A Guide for U.S. Companies to Manage Operations, Inventory, and Payment Issues

From the Editor of A Basic Guide to Exporting (11th Ed.) & Exporters! The Wit and Wisdom of Small Businesspeople Who Sell Globally

U.S. Department of Commerce | International Trade Administration | U.S. Commercial Service

PREPARING

YOUR

BUSINESS 

FOR GLOBAL

e-COMMERCE

Preparing 

Your Business 

for Global 

E-Commerce

Second Edition

 Doug Barry, Editor 

 U.S. Commercial Service

A Publication by the U.S. Department of Commerce • Washington, DC

U.S. Commercial Service—Connecting you to global markets.
 Library of Congress Cataloging-in-Publication Data

Preparing your business for global e-commerce / Doug Barry, editor. -- 2nd Edition.

 pages cm

 Includes bibliographical references and index.

 ISBN 978-0-16-092095-0 (alk. paper)

1. Electronic commerce--Management. 2. International business enterprises--

Management. I. Barry, Doug (Business editor) editor.

 HF5548.32P74 2015

 658.8’72--dc23

 2015032654

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respective owners.

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This edition was created using Adobe Creative Cloud 2016 software, including InDesign, Photoshop, and Illustrator. Work 

was performed on a Microsoft Surface Pro and a Microsoft Surface Book.

Published by the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

First printing, 2016.

Federal Recycling Program.

Printed on recycled paper.

Printed in the United States of America.

This book is intended to provide general guidance for businesses and practitioners in better understanding the basic 

concepts of international trade. It is distributed with the understanding that the authors, editors, and publisher are not 

engaged in rendering legal, accounting, or other professional services. Where legal or other expert assistance is required, 

the services of a competent professional should be sought. This book contains information on exporting that was current 

as of the date of publication. While every effort has been made to make it as complete and accurate as possible, readers 

should be aware that all information that is contained herein is subject to change without notice.

export.gov/ecommerceguide
E-commerce is transforming the world of trade—for 

consumers and businesses. Small and mediumsized enterprises now have channels to buy and 

sell globally while their employers and employees 

are sitting at their desks or, increasingly, using their 

smartphones.

During the past decade, the number of U.S. 

companies exporting has doubled, from about 

150,000 to just over 300,000. The Obama 

administration has supported this increase in 

business activity, small business success, and job 

growth through programs such as the National 

Export Initiative (NEI) and NEI/NEXT. The United 

States has approximately 3 million small businesses, 

so there are more potential exporters out there. 

E-commerce channels can get many more U.S. 

companies into international markets. 

E-commerce will play a big role in enhancing U.S. 

exports by enabling anyone with a good product 

or service to sell to anyone, anywhere. Whether 

through your own website (modified to accept and 

fulfill international orders) or via the array of global 

e-marketplaces, the conditions for growing your 

business with little or no initial investment have 

never been better, and the steps involved 

never easier.

Another benefit of using e-commerce to introduce 

your products and brand to individual buyers is that 

it can easily lead to agreements with distributors to 

sell containers of your goods, rather than one item 

at a time. When that happens, you’ll need to be able 

to scale up to meet increased demand, which is what 

we call a “good problem.” At that point, you’ll be 

traveling to the markets you’ve entered, meeting new 

people, catering to new consumers, and learning 

new things about your business, your products, and 

yourself. It can be—and often is—an immensely 

rewarding journey, 

both personally and 

professionally.

We at the U.S. 

Commercial Service are 

here to help you every 

step of the way. As our 

friends in China say, a 

journey of 1,000 miles 

begins with the first 

step; today, it would 

be with that first click 

on your computer. Either way, a good place to start 

is for you to absorb and apply the rich content in this 

book. Doug Barry has done a fine job of presenting 

the worldwide growth of e-commerce and the role 

and omnipresence of digital technology. You’ll be 

amazed at the power and accessibility of the services 

available to help you with your international sales.

After reading this book, consider visiting export.gov, 

where you will find additional resources, including 

market research, videos on every aspect of the export 

process, sources of financing (to help with the scaling 

up), and referrals to other government agencies and 

our private-sector strategic partners. 

We have experts in more than a hundred markets 

who will help find the best e-commerce or other 

channels for your products. In your community, 

you can access your local U.S. Commercial Service 

office—a source of local guidance, education, and 

networking.

The world is open for your business. And the business 

of the future will have increasing components of 

e-business. We welcome the opportunity to help 

open your business to the world, through both digital 

and traditional channels.

Arun Kumar

Assistant Secretary of Commerce for Global Markets 

and Director General of the U.S. Commercial Service

A Message from Our Director General
vi U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Acknowledgments

The first edition of this book appeared in 2011, 

thanks to Ken Walsh, a Senior Commercial Officer 

with the U.S. Commercial Service. This second 

edition updates that work and adds sections that 

discuss trends, markets of interest (and how to sell 

there), success stories from small and medium-sized 

business owners, and nitty-gritty details on how 

to start or expand cross-border e-commerce sales. 

A lot has happened in the world of cross-border 

e-commerce, and we don’t want you to miss a thing.

Many experts reviewed drafts of this book and 

contributed suggestions and resources. Among 

them are Bill Yue, Heather Rank, Michelle Bartram, 

Karen Parker, Joe Paiva, John Ward, Alysha Taylor, 

Jimmy Tobyne, Maura Kawai, Brad Mathewson, Dan 

Crocker, John Larsen, Jennifer Stone Marshall, Caitlin 

Brosseau, and Sheryl Pinckney-Maas.

