WHAT IS CROSS-BORDER EC?
Cross-border EC refers to a form of selling products and services through e-commerce, targeting global markets outside of one's own country. As international e-commerce, cross-border EC is expanding rapidly with the development of the Internet. In particular, it is attracting attention as companies seek new sources of revenue in an increasingly globalized world.
The most attractive feature of cross-border EC is that it connects directly with consumers beyond national borders and can operate 24 hours a day, 365 days a year. This allows sales activities to develop on a scale beyond the limits of local markets. Today, there are many examples of cross-border EC initiatives utilizing platforms such as Amazon, eBay, and Shopify.
CROSS-BORDER EC ADVANTAGES
Expansion of market size: Through cross-border e-commerce, you can access a global market scale without relying on the domestic market.
Revenue diversification: Selling products in multiple countries allows you to diversify your revenue streams and reduce economic risk.
Increased brand awareness: Expansion in the global marketplace will increase brand recognition and credibility.
Use of digital tools: Modern digital marketing tools can be used for efficient sales promotion.
For example, the Asian market appreciates the high quality of Japanese products, and Japanese cosmetics and food products are popular in cross-border EC. Organic Japanese foodstuffs, in particular, are increasingly in demand in overseas markets.
CROSS-BORDER EC DEMERITS
Increased logistics costs: Costs related to international shipping and packaging of goods may be higher.
Regulatory and legal barriers: Must comply with national regulations and certification requirements.
Language and cultural barriers: localization must be appropriate for the target market.
Returns and customer support burden: Dealing with international customers is complicated by language and time zone differences.
For example, when selling food products to Europe, Hassup certification is required, but many manufacturers do not have this certification, making sales difficult in some cases.
POINTS TO KEEP IN MIND WHEN CONSIDERING CROSS-BORDER EC
International Settlement Systems
In operating a cross-border EC, it is essential to have an international payment system in place. For example, domestic EC platforms such as BASE andSTORES do not support credit card payments issued overseas, even if they support multiple languages. Therefore, it is required to build a cross-border EC site using Shopify or Scratch and implement a global payment system.
In Japan, we are promoting Paypal and external payment system settlements as countermeasures, but I assure you that it is impossible to convert them in Europe and the U.S., where payment tools and security literacy are 20 years old.
Foreign transactions are tax exempt.
INTERNATIONAL TRANSACTIONS MAY BE EXEMPT FROM TAXATION. WHEN DESIGNING A CROSS-BORDER E-COMMERCE SITE, IT IS NECESSARY TO SET UP A SYSTEM THAT INCLUDES SALES TAX FOR DOMESTIC BUYERS AND EXCLUDES SALES TAX FOR INTERNATIONAL BUYERS. THIS WILL AVOID TAX PROBLEMS.
If it is pointed out after payment, the sales tax must be refunded, and the international remittance fee is a significant burden.
International Shipping Design
Detailed system design is necessary because shipping costs vary depending on the weight of the product and the destination. For example, it is important to have a system that combines the location of the buyer and the weight of the product to present the best shipping method.
INTERNATIONAL STANDARD LEGAL SUPPORT FOR GDPR, COOKIE APPROVAL, ETC.
The GDPR (General Data Protection Regulation) is strictly enforced in Europe, and violations can result in hefty fines. to comply with the GDPR, you must be careful in handling customer data and have a privacy policy and cookie approval mechanism in place. In addition, access to Yahoo Japan from Europe is restricted due to GDPR. Thus, compliance with laws and regulations is essential.
After clarifying the target market,
select the products to be exhibited.
For a successful cross-border e-commerce site, it is important to identify the target market and select products suitable for that market. Exporting food and cosmetics involves legal and certification issues. For example, when selling food products to Europe, it is a prerequisite that the manufacturer has obtained HASAP certification. However, many manufacturers do not have Hassup certification, and this is often the subject of restrictions.
For cosmetics, it is essential to appoint a person in charge of the local area, to check the ingredients strictly, and to register the information in the data system established by the European Commission after inspection by a specialized agency. If this procedure has not been completed, the product cannot be sold.
In addition, products such as stationery, toys, and home appliances are also required to obtain the CE Mark. In addition, products must conform to European regulations, such as the Infant NG Mark and the Recycle Mark. Products that do not conform to these regulations are not only restricted for export, but may also lead to problems after sales.
It is important to note that while regulations may be relaxed for shipments from one individual to another or as samples, there is a risk of large fines in international courts in the event of allergic reactions or health problems in infants to products purchased by the general public. To avoid such risks, it is essential to accurately understand the laws, regulations, and safety standards of each country, and to ensure that product selection and export procedures are based on these regulations.
IN EUROPE, WHERE LAWS AND REGULATIONS ARE STRICT, THERE ARE NO EXEMPTIONS FOR CROSS-BORDER E-COMMERCE SITES!
OVERSEAS SEO FOR CROSS-BORDER EC SITES
Strengthening overseas SEO can increase your ability to attract customers from search engines. Keyword selection adapted to the language of the target market and region-specific content creation are necessary.
In addition, automatic translation of Japanese into multiple languages will never ensure that a site will appear at the top of the list. For example, the concept of singular and plural forms in Japanese differs from that of multilinguals. In the case of the word "accessories," the plural form may have six times more search volume than the singular form.
Therefore, it is essential to make effective use of a variety of SEO tools, analyze search volume and second keyword figures, and strategically register your products.
Cross-border e-commerce sites can be translated into English at
British English and American English are different.
Even within English-speaking countries, there are differences between British English and American English. It is important to localize your site with language specifications that match your target market. This will make it easier to build trust with your customers.
THIS REQUIRES THE USE OF SEO TOOLS TO CHECK "SEARCH TERMS" + "COUNTRY" + "LANGUAGE".
It is essential to localize your main keywords, as there are many cases where a word you have chosen as your main keyword is not the same word in the UK.