The Bright Future of E-Tail part 2
Organizations need to choose their international e-commerce and shipping solution providers with care if they want to take advantage of the opportunity presented by international e-commerce. To scale operations, it is essential to work with providers who understand the complexities of international e-commerce and shipping, who might provide market insight and can execute in a manner which enhances the customer experience.
E-tailers should choose a provider that is well versed in the appropriate rates for taxes and duties per country, with the ability to calculate, collect, remit and manage these funds. Be sure that they are experts in product harmonization. The HS (Harmonized System) classification numbers are assigned to individual products and are used by customs authorities around the globe for the application of duties and taxes.
Shippers also need to confirm the country of origin for the goods because regulations and fees are often based not on the location of a company or warehouse, but on the locale of the original manufacturer. It is also important that providers identify, capture and communicate all this information in their shipping documentation systems.
Once an organization has decided on the right technology and service provider who will help it sell internationally, there are still more choices to be made. Choosing where to invest (and where to cut corners) can play a huge role in overall profitability and growth potential.
Some organizations choose to offer international shoppers only a subset of their full product catalog. While simpler, this can send the wrong message. Even though sales may be concentrated in a limited number of SKUs, it’s often the range and variety of products which attracts buyers in the first place.
It is also important to test whether costs for duties should be included in the shipping cost, in the product value, or charged separately. Also, determine if customers prefer cost or speed when it comes to shipping. Overall, retailers should experiment and identify what works best in each market.
To serve customers well and tap into the growth in international e-commerce, organizations will surely want to communicate accurate information at the point of sale and then deliver on their promises. Failing to manage these challenges will translate into customer dissatisfaction. At a minimum, retailers need to reassure shoppers that they can: honor the price quotes provided with no hidden fees or surprises; offer a clear and easy-to-understand process for returns and after-sales service; correctly calculate shipping costs, taxes and duties in advance; provide accurate estimates of tracking and delivery dates; handle payments in the currency preferred by the shopper;
Luckily, new technology and services are making these requirements easier to manage. If organizations select the right technologies and service providers to help them navigate the complexities of worldwide e-commerce, numerous benefits can be reaped for retailers and their customers.


