Worldwide cross-border sales continue to increase with acceleration. The global market, which has a great opportunity, is also becoming more attractive for sellers considering exportation. However, in order to perform global e-commerce operations, it is necessary to fulfil some important details completely and establish a correct system. Creating sound payment methods with a reliable strategy is one of the primary details.
Eliminate Payment Limits
If you intend to expand your existing business potential towards cross-border markets, you should also be aware that this process requires a lot of attention. But if you put the right system in place, it's easy to get great advantages through cross-border e-commerce operations. First of all, you need to determine the payment methods correctly. At this point, your customers' preferences and the compatibility of banks are essential as well as to put out your potential to carry out the operations without any financial interruption in case of any trouble in payment processes.
First, you must be flexible with regard to conducting financial transactions in the cross-border e-commerce market. You should not limit yourself to any standard procedure. Because, to ensure successful sales potential, you have to be in concordance with the payment methods your customers prefer. If you offer your customers the payment methods they are familiar with, you will have a more advantaged position in entering new markets.
At the same time, you should be cautious in the process of adapting to a new market you have entered. You should scrutinize the different fees and fraud risks associated with the country where you sell the product. To make sure that all of your payments are successfully made in your cross-border e-commerce activities, you need to have a secure payment strategy included in every step of your growth strategy.
Take Care of Localization in Cross-Border E-Commerce
If you don't seem to be local enough in a new market you enter, it is hard to please your customers. Researches show that the localization of the vendor is of great importance for a successful operation.
If you want to gain loyal customers for your brand in cross-border e-commerce activities, you should be sensitive and respectful to your customers' cultural differences specific to that region. If you have multiple new markets to enter, you should identify the payment methods that are popular in each of these markets and provide the appropriate payment method infrastructure to your customers. In this way, you can build the trust you intend to provide in the eyes of your customers and be successful in increasing your sales.
In general, 25% of internet sales end up with the customer giving up during the payment stage. Although disturbing website designs and distracting advertisements are among the factors causing this situation, payment methods with which the customers are unfamiliar, are the most important reasons for their cart abandonment. Even though this situation is absorbed to some extent in the current market, it creates a huge risk factor for foreign markets.
In order to avoid this situation:
- You should design your site in the native language of the market in which you will export.
- You must include payment methods that are locally popular.
- You should mind that the payment page on your site should be designed similar to the design of payment pages that customers frequently use.
- You should investigate your competitors’ websites in detail and take the similarities among them as an example.
- You should design your payment page as simple as possible, away from confusing visuals.
Don't Rush the Payment Methods; Try to Act Rationally
When the payment method is to be determined, you should make a detailed study on the globally used payment methods. There are popularly used worldwide payment methods in a wide variety, such as e-wallets, online bank transfers, credit cards, and mobile payments.
You should keep in mind that the payment service provider is a third party that will handle the money transactions between the seller and the customer. At this point, it is crucial that third-party service providers have full knowledge of all local regulations and conduct financial transactions in a practical way. By contracting third-party service providers with these capabilities, you are making a safe choice for your operation. For example, when you deal with a stripe or similar payment service provider, knowing the experience level of that provider and other parties it works with, can help you make a healthy decision.
The Internet and the digital world generates new, global commercial opportunities and open doors for not only big brands but also for small and medium-sized businesses. While you take this opportunity, you should remember that the opportunity is also full of risks and encompasses complex processes. Conducting your operation with a competent organization that will advise and guide you through this process, will help you to carry out your financial transactions without any complexities. To create a correct and secure payment strategy, will bring you great opportunities in the new market.
What to Remember about Payment Methods in Cross-Border E-Commerce
Payment systems are one of the fastest-growing industries worldwide, and the most innovative solutions in the world are generated in that area. Therefore, you need to have detailed information about the new payment methods even though you think you will not use them. Getting used to this will help you to take quick action when the consumer habits change. Unfortunately, it is unlikely that you will succeed in the global market with your existing payment methods or with your memorized systems.
Nowadays, it is easy to observe that many of the brands that have attempted to perform cross-border e-commerce activities and have failed to do so have a lack of understanding of global consumer preferences.
For example, if you do not have enough information and research on cross-border e-commerce payment methods when you offer PayPal in the market, you enter, and that customer in this market do not tend to use PayPal, it can lead you directly to failure. In addition, when one talks about the payment method, you should be aware that it concerns the systems that are much more advanced and practical than cash payment and card. At the same time, try to keep in mind that people are rapidly integrating into these new systems in global markets even though these methods do not exist in your current market. To understand a region and its consumer habits, you may first need to erase your existing knowledge and experience from your memory.
Today, the majority of vendors around the world are still unable to make a move towards cross-border e-commerce. Their fear of international growth and their inexperience in penetrating global areas and unawareness retain them. However, the rational thinkers and the sellers doing the right collaborations start to have a considerable place in the market before their rivals take action. One of the most important and biggest examples of this is, of course, China and China's sellers.
You should keep in mind that systems such as Visa and Mastercard, which you have been accustomed to for many years, cover only 25% of the global e-commerce payment methods, and this rate is much lower in regional surveys. For example, in China, the share of Visa and Mastercard is only 3%. Among the cross-border e-commerce payment methods, methods that offer more innovative and faster solutions are spreading swiftly. If you can't trust yourself and innovative payment systems, you can miss a lot of opportunities in the developing world.
Many people now know that payment methods vary greatly among regions. For example, in contrast to China and the U.S, a bank transfer is widely used as an online payment method in Germany. However, more than half of the payments made in the U.S are made by credit cards. According to these fundamental differences, you must establish a system that will keep up with the dynamics of the market you will enter. While it may seem complicated and difficult for you to succeed in the global market, you can easily get your share of the cake by making the right moves and creating the perfect strategy.