Fullfilment, dropshipping, own warehouse – how to tailor logistics solutions for cross-border e-commerce? 2023-10-20 przez iLabs - Kamil Logistics tends to be the biggest challenge for Polish companies starting cross-border e-commerce or export operations. Let us take a look at some of the logistics, warehousing and delivery solutions that can be successfully used in this industry. Fulfillment Fulfillment is the outsourcing of all logistics operations to a local third-party service provider, with the online retailer only taking care of the sales process. To be successful, this model requires a reliable logistics partner, the ability to monitor delivery performance and a favourable contract. In the most cost-effective option, the client only pays for the storage space actually used, without having to commit to a volume in advance. Dropshipping With dropshipping, the retailer is also solely responsible sales, while deliveries are made directly from the manufacturer and distributor. This model works best when the goods come from a single source. Also, this solution is most appropriate when manufacturers operate in the local market. Private labeling This solution is similar to dropshipping. The difference is that the manufacturer or distributor is involved not only in the shipping, but also in the preparation and packaging of the goods under the seller’s brand. This model is most effective when distributors are present in the local market. Own warehouse in the country Is renting warehouse space or building a warehouse abroad too expensive? In some industries, shipping goods abroad from a Polish warehouse is not necessarily a doomed solution. Consumers are willing to wait a little longer for delivery if the retailer offers a unique range or is highly competitive on price. The same applies to custom-made or premium products. Logistics can be taken to the next level with solutions such as Innoship’s software, which automates shipping processes based on the best price or delivery time.
Common mistakes when entering foreign markets 2023-10-15 przez iLabs - Kamil With no barriers to trade and business within the European Union, Polish companies are tempted to expand abroad. There is no one universal strategy for how best to enter a given market. It all depends on the industry and the preferences of local customers. The most common problems encountered by Polish e-commerce businesses when entering foreign markets include: lack of knowledge of the local market, lack of a coherent strategy or lack of a market-specific offer. Here is our advice on how to avoid them! Lack of local market knowledge Failure to understand the local market can include ignoring the preferences of customers in a particular country. For example, neighbouring Poland and Slovakia may have similar purchasing power, levels of digitalisation and even online shopping habits. Although the preferred forms of delivery or payment methods may vary, through seamless integration with existing platforms, online retailers can easily extend the range of their services to meet the expectations of their target market. Before entering a particular market, companies should get to know their potential customers, for example through: Local online surveys of consumer preferences or international market research; Own research (if budget allows); Reports prepared for Polish exporters (e.g. available on Trade.gov.pl). Using Poland and Slovakia as an example, these countries are home to Apaczka and Zaslat – online platforms offering courier services, both part of the Alsendo Group, a leader in logistics and technological solutions for businesses. Another similar mistake involves failing to research potential competitors in a given country. If the market is saturated, it will be difficult to get a slice of the local pie without a lot of investment and competing with strong, established players. Local regulations are a separate issue, but this is not relevant for the e-commerce and trading industry within the European Union, where uniform regulations apply. Lack of a coherent strategy The mistake of adopting the wrong strategy often stems directly from the first point, which is unfamiliarity with the market. For example, a marketing strategy that may have worked well in Poland will not always be successful in a neighbouring country – even one that shares the same culture. Consumers in each country make purchasing decisions based on different factors. An offering that is not adapted to market needs This brings us to the third mistake, which is failing to adapt the product range to the needs of local consumers. When expanding abroad, retailers need to keep in mind that an offering that works in Poland will not always be successful even in neighbouring countries such as Slovakia or the Czech Republic. This is due to different needs, shopping patterns and consumer habits. In many industries, pricing strategy can also make a huge difference to sales. When selling abroad, it is important to remember that people in some countries may buy more premium brands than others. This mainly depends on their level of income. Consumers in less affluent areas will be looking for ways to save money. Lack of experienced business partners and tools Working with local providers is a good strategy for entering a foreign market. A local marketing agency is by its very nature familiar with the consumers for whom it develops communications on a day-to-day basis. A local law firm will have a very good knowledge of local law. When exporting, it is worth considering working with a foreign distributor to get products to buyers more easily, even if the margin is lower. When it comes to tools, e-commerce retailing is a good example. If a company does not invest in a local warehouse, it will need to use tools to enable efficient cross-border deliveries. Polish retailers can benefit from the support of Alsendo Group companies, using services such as Apaczka Germany or Innoship software, which allows automated allocation of shipments to carriers, speeding up delivery times and reducing costs. In an age of easy access to information and sophisticated tools, it is really not worth risking potential mistakes when expanding into foreign markets.
