Just like any other businessman, your aim will also be the continuous growth of your business. Once you manage to reach the success level you want in your country, you wish to take your business to the International level. You can do so by introducing your products or services in many countries. However, you need a robust order management system to manage orders across borders.
Despite having a good order management system, you still have to face some challenges in cross-border order management. In this article, we will discuss all the major challenges you have to face in cross-border order management. Moreover, we will also tell you how to tackle these challenges. So, let’s start exploring challenges and their solutions without further ado.
Challenge 1: Customs and Regulatory Compliance
In your home country, you are fully aware of the customs taxes and other similar charges. Similarly, you completely understand the rules and regulations as well. However, when you are selling products cross-border, you have no idea about them. You don’t know clearly about the customs and rules and regulations in that country. You can only get the basic information from some online resources but will fail to understand the changes in regulations.
Solution: You need to implement a robust complaint strategy. This strategy will help achieve regulatory compliance in different countries and states. Another thing you need to consider in this regard is the implementation of a solid order management system that can easily handle international requirements.
Challenge 2: Fluctuations in Currency
In your country, you are well aware of the currency conditions. However, you cannot keep a record of the currency of other countries. Sometimes, fluctuations can be observed in currencies. As a result, you have to raise or reduce the cost of your products. The result of these fluctuations will have a direct impact on the pricing strategies, profit margin, etc.
Solution: Currency fluctuation may appear as a problem in the country where you are not residing. But it’s your problem as well because your business is there. You have customers there and your business will be impacted by these fluctuations. The key thing you can do to avoid these situations is to set a clear pricing strategy. Apart from that, you must leverage advanced technology to adjust prices based on real-time international exchange rates.
Challenge 3: Cultural & Language Differences
Every country has its distinct culture and language. If you are in Asia, it will be easy for you to manage orders in nearby countries. The reason behind that is quite simple. The traditions and cultures in neighboring countries are almost similar. However, if you are in Asia and trying to manage orders in America, you have to face cultural and language differences.
Solution: The key thing you can do in this regard is to invest in hiring the local employers from the countries where you are selling your products. Apart from that, you must offer multilingual customer support. This will help reduce the language barrier. You can leverage the power of the internet and social media to get some idea about their traditions as well.
Challenge 4: Logistic Challenges
It’s quite easy to maintain logistics in a country where you are residing. When you are managing order cross-border, you have to pay special attention to the logistic challenges. You often have to deal with long shipping distances and potential delays.
Solution: There are numerous International logistic providers. You need to forge relations with them to overcome this challenge. Apart from that, you focus on strategic warehouse management as well to reduce shipping distances.
Challenge 5: Payment Across Borders
The payment methods are usually different in different countries. So, payment across borders is also a big challenge for cross-border order management. The currency and payment method preferred by the customers can make it even more challenging for you.
Solution: To tackle this challenge, you need to introduce a multi-currency payment system. You must offer different payment options so that your customers can choose their preferred one to pay you.
For cross-border order management, you have to tackle numerous challenges. Without dealing with these challenges, you cannot grow your business internationally. Sticking to the aforementioned solutions can help you tackle these challenges.