Merchant Obstacles Solved by Vine Global:
• Landed Cost: There are “hidden costs” involved in
selling and shipping products across international borders. These “hidden costs” are numerous
and specific for each type of product being shipped. Providing a reliable quote for multiple products across multiple countries is a complex
problem and one that is in a constant state of change and evolution.
•
Product Categorization: Harmonized tariff codes,
required for products to clear customs, must be indexed to every item a merchant
sells. These codes are confusing, dynamic in nature, and unique to each
individual country. Up-to-the-minute tariff codes are essential to the import/export
success of any business.
• Import/Export Compliance
and Documentation: Each country has restrictions and terms that dictate what may enter the country. These terms and/or restrictions could apply to quantity, product value, components within the product or, simply, the product itself.
Additionally, items clearing customs require a commercial invoice in triplicate
to accompany the shipment. Depending on the characteristics of an item entering
the country, different information is required on the commercial invoice.
Up-to-the-minute check lists are critical to legal international trade as violations
carry heavy penalties.
• In-Country Logistics:
While the selection of a major carrier to handle the international leg of
the delivery may be straightforward, partnering with local in-country providers
may also be a requirement in some countries.
• Abandoned Shipments: Surprised consumers unaware of unknown costs when their product arrives, often abandon or refuse packages.
Paying all logistic
costs twice and then dealing with a foreign customs office to determine package status and
fees, creat additional costs and headaches for the merchants.
• Costly International Returns: The
ability to return an item is essential for online retailers and a requirement
from a buying customer. Processing international returns is not only costly, but
a major logistical obstacle to international trade.
•
International Fraud: Incidence of credit card fraud is high, especially
in an international setting. Most cross-border merchants are reluctant to
assume the associated financial risk.
• Customer Care: In the international marketplace, customers expect communication in their own language and adherence to local spoken customs.
• Channel Conflict and Denied Third Party Screening:
Existing licensing, distribution arrangements or government prohibitions may
block sales of certain products based on ingredients, technology, trade
sanctions or other variables.
• Customer
Acquisition: International marketing requires knowledge of international consumer markets and trends.
