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Taking your e-retail business abroad: 3 ways to reduce transaction management costs

Taking your e-retail business abroad:
3 ways to reduce transaction management costs

WORLDLINE

Corporate

Growing an e-retail business today means, more often than not, international expansion. In terms of collecting payment, this requires you to manage much more numerous and complex payment flows than before.

Companies that tailor their payment setup to the markets they are entering are likely to have happier customers, higher conversion rates, and greater revenue. On the other hand, enabling local payment methods also comes with additional costs, particularly related to time spent on back-office transaction management.

As you start to address new markets, it can be something of a balancing act to offer the sales channels and payment methods consumers expect, while avoiding unnecessary expenses. Here are three tips for keeping your transaction management costs under control as you venture abroad.

 

Control the transaction flow

Whenever physical goods are being exchanged, the payment process must be carefully synchronized with shipments and inventory, in order to avoid costly mistakes and misunderstandings.

Your payment gateway should not only integrate seamlessly with your stock management system, but also offer the ability to manually control the transaction flow when needed.

In order to be able to respond to logistics or customer issues in a timely manner, look for a payment back-office system which enables you to easily cancel authorized transactions before the capture is submitted, to manually capture authorized transactions, and to initiate refunds.

 

Streamline chargeback and dispute handling

Chargebacks and disputes can very quickly drive up your fees and administrative costs if you do not have an effective process for managing them. Streamlining your dispute handling becomes all the more important when you are expanding to new markets, some of which may have higher chargeback rates than you are used to in your home market.

Enabling local payment methods can reduce your dependency on credit cards, which in itself will typically reduce your chargeback risk. But when chargebacks and disputes cannot be avoided, good tools for managing them will help keep the overhead down.

Request that your payment partner supports chargeback management for every payment method, and makes it easy to manage disputes. Some payment service providers will be able to act as your single point of contact, handling the discrepancies in dispute processes between different acquiring partners.

 

Automate reconciliation

Reconciliation is a third area which can quickly get labor-intensive and costly as you enter new markets and add payment options.

Different local payment methods have dissimilar reporting streams. Local banks and payment institutions have heterogeneous settlement cycles and reporting formats. Add local tax deductions, service charges and foreign exchange, and it becomes very tricky to keep track of whether a product shipped has been paid for and settled.

To keep the cost of managing these tasks down, opt for a proven reconciliation automation service. While 100% automation is not realistic, you can eliminate most of the time your team spends manually matching and checking transactions. Instead, they can focus on discrepancies and risk management — and you can stay on budget.

 

The takeaway

Online payment collection and processing are complex tasks, and this complexity increases exponentially as your growing e-retail business embraces new geographical markets, new currencies, and new payment methods.

Attempting to manage it all on your own will invariably drive up your overhead. Rather, team up with a payment partner with established connections and expertise in the markets you want to enter, and who offers extensive services and tools designed to streamline and optimize transaction management.

Instead of spending your workdays sorting out suspicious chargeback claims or mysterious reports, you and your team can fully focus on optimizing your financial framework and spearheading the company's growth.

To learn more about best practices for expanding e-retail businesses internationally, register to our webinar taking place on November 13:

“Best payment practices for successful e-retailers”.