E-Commerce in Control

The Digital Revolution has made our world smaller, made information accessible and created a global borderless marketplace with 3 billion people online every day. We now live in an instant gratification culture and use multiple devices with anytime anywhere access. With 1,2 billion online shoppers, double-digit growth in a declining economy and an expected sales to soar to $1.5 trillion by 2015, the internet offers limitless business opportunities. No wonder more and more e-Merchants pop up like daisies and traditional companies open their online shop doors.

​When the virtual and real world collide, trade compliance hits!

Multilingual skills, countries with common languages and web shops that often at least offer English as an alternative language, online shoppers are able to globally compare prices and product offering. Resulting in ordering at the web shop with the most appealing offer, regardless of the country the web shop is located in. This drives cross border e-commerce. Even though the virtual world knows no boundaries, the real world does. When shipping goods these two worlds truly collide. Bringing new challenges e-Merchants often don’t properly address or don’t address at all. Something that did not go unnoticed by authorities and therefore gets focused attention from an enforcement point of view.

“Commercial benefits outweigh compliance costs as long as it is adequately managed.”

e-Commerce in Control

Pincvision believes compliance is no barrier to global trade. As trade compliance partner to many Fortune 500 companies, we have a track record in efficiently addressing, executing and managing global B2B trade compliance challenges. Confronted with the struggles e-Merchant face, Pincvision developed an “e-Commerce in Control” proposition to tackle the e-Merchants B2C challenges. Not just taking into account exchange rates (in order to reflect local currencies), VAT and duties, but also environmental obligations. Furthermore, the proposition goes beyond the legislation of purchasing physical goods. Services need to adhere to VAT legislation as well and therefore are incorporated in the proposition too. With the enforced VAT rules this now has an impact on downloads, online games, e-books, streaming music and video, mobile services et cetera, which brings a whole new challenge.

B2C e-Commerce: Trade compliance & distant sales obligations

The collision of the virtual and real world triggers trade compliance obligations that need to be met. Research shows that meeting legal requirements and respecting local regulations is the biggest challenge listed by cross border e-Merchants. Not only from a risk perspective, but also in managing customers’ expectations and effectively handling and (when possible) preventing reverse logistic flows.

European online shoppers aren’t bordered with trade compliance, yet often confronted with it when ordering products from outside the EU. If the value exceeds €22,- VAT will be applicable and if the value exceeds €150,- duties are imposed as well. When goods arrive at the consumer’s doorstep, they are often surprised and confronted with additional trade compliance costs, payable on receipt. This “unmanaged” customer expectation results in unsatisfied customers, refusals to accept the goods and the subsequent reverse flow challenges and costs.

Obviously, you can technically restrict access to your shop to countries you have set-up to deal with these trade compliance topics. However, every businessmen and entrepreneur will question why market reach and potential business would need to be restricted. And rightfully so. Commercial benefits outweigh compliance costs as long as it is adequately managed.

Face your challenges with us!

The Pincvision “e-Commerce in Control” proposition consists of a combination of an easy-to-interface solution (service oriented architecture) and trade compliance expertise & services that allow you to open your online shop doors worldwide. So face your challenges with us and invite Pincvision to help you utilize your business opportunities and objectives.

More information

Would you like to make an appointment with one of our specialists on e-Commerce in Control, or would you like to obtain more information? Please feel free to contact us.


16 Jan 2015 at 10:12 am

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