Cross-Border Trade: Active or Passive Strategy?
Overseas expansion can be daunting. However, more and more businesses are realizing it’s a necessity, taking the plunge and seeing the benefits.
Thinking about venturing into CBT for the first time? The opportunity to explore expansion overseas with eBay is a fantastic way to remove the traditional barriers that have been in place for businesses. More than 171 million people shop on eBay worldwide. Selling internationally on eBay allows you to reach global buyers that may have otherwise never discovered you online.
Additionally, eBay’s global presence means that much of the guesswork and risks are minimised when it comes to driving traffic and managing payments. Sellers can offer international shipping options to selected countries or can list directly on eBay international sites.
1. Expand your customer base
Why limit yourself to just one market? Over 58% of eBay’s business is international, covering 190 markets around the world.
2. Diversify your risks
Reducing your dependence on your local market diversifies your risk. The different growth rates in different markets could provide balance in your overall portfolio growth. Depending on various factors, the strengthening of different currencies at different times could make your products more attractive to international markets.
How to Start Selling Internationally
Sellers can take one of two approaches when selling internationally on eBay:
- Passive or basic selling involves listing products on eBay.com.au and offering international shipping.
- Active or advanced selling involves listing directly on each country’s site using local language product data and accepting payments in local currency via PayPal.
Passive or Basic CBT
For eBay sellers facing resource constraints, the passive approach might be the way to go. In this model, sellers simply offer shipping to as many countries as possible. This enables limited visibility for your listings on international marketplace sites without the need to list on each site individually or translate product data.
Sellers who offer international shipping and accept PayPal will have their listings appear in the advanced search results (if a buyer clicks “show results from international sellers”) on eBay international sites in the countries where shipping is offered. Listings may also appear in default search results on those sites, but that is not guaranteed.
Active or Advanced CBT
For sellers who have localized and/or translated product data and who may be more versed in international selling, active CBT may be a more attractive model. This approach involves listing directly on each marketplace’s international site in the local language and currency. Sellers will also be responsible for multi-language customer support.
When sellers list directly on eBay’s international sites, the listings will appear in default search results and are likely to have better visibility than passive listings. In addition to improved search ranking, active CBT also offers the benefit of better price control (because you do not rely on eBay currency conversion to show price) and better translation for localized listings. However, active CBT requires sellers to understand VAT and other import/export requirements when selling actively.
Where to Start?
If you need help identifying new opportunities to grow internationally through passive or active CBT via eBay, ChannelAdvisor has global expertise. Our network of partners can help you resolve questions about taxes, customs and compliance when it comes to marketplace rules and fulfillment to international customers.
Download our eBook How to Take Your Business Across Borders (with Less Risk) for more information about growth strategies and agile CBT, or contact us today and an eCommerce expert will be in touch to see how you can start taking your business to the next level!