How local SMEs can leverage cross-border e-commerce opportunities
The rise of cross-border e-commerce trade is unlocking new opportunities for South African businesses eager to expand their reach and revenue.
With cross-border transactions already accounting for approximately 31.2% of all global online sales and projected to grow 219% faster than global e-commerce as a whole through 2028, the market is expected to reach $5.06 trillion in sales within the next three years.
Despite this boom, cross-border trade remains a largely untapped opportunity for small and medium-sized enterprises (SMEs).
'That is set to change with e-tailers bold enough to navigate the global landscape standing a chance to reap huge benefits in the years to come,' Gregory Saffy, managing director for Sub Sahara Africa at FedEx said.
There are several important practices that businesses should keep in mind when wanting to expand outside of their home territory, Saffy told Business Report.
These include:
Localising for your target market – To boost global sales, SMEs must tailor their offering to local preferences. This includes researching your chosen market, translating product descriptions where needed, using local currencies, adjusting sizing or packaging, and aligning messaging with cultural norms.
Localisation builds trust and relevance, increasing the likelihood of purchase. Understanding regional buying behaviours and adapting accordingly helps brands stand out in competitive foreign markets.
Know your tax and customs obligations – Every country has unique import duties, including VAT rules and customs requirements, and it is important to research these thoroughly. Transparency around duties and delivery timelines will help to prevent customer dissatisfaction. Staying compliant not only avoids legal trouble but also enhances credibility and paves the way for further global growth.
Offer multiple payment options –International buyers are more likely to complete a purchase when they have access to familiar and secure payment methods. Integrating globally renowned and reputable payment platforms that enable transactions in multiple currencies and across borders will improve conversion rates.
'Flexibility in payment options shows professionalism and meets the expectations of today's sophisticated online shopper,' Saffy said.
Efficient and headache-free delivery is key to cross-border success –
'Outsourcing logistics also allows businesses to focus on growth while reducing the operational administration burden,' Saffy added.
Partnering with experienced logistics providers, such as FedEx, helps SMEs manage international shipping and customs clearance seamlessly.
FedEx International Connect Plus (FICP) offers fast, cost-effective shipping designed for e-commerce packages weighing up to 20kg.
The service offers day-definite international shipping, connecting e-tailers and consumers in just three to four business days.
"Providing businesses with a broader portfolio of shipping solutions that match their specific needs is a top priority for us at FedEx', Saffy added.
"Our FICP solution offers speedy delivery at reasonable costs, making it an efficient choice for South African SMEs,' Saffy said.
FICP is further enhanced by digital capabilities, giving both retailers and consumers full visibility over their shipments.
With the FedEx Delivery Manager, consumers can choose their preferred delivery location, date and time, including evenings.
In addition to enhancing outbound shipping solutions, FedEx has also streamlined import processes with its FedEx Import Tool (FiT) in South Africa; a streamlined, tech-enabled platform designed to simplify import processes, enhance compliance, and improve shipment efficiency.
'There will always be challenges when entering new markets, but with the right tools and support. 'We believe that South African SMEs are well-positioned to seize the rewarding cross-border opportunities ahead,' Saffy said.
BUSINESS REPORT
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
5 hours ago
- IOL News
Financial tips for UK expats moving back to South Africa
Explore the financial implications for UK expats returning to South Africa, including tax residency, pension arrangements, and property considerations. Learn how to optimise your finances for a smooth transition back home. Image: Supplied. South Africa faces many challenges, but a clear trend is emerging of expats returning home. Stats SA's Migration Profile Report for South Africa, released last year, shows that since 2000, the number of South Africans in the UK has grown from 136,720 to 247,336. But in a move that some have dubbed 'reverse emigration', many are heading back. The top reasons for coming back range from missing the South African lifestyle and family and friends, to the bad weather and high cost of living in the UK. The UK is significantly more expensive than South Africa, especially when it comes to housing, eating out, and labour costs. For the same income, South Africa offers families better homes, an affordable lifestyle, and access to good schools. Here are the financial implications for expats returning to South Africa. Ensure your finances are in order before you move back A move between countries shifts tax residency, so you will need to determine your tax residency status in both the UK and South Africa, as this will impact how your income and worldwide assets are taxed. Be aware that South Africa taxes residents on their worldwide income while non-residents are taxed only on South African-sourced income. It is important to familiarise yourself with the UK-South Africa DTA to avoid being taxed twice on the same income. It is a good idea to monitor the GBP/ZAR exchange rate to plan the timing of your transfers. The Rand can be volatile, so it may be a good idea to work out your income and capital needs in South Africa and transfer only the amount that you are planning to spend there. Remember that retaining funds offshore can hedge against a weakening currency. Make sure you review your UK pension arrangements before you leave. Several UK pension providers will not accept SA residents on their platform or, when you become a non-resident in the UK, will not allow you to make further changes to your existing UK pension. This could have a material impact on your retirement planning. It's also a good idea to make sure you understand the tax treatment of your UK investments in South Africa, including potential liabilities for Capital Gains Tax or foreign dividends. A question that comes up often is 'Should I retain my ISAs?' Unfortunately, ISAs are not tax-free in South Africa, which has its own version of an ISA called a Tax-Free Savings Account. When moving to a new country, it's best to review the product wrappers you are currently using, as well as what options you have available in South Africa. Many clients benefit from restructuring their investments and tax optimising strategies when it comes to cross-border financial planning. If you have a UK property, you will need to decide whether to sell, rent out, or retain your UK property. Be aware of tax implications, such as Capital Gains Tax and rental income tax in both countries. Buying property in South Africa is fairly straightforward, but make sure that you do your due diligence before any large purchase. Getting set up with a bank account can be difficult without being physically present and able to provide proof of residence in South Africa. Once you have the required supporting documents, the process of opening an account is relatively easy. Many South African bank providers offer offshore accounts. The money required to be held in these accounts is much higher than a local bank account, but it can provide additional flexibility for holding non-Rand assets. * Adshade is the wealth advisor at Sable International. PERSONAL FINANCE
