Delivering on the lucrative promise of global e-commerce

Billions of consumers have access to products in markets all over the world. That access is granted by the digital devices held in their laps and in the palms of their hands. Thriving customers and businesses from China, the United Kingdom, Germany, Japan, France and other countries are hungry for commodities they simply can’t procure in their local markets. They’re finding those commodities on your website. Are you ready and willing to sell to them?

While a global opportunity doesn’t come without challenges, it’s also ripe with reward. Global market research firm Euromonitor expects global e-commerce sales to hit $1.5 trillion by 2018, up from $840 billion in 2014. Still, many domestic brands tend to shy away from that opportunity. They’re daunted by an obstacle-laden labyrinth of challenges, including:

  • Customs, brokerage and tax laws
  • The nuances of market-specific postal codes and payment tenders
  • The assurance of a timely and secure customer fulfillment experience

With these challenges in mind, many successful brands choose to effectively ignore the clamor of consumer demand from beyond their own borders.

But hungry global customers won’t be denied. Where one company sees unsolvable problems, another sees opportunity to delight lucrative new markets full of eager customers. Businesses need to address cross-border fulfillment and distribution challenges head-on to compete in global e-commerce.

Customized logistics for global commodities

Should global market demand be denied because of the complexities associated with cross-border business? Not when market-specific logistics can be automated with the help of a trusted logistics partner. Supply-chain management systems can solve cross-border distribution challenges and help companies enter global markets profitably, through:

  • Deep analysis of the global consumer appetite for specific merchandise
  • Price-point analysis/adjustment in the context of market demand and shipping cost and complexity
  • Automation of global and market-specific customs, brokerage, currency, tax and postal code logistics

With the aid of expert partners, complex logistics barriers become mere mechanics. A reliable shipping partner provides business logic, personal consultancy and consumer assurance, and helps ensure your penetration of new global markets is a profitable endeavor. More, professional guidance and your shipping partner’s tools optimize the consumer’s fulfillment experience.

Control to the global buyer

From the global customer’s perspective, your acceptance of payment for an e-commerce order is the first in a series of interactions that instill confidence in and loyalty to your brand. Fulfilling the foreign buyer’s desires is what matters—and desires are situational.

The annual UPS Pulse of the Online Shopper survey sponsored by UPS and fielded by comScore found that many cross-border consumers are willing to wait for their purchases. Sixty-one percent of European consumers said they are willing to wait at least an extra four days for free shipping on international orders. However, these consumers place a high value on delivery control and visibility:

  • Only 41 percent of European consumers are satisfied with their post-shipment flexibility to choose another delivery date.
  • Just 35 percent are satisfied with their ability to reroute a parcel.
  • 65 percent say provision of an estimated or guaranteed delivery date is important.
  • 43 percent of shoppers report that post-delivery customer satisfaction hinges on whether their items were delivered on time.

Order delivery isn’t always the endgame for global e-commerce. International customers also need return options, and the data supports the importance of offering flexibility. Eighty-one percent of European consumers said the ability to ship a product back for free, using a pre-paid return label, is important in their purchase decision. Taking the steps to make returns easier can help companies increase their competitive advantage, and boost loyalty and return sales.

Customs and other cross-border shipping issues can create delivery challenges. With expert guidance, companies can navigate a shipping and supply-chain management strategy that makes the e-commerce delivery experience seamless for customers around the block and around the world.

Learn how to expand your reach in an omnichannel world. Download the UPS White Paper, “Evolving the Omnichannel Experience in a Transformed World.”

 

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