Today’s post comes from Sue Park, the person in charge of marketing leaders of PayPal’s small enterprise partners. She shared some techniques for those who consider expanding business globally here. Take it away, Su!
Global prosperity and mobile applications are creating opportunities for new customers in small companies abroad. It is estimated that by 2025, the global consumer class will increase by 75%to 4.2 billion. These 4.2 billion consumers will spend about $ 3 billion each year .
Whether you have just started considering the potential to open a store with international buyers, or have already tested some target markets, Risk is very large: checkout is that most international shoppers give up abandonment Purchased place.
There are several reasons, but one of the main reasons is trust.
Consumers should be convinced that their payment will be dealt with safely , and they should be able to use their favorite methods to be comfortable and convenient when paying with familiar currency.
Before you pay for international customers, you should consider the following points and take action.
Know the preferred choice for international customers Payment method
The preferred payment method of shoppers varies from the country/region, so
It is important to understand the
method that is best for each market you target.
For example, consider:
In the Czech Republic, more than 50% of payment is cash on payment
- In the Netherlands, 60% of the payment is directly debit
- In Germany, 46% of payment is transferred through online banking
- Although many foreign shoppers use credit cards to pay online, there is no single solution suitable for everyone.
The solution that is most suitable for your business may be to provide multiple payment methods , or the number of countries/regions you sell. Listing the price with local currency is always a good idea
No matter which payment processing method of your merchant service provides, you should listen to the price by local currency to let you let you let you let you let you use the price of the local currency to allow you Customers feel that guests are home.
Woocommerce allows you to list the product with a variety of different currencies through the optional currency converter components
.
The price displayed in real time was replaced with the value of the local currency.
This woOOCOMMERCE component allows you Customers’ prices (even if they still pay with your currency).
Allow customers to pay with local currency
to provide your international customers with the comfort and convenience of national currency payment, depending on You choose the payment gateway.
Determine whether your payment gateway allows you to accept international transactions.
If this is the case, please understand the flexibility of receiving foreign currency payment for you.
Only receiving your local currency payment Some gateways allow you only to accept payment with local currency (such as US dollars).
Of course, for your foreign customers, this is not the preferred payment method.
Customers see products listed in local currencies, so they may not be happy to learn that they must pay with your currency -not to mention the currency exchange fee or foreign transaction fee Unpleasant surprise.
But in terms of settlement and accounting Your own currency may be the simplest payment method . Please note that you are still likely to be charged foreign transactions and pay a higher discount rate for transactions.
Pay with multiple currencies Sometimes it can be used for payment with several major currencies.
For your global customersIn terms of the benefits of a better user experience and smoother checkout
, because they can use the currency payment they are familiar with, and they have just seen your product listing. This may mean higher sales for you.
Let the shoppers have the opportunity to choose their currency may be what you need to increase sales. Generally, you have two options: you can retain foreign currency payment, convert them when withdrawing from your merchant account, or you can automatically convert the currency during transaction.
Finally, please keep in mind that each credit card has its own currency exchange rate, which may may not be reported in the exchange fee of your merchant service.Before starting sales, make sure you know what is
, because you may want to count this cost in your product pricing.
其他付款方式[123 ] In addition to credit cards and debit cards, there are several other ways to accept international payment. Each method has its own level of risk. You should balance your business risks and the convenience it provided by its foreign customers.
International Electric Exchange
Electric Exchange is one of the safer ways to receive international shoppers . On your website or invoice, you provide route descriptions, including your company name and address, commercial bank name and address, SWIFT code, ABA routing number and account number.
The issuer remitted the funds directly from his or her own bank to your bank account.
For this reason, they will pay a fee, which may be considerable and may postpone them to buy. In addition, the electricity exchange may be difficult to track: if any account details are entered error and the funds are remitted other than the bank, it may be difficult to figure out its exact direction.
International Trade For the bill, customers go to the bank, show their ID cards, and get the bill with local currency or your currency, and then they Mail it to you.
[12]3]
The entire payment process may take a few days and may be lost in the email. In addition, forging international bills is a major issue.
If you decide to accept the bill, you should consider accepting the bill of only customers who go with you . You should also be familiar with how to identify fake goods.
For details,
see US Post Office website.
