How to Sell Online Abroad (3)

If in the first post we talked about the basics of eCommerce internationalization, such as defining the target audience or market research, in the second post of the series we delved into logistics and pricing strategy.

 

Still, there are several important topics left to address. Next, we will explain the legal part in an accessible and clear way. I know it is not the most attractive topic, but it is worth paying a little attention if you do not want to find yourself in problems that can seriously compromise the viability of your online store.

Tariffs, customs management, taxes, duties, data protection, advertising regulations, special taxes...

 

The first thing we are going to recommend is that you seek advice from a specialist and use billing tools adapted or based in that nation. This is the safest way to take the leap to other markets that can be very complex.

 

Anyway, even if you decide to outsource this part, it is essential to understand the context. First, to evaluate if it is really interesting for you, and second, to make the best strategic decisions.

 

For example: imagine you sell food products, and you have the famous Kinder Eggs or a similar version in your catalog. If that is your star product and you want to sell it in the USA, you have a serious problem; as they have been banned by law since 1938. The reason is that you cannot sell an edible product that contains another that is not, and the fine is $300 per exported unit, so... better think of something else.

 

But there are many more cases like chewing gum in Taiwan (with fines for sellers up to $100,000), genetically modified products strictly prohibited in Austria, raw milk in Canada...

 

And that is just talking about food as an example.

Obviously, we are dealing with different legal frameworks, which leads us to make decisions on an individualized basis, depending on each area.

 

As the main advice, if this is your first experience in international eCommerce, the recommendation is clear: start selling in countries within the European Economic Area. It is not just a matter of logistics or costs, but also regulations, to which member states adhere.

 

In the case of Spain, there are various laws regulating e-commerce, but one of the most important is 34/2002 of July 11 (LSSICE), which incorporates the directive 2000/31/EC of the Council and the European Parliament into Spanish legal order.

 

This is what happens with the rest of the member states of the Union, which operate under this fundamental legal framework, aimed at removing obstacles to cross-border services.

 

This means that we must observe some transparency rules so that buyers know, clearly:

 

 

As you can see, nothing you have not already solved if you sell nationally.

Then, we face the fiscal aspect, which in recent years has been greatly simplified for intra-community operations:

 

 

And a third issue that you must have more than covered, because everything is becoming more restrictive, is the storage and use of your customers' data.

Since the entry into force of the European GDPR, you must scrupulously comply with the data protection law. The rules are very clear and so are the penalties. This is something similar to what happens with the cookie policy.

I already mentioned that unless you have a very clear business opportunity, it is preferable to leave this adventure for later and scale the business progressively. Not only because of the bureaucratic complexity of selling in North America and, I don't even want to mention, in certain parts of Asia, but also because of costs and margins.

 

It is likely that a large part of the margin will be lost in shipping, logistics, and other things, because, keep in mind, you will need to expand your infrastructure.

 

In the next post of this series, we will talk about how to adapt the store to sell online abroad and how to segment your campaigns, to close this small but practical guide.