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Assiduus is a patent-pending middleware platform for cross-border E-commerce distribution and supply chain generating $300+ million in revenue for brands across the world. Dr Somdutta Singh, Founder & CEO, Assiduus Global talks to us.
How is the E-commerce business going for cross border distribution of IT products since last 1 year?
Dr Somdutta Singh - The E-commerce industry has been growing rapidly, driven in part by the increasing demand for cross-border distribution of IT products. According to a report by eMarketer, global E-commerce sales are expected to reach $5 trillion by 2022. Additionally, Statista reports that the global B2C e-commerce market is projected to reach $6.38 trillion by 2024. This is driven by factors such as increased internet penetration and smartphone usage, growing middle-class populations, and rising consumer confidence in online shopping.
However, there are challenges associated with cross-border E-commerce, such as shipping costs, customs regulations and language barriers. Overall, the E-commerce business for cross-border distribution of IT products presents opportunities for businesses to reach a global customer base and for consumers to access a wider range of products.
What are the challenges in cross border E-commerce distribution of IT products?
Dr Somdutta Singh - We can experience following challenges in this sector -
Customs Regulations - Each country has its own set of customs regulations and tariffs that can impact the cost and delivery time of IT products. These regulations can be complex and difficult to navigate, which can lead to delays and additional costs for businesses.
Shipping Costs - Shipping costs can be a major challenge for businesses, particularly for smaller items such as computer components or accessories. Shipping rates can vary significantly depending on the destination, and shipping costs can eat into profit margins for businesses.
Language and Cultural Barriers - Businesses must also be aware of language and cultural barriers when selling their IT products internationally. This includes ensuring that product descriptions and customer service are available in multiple languages, and understanding local customs and preferences to ensure that products are marketed effectively.
Payment Processing - Payment processing can be challenging for cross-border e-commerce, as different countries have different payment systems and regulations. Businesses must ensure that they are using secure and reliable payment processing systems that can accommodate international transactions.
Delivery and logistics: Finally, delivering IT products internationally can be challenging, particularly for larger items. Businesses must ensure that they have reliable logistics partners in place to handle international shipments, and that they are able to provide accurate delivery estimates to customers.
How can you onboard traditional distributors of IT products on a cross border E-commerce platform? What are the strategies needed for this?
Dr Somdutta Singh - Some of the strategies we can follow are -
Education and Training - It is important to provide education and training to traditional distributors on how they can benefit from selling their products on a cross-border platform. This can include webinars, online courses, and one-on-one training sessions.
Offer Incentives - To encourage traditional distributors to embrace e-commerce, businesses can offer incentives such as discounts on platform fees, marketing support, and access to a wider customer base.
Provide Support - Traditional distributors may need support in setting up their online store, listing their products, and fulfilling orders. Businesses can provide support in these areas to make the process easier for distributors.
Simplify the Process - The onboarding process should be simple and streamlined to make it easy for traditional distributors to join the platform. This can include providing easy-to-use tools and templates for product listings and offering guidance on shipping and customs requirements.
Communication - Communication is key to the success of the onboarding process. Businesses should maintain regular contact with traditional distributors to answer any questions they may have, and to ensure that they are getting the support they need to be successful on the platform.
What is the expanse of this cross border E-commerce platform in India, especially in the non-metro locations?
The Indian government has taken several initiatives to promote cross-border E-commerce, such as launching the E-commerce export promotion council and introducing a new E-commerce policy aimed at promoting exports. While the cross-border E-commerce industry in India is still in its early stages, it is expected to continue to grow rapidly in the coming years. As more Indian consumers embrace online shopping and demand for international products increases, cross-border E-commerce platforms are likely to become an increasingly important channel for global trade.