Payment COD is the preferred payment method in some countries/regions. Fortunately, Several global shipping companies now provide this service. They bear the risk of non -payment in exchange for a certain percentage of sales costs .
These companies usually provide multiple payment methods for your customers, including currency, guarantee funds, checks and bills.
Bibao PayPal allows you to sell products from 169 million customers in more than 200 countries, and pass through Credit cards, debit cards and PayPal accept 26 currencies.
Woocommerce has multiple PayPal extensions, you can use as needed.
Options-Use this chart to select the PayPal solution suitable for your store.
PayPal converts your customer’s local currency into your own currency. Whether when trading or you withdraw money from your account, you need to pay a small amount Fees . Buyers who log in to PayPal account payment orders will automatically see the price displayed in the local currency.
Do not forget taxes and tariffsFinally, in addition to determining the most suitable payment method for your stores and customers, you also need Ensure that you have a full understanding of taxation, tariffs and customs (specific countries/regions) taxes, tariffs, and customs. Tax The most likely is that you sellEach country/region will tax the goods sold.
The most common foreign tax is VAT (VAT). VAT, most regions of Europe, Canada, China, India, South America and Africa and other countries/regions.
Before international sales and transportation, please confirm whether your product needs to pay VAT.
Each country/region has its own VAT rules, so you must check these rules and check the steps that must be followed by registration and submission of returns. View official website of the VAT government agency, VAT
Blog Learn more information.
Fortunately, WooCommerce can also provide help. AvataX expansion program
uses constantly updated rules and exception database to determine the value -added tax in 193 countries/regions. Sight the hood of the beautiful tax extension of Avalarra -when you can handle it for you, why should you handle it manually?
Many international customers are used to seeing products containing taxes or VATs listed online. If your product price does not include tax or value -added tax, be sure to indicate on your product page, to avoid additional costs when checking out.
Finally, according to the type of store you operated, customers in European countries/regions may request (even expect) to provide invoices with your VAT registration number after purchasing.
You can useto generate this file in PDF format, and manually place your value -added tax number (or other tax information) in the custom field manually Essence
Responsibilities Tariff tariffs It is a tariff or tax imposed on cross -border transportation. The purpose is to help protect the economy and employment of imported countries by controlling the flow of imported goods. There are different tariff amounts for each item that enters the country, so you must check the tariffs you sell for each product you sellProduct
.
Many international transport carrier provides options for paying tariffs before the goods are shipped, which is usually called tax paid delivery (DDP). Or, your client can delay tariff payment until they receive products in their country/region, usually called unprepared tariffs (DDU).
In any case, please always ensure that your customers know that additional tariffs may be charged, and they have the responsibility to pay these fees before picking up the goods.
Important reminder: fraud and international payment Due to the uncertainty of payment and the uncertainty of receiving goods, there are some increase in international sales. Risk risk.
To help the minimum of help, please pay attention to the following danger signals:
Order from high -risk areas or countries- – –
Some countries are considered high -risk and are famous for fraudulent credit card transactions
Unusual orders -for example in a few days Receive 50 orders from customers outside the United States, and you usually receive only two international orders within a month, or the order is more than the average level
suspicious Email address-
The unusual email address, such as
[email \u0026#160; The actual address —— Criminals may send orders to freight agency, shipping company, postal mailbox or vacant property, so that they can maintain anonymity
- Although these warnings None of the signals will automatically mean that the order is fraud, but if some things look incredible, it is likely that it is likely. If you have any questions, please contact the customer to verify the transaction.
- from overseas The order seems a bit suspicious? It is worth calling customers to verify, rather than just want to get the best results.
- Use these prompts to prepare for international payment Just like traveling abroad, international sales for international sales through your e -commerce business may be possible A beneficial rush at a timerisk.
It gives you the opportunity to understand other countries and culture, and establish a relationship with global customers . When you are ready to start selling internationally, please check
Trade.gov
International Trade Association and Commerce.gov The US Department of Commerce obtained more useful suggestions with . Tips on creating an international sales strategy, please check PayPal Passport
Website
.What should you consider before paying international customers? Or do you have any suggestions to share?
Let us know. Recommended reading:
The prompt, skills and expansion of the international store How is your payment solution?Five methods that affect your customer experience Use woocommerce to receive payment [123]
