How to Succeed in Cross-Border eCommerce from the Philippines

Cross-Border eCommerce meaning

As the name implies, cross-border eCommerce involves selling products or services to an international audience through an online store or platform.

While eCommerce website development agency focuses specifically on online sales, there is a broader concept known as cross-border eCommerce. This refers to selling to international customers through any sales channel, whether online or offline.

Cross-Border eCommerce Landscape in Philippine

In 2021, cross-border eCommerce in the Philippines generated approximately 9.9 billion U.S. dollars in retail sales, marking a substantial increase from the 1.05 billion U.S. dollars recorded in 2017. 

International eCommerce involves the sale of goods through online platforms to international customers, which can occur between retailers and customers, between businesses, or between individuals. This significant growth underscores the expanding role of online sales in global digital commerce solutions and the increasing opportunity for businesses to tap into international markets.

How to be successful in cross-border eCommerce from the Philippines market

Participating in cross-border eCommerce from the Philippines is one thing; achieving real success is another, especially for inexperienced organizations. To build a successful online cross-border business, consider the following steps:

Identify and rank potential new markets.

Before launching your products or services into new cross-border eCommerce markets, it’s crucial to begin by identifying and ranking potential markets based on various metrics. This process will help you focus your efforts on the most promising opportunities.

Start by evaluating the Gross Domestic Product (GDP) of the markets you are considering. A higher GDP often indicates a more robust and potentially lucrative market for your products. Assessing the economic health of a market gives you insights into its purchasing power and overall stability.

Next, examine the relevance of your products to the market’s purchasing interests. Determine how well your offerings align with local consumer needs and preferences. This involves researching market demand, cultural trends, and existing competition to understand how your products can meet the needs of potential customers.

Additionally, consider other factors such as market accessibility, regulatory environment, and logistical challenges. For instance, a market with favorable trade agreements or a growing middle class may present a more advantageous opportunity. An excellent starting point for this evaluation is to review market research reports, industry analyses, and economic forecasts. This will provide you with a comprehensive understanding of the potential and readiness of each market.

Watch more: 10 Best Digital Commerce Services Lead Your Business

Investigate any restrictions or regulations

Before you begin selling in cross-border eCommerce from the Philippines, it’s essential to determine what products can or cannot be sold due to local regulations and restrictions. Each country has its own set of rules governing the import and sale of goods, influenced by factors such as religious beliefs, cultural norms, and legal requirements.

For instance, there are specific regulations that govern various categories of products. Some items may be restricted or require special permits, while others might be subject to stringent labeling or quality standards. Understanding these regulations is crucial to avoid potential legal issues and ensure smooth market entry.

Additionally, cultural norms and local preferences play a significant role in what products are acceptable or desirable. What may seem like a lucrative market opportunity from an external perspective could turn into a costly mistake if local customs and consumer expectations are not taken into account. For example, certain products might be deemed inappropriate or irrelevant based on cultural sensitivities.

Determine pricing strategies for these new markets

When entering a new market for cross-border eCommerce, it’s crucial to navigate regional tax regulations and local currencies effectively. Each country or region may have its own set of tax laws and currency requirements that can impact your pricing strategy and overall business operations.

To ensure a smooth market entry, start by conducting thorough research on the tax regulations and currency exchange rates for each market you plan to enter. Understanding these factors will help you develop a specialized pricing strategy that reflects local economic conditions and meets regulatory requirements.

Additionally, your eCommerce website and online store will need to be adapted to cater to each specific market. This includes not only translating your website into the local language but also integrating local currency options to facilitate seamless transactions. Ensuring that your site can handle different currencies and tax calculations will enhance the customer experience and help avoid potential issues with compliance.

Partner with a third-party logistics (3PL) service

Managing shipping and fulfillment can be a complex and demanding process in cross-border eCommerce, especially for companies attempting to handle everything in-house. The intricacies involved in international logistics, from navigating customs regulations to coordinating global shipments, can quickly become overwhelming.

A highly effective solution to alleviate this stress is to utilize third-party logistics (3PL) services. By partnering with a specialized 3PL provider, you can delegate the complexities of international fulfillment and logistics to experts in the field. This allows you to focus on core business activities such as attracting customers and nurturing business relationships, while the 3PL partner manages the operational challenges of shipping, warehousing, and distribution.

Employing 3PL services not only streamlines your logistics operations but also offers access to advanced technologies and industry expertise that can enhance efficiency and reduce costs. This strategic approach enables your business to scale more effectively and concentrate on growth, without being bogged down by the intricacies of international shipping and fulfillment.

Watch more: 5 Best Digital Commerce Agencies

SmartOSC will be an excellent partner in your journey of  cross-border eCommerce

SmartOSC will be an exceptional partner in your cross-border eCommerce journey due to our:

• Global team of over 1,000 professionals: Our skilled team is spread across 11 offices in 3 continents, offering a wealth of international experience and insights to support your global expansion.
• 18 years of experience: We have a proven track record of successful digital commerce projects, bringing extensive knowledge and expertise to your cross-border eCommerce efforts.
• Comprehensive solutions: We provide end-to-end services designed to optimize your online presence, streamline logistics, and ensure regulatory compliance, tailored to the unique needs of each market you enter.
• Innovative strategies: Our approach combines cutting-edge technology with strategic insights, helping you effectively navigate the complexities of international markets and achieve your business goals.
• Dedicated support: With SmartOSC, you gain a trusted partner committed to your success, offering personalized guidance and support throughout your International eCommerce journey.
• Wide Collaboration: Our exclusive partnerships with a diverse array of leading technology partners offer unparalleled consulting and implementation expertise. This extensive network enables us to tackle your brand’s challenges efficiently, stay within budget, and scale effectively

Conclusion

Cross-border eCommerce presents a complex landscape filled with regulations and potential hurdles, but it also opens doors to exceptional growth opportunities. As the world of digital commerce evolves, the limitations of geographic boundaries are increasingly irrelevant. Embracing global eCommerce can dramatically expand your market reach and redefine your business’s potential.

Interested in unlocking global opportunities? Partner with SmartOSC to navigate the complexities of this sector. Our expertise and innovative solutions will guide you through the Cross-border eCommerce process, helping you achieve remarkable success and transform your business on an international scale. Contact us today to get started!