Selling abroad and the impact of cross-border payments
Tips / 03.06.2018
Selling abroad can boost your business, and the rise of digital technologies makes it easier than ever.
However, it can be quite challenging for a small business. If you are planning to open your doors to the world or you just noticed inefficiencies in your online sales strategy, here are three important points you need to consider.
Put clear pricing on your website
Recent studies found that one of the main reasons for shopping cart abandonment is showing the price of a currency that’s foreign to the buyers.
That’s why displaying the price in the local currency is one of the most important things that you can do to appeal to customers and thus reduce shopping cart abandonment and maximize your international performance. That “local feel” of your website will not only give clarity over the cost to potential customers, but it will also make them trust your brand.
Consider how to get paid
Selling online brings up the question of cross-border payments. And to be honest, taking payments in foreign currencies can be tricky.
For a start, you should offer payment methods that the local customers know and expect. Our advice is to take enough time to do research. Get familiar with the most popular local payment methods and explore the buyers’ payment preferences as well as the local buying trends.
The next step is choosing a payment processing provider that will look after facilitating payments on your website. Partner with a payment company that supports payments in various currencies. For example, if you choose myPOS to facilitate online payments, you can accept payments in 10+ currencies, including EUR, USD, GBP, CHF and more. Besides, you can open multiple accounts with free IBAN and avoid prohibitive currency exchange fees.
Also, it’s essential that you work with a payment processor with a reputation for security. For instance, consider only companies that comply with PCI DSS, or Payment Card Industry Data Security Standard, and international regulations like CRS and FATCA.
There are different ways to accept online payments depending on your business needs and specifics.
If you want to set up an online store, you can integrate a payment gateway. myPOS payment gateway (also known as myPOS Checkout) is easy to integrate with the most popular shopping carts, such as Magento, OpenCart, WooCommerce, PrestaShop and others.
Don’t forget about cross-border fees
Regardless of whether your customers are based only in a number of countries or worldwide, as a trader, remember that some cross-border fees will emerge because of foreign transactions and, therefore, foreign credit and debit cards.
Create concise shipping and returns policies
The best practices you already apply to shipping are even more important when selling to customers abroad. One of them is to set a clear, concise and customer-friendly return policy as well as accurate delivery expectations.
It goes without saying that customers are more inclined to buy when they are aware of the shipping and delivery details upfront.
If the delivery may take longer, estimate the maximum delivery time and make it clear on your website so that customers are aware. It’s a good idea to state it on the checkout page along with any shipping costs and taxes that apply. After all, a good shipping and return policy can not only help you increase sales and boost conversion but can also reduce the costs you spend on returns.
Walk in your customer’s shoes
A simple but effective way to fine-tune your online sales strategy is to shift your perspective. Forget about your business goals and sales numbers and imagine yourself in the customer’s shoes. To do that effectively, go to your website and complete the checkout process yourself.
Ask yourself the following questions: “Was it easy to make a purchase? Did I met any obstacles which interrupted the buying experience? What improvements did occur to me when I went through each step?”.
Then, review the answers which you gave, put together a plan with action points that will help eliminate any frictions at the checkout and enhance the overall user experience.
Run your cross-border business effortlessly with myPOS
You can also accept payments online through the so-called payment links and payment buttons. They don’t require any integration and can be put on your website, social media networks or sent to the customers via email or by sending an SMS.
Is your business ready to accept cross-border payments and take on the world?