Global Selling
What’s cross-border ecommerce? Advantages for Japanese companies and individuals to start Global Selling
Some might wonder, “What’s cross-border ecommerce?” and “What are the advantages of starting Global Selling?” We’ll introduce some of the advantages and disadvantages of starting Global Selling.
Cross-border ecommerce (Global Selling)
Cross-border ecommerce refers to selling products and services to global customers in ecommerce.
To give an example, Japanese companies sell products to customers in the US and UK.
With the spread of ecommerce, cross-border ecommerce has been growing rapidly, and consumers can purchase products from around the world through ecommerce. Furthermore, since companies can also sell products globally, the need for cross-border ecommerce has been rising.
The future potential of cross-border ecommerce (Global Selling)
Each year, more companies and individuals are recognizing the future potential of cross-border ecommerce and starting Global Selling.
In fact, the market size of cross-border ecommerce between countries has been increasing.
In fact, the market size of cross-border ecommerce between countries has been increasing.
Japan: 372.7 billion yen
US: 2.0409 trillion yen
China: 4.7165 trillion yen
For example, the Japanese market is “372.7 billion yen,” but the US is “2.0409 trillion yen” - a sixfold difference.
Furthermore, the size of the cross-border ecommerce market is expected to expand to 4.82 trillion dollars by 2026. ¹
¹ Facts & Factors.Published data
The size of the cross-border ecommerce market is expected to further expand in the future, and in turn the number of companies and individuals starting Global Selling is also expected to increase.
Advantages of cross-border ecommerce (Global Selling)
Next, here are some of advantages of cross-border ecommerce.
•Expand your market: Since you can sell across borders, it’s possible to reach customers in new regions and countries
•Build a global brand: Acquire a global brand image through Global Selling
•Increase sales potential: Expanding into new markets gives you the opportunity to increase sales
•Build a global brand: Acquire a global brand image through Global Selling
•Increase sales potential: Expanding into new markets gives you the opportunity to increase sales
Points to note when starting cross-border ecommerce (Global Selling)
On the other hand, there are also some points to keep in mind when starting cross-border ecommerce.
•Understand current laws and regulations: When participating in Global Selling, you’ll need to understand the laws and regulations of the area you’re selling in
•Understand costs such as trade and tariffs: With cross-border ecommerce, costs such as trade and tariffs may occur
•Understand the local language and culture: Different countries and regions have different languages and cultures, so it’s necessary to adapt to the local area
•Understand costs such as trade and tariffs: With cross-border ecommerce, costs such as trade and tariffs may occur
•Understand the local language and culture: Different countries and regions have different languages and cultures, so it’s necessary to adapt to the local area
Sales channels when starting cross-border ecommerce (Global Selling)
When starting cross-border ecommerce, there are two main sales channels.
Specifically, the two types are: “sell on an in-house website,” or “sell on ecommerce websites like Amazon.”
Specifically, the two types are: “sell on an in-house website,” or “sell on ecommerce websites like Amazon.”
Sales channel comparison
In-house website
Amazon
Characteristics of in-house websites
The profit margin is high, but since the ability to attract customers is low, it is difficult to promote sales after you start selling
Characteristics of ecommerce websites like Amazon
The profit margin tends to be low compared to having your own website, but the costs required for launching are also low, and it’s easy to do sales promotions
The profit margin is high, but since the ability to attract customers is low, it is difficult to promote sales after you start selling
Characteristics of ecommerce websites like Amazon
The profit margin tends to be low compared to having your own website, but the costs required for launching are also low, and it’s easy to do sales promotions
Advantages of starting cross-border ecommerce (Global Selling) on Amazon
Here are four advantages to starting cross-border ecommerce on Amazon.
1. Centralize account management
2. Use Amazon’s delivery agency service
3. Approach global customers
4. Utilize Amazon's sales promotion tools
2. Use Amazon’s delivery agency service
3. Approach global customers
4. Utilize Amazon's sales promotion tools
1. Centralize account management
You can list/register in each marketplace with a single Seller account and centralize management.
We also offer the option to sell at discounted prices in multiple countries.
We also offer the option to sell at discounted prices in multiple countries.
FAQ:
What is account merging?
If you are merging accounts, the monthly subscription fee is either the sum of the monthly subscription fees for each country where you are active, or the equivalent of 39.99 dollars per month, whichever one is lower.
2. Use Amazon’s delivery agency service
By using FBA (Amazon Delivery Service), you can simplify tasks like warehouse storage, shipping, etc.
Tool:
FBA Revenue Calculator
When you use the FBA Revenue Calculator, the pricing for Fulfilled by Amazon (FBA), as well as the pricing for the Merchant Fulfillment Network (in-house delivery) will be displayed.
3. Approach global customers
Amazon has expanded its marketplace to a wide range of countries and regions.
*As of June 2024
Therefore, by starting cross-border ecommerce on Amazon, there’s a bigger possibility that you’ll be able to reach many customers.
4. Utilize Amazon's sales promotion tools
On Amazon, you can use various useful tools for sales promotions, including for Global Selling.
Customer service
Provide fast shipping
Products with the Prime badge will be delivered to customers faster than products without the Prime badge. You can get it by using Fulfillment by Amazon (FBA) to ship products from one of our fulfillment centers.
Gain traffic
Product ads
Operate ads in search results and on product detail pages. Help improve visibility of individual products and boost brand awareness. Running a deal or a coupon is another way to promote your products.
Questions about cross-border ecommerce (Global Selling)
Here are some answers to questions about cross-border ecommerce.
How much does it cost to start Global Selling?
Examples of costs for starting Global Selling on Amazon are as follows.
*Assuming that sales will be made on Amazon.com (US)
•Monthly Fees: Please check here •Selling Fees:
Please check here •FBA Fees:
Shipping charges+storage fee •Other: Shipping fees
to global FBA warehouses (when using FBA)
Please check here •FBA Fees:
Shipping charges+storage fee •Other: Shipping fees
to global FBA warehouses (when using FBA)
Are there any steps to start cross-border ecommerce on Amazon?
Here are four steps to start cross-border ecommerce using Amazon.
This applies to both those selling on Amazon in Japan and those who are not selling on Amazon.
This applies to both those selling on Amazon in Japan and those who are not selling on Amazon.
(1) Decide which countries and regions to start cross-border ecommerce
(2) Open a Global Selling account
(3) Register your products and start offering them
(4) Conduct cross-border ecommerce sales promotions
(2) Open a Global Selling account
(3) Register your products and start offering them
(4) Conduct cross-border ecommerce sales promotions
On average, the preparation period before starting Global Selling is around two to three months.
