Operating a small or large e-commerce business across different borders isn’t a cup of tea for everyone. However, businesses or social media stores that operate for cross-border e-commerce operations have to face several national and international challenges. These challenges are almost for every small or large business in the world.
Whether you have a newly established online business or a successfully running one, these challenges are the same for every business owner.
This guide will explain all those challenges briefly and address how to overcome them in a comfortable way. Don’t skip reading till the end!
Challenges and Overcoming Them in Border E-Commerce for Your Store
There can be many challenges associated with imports, exports, legal laws, taxes and more aligned with your business operations.
Therefore, in the below section, take a look at the brief explanation of such challenges and how you can overcome them in no time!
Challenge: Less Culture Awareness
Mostly, brands that like to grow internationally lack the cultural awareness of the countries they are targeting.
This is one of the most prominent challenges a brand or your social media store has to face while doing its business operations or before starting them.
A specific country comes with a specific language, unique people, and their way of absorbing things and using products your company might offer.
Therefore, having enough cultural awareness of your target market is crucial for your business success.
It’s like starting your Twitch Channel and knowing what your target audience is. This way, you can influence them, gain more followers on the Twitch channel and achieve higher success in the long run!
How To Address It?
To overcome this challenge, learn about the people of your target market or country.
Do comprehensive surveys, build long questionnaires and ask people what they are missing, which your products or services can fulfill.
This way, you can find out what people would like to get your products depending on their likes and dislikes based on their cultural norms.
Challenge: Payment and Currency Challenges
This is a reasonable challenge to accept by most brands or stores going to bring their products and services to a different international market.
A country might not have the same currency as yours.
If you deal in Dollars, they might be dealing in Yuan’s. Therefore, addressing this challenge while keeping a significant balance is significant for brands that operate worldwide.
How to Address It?
You can deal in these and sell your products in their local currency.
But make sure you standardize profit and manufacturing costs by subtracting all those shipment, taxes and administration costs from between.
After earning a significant amount of money, asking your reseller to pay you in the same currency you use in your country would be the final solution to fix this issue.
And this happens worldwide when brands in international countries deal through banks.
Challenge: Certain Local Laws and Tax Considerations
The country you want your social media store to operate in might have different laws for taxation and trading than your own country. This is, again, a challenge for brands to accept and address.
How to Address It?
To address this issue, simply comply with all the existing laws for taxation and business dealings of the country you are going to target for international store operations.
Also, keep an eye on ever-changing laws and consider what needs to be done for a particular moment
Challenge: Several Hidden Costs For The Customers
Customers aren’t usually aware of the specific taxes and costs aligned in making those products reach their right destination in the cross-border country.
These costs are due to several currency changes, further tax impositions and other relevant costs in shipment as well as delivery.
Resulting all this would hike the price of the customer’s product, which might not be a good thing for a successfully running business.
How To Overcome It?
To address this challenge, ensure that your customer has an awareness of recent price hikes or costs aligned with product shipment.
You should inform your customers about the recent inflation and everything else that will help them know why they are facing such costs.
Challenge: Doing Local Advertisement and Promotions
Promoting a specific brand on social media is different from promoting in a full country. There could be different issues you have to face when doing brand promotion and advertisement.
That’s because local partners might charge you more costs, will not deliver the expected quality and quantity and much more.
Therefore, it’s crucial to overcome this challenge in the smooth running of your social media store business.
How to Address This Issue?
To rectify this challenge, consider hiring some local marketers and managers who know how to deal with these people.
They can do your advertisement right and help your brand achieve significant reach through its promotion.
Take the help of local employees and ensure regular reporting on all these cross-border promotional and advertising activities.
In the end, measure what you might have to face in the cross-border ecommerce store operations prior to expanding your business in the field. There are certain things to let go of and certain things to take proper action against. But companies that operate internationally always know what they are doing. You can also explore their case studies and learn more about their operations to apply the same for your side!