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The Importance of Supply Chain in Cross Border Ecommerce - Part I
- International research carried out by multiple agencies such as Paypal, Pyments, etc. are clear that you have to be able to display the accurate final price to your customer without too many different components confusing her. This means that all your small cost components should be built into your final price being displayed on the marketplace. You should not show customs and duties payable, payment fees, etc. unless you want to lose customers.
- You have to be able to clear outbound customs from India without hassle, spending time or adding extra costs to your price.
- Your product needs to be able to clear customs scrutiny, pay the customs and duties applicable and also pay local taxes and VAT in your destination market without involving your customer. This implies a very sophisticated logistics model that is able to understand your product in detail, prevent restricted products from being shipped, pay such dues as are applicable and deliver the product to the end customer.
- In many European countries, customers are protected by the local laws and are able to return your products within 14 days without requiring to state a reason for return. This implies a higher rate of return when the products are not satisfactory. It also implies that you need to be able to build the cost of returns into your product price and be able to create a pipeline for returning the products back to India.
- Returns back to India are more complicated than is normally assumed. E-commerce products do not pay outgoing duties and no customs note is generated on its way out of the country. This lack of a customs note makes it impossible to get the product back into India without paying import duties in India.