Is selling internationally a good idea in 2022?

It is rare for a merchant to voluntarily restrict their target market and thereby give up customers. Yet, selling internationally is an opportunity to increase your revenue. However, the principle of free movement does not apply everywhere. Exports of certain goods are subject to movement restrictions or strictly prohibited. In addition, you need to consider how your goods will be transported to ensure they arrive safely and in good condition. Finally, if your business is suited to international sales, you need to prepare for it — here’s how.

E-commerce knows no borders

The internet has torn down border barriers to the flow of information and has made international sales easier for e-commerce businesses. Online buyers are not limited by time or place — they can order from anywhere in the world, at any hour of the day or night.

If you can ship a parcel to the other end of France, why not send it to the other side of the world?

What are the conditions for selling internationally?

Before diving into international sales, you need to check that your business is suited to it.

Are your products allowed abroad?

You need to take other countries’ legislation into account. Some products are completely banned, while others are subject to strict controls that delay deliveries too much for the operation to remain worthwhile. Customs authorities enforce restrictive national and international regulations, in cooperation with other administrations, and can temporarily or permanently hold your items at the border.

You need to account for the restriction and prohibition measures in force in certain countries. You’re also constrained by embargo measures imposed by governments. Since each country has its own specific requirements, it’s not possible to summarize them all here, but you inevitably end up dependent on geopolitics.

Prohibited items can be extremely diverse. Food products, for example, are subject to strict regulations. The same applies to the sale of plant products. You also need to take into account safety standards, which differ from one country to another. Some items may be allowed, provided they carry an information notice or a label specifying certain details.

Pharmaceutical products, dietary supplements, and all wellness-related products are also subject to restrictions. Unsurprisingly, CBD-based products are particularly closely monitored, as are vaping-related items, which are now banned in some countries.

Really take the time to study the conditions in every country, as some regulations are unexpected. For example, baby walkers are now illegal in Canada, deemed too dangerous.

Are your products suited to shipping?

If you sell perishable items, they may not withstand shipping conditions. If you sell food products or plants, it isn’t always possible to package them for transport. You also need to factor in delivery times. A plant can survive two or three days in a suitable container, but it won’t survive one or several weeks in transit.

Are shipping costs manageable?

When you ship a parcel, you can either factor delivery into your margin or pass the cost on to your customer. Either way, it affects the final price. If you sell heavy and/or bulky items, shipping costs can become prohibitive. Do the math and determine in which countries your business remains profitable before opening sales there.

Taxes on international e-commerce

International tax law is complex. You need to examine, on a case-by-case basis, the taxes that apply to your transactions. You then need to find out how to declare these charges to the French tax authorities, so they don’t eat into your margins.

If you’re now confident that your products can be sold internationally, you need to prepare for it. Here are the steps to follow.

Decide how to sell your items abroad

You have two options for selling your items abroad: your e-commerce store or international platforms such as eBay, Etsy, Alibaba, etc. If you choose the second option, take the time to study the terms of sale. You’ll be liable for export-related taxes, as well as direct platform fees, which can apply flat rates or percentages that wipe out your margin entirely.

You should also look into how your products are showcased on the platform, because if you get lost in the crowd, you’ll waste a lot of energy for nothing. Finally, don’t forget to sync the international platform with your stock levels so you’re not caught off guard and can meet your promised delivery times.

Translate your website and product pages

If you sell outside a French-speaking region, you must translate the information on your website, as well as your product pages. English is the bare minimum. If you’re targeting a specific country, you should add a translation in its language.

Translate your invoices and, above all, your currencies

If you sell outside the eurozone, translating prices into different currencies is a strong incentive. Visitors will appreciate not having to look up their currency’s exchange rate against the euro or reach for a calculator. This matters even more once a prospect has finished filling their cart and sees the total price displayed, including shipping. Automatic currency conversion helps prevent many cart abandonments.

Choose multilingual e-commerce invoicing software

You send an invoice to your customer for every sale. There are multilingual e-commerce invoicing tools — such as Bizyness, for example — that automatically translate invoices and apply current exchange rates. Customers appreciate the transparency, while the software handles your accounting directly.

Factor in your returns policy

Your returns policy also applies to international sales, but the pricing terms are not the same. Beyond the higher cost compared to shipping within France, you need to factor in the related taxes.

Plan for these additional costs in your terms and conditions of sale.

If your business is suited to it, there’s no reason not to launch into international sales, as it’s a powerful lever for growing your revenue.