Curt Cultice wrote several of the case studies. Jim 

Bledsoe of the U.S. Commercial Service in Seattle 

is a whiz at research and contributed material, 

especially to Chapter 2. Amanda Cook arrived from 

Texas Tech University for an internship just in time 

to help us get organized. Lisa Lawn contributed 

her exceptional project management skills to keep 

everything on track and was the picture of calm 

in the midst of deadline pressures. Jason Scheiner 

designed the book, the fourth one we’ve worked on 

together. Our executive director, Daniel Crocker, was 

a major cheerleader for producing this new edition, 

which we hope will become a dog-eared companion 

to A Basic Guide to Exporting, 11th Edition, which was 

recently published.

But most of all we are grateful to Director General 

Arun Kumar, who contributed high-level support 

behind the project and made sure it came to fruition.

For the Part III market briefs, we’re indebted to our 

U.S. Commercial Service experts in each of these 

countries. Armed with the information they’ve 

gathered and analyzed, you’ll have an advantage 

over your competitors. What’s more, you have the 

2,500-strong members of the U.S. Commercial 

Service, both in the United States and around the 

world, to help grow your business here, there, and 

just about everywhere.

Finally, to you the reader, we hope this book gives 

you both the tools and the motivation to boost 

your sales via international e-commerce. May your 

journey beyond familiar borders be profitable in 

every sense of the word.

May you add your mark on the world in ways that 

help make it a better place for all of us.

Doug Barry, Editor 

Washington, D.C. • 2016
vii

Table of Contents

Introduction........................................... 1

Part I: Overview ..................................... 5

Chapter 1 

What Is E-Commerce? ............................. 7

Chapter 2 

Primary Sales Channels......................... 17

Chapter 3 

Your Company Website.......................... 25

Chapter 4 

The Global Marketplace......................... 35

Chapter 5 

Export Controls..................................... 47

Chapter 6 

Ordering and Payment.......................... 53

Part II: Success Stories........................... 65

Scott Eder Gallery................................. 66

Ruffwear.............................................. 68

VTO Saddlery........................................ 70

SPF Depot ............................................ 72

Ameroc Export Inc................................. 76

Wheeling Truck Center .......................... 78

Alignment Simple Solutions.................. 80

Jordana................................................ 82

Part III: Country Briefs........................... 85

Africa and the Middle East 

Israel ................................................... 86

Kenya .................................................. 88

South Africa......................................... 91

The Americas 

Canada................................................. 93

Colombia.............................................. 98

Mexico ................................................100

Peru....................................................102

Asia 

China..................................................107

India...................................................111

Japan..................................................115

Korea, Republic of ...............................121

Singapore ...........................................126

Europe 

The Benelux Union...............................130

France.................................................135

Germany.............................................139

The Nordic Region................................144

The United Kingdom............................149

Conclusion.............................................. 155

Summary 

A Look Ahead ......................................157

Appendix A 

Glossary of Terms.................................160

Appendix B 

Definitions of Abbreviations.................166

Appendix C 

Free Trade Agreements Chart ...............167

Appendix D 

De Minimis Values ...............................168

Index..................................................169

About the U.S. Commercial Service.......171

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 1

Introduction

You have probably made purchases on your computer or at least done some online 

shopping. Maybe you have found suppliers online and contacted them offline to 

make the purchase. Maybe you have a website for generating leads. And maybe 

you have the means for domestic customers to buy products directly through your 

website.

If you’ve experienced any of these, or even if you haven’t, you may not be surprised 

by the extent to which the global village has become the global shopping mall, 

auction house, and catalog. It’s a digital bazaar of everything, for everyone, 

everywhere—providing new trade routes that didn’t exist just a few years ago.

This book aims to help you understand the various forces at play, to introduce you 

to some of the main players, and to create or expand your stage in the evolving 

mega global marketplace. Setting up shop and fulfilling orders globally are no 

longer difficult, and this book will explain how and where you can do so. Some folks 

have described what’s happening as revolutionary, sparked by the Internet and 

the smartphone. Certainly, anyone with anything to sell can now, in theory, sell to 

billions of potential consumers. Best of all, you can access customers with a very 

negligible capital investment.

This is not to say that the world is now your compliant, inviting oyster. There are still 

some shells to be pried open. Not all markets are equally accessible. Where and how 

to make money are not always immediately evident. Some products may not be well 

suited for e-commerce. Shipping and regulations have their own sets of headaches. 

Rules and processes often lag leaps in technology.

But the biggest entry barriers may be those you erect yourself by assuming that 

international selling is too complex or risky. For example, many small businesses 

with international orders refuse to fulfill them because they think international 

shipping is a confounding hassle. This book aims to challenge your assumptions by 

providing common-sense solutions and resources. No entrepreneurs should give up 

and lose business because they don’t have the facts or know the resources.

This information is tailored for small and medium-sized businesses interested 

in cross-border selling—through their own website, a third-party e-commerce 

platform, or a combination of the two. We can help you expand global activities 

more strategically.
2 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

This book is organized in three parts:

• An overview of the size of the market and factors behind its dramatic growth; buyer trends 

and preferences in key markets; prevailing business models, including your own website; 

and shipping, payment, and marketing solutions

• Success stories from small businesses that have successfully engaged in cross-border 

e-commerce

• Assessments of 17 markets worth considering and how to target them

Leveraging the U.S. Commercial Service’s more than 35 years of experience in helping businesses 

like yours to succeed in the international marketplace, this book offers ideas to help you flourish 

in the world of e-commerce.

