Cross-border trading

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Written by Ecoparcel February 25, 2021

What is Cross-border Trading?

There are many different ways to ship your order - you can use ground or air services, domestic or international shipping and more. The thing is that each of these options has its requirements, conditions and pricings. In this article, we will take a closer look into cross-border trading. Generally speaking, Cross-border trade is the exchange of goods or services between two different countries. In other words, this trading method can also be called an international selling or trading. The cross-border definition means that buying and selling have to be in the neighbouring countries. The seller has to be in one country, and the buyer in the other.

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What do you need to know about it?

Here are three main things that you need to know before you start cross-border trading:

1. Figure out your shipping method

As you might already know, cross-border selling is not possible without shipping abroad. That is why it is crucial to choose the right shipping company that would complete your trading. We honestly offer you to pick a shipping carrier that could perfectly combine cost efficiency with quality. For that you can use our shipping rates calculator, that you might find in our homepage . But do not look only for the cheapest options, pay attention to reviews and reputation.

2. Check the exchange rate

Cross-border selling is called cross-border for a reason. Crossing another country’s border means that there can not only be a different language but a different currency as well, which means that you put yourself on the exchange rate risk. When two countries have different currencies, you need to be aware of cross-border payment terms. Both parties need to carry out a foreign currency exchange to complete the payment.

3. Cross-border in e-commerce

Cross-border selling is also possible in the e-commerce world. Because it means buying and selling goods and services, of course, it is really common in e-commerce. There are three different types of it. It could be the online trade between a retailer (brand) and a consumer, which is called B2C . Then, it could be between two businesses, brands or wholesalers, which is called B2B . Also, it is possible between two private persons, too, and that would be called C2C .


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