E-commerce: how to deal with cross-border barriers?

 

These past months have led to a drastic increase in e-commerce since customers have realised how incredibly easy it is to purchase products from retailers across the globe. However, merchants have had to deal with certain issues since cross border commerce involves several points of friction. Let’s look at some ways that will make things easier for both parties.

Localised pricing
Price localisation on an online shopping website is a very important factor if you want to target audiences on a global level. This means that you have to display the correct local currency for a consumer that is abroad in any given market and to complete payments in that particular currency. This is possible thanks to the technology available nowadays. Additionally, multichannel retailers have to work together with wholesalers in certain regions to avoid undercutting the prices of their wholesale partners.

Local payment option
If a consumer is able to access the settlement method that he prefers, he will be more motivated to complete the purchase. Preferred online payment methods vary from country to country. In some, it could be credit cards and others digital wallets. Thanks to technology, retailers can easily choose which options to offer shoppers. Moreover, a good system is one which eliminates fees related to cross-border payments and reduces any costs associated with foreign exchange rates.

Photo credit: kreatikar from Pixabay

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