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Cross border trade offers huge opportunities and the challenges aren’t as difficult as sellers and retailers might presume, said Zonos CRO Daniel Johnson. “There is lot of opportunity for cross border and many of the things that seem like challenges or issues can be overcome,” he said.

Navigating customs compliance is one of the biggest challenges for retailers, according to Johnson. Part of the reason for the challenge is that everywhere in the world is different, he said, highlighting the difference in VAT/tax rates across the world. “This is just one of the many variables,” he said.

Johnson ran retailers through all the fees that should feature in a total landed cost that he says many retailers often overlook. “There’s a lot more that goes in as opposed to just duty and tax,” he said.

He also highlighted typical experiences available online and the nasty surprises shoppers can receive when they receive additional charges payable upon delivery. “This is why shoppers are abandoning retailers because there are two primary reasons we buy online – price and convenience. When you get surprised with these extra fees at the time of delivery even if it’s still the best price, that’s not the perception of the consumer at the end.”

Johnson shared tips on how retailers can improve the experience including managing customer expectations at an early stage in terms of possible payments and reviewing shipping options.