What is cross-border e-commerce?

It refers to international electronic commerce (EC) conducted via mail order sites using the Internet.Our goal is to sell Japanese products to consumers overseas, not just to consumers in Japan.

Recently, due to the influence of the weak yen, the cross-border e-commerce market has been revitalized, with popular Japanese e-commerce malls opening stores overseas and companies providing support services for cross-border e-commerce emerging.

Why is cross-border e-commerce attracting attention?

Here are some of the reasons why cross-border e-commerce is attracting so much attention around the world today. Behind the popularity of cross-border e-commerce is the widespread use of smartphones and the various benefits it offers in doing business.

Because it reduces costs

One of the reasons for the popularity of cross-border e-commerce is that it reduces the costs of directly opening a store overseas, eliminating the hassle of opening a store, as well as the wages of local staff and rental fees.
With an e-commerce site, you can significantly reduce initial costs, and you can get started for just a few tens of thousands to a few hundred thousand yen, including creating the site and installing the system.

Because smartphones have become widespread

One of the reasons why cross-border e-commerce is attracting so much attention is the widespread use of smartphones. Nowadays, anyone around the world can access e-commerce sites from their smartphone and enjoy shopping easily.

Also, even if you don't have a shopping mall nearby and don't have many opportunities to go shopping, with just a smartphone you can access e-commerce sites and easily purchase overseas products.

Because it can expand sales channels

If you start a cross-border e-commerce website easily, you can expand into overseas markets with relative ease. There is still a lot of demand for Japanese products overseas, and there are plenty of potential customers.

There are many customers overseas who are interested in Japanese products, but are unable to purchase them because there are no stores or opportunities to purchase them. With cross-border e-commerce, you can set up a store on the Internet for foreign customers, and expand your sales channels overseas.

How to get started in cross-border e-commerce

There are two main ways to start a cross-border e-commerce business.

The first method is to use a cross-border e-commerce mall. Malls that support cross-border e-commerce include eBAY, Amazon, Alibaba, Lazada, Shopee, Rakuten, etc. Each site has different advantages, so you will need to use different e-commerce malls depending on the region.
For example, by using Amazon, you can sell to 180 countries, and by using FBA, you can use Amazon's warehouse. Also, if you are considering expanding into China, it is recommended that you use Alibaba, which has more users than Amazon.

On the other hand, large companies with abundant funds can make their own websites compatible with cross-border e-commerce.

Important points to note about cross-border e-commerce

There are a few things to keep in mind when operating a cross-border e-commerce site.
There are some disadvantages and points to be aware of that are different from e-commerce sites aimed at the Japanese market, which we will introduce below.

language

The language barrier is a big hurdle when operating a cross-border e-commerce site. Whether you are using an overseas e-commerce site or adapting your own e-commerce site to overseas specifications, accurate translation is required. Be sure to pay attention to nuances so that you can follow the thinking and values of people overseas.

Customs Duties

The next issue is the existence of hurdles such as customs duties and obtaining licenses. Each country has various regulations regarding food, cosmetics, and pharmaceuticals.
For example, in the United States, FDA registration is mandatory for the transportation of the above items, and if you plan to export to China, you will need to meet the ingredient standards set out in the Cosmetic Safety Export Code.

settlement

Keep in mind that payment methods vary widely from country to country.
In China, mobile and smartphone payments are the mainstream payment methods. Third-party payment methods such as Alipay are particularly popular. Quickpay and internet banking are also popular. In contrast to China, secure payment methods are mainstream in the United States, and PayPal, which allows you to transfer money without revealing any credit card or account information to the store, is a popular payment method.

If you want to start exporting, choose "DigiTrad"

This time, we have brought you "What is cross-border e-commerce? How to get started and a summary of things to be aware of."

STANDAGE uses its own trade cloud service to provide "Digitrad", a service that can "completely" handle trade for small and medium-sized enterprises. "Digitrad" allows you to develop overseas sales channels at low cost thanks to the application of IT introduction subsidies. We can also handle small-scale, low-value trade and domestic purchases that cannot be done by large trading companies, so please feel free to contact us.

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