Cross-border trade is poised for a big boost in the coming years as more U.S. merchants are now selling their goods internationally. This increase in cross-border trade also brings new challenges and opportunities, including in the logistics market.
What does it take to help keep billions of dollars’ worth of goods moving smoothly across borders? A flexible mindset can go a long way.
For December, PYMNTS spoke with Kyle Plummer, director of cross-border solutions for Magnate Worldwide, who explained why companies that can think flexibly about logistics stand to benefit the most in the cross-border market.
Like anyone who has ever waited until the last minute to make a purchase, Plummer said manufacturers will pay whatever price is necessary to get the items they need. Companies that are better prepared to be flexible with logistics strategy stand a better chance of getting their deliveries faster and navigating a “rigid” cross-border infrastructure.
Companies that aren’t able to think creatively risk missing out on more effective solutions, said Plummer. He encourages OEMs to consider their “true needs” and not wind up beholden to how competitors across the market are behaving simply because that’s been the pattern all along.
“That’s the challenge is breaking that mindset,” said Plummer. “You can get your material quicker. You can get it in a more cost-efficient way. You just have to be more flexible from your thought process, and I think that’s the biggest challenge.”
What’s the key to breaking that mindset? Plummer recommends putting small portions of a company’s supply chain that the business is “moderately dependent on” through beta tests that can demonstrate where any potential opportunities for improvement may be found.
“My suggestion would be take a look at the other avenues out there,” he said. “Take a look at using different bridges, different brokers, different sizes of brokers, so [companies] can move more efficiently and more effectively.”
News highlights from around the world of X-Border Payments
As trade between nations becomes more prevalent, companies are seeking new ways of reaching international consumers. Several companies are introducing new multilingual options into their interfaces to help consumers who speak various different languages.
To better serve its Turkish-speaking consumers, Amazon Germany is planning to translate its catalog into Turkish and offer customer services in the Turkish language. Meanwhile, GPN DATA is aiming to ease the cross-border transaction process by offering its services in seven new languages.
Companies are also looking into ways to make the cross-border payment process more transparent and secure. Video game marketplace OPSkins is working with Hyperwallet to provide users with more transparency into the payment process and offer a wider array of payment options. Meanwhile, Smart2Pay and Adyen both announced plans to add WeChat to its payment solutions portfolio to allow users to quickly pay for merchandise using their WeChat wallet or bank card.
Meanwhile, a recent report from Worldpay predicts the eCommerce marketplace will expand by 104 percent by 2020. As more nations engage in cross-border trade, expect more new payment, logistic and linguistics challenges and solutions to emerge.
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ABOUT THE TRACKER
The PYMNTS X-Border Payments Optimization Tracker™ is the framework for evaluating players in the cross-border payments landscape, and the quarterly index tests the readiness of the companies to serve a global audience.