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International Sales: Know the Potential Problems

by: unclejoeadamson( 2903Feedback score is 1000 to 4,999) Top 1000 Reviewer
7 out of 9 people found this guide helpful.
Guide viewed: 719 times Tags: global | selling | international | premium tie dye | bibo cosmetics


Draft Copy Revision
01/01/2008 0800

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The problem with International sales are:

  1. High surprise brokerage fees if using major carriers like UPS, FedEx – Buyers don’t like it, and you can get whacked with these charges if they don’t pay them.

  2. INR due to loss/theft - some places have extremely inefficient or crooked Customs & mail service.  The Buyer never receives the product.  You're stuck making it right.

  3. INR/SNAD fraud - Buyers get their stuff, but claim INR or SNAD.  International tracking unavailable via USPS in usual shipping classes, if at all, to international delivery.  No way to determine if Buyer is lying, or prove delivery.  You're stuck making it right while believing the worst.  3rd Party insurance available, but there are limitations on type of items or countries to which items are shipped.  Buyers may file Non-performing Seller reports.

  4. Paypal claims or Credit Card chargeback - Buyers file claims or reverse payment on items.  Without conforming to Paypal's SPP rules, there is little or no protection. Unconfirmed addresses or lack of delivery proof means automatic win for international Buyer.  Purchase may be made with stolen CC and shipped to a Safe House forwarder; "unauthorized use" chargeback lands well after you've shipped the product.  Too bad for you.

  5. Impatient or Haughty Buyers - Buyer may not grasp the size of the planet, and subsequently fail to understand that shipping half-way or more around its circumference takes time and expense.  International Buyers are more critical in DSRs for their own locality, as well as from us (US).  Expect to lose DSR points on Shipping Time and Shipping Cost grades.  Misconceptions over shipping time can lead to NPS or INR complaints or excessive email requests for status (Communication DSR takes a hit if you don't respond to incessant demands) you can't provide due to no tracking.

  6. Language barrier - special requests, rare as they typically are, can be a real challenge when you have no common language.  Be sure to get assistance with translations if you need it, and answer back in their language.

  7. Currency conversion - Paypal charges for converting to US Dollars.  This is an additional fee you must be aware of if you seek international sales.

  8. Fake International Postal Money Order - there is some possibility (if you allow IPMO) of receiving counterfeit money orders.  IPMO or US PMOs should always be cashed at the PO, who can immediately identify counterfeit payments and refer them for action.  Your bank can recover the money from you weeks later if you deposit a bad IPMO/PMO.

  9. Harvesting - some international purchases are made solely to acquire your email address so you can be preyed upon by Scammers, Phishers and Spammers. You will have to file a UI report.

  10. General issues - Is there a Customs/Postal restriction on the type of product you're shipping? (Generally not, but clothing, jewelry, shoes, electronics, foodstuffs, coins/collectibles can be problems)  Customers are responsible for their country's customs fees, bribes to officials, taxes, etc. and can get noisy when they import something with an unexpectedly high Value-Added Tax (VAT).  That's not your fault, but your feedback/DSRs may say different.

Most of these situations also exist as "typical business world" experiences, and aren't related to just eBay/Paypal. It's just something you have to be aware of and make decisions about your risk exposure.  Over time, you'll understand the cost of your risk and work that overhead into your basic item cost, like a retail store pays for shoplifting losses.

International sales during one seasonal period were nearly 1/3 of business, owing to the weak US$, up from 12-15% in general.  Whether you decide to go global or not, I recommend you offer sales to Canada and the UK.  Your risk exposure is low, and they're our major trading partners.  It will increase your sales and you'll enjoy them as great customers.

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Guide ID: 10000000004914053Guide created: 01/01/08 (updated 10/03/08)

 
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