The nature of e-commerce is that new technologies are always just around the corner. New 

platforms, dazzling apps, and innovative support services are arriving almost daily. Who, for 

example, could have predicted the so-called shared economy and the disruptive effect that it 

is having on the way we think of hiring taxis, renting cars, or renting rooms in other people’s 

houses? To be as relevant as possible, we’ve avoided stating, “This is the way it currently is” or 

“This is the way it will be in the future” because it probably won’t be. The only certainty is the 

certainty of more change.

About the Author

Doug Barry is a former Senior Trade Specialist with the U.S. Commercial Service, the trade 

promotion arm of the U.S. Department of Commerce’s International Trade Administration. 

During his career at the U.S. Commercial Service, he counseled U.S. companies on starting 

and increasing sales to global markets. Since joining the U.S. Commercial Service in 1998, Mr. 

Barry served in a number of leadership roles, including international assignments in Thailand, 

Singapore, and China. His previous book, A Basic Guide to Exporting, 11th Edition, was published 

in 2015 by the U.S. Department of Commerce. Also in 2015, he was named International Trade 

Educator of the Year by NASBITE.

Earlier in his career, Mr. Barry taught at the University of Alaska Anchorage, where he served 

as executive director of the Alaska Center for International Business. As the first director of the 

Alaska–Russia Center, he led efforts to create small enterprises in and trade with the Russian Far 

East. He also was a producer for ABC News, based in New York and London. Mr. Barry has won 

numerous national awards for his television documentary work.

Mr. Barry holds a doctorate from Columbia University, a master’s degree from New York 

University, and a bachelor’s degree from San Francisco State University.
Introduction 3

part i

Overview

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 7

Chapter 1 

What Is E-Commerce?

E-commerce, also known as digital commerce, is the act of selling and buying via the 

Internet. Our definition includes transactions in which not all of the activity takes 

place online. A website may play a role in informing a buyer about a product or 

offer for which the purchase takes place offline. That is a common model that is not 

captured in official e-commerce statistics. Similarly, a goods producer or wholesaler 

may depend on partners—distributors or retailers in other countries who sell goods 

to customers using their own e-commerce channels. The U.S. company may support 

these efforts with product photos and descriptions but not sell directly to end users.

We will discuss here two main types of e-commerce:

• Business to consumer (B2C)

• Business to business (B2B)

There are also two additional types:

• Consumer to consumer (C2C)

• Business to government (B2G)

In C2C, private citizens sell to other private citizens using an e-commerce or social 

media platform. The consumer may have even purchased an item from a business 

e-commerce platform and then used a different platform to sell it to a friend or 

social media contact.

In B2G, government agencies use the web to automate their procurement processes. 

Requests for proposals and quotes are posted online, usually via an official foreign 

government website. This process is sometimes called e-procurement, but it is also 

e-commerce insofar as the solicitations and proposals or quotes are communicated 

digitally. Additionally, every year, multilateral organizations such as the North 

Atlantic Treaty Organization and the United Nations procure billions of dollars of 

products and services from the private sector. Many procurement websites, quite 

a few of them in English, are listed in the appendix. U.S. companies generally 

have not aggressively pursued B2G, partly because they have not been aware of 

the opportunities. If your company is interested in any aspect of B2G, you should 

contact your nearest U.S. Commercial Service office.

During our research for this book, we found it useful to use the term business to 

everyone (B2E) because the distinctions are becoming increasingly blurred. Some 
8 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

sites are specifically for B2B, but a business can find new products to sell to its customers while 

searching B2C or C2C websites. Social media platforms, such as Facebook and Twitter, have 

blurred the market even further. These sites allow individuals who are socializing to purchase 

goods in designated “stores” or to purchase items recommended by their online friends and 

contacts. By clicking ads flashed on their personal pages, social media users arrive at apps that 

take their order and payment and arrange delivery.

It’s a new world out there. Just how big is it, and what are the implications for you and 

your business?

Size of the Market

In 2014, consumers used e-commerce technology and processes to buy USD 80 billion worth 

of goods and services from sellers in other countries. We call this cross-border e-commerce. 

For example, if a consumer in Australia buys an item via your U.S. website, that’s cross-border 

e-commerce. And if the entire transaction is completed online, it counts toward the USD 80 

billion. But if payment is made offline after the buyer has found you via your website, that 

purchase probably has not been counted. It is still important from our perspective, because the 

sale would not have happened if a buyer had not found you online.

Thus, official statistics probably underestimate—by a lot—the amount of digitally influenced 

trade taking place—trade from the point at which a buyer becomes aware of a product or 

service online to the point at which it’s delivered. With the value of worldwide retail around 

USD 14 trillion, it’s not hard to imagine the importance of modern technology, including 

smartphones, tablets, and e-marketplaces.

Cross-border e-commerce is dwarfed by e-commerce that 

occurs within countries. Chinese consumers, for example, 

spent over USD 300 billion via e-commerce channels 

in 2014. A detailed picture of the Chinese embrace of 

e-commerce and what it might mean for your business 

appears later in the book.

Total worldwide e-commerce in 2014 was a startling USD 1.3 

trillion (at least). It will continue to grow.

Survey company eMarketer compiled data that shows a rapidly expanding Asia Pacific market, 

led by China, overtaking North America in percentage growth and value. Young adults in China 

have money and a big appetite for foreign goods.

