Who?
Based in Bangkok, we pride ourselves in providing comprehensive yet bespoke solutions to service cross-border eCommerce brands.
In addition to our one-stop service, we offer solutions that effectively address the pain points often seen in cross-border eCommerce operations, including customer service/ logistics/ after-sales/ translation/ localized social media marketing. Customer service, for example, is especially important given the consumer behavior in Southeast Asia.
We also make good use of our in-house micro-influencer network and video production capacity to tell an unique and truly localized story of the brand.
Our strengths are backed by our manufacturing experiences and sourcing facilities in China, to ensure consistent quality at competitive prices. We offer the unique Overseas Office as a Service (OaaS) to help you expand into emerging markets.
Adapting to new consumer behavior in the digital era
Online consumers have developed fatigue over conventional online Ads, and are embracing real communities and voice leaders.
New challenges present as traditional business models evolve. Not only do we see more:
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More B2Bs going direct-to-customer
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Much shorter product cycle and more customized product needs
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Supply-chain structural change at global scale
but even for those already established an online presence:
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More challenging outlook ahead, as social media marketing game rules transitioning from Ad-driven into community/referral based mCommerce
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Increased competitions and tightening regulation make it hard to justify the ever-declining profit margin
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Most companies which have done well have localized, but how about expanding into other regions?
Our expertise in social media management help you navigate through this change of consumer behavior and shopping habit. We employ a data-driven approach using some of the most advanced marketing analysis tools, to help you understand the progress and make relevant decisions in a timely manner.
Managing cross-border eCommerce
In Southeast Asia, shopping from international brands had a major downside for a long time - there was no option to pay Cash On Delivery. As payment flexibility increased, with Lazada introducing COD for cross-border customers, it propelled its popularity and demand.
Today, the trend is slowly and steadily gaining preference in the Asia Pacific region. Cross-border eCommerce is projected to account for 22% of eCommerce shipments of physical products by 2022.
But, what does this rising popularity mean for businesses managing multiple brands across borders? If you are a cross-border player, you are likely to encounter some challenges before you can enjoy the benefits of selling internationally.
What are the challenges of managing multiple brands across borders?
Lack of local know-how
When you sell products in a new market, it is crucial to understand customer behavior and obtain enough information before jumping in. For example, in Southeast Asia, customers prefer to ‘browse and buy’ instead of ‘search and buy’. This behavior is peculiar when compared with other markets. If you wish to initiate and increase sales of your products, you must empower yourself with knowledge about how to attract and retain customers, what products to sell on which marketplace, and so on. Being listed on a marketplace is just the beginning of a successful cross-border presence.
Last-mile delivery challenges
The cost of shipping a product across borders is massive. In the current context of the pandemic, the cross-border business model has been confronted with a heavy cost of last-mile delivery. For example, if you want to ship a product from the UK to Malaysia, the cost of shipping is almost 3 times higher this October as compared to last year. The reason for this increase is a lack of fulfillment capacity, a decrease in the number of commercial flights and freight planes. In fact, commercial flights are operating at just 5% capacity. Ultimately, the consumer has to pay extra shipping fees. This has created a dent in the appetite for cross-border purchases.
Managing regulations for each country
Every country follows a different tax system for retail businesses. When selling internationally, you will need to consider the export taxes applicable in your country as well. The varying numbers and percentages can lead to trouble if you are not careful. Furthermore, when shipping a product across borders, you must ensure hassle free custom clearance. It would take a long time for you to understand what went wrong, delaying the delivery of your product. If things go south, handling all this can cost you time, money, and reputation.
Lack of visibility
When your products are in transit in a foreign country you have no control over them. It gets difficult to track if they are on route, delayed, or worse - if they disappear. This lack of visibility is obviously a real concern for you and your end consumers. There are high chances of fraudulent activities as well, for which you can be charged by the country you are shipping your product to. This can hamper your brand image as well as increase the cost of selling across borders.
Handling payments
Cross-border businesses usually follow the method of ‘Payment first, delivery later’. Customers are often not comfortable with this as they do not know when their product will arrive and are suspicious of being cheated. When there is no ease in terms of modes of payment, it can cause a challenge for you. Confusion with currencies can occur if you have multi-brands or your clients request you to sell their products across multiple countries. This becomes an even bigger problem when reconciling payments. You have to keep track of prices and conversion rates for more than one country. And, the calculations are endless making it difficult to report adequate figures to your suppliers.