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More sellers are seeing the benefits of cross-border eCommerce. Consumers worldwide shop online, opening up many opportunities for sellers in all regions.Fulfillment, however, is one problem that international sellers still face.
In 2022, global fulfillment was worth 97.33 billion USD and is expected to grow even more.
Because of the international selling demand, there are more global fulfillment solutions available. International fulfillment ensures the storage and shipping process is efficient and smooth, satisfying your customers.
Still, there are many fulfillment challenges that international sellers may face when expanding to different countries. Let’s explore these challenges and solutions while explaining how to find the best global fulfillment partner.
Common Global Fulfillment Challenges and Solutions
As an international seller, you’ll run into typical fulfillment problems. The key is to know the best global fulfillment solutions to solve these problems before they impact your company.
Here are global fulfillment challenges and solutions so you identify and solve these problems quickly.
Damaged Items
Items can arrive damaged for many reasons. The product may have been destroyed during transit, or even a delivery person could have been rough with the packaging.
No matter the reason for the damaged item, this problem can impact your business in different ways. You’ll either have to ship another product to the customer or issue a refund—both will cost your business money.
If damaged items are a regular item, your customers will stop buying from your store. The best course of action is to prevent any items from getting damaged in the first place. Fortunately, the solution lies in Front-end inventory management.
Front-end inventory management uses data to improve storage and shipping. During this process, fulfillment providers collect data on your items, such as if it’s perishable or fragile.
This way, the fulfillment service will know how to store, package, and ship your items to preserve their quality. Your fulfillment service will also conduct regular quality checks to ensure your item is in good shape for customers.
The fulfillment company may also include insurance for you and your customers, offering an extra layer of protection.
Shipping
If you plan on using your regional fulfillment service, you may face issues during the shipping process. International shipping can take weeks, even months.
If shipping takes too long, potential customers will purchase their items from another company. Plus, international shipping can get expensive for you and your customers. Try using international shipping couriers, instead.
A big mistake businesses make is shipping via USPS, UPS, or any regional option. It’s best to partner with a courier or other global fulfillment solutions specializing in international shipping.
Couriers operate in numerous countries and know the ins and outs of shipping in these regions. This can result in serious time and cost savings.
Incorrect Orders
Returning to the previous point, your international customers could wait weeks to receive your items. And when they finally do, imagine their disappointment when they realize they didn’t receive the correct order.
If you don’t handle the situation correctly, you could lose a devoted customer. Here’s where stellar customer service comes in.
Even if your inventory process is excellent, mistakes still happen. In this case, offering the best customer service will ensure you still maintain strong relationships with your customers.
For example, if a buyer complains they received the wrong order, offer different options. You can issue a refund or send them a replacement product. It’s always best to go the extra mile, such as sending an extra free item.
Poor Inventory Management
Inventory management is one of the most vital aspects of running an online store–no matter where you’re located. With an excellent inventory management system, you can track every step of the supply chain.
But when you have poor inventory management, you risk losing items, poor communication, and not keeping up with stock levels. This all leads to delays and extra costs—which can result in sales losses.
So, when you partner with global fulfillment solutions, choose one that offers data updates in real-time data. This way, you and your customers can track every step of the supply chain process. You’ll also know how much inventory you have and when to order more items.
Monolingual Customer Service
As stated, excellent customer service can solve many problems when operating internationally. However, many global businesses make the mistake of offering customer service in one language, specifically English.
Even though 1.5 billion people speak English (as a native or second language), there’s no guarantee all your customers will speak your language. In this case, they won’t feel comfortable informing you of delayed, missing, or damaged orders.
Instead of trying to solve the problem, they will support another company that offers customer support in their language. That’s why it is crucial to hire bilingual customer service agents.
The question is, what other languages should they speak? You’ll need to conduct serious sales and demographic research to understand who your customers are, where they live, and what language they speak.
Not Finding Quality Suppliers
Your suppliers will not only provide your inventory, but they act as a partner to make your store’s vision come to life.But there are times when you won’t find quality suppliers.
They may not communicate effectively and will offer low-quality inventory. Working with a bad supplier not only results in wasted money but also risks your reputation.
Know the qualities of a great supplier before partnering up with one. Finding a good supplier will take some research and vetting, but you can expedite the process by knowing what makes manufacturers a high-quality ally for you.
Here are some qualities to consider:
- Quick production and shipping options
- Flexible Minimum Order Quantities (MOQs)
- Works with clients similar to your business
- Affordable costs
Since you’ll be selling internationally, it’s best to work with suppliers with experience in different countries to ensure they can meet different consumer demands.
Lost Orders
Even if you have an excellent inventory management and fulfillment solution, some orders can get lost during the shipping process. This is especially true for international shipping; the courier will have your items for weeks or even months, and it could get misplaced down the line.
Still, lost orders are costly. Your customers may demand to have the order re-shipped or will request a refund. International shipping insurance can help you cover the cost of the product and other additional expenses if the item is lost or stolen.
Remember that every carrier offers different policies, so read the fine print before signing anything.
Fulfillment Costs
Global fulfillment solutions are integral when selling internationally. The wrong service, however, can drive up your costs.
When you pay for fulfillment, you pay for the storage space and worker wages. You may also be responsible for other expenses, such as transportation, import fees, and taxes and duties.
While businesses may think they should work with affordable global fulfillment solutions, prioritize ones that exercise transparency in their pricing.
Since global fulfillment comes with many expenses, it’s best to expect additional costs rather than work with suppliers that only promise the lowest prices.
If you need a cost-saving solution, you should inquire about any discounts.
Why You Need Global Fulfillment Solutions
Selling internationally comes with many rewards but also numerous problems. For many sellers, partnering with a global fulfillment company is the best solution.
Navigating the complexities of international selling is tedious for any seller. Global fulfillment companies will not only offer storage and shipping solutions but will be your expert allies in guiding you through any duties or taxes you need to pay.
You also avoid unnecessary costs and delays when shipping your own products internationally. This will help you scale your international selling process, ensuring you can meet customer demands and grow globally.
There are Many Global Fulfillment Solutions Available
International expansion is one of the smartest moves for eCommerce store owners. Numerous countries boost a healthy online market, and global expansion is an effective way to increase brand awareness and sales.
However, international sellers face many problems. Items can arrive damaged, get lost in international transit, and customers may receive incorrect orders.
If businesses don’t hire bilingual customer service representatives, their consumers won’t be able to communicate their problems. International shipping and fulfillment can also get expensive.
Fortunately, global fulfillment solutions can solve these problems. Partnering with a global fulfillment service can scale your international selling process, increasing sales and growth worldwide.
Author
Stephanie Jensen has been writing e-commerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
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