TimesLIVE
11 hours ago
- TimesLIVE
Illicit financial flows are derailing Africa's future
Illicit financial flows (IFFs) continue to undermine the future of Africa, hampering the ability of governments to adequately fund education, healthcare and development projects essential for lifting people out of poverty and fostering sustainable economic growth. As business leaders, politicians, academics and citizens, we cannot sit back. We must help curb the illegal flow of money out of our country through a cohesive effort by all stakeholders, both local and international, to ensure safeguards are put in place, laws are harmonised, and all enforcement agencies work together to address the problem. At the same time, we must not do anything that will deter investment. Ahead of G20 summit in Johannesburg in November, as well precursor meetings — such as the G20 finance ministers' and central bank governors' meeting and the T20 midterm conference held this month — we must formulate proposals that integrate the perspectives of public and private sector institutions, nonprofit organisations, think-tanks and universities. Together we can make valuable policy recommendations, such as using AI to turn vast amounts of data into information for developing strategic interventions. Working alongside each other, we can identify gaps in current legal frameworks and areas where greater co-operation is required. We must seek ways to stem illicit money flows. When individuals or companies evade their tax obligations, deliberately falsify import or export documents, or misappropriate funds intended for development projects, they are not committing victimless crimes. These outflows not only weaken our reputation in the eyes of the international markets, but also make it harder for the government to raise capital at manageable interest rates. We already owe too much: the National Treasury predicts that debt on our national balance sheet will be 77% of GDP this year. IFFs directly undermine economic growth, costing the South African economy the equivalent of almost 5% of annual collected tax revenue — losses of about R92.5bn. On the African continent, the numbers are more alarming, with between $50bn (about R889bn) and $90bn stolen annually, according to the UN. A 2020 report from a UN conference on trade and development states that IFFs represent as much as 3.7% of Africa's GDP. This figure has almost certainly grown since then, given that those who break laws will keep doing so if they are not held accountable. We recently convened a G20 multi-stakeholder dialogue to better understand this challenge, quantify its impact, assess current solutions, and identify new ones . One of our speakers, deputy minister of international relations and co-operation Alvin Botes, spelt out what this theft means: countries with high IFFs spend at least 25% less on healthcare and 50% less on education compared with their peers. IFFs wipe out any good the $65bn in aid Africa receives each year might do. They reduce progress made in making people's lives better. There are initiatives under way to address IFFs. For example, the Financial Action Task Force (FATF) collaborates with the UN to strengthen countries' financial systems and prevent illicit outflows. While South Africa's inclusion on the FATF's grey list is viewed by some as an embarrassment, it enables us to strengthen our legal and regulatory frameworks, as well as enhance our anti-money-laundering capabilities. While South Africa's inclusion on the FATF's grey list is viewed by some as an embarrassment, it enables us to strengthen our legal and regulatory frameworks, as well as enhance our anti-money-laundering capabilities. We are also seeing prosecutions of high-level fraudsters, especially those who use dubious accounting methods to move money around and avoid paying their fair share of taxes. It is gratifying to see that action has been taken in this regard. Other UN entities have developed discussion platforms and measurement systems. There are 10 asset-recovery inter-agency networks that have 178 member countries, allowing illicit money flows to be traced across borders. In addition, Interpol supports national and international law enforcement agencies to investigate, trace and prosecute those responsible for these crimes. We must all strive towards expanding such interventions, as well as advocate for and enable closer alignment between government departments and between local law enforcement agencies and their international counterparts. However, our solutions must not cause more harm than good by discouraging legitimate investment. We should not, for example, implement unfair tax regimes that could result in capital flight. We must also not inhibit international investment inflows by making it nearly impossible to comply with legislation and regulations. Such a state of affairs would merely encourage companies to operate businesses in sectors such as import and export under the radar. Through working together by sharing data, harmonising laws and holding those responsible for IFFs accountable, we can strengthen the economy by plugging the holes through which money leaks and encouraging investment. Our people deserve nothing less.
Eyewitness News
11 hours ago
- Eyewitness News
KZN Treasury banking on Comrades Marathon to give local tourism a boost
DURBAN - KwaZulu-Natal's Treasury Department has described Comrades Marathon as a major boost for the province's economy. Thousands have booked accommodation in Pietermaritzburg and Durban ahead of the marathon. The race will start in Pietermaritzburg and end at the Moses Mabhida Stadium in Durban. Finance MEC Francious Rodgers said the province always gets excited to host this event. 'It's obviously one of those really big events that we are proud of. It has a history in the province of KwaZulu-Natal, and it's not a South African event, it's an international event.' He said the hospitality industry will do business this weekend. 'And if you try and to get accommodation in Durban and Pietermaritzburg over the weekend, it's fully covered, booked, and that's exactly what we want.'
