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In a global world where purchasing products over the internet through an online store is easy and accessible, the international market is ripe for business expansion. Offering to sell your products internationally is a great way to increase the number of potential buyers. It can also build your profile and give you a leg-up on competitors bound to one nation. However, there are a few things to remember when selling products to international buyers. This article will discuss these key elements to help make your overseas expansion successful.
Shipping
If you are going to sell internationally, you need to think about product shipping and how you will incorporate this into your prices. The price is part of your contract with your customer, and they need to know exactly how much it will cost them to purchase from you. Shipping from Australia over vast distances can be expensive.
You need to make it clear to buyers how much they are paying for the product and how much they are paying for shipping, as this may influence their decision to proceed with a purchase. It is helpful to have shipping costs or a shipping calculator on the website to assist buyers in determining shipping costs before they finalise their purchase.
Some sites have different shipping options available. Some are cheaper but take longer; others are more expensive but may come faster and offer additional perks, such as tracking services. It is prudent to use a postal service with tracking services, as this is a common expectation of customers, and it will ensure that you can prove that a product was shipped and delivered.
Payment
Selling internationally raises questions regarding currency and payment methods. One popular online payment method is PayPal, which allows credit cards, debit cards and bank accounts to pay you in various currencies.
It may also be advisable to set up your website to enable customers to view your products in their currency of choice or currencies that you and your payment provider can accept. This provides further clarity as to what the price of your product is and allows consumers to make informed decisions.
This guide will help you expand your successful franchise overseas, with a clear roadmap, key steps and traps to avoid.
Fraud
When you are selling online, there is a risk of fraud, regardless of whether you are selling domestically or internationally. Since you are not face-to-face with your customer, it is difficult to ensure that they are who they say they are and are paying by lawful means.
However, this is more challenging when selling internationally, as you must deal with either a lack of or an overlap of rules and regulations. You can mitigate this risk of fraud by requiring buyers to provide total payment upfront and stating clearly that you will not dispatch products until you receive full payment.
Pick your countries
You are not required to ship to any country of the purchaser’s choice. Before offering products internationally, you will want to choose which countries to expand into. It is best to learn about the consumer and privacy laws of the countries you plan to sell to. If you sell on marketplaces such as eBay, you usually have a choice of which countries you will and will not ship to.
Customs
Products sent from another country go through customs, and you may need to pay customs duties. Whether a duty is charged on a certain product and how much depends on each country. You should research the customs practices of the countries you plan to ship to.
However, it is standard for sellers to leave the responsibility of paying duties to the buyer. Therefore, your sale terms need to clarify to your buyers that any import or customs duties, taxes or other charges are not included in the product price or shipping costs but are an additional charge they will need to cover.
Key Takeaways
Whilst selling your products internationally can be a good way of increasing your revenue and customer base, you need to give careful consideration to the matters we have raised above to ensure it is viable for you. For example, you will need to consider payment and shipping methods; you will need comprehensive sale terms to help protect your business, which our experienced contract lawyers can help with!
If you need help or advice selling products internationally, LegalVision’s experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently asked questions
You need to know various things about shipping when selling your products overseas. For example, how you incorporate this into your payment structure, making clear the amount for shipping and the amount for the product.
Your customers could pay you via Paypal, which, for example, allows them to use their own currency.
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