While cross-border eCommerce sales have risen exponentially over the last few years and is estimated to reach $1 Trillion by 2020, however, cross-border eCommerce logistics have their share of challenges too. Even when online shopping is a preferred mode of transaction and there is a continuous increase in the number of online customers, many of them complain of having faced difficulty in international shipping. This problem is a matter of serious concern for the eCommerce sellers, who have to undergo considerable loss of money as well as potential customers. There is not one but several cross-border eCommerce challenges encountered in B2C transactions, some of which are discussed in detail here. So, let’s take a look.
- Delay in Shipping: Cross-border eCommerce logistics have several complications irrespective of whether a business fulfils the orders itself or assigns the responsibility to the dropship suppliers. Long transportation distance connected with multiple links makes this delay somewhat inevitable. The only possible way to handle the international eCommerce shipping better is by switching to alternate shipping methods. Also, choosing a drop-ship supplier with multiple shipping options can help to a certain extent. Most of the delays occur during the holiday season so adjusting the shipping solution based on the season is a must to overcome this challenge.
- Poor Inventory Management: This happens to be yet another obstacle in the way of fulfilling cross-border ecommerce logistics. Lack of proper inventory management skills leads to the wrong products being delivered to the customers, thereby delaying the entire process. The problem becomes glaring when an online store has products from multiple suppliers and the store owners start seeking help from the third-party fulfilment companies. Unless the process is made tech-oriented and reviewed more than once, the challenge can lead to a drastic drop in international ecommerce sales.
- Tracking of Order Status: Lack of proper tracking of order over time becomes one of the glaring international shipping challenges. As a result, customers keep asking about the status of their orders. It is through reliable order tracking tools that the user experience can be improved and problems solved. Automatically synchronizing the tracking numbers and sending them to the buyers directly just as a package is sent is an essential way of maintaining sound cross-border ecommerce logistics.
- Custom Issues: When it comes to cross-border ecommerce logistics, customs play a crucial role. As such, a small delay or disruption in the process of ecommerce customs clearance can turn out to be a huge hurdle in the way of B2C international shipping and fulfilment. Each country has its individual set of duty standards, import and export regulations and custom clearance requirements. All these become a little tricky to handle for most ecommerce sellers venturing into a global business.
Issues relating to Cross-border E-commerce Customs Duty should be well understood and the coordination lines should be monitored properly to avoid these problems.
With all these challenges in cross-border ecommerce shipping duly considered, ecommerce sellers should pay utmost importance to the aspect of cross-border ecommerce logistics when venturing worldwide. In addition, Cross-border e-commerce sellers have to find smart and feasible solutions to these obstacles before going global.