Thanks to the Internet, most businesses nowadays have the chance to appeal to a global market.
Of course, this isn’t right for everyone, but selling overseas can really enhance your reputation and your profit margins.
If you feel that now is the right time to make this big step up, and that you have a product that will sell in the foreign market, read on for some top tips to help you get started.
- The currency risk – One of the most important issues you need to address is selling your products in another currency. If you decide to show prices in your customers’ local currency, you need to be sure that you aren’t going to fall victim to a loss of profit because of exchange rates. The best way to eradicate this problem is to ensure that your website dynamically recalculates all prices in line with the current exchange rates.
- Invest in fraud protection – Fraud is a huge risk when selling items overseas. There is always the worry that you are going to be selling your products to a scammer. The reason why this risk is so great is rather simple: it is much easier to get away with fraud when you are in a different country. Plus, a lot of standard fraud protection systems don’t work overseas, for example, address checking won’t work on cards that aren’t in the UK. It is a good idea to talk to your payment service provider or your bank to discuss different ways to mitigate this risk. Also, talk to any contacts you have in the industry who may have had to deal with something similar.
- Shipping abroad – Nowadays, shipping abroad is fairly easy, and there are many different options available to you. Make sure you choose a reliable company that has plenty of experience in the industry. The last thing you want is a company that is learning as they go! You’ll find more information about quality freight forwarding at www.jsforwarding.co.uk. Don’t cut corners with this area of overseas selling; it can make or break the success of your global business.
- Handling payments – Luckily, handling payments should also be easy. If you enable your customers to pay by card, you will receive sterling, and your customer will be charged in their local currency. The payment card provider will sort out the exchange rate, so you don’t need to worry about any of this or make any changes in-store.
- VAT – It is important to do a bit of research regarding VAT. You may not need to pay VAT; it depends on what you are selling, who your customer is, and where they are based. Now would be a good time to hire an accountant or accounting software so that you can comply with the VAT regulations.
- Make it known that you’re a UK-based business – Even though you are selling on a global scale, it is a good idea to make it known that your business is UK based. People like to know where they are buying from, and the UK is respected around the world, so it will only be of a benefit to show that you are situated here.