What is impacting the Ecommerce sector?
Traditional retail methods have been slowly changing over the past 5 years with the increased use of digital platforms to satisfy consumers. However, Covid has significantly increased the speed of this change and in the past 2 years eCommerce has built up a commanding presence in the retail sector, due to the varied choice and ease of buying goods now so readily available.
Key challenges for the Ecommerce industry
Before embarking on selling overseas there are a number of key decisions to make to ensure the goods arrive on time and that tax is paid in the correct jurisdiction and by the right person.
Attracting customers, then providing them with the correct experience, converting them into paying customers, and then keeping their loyalty. Repeat business is a key fundamental to being successful in ecommerce, the less customers you have to attract the better, therefore ensuring you platform is easy to use, the experience is great and your costs are competitive should be priorities.
Using Online Marketplaces
Obviously incredible popular, albeit expensive, online marketplaces such as Amazon, can create tax consequences by moving your goods around the globe before they are sold. Also using different country domain’s attach to an online marketplace, can also cause unwanted establishments in some countries.
Cyber and Data Security
When it comes to eCommerce, one of the biggest challenges faced is security breaches. There is a lot of information/data that is involved while dealing with eCommerce and a technical issue with data can cause severe damage to the retailer’s daily operations as well as brand image. The GNPR rules will also be required to be followed, with possible penalties for failure to comply.
How we can support your Ecommerce business
There are many areas for consideration for SME businesses looking to operate in the eCommerce space and having a strategic plan in place covering aspects such as supply chain, storage and fulfilment and international tax is key to being able to successfully operate in a market that is fast becoming saturated.
We are able to assist our clients in understanding the key areas required to be able to operate in the eCommerce sector and if you would like to understand more, then please contact our Ecommerce specialist via the below form.