How to Expand your Business into China
CommerceCentric are the D2C Internationalisation specialists. We enable D2C brands to overcome internationalisation constraints and successfully enter new global markets.
Whether your brand produces physical or digital goods you will need to comply with a range of country level product regulations before you can enter a new local market. At CommerceCentric we can help your brand to comply with a range of international product regulations including:
- Advertising restrictions.
- Product package restrictions.
- Banned / controlled products.
- Warranty product regulations.
- Pre-order product restrictions.
- Product quality and safety standards.
- Time of day product sale restrictions.
- Geo-ip, shipping or billing restrictions.
- County / region specific product variations.
- Age ratings + age verification (upfront / fulfiller).
- IP restrictions (patents, copyrights + trademarks).
Taxes, Duties and Regulatory Fees
Brands entering new local markets will be required to calculate, collect and file taxes, duties and regulatory fees in multiple international countries depending on D2C business model adopted by the brand. CommerceCentric can work with your Brand to plan and implement strategies to deal with a wide range of compliance measures including:
- VIES VAT number validation.
- Tax exemptions and holidays.
- Product tax / VAT rate calculation.
- Local tax invoice + VAT receipt requirements.
- Forward + backward price list tax calculation.
- Tax registration, collection, filing + remittance.
- Environmental fees (WEEE, EHF, California etc.).
- Tax inclusive / exclusive price display regulations.
- Cross border duties (inc. landed cost calculation).
- Copyright and licencing fee collection and filling.
- Tax calculation (SOR nexus + ship to / bill to address).
Taking your brand direct-to-consumer in a new market means that you are now responsible for looking after and respecting the rights of customers based in that market. Consumer regulations vary from market to market so it is very important that your brand is aware of specific regulations before entering the new market. At CommerceCentric we work with brands to comply with a range of consumer protection regulations including:
- Subscriptions and auto-billing terms.
- Site wording, button + cookie regulations.
- Right of withdrawal for digital downloads.
- Cancellations, returns and refund regulations.
- Social media + email solicitation requirements.
- PII, SSAE 16 + onshore data centre requirements.
- Maximum delivery period + pre-auth regulations.
- Government language requirements (eg. Canada).
- Accessibility regulations (S.508, AMA, WCAG, W3C).
- PCI, SOC, PSD2, GDP, CCPA, Privacy Mark standards.
Brands selling direct-to-consumer in multiple countries will need to put special thought into their international pricing strategy. There are multiple factors that can influence pricing strategy including government regulations, price elasticity of the local market, competition, consumer purchasing power, foreign currency exchange and chosen business model. Here at CommerceCentric we have extensive experience building effective international pricing strategies for global brands. Our areas of expertise include:
- Tiered pricing plans.
- Private store pricing.
- Volume licencing plans
- Multi-currency price lists.
- Subscription renewal pricing.
- Discounting and pretty pricing.
- FX conversion (fixed, floating or card issuer).
- Price list localisation (currency, country or region).
- Price list mapping (IP, billing or shipping address).
- Currency format (symbol type, position, integer / decimal separator, fractional digit + rounding).
There are a number of complexities that brands will face when selling their products into new local markets. At CommerceCentric we have successfully helped brands to overcome various global fulfillment constraints including:
- Cash on delivery.
- Garage fulfilment.
- Global fulfiller and carrier restrictions.
- Digital keys, entitlement and revocation.
- Pre-orders, back-orders and order tracking.
- Flat rate or shipping table cost configuration.
- Country / zone based shipping rate configuration.
- Track-trace, reverse logistics, vendor RMA and ELOD.
- Local inventory feeds, buffers and multi-sourcing.
- Carrier, method, freight + shipping account config.
- Distribution, self managed or consignment models.
Any brand selling direct-to-consumer in a new local markets will need to comply with a complex web of export compliance regulations. Prior to entering a new market the brand will need to build out an effective export compliance strategy and implementation plan to ensure that the D2C channel can function smoothly and efficiently from day one. Failure to plan out an effective export compliance strategy can often lead to order fulfillment delays, customer satisfaction, increased logistical costs and in worst case scenario fines from local customs and regulatory authorities. At CommerceCentric we can help D2C Brands to overcome a range of export compliance constraints including:
- EEI filing for US exports.
- Country of origin recording.
- Cross border selling restrictions.
- Denied parties list (DP) screening.
- Country level embargo restrictions.
- Schedule B number registration (US).
- Tariffs, quotas and free-trade restrictions.
- Export control classification number (ECCN).
- Harmonized tariff code recording (HS / HTS).
- Exporter of record EIN number registration (US).
- Export license exemption recording (NLR, ENC, etc).
Local and International Payment Methods
A key factor in successfully entering a new local market is a well defined payments strategy. At CommerceCentric we work with brands to implement local and international payment methods. We help brands to overcome a range of complexities in relation to this including:
- Onshore entity requirements.
- Transaction / display currencies + FX conversion.
- E-financing, free trials, gifting + recurring billing.
- Merchant account registration + soft descriptors.
- Card authorisation (pre-auth, re-auth, part-auth).
- Global fraud controls, DPL screening + 3D secure.
- Expired card optimisation, notifications + dunning.
- Transaction risk, underwriting + chargeback liability.
- Dynamic retry logic, timing + account updater logic.
- International sales remittances + financial reporting.
- Wallets, Installments, prepayment + virtual currency.
Localised Shopping Experience
Building an effective localised shopping experience is all about understanding both the cultural and economic needs of the consumer. At CommerceCentric we work with global brands to design and implement localised shopping experiences that consumers will trust. Our areas of expertise include:
- Global address validation.
- International Geo-IP blocking.
- Localised shopper notifications.
- Local customer service support.
- Local language / dialect support.
- Billing / shipping address restrictions.
- Imperial or metric weights and measures.
- Localised merchandising and promotions.
- Localised checkout flow and billing form layout.
- Language mapping (browser, country flag, geo-ip).
Onshore / Offshore Business Model Selection
When entering a new local market a brand will need to decide between an onshore and offshore business model. Both options require careful consideration depending on the objectives of the business and nature of the market. At CommerceCentric we will work with brands to assess a range of factors including:
- Seller legal status
- Payment methods
- Importer of record (IOR)
- Import duties
- Shipping costs
- Shipping time