Expanding into new markets brings both opportunities and challenges. Scaling puts additional pressures on your resources, pricing strategy, and customer experience, posing potential risks to your brand's reputation.
This roadmap will guide you through each step of an ideal international transaction so you can identify risks to manage and opportunities to seize.
International sales growth road map – in 7 steps
01
Register in each country you plan to sell
Before you sell anything, your business may be required to register with local tax authorities to collect sales and use tax, value-added tax (VAT), or goods and services tax (GST), and submit returns. Failing to do so when required can result in penalties.
02
Add items to your site with the correct tariff codes
Assign the correct tariff codes (also known as HS codes) to each of your products so you can calculate customs duties and import taxes accurately. It can be tricky, but Avalara cross-border solutions can help you get it right.
03
Your overseas customer puts an item in their cart and checks out
Customers expect transparency at the checkout. Hidden costs are a key driver of cart abandonment, and can result in angry customers leaving bad reviews. Always strive for accuracy at the checkout
04
You package items for shipment including information to help with customs clearance
Couriers aren’t liable for your compliance. It’s up to you to value your goods accurately, describe them correctly, and pay the correct duties so your goods can clear customs as quickly as possible.
05
Your shipping company files an import declaration
Take note of any special fees or import taxes that may exist for specific items, such as potentially hazardous materials, and can cause customs delays.
06
Your shipment is transported to the destination country
Different countries can apply different duty rates to products, and varying rates and rules need to be considered. For example, a particular shoe might be charged 12.5% duty in the U.S., while in Australia the same shoe could be charged just 5%.
07
Your happy customer receives their order with no unwelcome surprises
Keep your customers happy by calculating and communicating duties and taxes. Customers who discover they have to pay extra to get their goods are unlikely to come back and buy again. They might even refuse the shipment, leaving you with return shipping costs.
Cross-border ecommerce can be complicated, but with a little knowledge and a helping hand, you can confidently find new customers for your products all over the world.