Official statistics probably 

underestimate—by a lot—the 

amount of trade taking place 

that is digitally influenced.
Chapter 1: What Is E-Commerce? 9

Growth and Projected Growth in E-Commerce (percent)

Region 2013 2014 2015 2016 2017 2018

North America 34.9 32.9 31.7 31.1 30.7 30.6

Asia Pacific 28.3 31.2 33.4 35.1 36.4 37.4

Western Europe 26.4 25.4 24.6 23.9 23.3 22.7

Latin America 4.2 4.3 4.2 4.1 3.9 3.7

Central & Eastern Europe 4.1 4.0 3.8 3.5 3.3 3.2

Middle East & Africa 2.2 2.3 2.3 2.4 2.4 2.5

Source: eMarketer

Value of E-Commerce by Region (USD billions)

Region 2013 2014 2015 2016 2017

North America 431.0 482.6 538.3 579.9 660.4

Asia Pacific 383.9 525.2 681.2 855.7 1,052.9

Western Europe 312.0 347.4 382.7 414.2 445.0

Latin America 37.6 48.1 64.9 70.6 74.6

Central & Eastern Europe 49.5 58.0 64.4 68.9 73.1

Middle East & Africa 48.1 57.7 64.9 70.6 74.6

Source: eMarketer

Don’t be too concerned about where cross-border e-commerce is today. It is expected to 

grow—substantially—in the years ahead. The Boston Consulting Group anticipates cross-border 

sales will mushroom to USD 350 billion by 2025. Payvision expects the payoff to happen much 

sooner—that cross-border e-commerce sales will reach USD 300 billion by 2018. Other 

forecasters predicted earlier in the decade that e-commerce would be well into the trillions of 

dollars by now, but their forecasts were knocked off track at least partially by currency crises, 

“dot-com” busts, and the mammoth global recession.

A reliable harbinger is how the big logistics companies position 

themselves to stay abreast of, if not ahead of, the trend lines. 

Major logistics providers have been splurging on acquiring 

cross-border e-commerce companies. For example, FedEx 

purchased Bongo, an e-commerce fulfillment business, and 

UPS bought a similar company called i-parcel. FedEx then 

agreed to acquire, pending government approval, TNT Express, 

a parcel delivery company based in the Netherlands but with a 

strong presence throughout Europe and in Brazil. As cross-border trade continues to grow, look 

for acquisitions and consolidations to continue as supply chains become more efficient. Such 

growth could be stimulated further if regional trade agreements now being negotiated become 

law. Later in this book, we look at some e-commerce drivers that are just over the horizon and 

that could cause excitement now and in the coming years.

Logistics companies have been rapidly 

expanding their cross-border capabilities, 

including fulfillment solutions and local 

and regional delivery options.
10 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The good news is that some of you won’t have to wait long. U.S. craft beer sellers, most of them 

small, saw an uptick of more than 50 percent in international sales in 2014, primarily from 

e-commerce sales. Presumably, most buyers have other brews to choose from, including local 

options. The fact is, foreign buyers like what Americans have to offer, and that gives you an 

advantage over some international competitors.

Drivers of Cross-Border E-Commerce

The biggest driver seems to be saving money. A general perception, if not an expectation, 

among buyers is that buying online will be cheaper than buying in a store. Consumers in the 

Republic of Korea, for example, can buy certain Korean-made consumer items in the United 

States for less, even when freight and various sales taxes are added. Meh.com, a relatively new 

U.S. shopping site, often posts stories about Korean customers quickly buying up speaker docks 

when they’re offered for sale, even though the products are available from Korean retailers.

Main Reasons to Buy Online

According to data from Morgan Stanley Research, customers have many reasons for 

buying online:

• I save money.

– U.S.: 41 percent

– Globally: 49 percent

• I save time.

– U.S.: 30 percent

– Globally: 34 percent

• I can shop from anywhere, 

any time.

– U.S.: 32 percent

– Globally: 34 percent

• It’s easier to compare 

prices.

– U.S.: 25 percent

– Globally: 32 percent

• I have more choices.

– U.S.: 27 percent

– Globally: 27 percent

• I like having products 

delivered.

– U.S.: 31 percent

– Globally: 27 percent

• The products are not 

available in stores. 

– U.S.: 32 percent

– Globally: 21 percent

• I get free shipping.

– U.S.: 29 percent

– Globally: 18 percent

• I can pay in installments or 

get flexible terms.

– U.S.: 3 percent

– Globally: 5 percent

• There is more product 

information. 

– U.S.: 8 percent

– Globally: 13 percent

• I can read customer 

reviews. 

– U.S.: 19 percent

– Globally: 17 percent

• I can find higher-quality 

products. 

– U.S.: 2 percent

– Globally: 4 percent

• Other reasons 

– U.S.: 4 percent

– Globally: 2 percent

Survey results are often influenced by the way questions are asked. In a 2014 survey conducted 

by DHL, consumers worldwide were asked how the unavailability of products in their domestic 

market ranked in their desire to purchase them via cross-border e-commerce. Analyzing the 
Chapter 1: What Is E-Commerce? 11

regional differences in results could be useful in planning web and selling strategies. Consumers 

name five main reasons for ordering, with variations between types of market:

• Products not available domestically

– Emerging economies: 74 percent

– Europe: 74 percent

– Americas and Asia Pacific: 72 percent

• Lower prices

– Emerging economies: 57 percent

– Europe: 69 percent

– Americas and Asia Pacific: 62 percent

• Greater selection

– Emerging economies: 49 percent

– Europe: 35 percent

– Americas and Asia Pacific: 41 percent

• Higher quality

– Emerging economies: 49 percent

– Europe: 8 percent

– Americas and Asia Pacific: 15 percent

• Assurance against counterfeiting

– Emerging economies: 24 percent

– Europe: 4 percent

– Americas and Asia Pacific: 6 percent

Other drivers are demographic. According to the Organisation 

for Economic Co-operation and Development, the number 

of people in the world defined as middle class will grow to 

4.9 billion in the next 15 years. There were 1.9 billion in 2009. 

