The online world is poised for a continuation of the massive expansion of global ecommerce. The driver behind that steady increase is cross border trade. How massive is the market you ask? It is so great that the actual figures are jaw dropping and nearly incomprehensible.
On the B2C ecommerce side of things, market value is expected to reach US$4.9 trillion by 2021, a staggering 277% increase over a span of just seven years. How about B2B? It was valued at US$12.2 trillion in 2019, over six times the size of its B2C counterpart. B2B suppliers and buyers know that cross border trade is the way to go but many of them are unsure of how to get into the game.That’s where online platforms like TradeLeaves Marketplace can help.
Increasingly, buyers prefer to purchase goods and services online, specifically within a marketplace. Suppliers could create their own cross-border marketplace but time has shown that is not the best move for business owners. Suppliers who have attempted to do that know it is a move fraught with problems, some of which can be devastating. There is no doubt about it. Cross border trade between buyers and sellers has obstacles that must be overcome to achieve success. TradeLeaves Marketplace helps B2B buyers and suppliers get through those challenges to grow their business.
5 Common Challenges to Cross Border Trade
#1 – Regulatory and Contractual Considerations
Before you start conducting business across borders there are myriad regulatory milestones that must be met. For many SMEs, it is difficult to even identify all of the considerations, much less get through them alone. Governmental rules and regulations differ from country to country. There are product policies in place that may impact what you can sell and how you can sell it. You need to have a knowledgeable partner organization that can clear these hurdles for you, saving you time and expense.
TradeLeaves Marketplace offers Professional Services that link your products and services seamlessly to the new markets you enter. Do-it-Yourself buyers and suppliers can leverage TradeLeaves’ supplied information on rules, regulations, customs forms, and customs paperwork.. TradeLeaves can also connect your business with service providers like freight forwarders and customs agents to assist with these activities. They make the process easier and more lucrative.
#2 – Logistics Processes and Services
A key component to cross border trade success is efficient and effective delivery of goods. When shipping into foreign markets, your business needs full-service logistics solutions that get your orders fulfilled from purchase to final delivery. TradeLeaves Marketplace offers members a host of logistics service providers in a wide array of markets that can properly handle customs integration and last-mile delivery. With Marketplace you will find stable logistics services you can count on, including freight forwarders and inspection agents, especially during peak periods.
#3 – Product Assortments and Promotion
Suppliers to foreign markets need to position products to local buyers, adapting promotions to suit local trends and seasonal buying patterns. B2B buyers looking to source products and services across borders need to be able to find those suppliers, too. TradeLeaves Marketplace makes it easier for both sides of the cross border trade equation to connect. Buyers enjoy a wider product selection while suppliers get wider exposure to suppliers, showcasing their products and information and connecting with buyers. Promotions, catalog management, analytics, relevant inquiries, and real-time communication with buyers are some of the ways that TradeLeaves Marketplace puts buyers and suppliers together.
#4 – Partnership Risks
When conducting business across borders, the risk factors for dark purchasing escalate. Buyers and suppliers need to understand the products and services being offered and who is offering them in order to protect their business, its customers, and the business’s goals. TradeLeaves members can find confidence in their connections through reviews and ratings offered by other members. Further, inspection agents on the ground can ensure that buyers are getting what they expect with order inspection prior to shipment. Using a trading platform like TradeLeaves Marketplace mitigates partnership risks by helping a business stay organized, maintain quality control, and increase security with fully vetted member buyers and suppliers.
#5 – Cost Controls
Businesses entering international trade need to get a handle on all of the different costs associate with conducting business across borders. Direct costs such as different incoterms, tariffs, shipping costs, and processing fees as well as indirect costs related to delivery times all need to be understood and controlled. With TradeLeaves Marketplace, suppliers can list pricing that reflects the different incoterms. TradeLeaves also provides information on tariffs, estimated landed costs and an estimated delivery times calculator. These tools and the information contained within the Marketplace help you get a handle on and control these unique costs.
If you’re ready to expand your small to medium-sized business by tapping into the unlimited potential of cross border trade, join us. TradeLeaves Marketplace can help you safely and strategically buy or sell internationally.