Expanding your e-commerce business internationally can unlock a world of opportunities, from accessing new markets to increasing revenue streams. However, navigating the complexities of international trade, especially tax compliance, can be challenging. Let's explore the benefits of international expansion and how you can achieve global growth.
4 reasons why you should expand internationally
- Reach a broader customer base: The European e-commerce market is valued at approximately €899+ billion, with potential to cross the trillion-Euro mark by the end of the decade. Similarly, the US market is one of the largest and most lucrative in the world, estimated to generate $1.2 trillion in revenue in 2024.
- Increase your revenue streams: By selling in multiple countries, you can diversify your revenue streams and reduce dependence on a single market. This diversification can help stabilise your business against local economic fluctuations.
- Gain a competitive advantage: Entering new markets can give you a competitive edge. Being an early entrant in a less saturated market can help you establish a strong brand presence and customer loyalty.
- Become even more profitable: Expanding your operations can lead to economies of scale, reducing per-unit costs and increasing profitability. This can be particularly beneficial when sourcing products or negotiating with suppliers.
To help achieve this, tax, customs and environmental legislation compliance is your key.
Why is tax compliance important?
Ensuring compliance with international tax regulations is crucial for avoiding penalties and fostering business growth. Non-compliance can lead to hefty fines, legal issues, and damage to your brand reputation. There are three things you need to consider when expanding your business:
- International VAT and Sales Tax: Managing VAT, sales tax, and Goods & Sales Tax (GST) compliance across multiple regions, including One-Stop Shop (OSS) registration in the EU, is crucial for avoiding legal issues and maintaining smooth operations.
- Customs clearance: Get your products where they belong – with your customers! Make cross-border trade seamless with efficient handling of customs regulations and paperwork, which is vital for timely deliveries and customer satisfaction.
- Extended Producer Responsibility (EPR): This environmental legislation, currently applicable in France, Germany, Spain and Austria, helps businesses comply with sustainability regulations – and as we’ve seen, sustainability is increasingly important for global market access and your brand reputation.
With different criteria, regulations and requirements in each country, just tackling each one is complex enough - so it makes sense to work with a provider who can wrap all these services up into one neat package, leaving you free to focus on growth. This is where AVASK, a leading compliance specialist for e-commerce sellers, comes in.
How AVASK can help with your expansion goals
AVASK provides the foundation for trading internationally. They streamline the online selling experience for e-commerce sellers by offering expert tax, EPR, and customs compliance services.
Together with using Profasee’s dynamic pricing tools, you’ll have deep, data-driven insight into where and when to expand, the best strategies to deploy in each market, and you can account for currency fluctuations. When you’re legally compliant in every region, it really does take the stress out of international trade. Visit avask.com to learn more about their services.