The Asia Pacific region will be home to 2.7 billion of these new 

middle-class consumers, and North America’s share will drop 

to 10 percent from 2009’s 26 percent, according to the 

Brookings Institution.

Many of these consumers will purchase across borders, but consumers doing so now are more 

numerous than you might think. According to a study sponsored by PayPal, 56 percent of online 

buyers made at least one cross-border purchase in 2013. The average annual spending is about 

USD 300, with Australians and Danes serving as world-class spenders at USD 1,000 and 

USD 3,000, respectively.

Barriers to Cross-Border E-Commerce

The good news is that many buyers plan to increase cross-border purchases, according to a 

number of recent consumer surveys. This suggests that perceived barriers to making such 

purchases are falling or that peer encouragement is influencing buying decisions. And as 

barriers are reduced or removed, purchases will likely increase. Indeed, some of the barriers 

mentioned by survey respondents have already been reduced or eliminated, or are in the 

process of being removed.

When you shop, you like to save money. 

Everyone does. And studies have shown 

that consumers expect prices online to 

be cheaper than in brick-and-mortar 

stores. Furthermore, in some places, such 

as Korea, cross-border online shopping 

can give better prices than buying from a 

domestic web store—even for products 

made in the consumer’s own country!
12 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

According to recent data from Alphawise and Morgan Stanley, barriers can include:

• Concerns about security of payment

– U.S.: 32 percent

– Globally: 30 percent

• Easier to return products bought in stores

– U.S.: 39 percent

– Globally: 29 percent

• Products lost or damaged during shipment

– U.S.: 6 percent

– Globally: 16 percent

• Shipping costs too high

– U.S.: 36 percent

– Globally: 26 percent

• Need to see and touch the products

– U.S.: 38 percent

– Globally: 41 percent

• Delivery takes too long

– U.S.: 6 percent

– Globally: 13 percent

• Don’t have enough trust in online retailers

– U.S.: 12 percent

– Globally: 19 percent

• Don’t trust the quality of products online

– U.S.: 13 percent

– Globally: 16 percent

• Products not available online

– U.S.: 4 percent

– Globally: 4 percent

• Other reasons

– U.S.: 9 percent

– Globally: 6 percent

Duties and Taxes

Trust in online sellers is reasonably high everywhere except Asia, according to a study sponsored 

by UPS. Time and experience may spur an increase in customers’ trust and willingness to buy 

direct, but if your goal is more Asian sales, you might first consider selling on a “brand name” 

platform where trust has already been established.

Another barrier, according to a study by Forrester Research, is duties—the percentage charged 

by customs authorities on the value of the item above a threshold value. De minimis value, as 

the threshold is known, varies from country to country. Items imported into the United States 

are subject to duty when the value is over USD 200, but a bill in Congress would raise that 

amount to USD 800. In Australia, duty and taxes kick in after the first USD 1,000. In Canada, 

it’s USD 25; in some other countries, it’s USD 5. In Europe, 

the average is about USD 190. Worldwide, 56 percent of 

individuals surveyed said they would buy more if duties 

were reduced or eliminated. That opinion is shared by 80 

percent of consumers surveyed in Latin America. Knowing 

which value applies to which country can help you estimate 

the landed cost—the full cost the customer will pay—so you 

can communicate this price to the buyer. A list of values by 

country can be found in Appendix D.

Pay attention to each export 

market’s de minimis value. A 

few cents sometimes makes 

the difference between a cheap 

transaction and a big tax bill!
Chapter 1: What Is E-Commerce? 13

What the Customer Usually Pays

• Cost of the goods, including your profits

• A handling fee, added at your discretion

• Freight

• Insurance

• Duty, if applicable

• Sales tax, set by the country where the 

buyer lives

• Return freight, unless you agree to cover a 

portion or all of it

By the way, many items can be received duty free if the goods meet the rules of origin under free 

trade agreements. And bilateral and multilateral efforts are under way to lower duty rates further 

among countries that don’t have free trade agreements.

Other barriers involve rules and regulations. They too have improved, but more work needs to 

be done. Chapter 4 provides information on how to comply with the regulations of some of our 

main trading partners; Part III includes market-by-market details that should also help make 

exporting easier for your company.

If a potential buyer has never heard of your company or your product or service, he or she may 

hesitate to make a purchase. Recent studies report that 42 to 50 percent of the buyers surveyed 

said reputation, trustworthiness, and ability to verify such attributes play a role in purchasing 

decisions. A consumer would weigh such factors in evaluating whether to make purchases from 

the website of a small U.S. company.

A buyer balances this concern with the desire to acquire an unusual item or one seen as a good 

buy. Clearly, the latter wins out in many cases. Also, the high esteem that many foreign buyers 

have for U.S. products, services, and companies may help your company. Nevertheless, buyer 

wariness, at least until perceptions change through experience, may require that your strategy 

involve more than one selling channel.

Your online reputation is as important in the United States as it is in Australia or Germany. 

Online customer comments such as “terrible customer service” and “the product didn’t work 

as advertised” can be translated easily. Collect too many negative comments and the best 

international e-commerce marketplaces may not want you to join them, or they may throw you 

out if you are already a member.

Where Are the Cross-Border Consumers?

According to a 2014 Nielsen survey, customers from the following countries have started making 

or will increase their cross-border purchases:

• Mexico

– Start: 20 percent

– Increase: 39 percent

• Russia

– Start: 20 percent

– Increase: 34 percent

• Brazil

– Start: 18 percent

– Increase: 33 percent

• China

– Start: 17 percent

– Increase: 35 percent

• United Arab Emirates

– Start: 15 percent

– Increase: 32 percent
14 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

What Are They Buying?

