going global: expert insights to expand your ecommerce business

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MARCH 15TH, 2017 Going Global: Expert Insights to Expand Your eCommerce Business

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M A R C H 1 5 T H , 2 0 1 7

Going Global: Expert Insights to Expand Your eCommerce Business

GAURI IYENGAR Customer Success

Teikametrics

CHRIS O’SHEA B2B Marketing

Meridian

OURSPEAKERS

MIKE INDIGARO eCommerce Expert

Teikametrics

DARREN HUTCHINSON Head of Sales, U.S

WorldFirst

Overview 01When to “Go Global”?

Marketplace and fulfillment options to expand

How globalization can affect profitability and pricing

Exchange Rates, Currency Risk Management and Foreign Tax Compliance

02

03 04

When to “Go Global”?

Identify Demand!

Indicators for expansion:

Is your product affected by seasonality? Can those items be sold in another country that is in season?

Are you searching for new growth opportunities?

Are customers ordering your products from outside of your home market?

You Must Conduct Market Research

Is your product a good market fit in a particular country?

What is the competition like in the new marketplace?

Use market research tools provided by your government

Marketplace and Fulfillment Options

Amazon FBA Options

European Fulfillment Network

Pan-European FBA

Multi-Country Inventory

North American Unified

CHINA JAPAN INDIA

Non-Amazon Marketplaces Around the World

Supply Chain Considerations

FBA simplifies this process to a point

Build strong relationships

Suppliers

Exchange rate providers

Accountants

Globalization and Your Bottom Line

Every Expense Matters!

Transfer Fees

Unfavorable Exchange Rates

Duties and Taxes

Local Fees

Accountant/attorney

conversant in tax law

Shipping costs: Large or heavy items

cost more to ship

Product registration in local markets

Translation services

Sponsored products advertising*

Sponsored Products–Internationally

Available in 6 marketplaces

If you create a new product listing in a new marketplace you essentially have to “start from scratch”

Rebuild brand equity

Reintroduce your product to a new audience

Exchange Rates and Currency Risk

Management

Selling in new countries will influence your pricing strategy due the localized foreign currency.

Exchange RatesWhat are they and how will they affect you?

Keep your prices competitive – Are the exchange rates favorable or unfavorable?

If unfavorable, figure out a way to control your ability to market your product as a “premium” offering

The types of foreign exchange contracts?

Your Banking Options

Do you need a local bank account?

How to save on repatriating monies with World First

Currency Products

FORWARD CONTRACTS

MARKET WATCH

A forward contract will allow you to fix a rate for up to 3 years

Let us be your eyes and ears on the currency markets

RATE ALERTSGet an email notification when your target rate is reached

FIRM ORDERSAutomatically trigger a payment if a certain rate is achieved

Forward Contracts

A forward contract can

be used by a seller to

control their profit

margin and pricing for

a chosen period of

time.

For example: your disbursements are £50K per month, and your

profit margin is 5% with GBPUSD rate at 1.24. If you’re relying on

the spot rate you are open to market fluctuations and therefore

your profit margin can change. If you had booked in a forward

contract at 1.24 to protect your profit margins, you would retain the

5% margin.

Pros: Allows you to forecast your

disbursements

Budgeting your printing to

protect profit margins

Allows you to focus on other

areas of your business

Cons: You do not benefit if rates

moves against your forward

rate

Foreign Tax Compliance

What taxes or local regulations will affect your business?

Excise taxes

Local import tariffs

VAT

US Sales Tax

What is VAT?

“VAT” stands for “Value Added Tax”

Various rates - standard rate, reduced rate, zero rate, VAT exempt

VAT a paid to the government directly by the producer, and the cost is passed on to the consumer

VAT avoids the cascade effect of sales tax by taxing only the value-added of each stage of production

Not being compliant? Penalties…

Repay all of the tax owed – up to 10 Years

Pay interest and fines of up to 200%

Company directors can be personally liable

VAT is becoming a more significant source of revenue for jurisdictions there is a greater focus on enforcing compliance and combating fraud.

Tax authorities are being more aggressive in how they treat VAT errors/shortfalls.

Where companies have a VAT obligation, they need to: Set up a VAT registration (no permanent establishment or corporate tax issues); and

Produce & submit regular VAT returns, EC Sales Lists, Intrastat reports

• Accurately

• On time

• Compliant with the prevailing national legislation

Pay (and recover) the required tax

VAT Registration/ VAT Compliance

If you do not register for UK VAT there is a risk of suspension from marketplaces

Marketplace requirements & VAT/Sales Tax IDs

Register for VAT/Obtain VAT

Identification Number

Input your New VAT Number

on to Marketplaces

Copyright ChannelAdvisor 2015

Evaluate whether your business is ready to enter a new marketplace

Research the new market to make sure your product is a good fit

Research pricing strategies, expenses and taxes associated with international selling

Research all available options to see which marketplace will work best for you

Review

Q&A

M A R C H 2 9 T H , 2 0 1 7 | 3 P M E S T

A P R I L 1 2 T H , 2 0 1 7 | 3 P M E S T

Upcoming Webinars

Thank youFor Attending!

@Teikametrics

These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgment.

Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed.

All opinions and estimates constitute the author’s own judgment as of the date of the briefing and are subject to change without notice.

Any rates given are ‘interbank’ i.e. for amounts of $5million or more thus are not indicative of the rates offered by World First.

World First USA, Inc. is a Delaware corporation, registered as a Money Services Business in the United States with FinCEN (Registration number 31000099952286), and holds licensing as a non-depository financial institution with the Nationwide Multistate Licensing System (NMLS#1018479). World First USA, Inc. is also registered in Canada with FINTRAC (registration number M11393445).

Disclaimer