Cross-Border E-Commerce Pain Points

Vanessa Tran , Oct 30 2020

A 2019 market report indicated that the cross-border e-commerce market in 2018 amounted to $562 billion and is expected to hit $4,856 billion by 2027, growing at a CAGR of 27.4% for the next eight years. With domestic supplies drastically affected by the recent global pandemic, the rate may increase even faster than expected. As the need for international shipping grows, how can you expand your e-commerce business model to better serve global customers?

Even though offering e-commerce international shipping can bring your company incredible growth, there are certain challenges involved as well. Here at Parcll Delivery, we’re focused on providing innovative e-commerce shipping solutions to high volume retail companies and helping them reach a wider global audience with ease. In today’s post, we’ll discuss some common cross-border e-commerce pain points and explore ways to overcome those hurdles. 

Related: The Global E-Commerce Evolution

Benefits of E-Commerce International Shipping

Investing in cross-border e-commerce is a crucial move for any business hoping to experience growth in the next few years. A great number of benefits are afforded to companies that open their channels to international customers across the world, such as:

Multiple Global Opportunities. While China is seen as a big player in the e-commerce game, many don’t know the European Union (E.U.) and the United States share the most integrated economic relationship in the world. Together, the economies of the E.U. and the U.S. account for half of the entire world’s gross domestic product (GDP) and almost a third of world trade flows. This transatlantic relationship contributes to the vast growth in both the E.U. and across the pond in America. 

Increase in Revenue. Naturally, increasing your company’s reach into foreign markets allows you to widen your audience, thereby establishing a presence across the world. International fans of products that are more affordable in the U.S. will return to your company again and again for authentic American goods. It stands to reason that this increased global reach will result in revenue gain over time.

Cut out the middleman. Reduce costs by shipping directly to your consumer and country of choice. In the past, companies had to rely on international wholesalers and distributors, but with today’s technology, businesses can keep prices competitive and ship directly to international customers.

Related: 11 E-Tailer Customer Service Strategies That Really Work

Cross Border e-Commerce Pain Points

Smooth and timely parcel delivery is an essential part of any e-commerce transaction. Consumers will remember if the process is stress-free and return to you for future business. Thus, it’s key to (1) keep delivery times speedy even while shipping across borders and (2) make sure the shipment is delivered successfully. Consider the fact that in 2014, the E.U. released a study that only 48% of cross-border shipments were successful. How can your company stand out above the crowd and achieve these goals? Let’s examine some pain points as well as how to address them.

Payment Processes

Consumers’ payment preferences differ across countries. Paying attention to how the citizens of each country prefer to pay for goods is advisable as opposed to relying on our own domestic methods of payment. Whereas credit card, Paypal, and Apple Pay purchases reign supreme in the U.S., direct debit is the preferred method of payment in Asia, India, and Africa. In Eastern Europe, India, Africa, and throughout the Middle East, cash on delivery is the preferred choice. 

Understanding these differences will give your company greater traction as it transitions to a wider international market. Updating your company’s capabilities with an integrative shipping service will give your customers a pleasant and stress-free experience. At Parcll, we offer easy integration with different payment methods so that your transactions can be completed no matter what country you’re shipping to. Learn more about our parcel delivery services here.

Related: Targeted Demographics: Types of Consumers Around the Globe

Legal Regulations

Legal and financial regulations differ from country to country. Cross-border retailers must be aware of these rules to reduce delays in parcel shipments and make sure a package does not get stuck in customs. Here are some logistic considerations for your company to consider as it broadens its reach:

  • Research and stay updated on security regulations for every country you’re shipping to


  • Practice due diligence on taxation rules and local government laws to make sure your consumers do not get charged with additional shipping fees when they receive your goods. 


  • Be aware of each country’s consumer limitations and what goods may be sold to certain customers (for example, age limits on certain products)


  • Prepare proper documentation of your products, their value, and any other necessary information to pass customs clearance

Inability to track and trace parcels

Managing consumer expectations is of considerable significance if your company hopes to attract repeat customers. In a modern world where shoppers are used to instant gratification, delayed shipping times may deter your customers from returning again. However, because cross-border shipping is more complex than domestic shipping, retailers should factor in any delays relating to supply importing, customs clearance, and complex carrier logistics. 

Being transparent as to tracking information and delivery times will keep your customers feeling supported and informed as parcels make their journey to the intended destination. Additionally, working with a shipping carrier that values customer service principles will save you a lot of time and energy in the long run.

High Costs for Cross Border Delivery

Many companies balk at expanding to international markets because of the high cost of shipping worldwide. In addition, figuring out complex logistics takes up time (which equals money) for busy companies. Save energy and resources by choosing an experienced and cost-effective carrier that can handle tax collection delays and avoid surprise fees. 

Related: Outdated International Parcel Shipping Procedures Online Sellers Should Avoid

How can Parcll Delivery help?

As you can see, there are a variety of challenges companies may encounter when incorporating cross-border e-commerce into their business plans. However, choosing the right carrier who can address those issues will streamline the process and allow for faster delivery. Also, choosing a cost-effective carrier that offers customization and scalability for your unique business needs is essential to the success of any cross-border shipping endeavors. 

Parcll Delivery is a leading business to consumer (B2C) cross-border shipping carrier   dedicated to providing high-volume shippers with strong, cost-effective solutions to meet all their international shipping needs. Offering a highly integrative system (easy to integrate with Shopify and similar payment modes), competitive rates, and flexibility tailored to your company’s objectives, we’ve got the tools to make your cross-border e-commerce pain points a thing of the past. See what we do here and give us a call today.

Related: How To Be A Successful International E-Commerce Brand

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