The Nielsen survey asked consumers around the world what they were buying. The product 

categories vary somewhat among countries. Also, the list doesn’t include products such as car 

parts, which eBay says make up a hefty chunk of its cross-border business. Books also are not on 

the list, but they are popular—especially e-books. Low-weight items are popular because they 

are cheaper to ship long distances.

The top cross-border online shopping categories from the Nielsen report are

• Clothing, shoes, and accessories 

(USD 12.5 billion)

• Health and beauty (USD 7.6 billion)

• Personal electronics (USD 6 billion)

• Computer hardware (USD 6 billion)

• Jewelry, gems, and watches 

(USD 5.8 billion)

• Home electronics (USD 5.4 billion)

Who Are They Buying From? Advantage: United States

The United States is the world’s biggest exporter of manufactured goods and services. Still, only 

about 4 percent of all U.S. companies export. And more than half export to only one country, 

mainly Canada. If your company currently exports (or plans to export), you are a rarity, and an 

important one. E-commerce can help more companies sell more to more countries. And buyers 

in these countries seem predisposed to “buy American,” assuming other buyer criteria are met.

Also, two of the world’s biggest e-commerce platforms are U.S. based: eBay and Amazon. Two 

of three logistics giants are U.S. based: UPS and FedEx. With such visibility and presence, it’s no 

wonder that consumers worldwide are willing to have the United States as a preferred provider.

Who’s Selling?

Not long ago, big companies dominated world trade. Today, though, most exporters are small 

and medium-sized companies. Large e-commerce platforms have increasingly enabled more 

small companies to engage in international trade. In a recent report, the online marketplace 

eBay said that 95 percent of its U.S. sellers (190,000 unique users) are exporters, with annual 

sales of more than USD 10,000 each. By contrast, the U.S. Department of Commerce says that 

about 4 percent of total U.S. companies export. One conclusion is that marketplaces have 

become a magnet and an enabler for exporting companies; these companies often use a variety 

of selling platforms, including their own websites. Companies that sell globally online also seem 

to grow more quickly and survive longer.

Consumer Behavior and Preferences

The world of e-commerce is a small business’s oyster, but prying it open to seize the pearl 

takes some effort. That message is the main takeaway from a recent FedEx study of over 9,000 

consumers from all over the world..

The good news is that for the consumer, shopping knows no borders. From Brazil to Bahrain, 

people are buying what they see on TV shopping channels, mobile devices, and even small 

business websites.
Chapter 1: What Is E-Commerce? 15

Consumers who shop across borders prefer to purchase from well-known multibrand retailers 

with established, strong reputations for service and reliability. Fifty-seven percent of consumers 

are buying physical goods rather than music or e-books.

Consumers in different parts of the world buy different things online. Buyers in the Asia Pacific 

region like food. North Americans buy video games. Everyone buys apparel.

The United States, the United Kingdom, and China are the top three 

online exporters. Canadians are the biggest cross-border e-shoppers, with 

91 percent of Canadian respondents having made an online purchase. 

Sixty-eight percent of Brazilians said they bought from a goods supplier 

in another country. Europeans tend to buy from within Europe, perhaps 

because such purchases are duty free.

The study, conducted for FedEx by Forrester Research, includes 

recommendations for small businesses—a customer segment that FedEx is 

eager to grow. Rather than rely on your own website to lure international 

buyers, the study suggests selling via eBay, Google, or Alibaba if your 

goal is the Chinese market. You may want to be in more than one 

marketplace, or have different products in different markets, depending 

on your strategy. Consumers look for unusual products that are otherwise 

unavailable or are hard to find in their home markets.

They also want good products from known sources, a preference that helps explain the 

reluctance of some buyers to buy directly from a business’s own website even if it might be 

cheaper to do so. Consumers who don’t know a business might worry about getting ripped off. 

There may seem to be a contradiction between wanting unusual products and being reluctant 

to buy from the websites of unfamiliar businesses in an unfamiliar country, but keep in mind that 

some buyers are in new territory here.

The FedEx study and other studies confirm what we already know: that cross-border 

e-commerce is growing quickly, and so are the opportunities for your small or medium-sized 

enterprise (SME). We are in the age of omnichannel selling, or multiple ways of reaching buyers 

at a relatively low cost for SMEs. Let’s look now at the main types of channels.

Terrible customer service 

is anathema to successful 

e-commerce.

Always pay attention to your 

customers’ needs. In some cases, 

it may help to have multilingual 

staff or contractors.

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 17

Chapter 2 

Primary Sales Channels

There are three main e-commerce channels to consider: your company’s website 

(with or without integrated payment and fulfillment); one or more of the global 

third-party e-commerce platforms; and smaller, regional or market-specific 

e-commerce platforms. (These platforms are identified in the country e-commerce 

profiles in Part III of this book.) Some global platforms have country-specific sites 

targeting local buyers and sellers, but the platforms are also open to other sellers. 

Keep in mind that consumers are showing a preference for marketplaces that feature 

many products and many brands.

It’s common for sellers to use multiple channels to reach more potential buyers. Your 

choices, then, are to go broad or narrow. Quickly developing a presence in multiple 

channels at once may tax your ability to monitor and manage them all, however. 

One option is to start narrow: use your own site plus a popular marketplace with 

worldwide reach. Test the waters before expanding further.

