Challenges to cross-border trading have never been greater, thanks to increased volatility in the geopolitical landscape as well as complex regulatory requirements. The only way to tackle cross-border logistics is to implement the right technology and third-party logistics to avoid making crucial mistakes. This blog will take a look at major cross-border shipment challenges and what can be done to provide superior exercises to the end user.
Taxes and Customs
Customers in different parts of the world can feel betrayed when asked to pay fees not shown at the point of sale. In some cases, it may violate consumer laws and could prevent customers from shipping in confidence in the future. For obvious reasons, being hit with unexpected custom fees will also affect repeat business because customers will unlikely return.
The only way to minimize this is to provide customers with complete information about the fees they are expected to pay. This can be done by implementing specialist technology that automatically calculates customs tax and fees based on the type of product and destination country.
Extensive Documentation
Cross-border shipment involves a significant amount of documentation which varies from one country to another. From manifests and product licenses to packaging requirements on invoices – navigating through these complex requirements can feel next to impossible. It doesn’t help that certain types of products, such as electronics and pharmaceutical goods, are more heavily regulated than others, and their prohibition into certain markets must be checked before initiating transportation.
Changes in the geopolitical landscape may also result in the implementation of sanctions that may cause even more disruption in the future. This is why implementing specialty logistics technology is crucial in managing these requirements efficiently while minimizing the paperwork required.
Product Returns
Clients in international markets expect businesses to honor their returns policies, and not offering free returns could affect cross-border sales. If a service is not customer-friendly, consumers will take their business elsewhere, even if it costs them a bit more. Businesses may have limited visibility and control over the returns process. This could cause returns to be more expensive and time-consuming.
The best way to manage internal returns is to work with an intermediator to reduce the burden on businesses. Working with specialist partners with the technology to facilitate supply chain visibility and parcel tracking can also be a huge help.
Businesses that are unable to strike the right balance between returning goods and growing consumer demands may struggle to become profitable.
Best Practices for Cross-Border Shipment
Here are a few tips to overcome cross-border challenges:
- Always have a contingency plan (for example, in case of airports get held up, there should be an alternative plan to transport your products by other means)
- Use technology to monitor the supply chain and keep up with customs compliance
- Maintain long-term relationships with your business partners to ensure consistency when moving your goods
Ready to move your goods across the border with complete transparency? Get in touch with BEAM Logistics for more information.