One of the key advantages of running an e-commerce business is being able to sell globally. You can reach consumers from anywhere in the world at any time. However, selling to international markets requires some planning and consideration. With planning, you can avoid legal penalties or issues in your business in general. This article will outline how you can successfully sell to international markets.
Customer Locations
Before beginning to trade with international markets, you must consider where your customers are located. The locations of your customers will affect:
- what you can sell;
- laws you need to comply with; and
- your distribution channel.
Moreover, you must consider if your target market has product regulations. For example, if you plan on selling to customers in the USA, you may need to comply with:
- country of origin marketing rules;
- Consumer Product Safety Improvement Act;
- Flammable Fabrics Act; and
- Poison Prevention Packaging Act.
The regulations you must comply with will depend on what product or service you sell.
Protecting Your Intellectual Property (IP)
When selling abroad, protecting your brand name and logo in all the countries you are targeting is important. Your brand name and logo help consumers identify and associate your products with your business. Moreover, it is a valuable intangible asset.
Even if you have a trade mark registration in New Zealand, it is best to register your trade mark in relevant countries. However, you must note that each country will have different processes for this, and you should complete the necessary trade mark applications before you begin trading overseas.
Additionally, you should consider that although copyright applies automatically in New Zealand, this is not the case in every country. Hence, it is essential to protect your IP adequately.
Continue reading this article below the formPayment Processes
Selling in New Zealand is straightforward as everything occurs in New Zealand dollars. However, when selling internationally, you will need to convert currencies into New Zealand dollars. Some banks can help you open a foreign currency account, or you can utilise payment gateways that manage currency conversion for you.
Some e-commerce businesses use a merchant of record (MoR) service. An MoR will manage all payments, including currency conversions and PCI compliance. However, you must consider that an MoR will charge you for their services.
Shipping and Returns Policy
With international selling, it is possible for a customer to want to return their products. This may occur due to faulty products, wrong sizing or unmet expectations.
You should develop a shipping and returns policy to minimise disputes and outline delivery expectations. This policy can outline:
- estimated delivery times;
- what your business is liable for;
- requirements under local consumer laws;
- circumstances where you will issue refunds and returns;
- the time limit for returns;
- who bears the cost for a return; and
- other fees.
You should clearly display your policy on your website. Further, you can include a link to the policy in your website footer and when customers check out their items.
To protect your business, ensure supplier contracts meet your business’ needs. Our free Commercial Contracts Checklist will help.
Key Takeaways
Selling to international markets can be challenging, but there are some steps you can follow. Firstly, consider where your business is located compared to customer locations. From there, you can analyse which local laws you will need to abide by. Moreover, ensure your IP is well protected through overseas trade mark registrations. Finally, ensure your payment system can convert foreign currencies and begin drafting a shipping and returns policy.
If you need help selling to international markets, our experienced e-commerce lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at 0800 005 570 or visit our membership page.
Frequently Asked Questions
Your shipping and returns policy will outline your rules surrounding how your business will ship items and how customers can return items. It should also outline if any fees are involved, what your business is liable for, and whether customers can request a return or refund.
When selling into international markets, you need to abide by the local laws of the country, such as product regulations and privacy laws.
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