Selling to Consumers

According to Multichannel Merchant magazine (July 2014), U.S. retailers use several 

methods to sell to international customers:

• Through marketplaces (eBay, Amazon, Alibaba, Rakuten, etc.): 40.5 percent

• With international versions of the exporter’s own website: 33.3 percent

• Via international payment on the exporter’s own website: 26.1 percent

• By translating content depending on where it’s being viewed: 20.7 percent

• By using a third-party company to market globally: 9.0 percent

Transactional Site

Everyone who shops online has visited transactional sites. A transactional site may 

be an electronic storefront for a brick-and-mortar retailer, a catalog business, or 

a manufacturer showroom and is used to sell directly to the public. Transactional 

sites conduct full “end-to-end” transactions via the website, allowing customers to 

search for, order, and pay for products online, as well as allowing them to contact 

the company for after-sales service. The most sophisticated sites create efficiencies 
18 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

by integrating the transaction process with back-office systems such as accounting, inventory, 

sales, and other business functions.

Marketing Site

An informational site generates sales by promoting company and product awareness, rather 

than by directly handling online transactions. Its function is similar to a brochure, providing 

information about the product or service, as well as information on how to purchase. Because 

this type of site is often static and doesn’t require the software systems necessary for online 

transactions, it is less expensive to design and maintain than a transactional site.

E-Marketplace

E-marketplaces are market makers. They bring buyers and sellers together to facilitate 

transactions. Participation in a marketplace often provides an efficient way of finding a customer 

without the expense of building a proprietary transactional website. Some marketplaces offer 

fixed prices and auctions.

Advantages

• Huge audience with more than a billion 

customers

• Well-known brand that is a source of trust 

and comfort to buyers and sellers

• Global reach

• Market- and product-specific marketplaces

• Fixed price and/or auctions

• Business-to-business (B2B) and businessto-consumer (B2C) needs served on one 

platform

• Relatively easy to create a virtual store 

that’s viewable on mobile devices

• A la carte fulfillment options that include 

secure payment, delivery, and returns

• Help with country-specific documentation 

and regulations

• Availability of fulfillment centers near 

overseas customers, which can speed 

delivery and reduce freight costs

• Some protections against fraud and 

intellectual property theft

Disadvantages

• So big that your store or products may be 

hard to locate

• Additional time needed to manage your 

activities to increase sales

• Competitors likely to be present on the 

same marketplace

• Various fees that may reduce your margins

The Big E-Marketplaces

eBay

eBay began in 1995 out of offices in Silicon Valley. The company expanded internationally in 

2010. In addition to eBay.com, there are eBay sites in 25 countries. eBay recommends that U.S. 

exporters use the main eBay.com platform, along with country-specific eBay platforms, such as 

those in Europe and Asia. In total, eBay says it has buyers and sellers in 203 countries.
Chapter 2: Primary Sales Channels 19

Seventy-nine percent of eBay sales are fixed price; the rest are auctions. Sellers, including 

cross-border ones, engage in a mix of both types of transactions. Worldwide, eBay has 149 

million buyers, a nicely sized “community,” coming to one place to shop. Twenty-two percent of 

its business now is cross border. And that business grew 26 percent in 2014, up from nothing a 

few years ago.

The majority of eBay’s U.S. sellers are selling across borders. The sellers 

indicate the overseas markets in which they want exposure and for 

which they are able to fulfill orders. The bulk of purchases are clothing, 

electronics, books, and the like—but collectibles and auto parts also are 

big. Additionally, through a third party, eBay assists sellers who want 

help with fulfillment, including international shipping. PayPal, which 

was part of eBay but in 2015 spun off into a separate company, provides 

payment solutions to 188 million active customer accounts worldwide. 

eBay says that 96 percent of businesses in Canada have a web presence, 

but only one in four business websites can process electronic payments. No such data was 

available for the United States, but the ratio may be similar, suggesting a gap in paymentprocessing capability.

eBay does not currently warehouse products in overseas markets, but it may do so in the future.

Applications, or “apps,” are increasingly important, and eBay says that it has invested heavily 

in them. For example, many consumers now shop online using their smartphones, so eBay has 

invested in making product photos look great on phones’ smaller screens. Twenty-five percent 

of eBay purchases are now mobile, up from 1 percent in 2010; however, 

many consumers who browse listings on their phones still wait until 

they get back to a home or office computer to complete the order.

Smartphone-friendly websites are increasingly important. Search engine 

giant Google recently announced that mobile phone–friendly sites will 

appear higher on search results, likely meaning that having (or having 

your products on) such a site will be an important part of your search 

engine optimization (SEO) strategy.

Amazon

Amazon began operations in 1995 and now has more than 244 million members. According to 

a recent annual report, in 2014 Amazon hosted merchants from more than 100 countries and 

helped them connect with customers in 185 countries. Nearly 20 percent of overall third-party 

sales now occur outside the sellers’ home countries, and merchants’ cross-border sales nearly 

doubled in 2014.

Many companies start small and 

add more channels over time. 

If you grow your presence too 

quickly, you may not have the 

resources to maintain them all.

eBay’s mobile traffic has grown 

exponentially in just a few years. 

Many people use the eBay app 

when looking for things to buy, 

even if they use a desktop or 

laptop for the actual purchase.
20 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

One of Amazon’s programs, Vendor Express, is designed to help sellers get started with Amazon. 

A company sends Amazon some sample products, and Amazon attempts to sell them on its 

worldwide platform, taking care of all the details. If the samples sell, Amazon will buy more and 

deposit the sales proceeds into the business’s bank account. The benefit of the program is that 

Amazon does everything but make the products. The downside is that sellers do not interact 

with the buyers and do not have access to their information. Product categories are limited to 

those Amazon thinks sell best. More details on this program are available at 

vendorexpress.amazon.com.

