says that if you want to avoid any costly changes to manufacturing processes you need to take better steps in the early days.
Lara gave some other advises to entrepreneurs a part from managing the complexities of cross border. They include:
- Embrace disruptive technologies;
- Look for opportunities to differentiate; and
- Embrace a global outlook from the outset.
Disruption is considered to be a by-product of creativity and innovation. Also, digital technology has disrupted traditional retailing models, removing the middle-man and allowing anyone to have an e-commerce business from the ease of their living room. Lara said that what social media did for communication, e-commerce did for sellers.
E-commerce has unlocked up a one-to-one model that has permitted retailers to have direct access to the buyers. Hence, increasingly, reach buyers in international markets. “In July 2017, social media got inclined which might have not been noticed by many of you. The majority of users were outside the US,” explained Lara. This growing user base outside of the US gives us an indication that the increase of a digitally connected middle-class in developing countries with appetites for international products, brands and goods.
Moreover, according to talent is equally distributed, but resources are not. He recapped the audience that the value of products is in their shortage and uniqueness.
He furthermore, asked the audience to think about what differentiates your products – it could be a rare item from your country, or values associated with it – and to make that unique selling factor key to your product.
Global e-commerce requires a global mind set
Today, cross-border trader is increasing rapidly and you can find a lot of opportunities wherever you go. Lara wanted the entrepreneurs to think of your product or service as global from day one and keep a global mindset to take full benefit of cross-border e-commerce.