To manage content on your website, you might use an open source content management system (CMS) like WordPress or a digital experience platform (DXP) like Adobe Experience Manager. These solutions allow you to control written content, images, and videos to attract and engage customers as they browse your online store.
I. THE SCALE OF THE CHALLENGE
Let’s zero in on one of those challenges: Regulatory compliance spans an incredibly wide range of issues, but is effectively about laws that apply to finance, sales and related data privacy, international trade and tax issues. The pace and rate of change in regulatory compliance pose a significant financial and legal risk to ecommerce. Entering some of the most attractive country markets means taking on some of the most difficult regulatory requirements. And there are plenty of stateside regulatory and compliance issues to contend with as well.
The penalties and legal ramifications for falling out of compliance can be severe. That’s why brands need to make sure they have the right technology, processes and people in place before selling into new markets
Of United Nations Conference on Trade and Development (UNCTAD) member states have implemented e-transaction laws.
Of online consumers consider data privacy and security as very important factors when deciding where to buy.
Of UNCTAD member states have implemented cybercrime laws and 58% have implemented data protection and privacy laws.
II. THE RIGHT TECHNOLOGY
Competing in today’s market and reaching new customers here and around the world, brands need to provide multiple buying options—including building a robust direct to consumer (D2C) ecommerce channel. When most people think about launching a D2C ecommerce channel, the first thing that often comes to mind is building an ecommerce store that provides outstanding customer experiences. They immediately start thinking about what it means to create a site with a sleek design and great UX.
But to provide outstanding customer experiences, you also need to align your back-office processes to accommodate your new direct ecommerce strategy.
After all, switching from selling your products wholesale to selling on an individual basis will require a significant change in your accounting, shipping, payment processing, fulfillment, order management systems, and other back‑office operations. And offering preferred local payment methods, a smooth checkout process and timely delivery is just as important as UX design for keeping customers happy.
While there are full-stack solutions available, brands today are taking a more modular approach for greater flexibility, speed, innovation, and scalability. Digital River provides the following solutions:
Experience Platform (CMS & DXP)
Fraud Prevention Platform
Tax Management Platformm
Order Management System
Experience Platform (CMS & DXP)
Often paired with a CMS or DXP system, the commerce platform you choose has a major impact on the profitability and scalability of your online business. It is a vital tool allowing you to control shopper experiences, from product information to merchandising, pricing, promotions, the shopping cart, and checkout.
In order to accept customer payments, you’ll need to integrate a payment solution into your store’s checkout experience. It is important to look for a payment solution with the ability to display and transact in local currency and payment methods. Up to 50% of shoppers will abandon their cart if they are shown a foreign currency or an unfamiliar payment method. If you’re looking to optimize your ecommerce revenue, a localized checkout experience is extremely important for converting international shoppers.
Fraud Prevention Platform
Fraud management is often included in many payment solutions, but if you experience a high volume of chargebacks, you may need a more specialized fraud solution—one that uses automated workflows, machine learning, and insights from multiple online merchants and transaction types.
Tax Management Platform
Managing taxes on a global scale is a major headache for most online businesses. As you enter new countries, the time, effort, and resources required to scale your operations to manage ever-changing tax laws can be daunting. The US alone has 12,000 tax jurisdictions, each with their own unique requirements. And in the EU, there are 28 member states with VAT rates ranging from 17-27%.
Order Management System
You are looking for an order management system (OMS) that enables flawless customer experiences by orchestrating order fulfillment, while providing your customers the true landed cost and real-time order information. Having an effective OMS means less manual work, increased order accuracy, and better tracking of online orders.
Whether you own and manage your own inventory, or partner with a third-party logistics (3PL) solution, you need an efficient way to ship orders on a timely basis. A fulfillment integration connects the front-end shopper experience to your back-end inventory and shipping. When an order is captured, the appropriate warehouse receives the order details, prepares the shipment, and coordinates with the carrier who ultimately delivers the shipment to the customer’s doorstep.
The ERP system plays a key role as the “system of record,” ensuring that all customer data is accurate and consistent. However, ERP systems lack certain capabilities that an OMS can provide to help you keep up with dynamic customer expectations. For that reason, many online businesses today use an OMS that is closely integrated with their ERP system. Together, ERP and OMS systems enable agility in day-to-day operations without having a major impact on your accounting processes.
III. THE RIGHT PROCESSES
Building a compliance group and enacting the right policies and processes starts by prioritizing your risks to see which kinds of issues (security, privacy, etc.) are most likely to put your business on the radar of regulators. Review the most relevant regulations to your business and build a framework for operations around that – while making sure that all of your processes are tailored to the specific geographies in which you operate.
For instance, do you want to:
Expand your footprint internationally?
GDPR in Europe, CCPA in California, the Great Firewall in China. How are you going to deal with all these different, overlapping concerns and guidelines?
Grow your digital channel or create a direct-to-consumer channel?
Depending on what you’re selling, what different products, there can be different regulatory rules that apply. And the risks may be different if you’re selling digital goods or services (software, subscription services) or physical goods, because different regulations can apply. It can be lot more complex if you’re selling physical goods into different countries, for example.
IV. THE RIGHT PARTNER
Partnerships are critical for ensuring you stay compliant and keep both your business and customers safe. Look for partners that have a large global footprint but also have experience helping brands like yours in the specific markets you want to target.
Going global is not easy. Here are just some of the localization challenges you’ll have to overcome when expanding globally, and how the right partner can you help you gain onshore advantages through hyper-localization:
CHALLENGE: Complicated import and export regulations and restrictions.
SOLUTION: A partner that can offer local buying experiences.
CHALLENGE: Increased financial and legal risk.
SOLUTION: A partner that’s responsible and accountable for anything that comes under global regulatory compliance, global tax management, fraud management, and payment processing.
CHALLENGE: Increased levels of payment processing declines.
SOLUTION: A partner well-versed in local transaction routing.
CHALLENGE: The high cost of investing in local infrastructure.
SOLUTION: A partner that offers already established local entities.
Learn how Digital River provides an ecommerce solution that is just that—an API-first, ecosystem-connected solution for global ecommerce payment processing, fraud mitigation, risk management, and tax compliance.Connect with us today
so that you can start seeing 2021 and beyond!