Crossing borders. What are the key differences in e-commerce regulations in Europe? 2023-10-10 przez iLabs - Kamil Polish Online Retailers and EU Regulations Polish online retailers looking to sell within the European Union benefit from simplified processes in some areas. E-commerce regulations are largely based on EU legislation, making them consistent and universally applicable across the EU. Key European E-commerce Regulations The following are some of the main rules governing the e-commerce market in the EU: 14-day complaint resolution – Online retailers in the EU are required to process complaints within 14 days. Price disclosure – According to the Omnibus Directive, sellers must display the lowest price an item was offered at in the past 30 days. Warranty – Buyers have up to two years to prove that a product does not conform to the contract. Disclosure obligations – Sellers must inform customers if they are a business, if they use paid advertising, and provide their business address. 14-day withdrawal period – Customers have the right to withdraw from a purchase within 14 days, without needing to provide a reason. Returns and complaints policies – Every online retailer must have clear terms for handling returns and complaints. To streamline these processes, Innoship offers an automated delivery and returns system that supports efficient management. Personal data protection – GDPR regulations apply throughout the EU. Selling Beyond the European Union Retailers looking to expand outside the EU face more challenges. Local e-commerce regulations may vary significantly from EU laws, and shipments are often subject to VAT and customs duties, which are usually the buyer’s responsibility. For these reasons, it is generally advisable to focus cross-border e-commerce efforts within the EU first.
How to build lasting relationships in cross-border e-commerce? Acquiring and retaining customers in new markets 2023-10-04 przez iLabs - Kamil Loyal customers buy up to 90% more often and spend 67% more. It is important to remember that without high levels of customer retention, it is difficult to be successful in cross-border e-commerce. How do you achieve this? Customer acquisition in cross-border commerce Acquiring customers abroad can sometimes be more difficult than in your home market due to differences in consumer habits and needs. Here are the key steps to attracting shoppers: Analysis of the local market – The ideal solution is to conduct your own market research. If your budget does not allow for this, use existing sources such as reports on foreign markets published on www.trade.gov.pl. Research carried out by local institutions can also provide valuable information. Optimisation of the shop’s website – In many markets, customers are much more likely to trust websites that have a local domain name. Other ‘must haves’ include content in the local language, as well as local currency and payment methods. SEO – It is virtually impossible to promote a shop in a given market without SEO activity. Alternative solutions could include working with influencers, using recommendations or affiliate marketing strategies. Competitive advantage – Cross-border e-commerce is almost only viable if the shop stands out from its competitors, either in terms of affordability or the superiority of certain products over local goods. This makes consumers more willing to accept inconveniences, such as longer delivery times. Retaining customers in a new market Another challenge for the retailer is to retain the customers that have already been acquired – they are the group that guarantees a steady profit. Retention rate is the difference between the number of customers at the end of a given period and the number of customers acquired, divided by the number of customers at the beginning of the period, for example a year. It is expressed as a percentage and the average retention rate in retail is 63%. What you can do to improve your retention rate: Customer service in the local language – this enhances the experience and also improves customer loyalty. Loyalty programmes and promotions – these are universal mechanisms that can be used effectively in any market. Gathering and using customer feedback – this helps to build a positive experience and can be useful in marketing and sales strategies. Efficient logistics – long delivery times can deter customers from making repeat purchases. Therefore, it makes sense to ensure safe and timely delivery with the services offered by the Apaczka platform – an experienced partner in shipping processes. Ongoing communication with customers – through all possible channels, using personalised offers but also content marketing. Cross-border commerce is a great solution for retailers looking to expand into new markets, but it can only be successful if the retailer invests in attracting consumers and building loyalty.