Even before the pandemic, ecommerce was on the rise. The dependence of consumers of non-physical shopping has obviously accelerated this trend, but what is not clear is why international cross-border trade has seemed to rise simultaneously. The most obvious reason would seem to be that desired items are not available in the residing country of the consumer. However, there are other factors, which is what our article today will be focusing on. If you are an ecommerce seller who is considering expanding your business into foreign markets, hopefully this article will help you with your decision.
What Is Cross-Border Trade?
Simply put, cross-border trade is when a purchase is made from abroad and then shipped over to the consumers’ residing country. This is obviously a complicated process which involves a number of logistical factors and, in many cases, different parties completing different tasks within the trade. For example, a consumer may buy a product via an online marketplace from a seller abroad, who then will employ the services of a logistics firm to deliver the purchased product.
There are many factors for an ecommerce seller to consider before participating in cross-border trade. For example, what are the tax implications of selling your products in another country? At what point do you have to pay customs duties? Whilst these questions can seem daunting, don’t forget that we are extremely experienced when it comes to supporting ecommerce sellers and can offer you expert advice. Get in touch with us today for a free consultation.
Why Is Cross-Border Trade Become So Popular?
So, to the crux of the matter. As stated in the introduction, one of the main reasons that cross-border trade is on the rise is the increased availability of options that are available to consumers. Since the improvements in supply chains and online marketplaces, it has never been easier to receive products and deliveries from abroad. However, there are other factors.
One such factor is the fact that products from abroad can usually be cheaper. This is surprising, when you consider how much logistical mileage is needed. Another factor is novelty. In many cases, consumers can want a variety of options, regardless of whether those options are better. This is especially true of decorative or luxury items. If you are an ecommerce seller, it is definitely worth doing some research into other countries to find out if there is anywhere else that would be specifically interested in your products.
We Can Help You Expand Your Business
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you register for an EU and UK EORI number. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