Amazon operates marketplaces in the United States, Canada, the United Kingdom, Germany, 

France, Italy, Spain, China, Japan, and India. At this time, the India marketplace is restricted to 

companies with a physical presence in India. U.S. sellers wishing to sell on the Amazon European 

marketplaces must have a value-added tax (VAT) number from the European Union; you can 

apply for a VAT number online. You also 

will need to place product descriptions 

in each of the European marketplaces 

in which you wish to sell. China places 

additional restrictions on sellers, and 

you should contact Amazon to find out 

what they are.

Like all the major marketplaces, 

Amazon cautions sellers to be aware of 

U.S. export and foreign country import 

regulations. Consider these issues: If 

you’re not the manufacturer, do you 

have the manufacturer’s permission 

to sell the product in another 

country? Does the product need a U.S. 

government export license? Do you 

need a license from a national agency 

to sell in a particular foreign country? 

Are testing and test data needed before 

a country will issue you permits to sell 

to consumers? How do you need to 

handle personally identifiable customer 

data? Amazon can help answer those 

questions.

Amazon operates fulfillment centers 

wherever it has marketplaces. You can 

ship products to these centers and have Amazon pick, pack, and deliver the orders, often within 

the one- or two-day delivery window that customers increasingly expect. Amazon charges 

a fee for this service, and you should carefully calculate all fees and costs associated with a 

E-Commerce Platform Checklist

• What countries are the best markets for my products?

• Have I asked for advice from my local U.S. Commercial Service 

office?

• Have I looked at the market research and Country Commercial 

Guides on export.gov?

• Do I understand what regulations apply to my products so they can 

be sold in a different country?

• If I’m not the manufacturer of the products, do I have permission 

to sell them outside the United States?

• Have I checked several marketplaces to see if there are products 

similar to mine and what prices they are selling for?

• Have I studied online product photos and descriptions for ideas 

about how to promote my products?

• Have I read buyer comments on marketplaces for ideas about how 

my products can be more competitive?

• Have I considered the advantages and disadvantages of 

fulfilling my own international orders, compared with having an 

e-commerce marketplace fulfill them?

• Do I have the resources and know-how to do my own fulfillment?

• Have I compared the costs of the different marketplaces and 

factored in the charges for the services I want to purchase from 

them and other providers?

• What is my profit margin after calculating fees, which often 

exceed 10 percent of the purchase price? Can I compete?
Chapter 2: Primary Sales Channels 21

selling solution, including the payment method. Determine whether you can make a profit after 

subtracting all of the costs from your selling price. The good news is that many Amazon export 

customers say they are making money on their cross-border sales. But some don’t, and the 

difference depends on the pricing strategy, buyer interest, and your own internal cost controls. 

Amazon was in China early, but now Alibaba is the dominant player. Amazon responded by 

opening a store on Tmall, an Alibaba marketplace. According to Internet Retailer magazine, 

Amazon launched its second store on the platform to sell imported food, women’s shoes, toys, 

and kitchenware. Amazon reportedly has 15 fulfillment centers in China and will handle 

deliveries itself.

Alibaba

Alibaba’s aim is to be a major international player, with 

many more users outside of China than in. Founder Jack 

Ma has said repeatedly that he wants to help small and 

medium-sized companies everywhere to sell throughout 

the world, including in China.

Given that globalization is Alibaba’s most important 

strategy for the coming decades and that the company’s 

goal is to help 10 million global businesses serve 

2 billion consumers around the world, Alibaba is moving 

aggressively on many fronts simultaneously, including the 

U.S. market.

Change occurs rapidly in this hyper-competitive industry. 

But trends are looking good for buyers and sellers as new 

innovations appear.

Other Marketplaces

Marketplaces continue to proliferate, each catering to 

specific product niches, countries, and regions. Many of the 

marketplaces are in languages other than English. If you’re 

interested in a specific marketplace, please contact your 

local U.S. Commercial Service office.

Alibaba offers several different platforms, 

each with its own e-commerce focus:

• Alibaba.com—Promoted as an international B2B 

marketplace, this website is currently available in 14 

languages. It is not transactional; it mainly serves as a kind 

of yellow pages. The site is targeted at international buyers 

and sellers outside of China. In the United States, many small 

businesses and entrepreneurs use Alibaba.com to source raw 

materials and products from China and around the world. 

They also can use the site to market themselves and sell to 

the rest of the world.

• Tmall—This B2C platform serves the domestic China 

market in the Mandarin language. Non-Chinese sellers can 

participate, but they need local help to do so. A few U.S.-

based companies with substantial experience in China offer 

to help U.S. companies sell on Tmall. Launched in April 2008, 

Tmall.com features international and Chinese brands, and 

foreign retailers have established storefronts on Tmall.com.

• Tmall Global—This relatively new site helps foreign 

companies, especially small and medium-sized ones, sell to 

Chinese consumers. No time-consuming product or business 

registration is required because sales are treated as if they 

occur outside of China, even though the goods are shipped 

to Chinese consumers. Tmall Global is not its own platform; 

it’s an extension of Tmall.com, so it benefits from Tmall’s 

substantial traffic. 

• 1688.com (in Mandarin, the numbers read aloud sound like 

“Alibaba”)—This platform serves the domestic China market 

in the Mandarin language. However, plans are in place to 

begin helping Western wholesalers sell to Chinese businesses 

through this site. U.S. companies will need to post text in 

Mandarin; that requirement could change if Alibaba adds 

translation capabilities. 
22 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The following list of marketplaces provides examples of what’s currently available and is not an 

endorsement or recommendation:

• ExportNow.com (China via Tmall; 

U.S. based)

• WebPortGlobal.com (English and Spanish 

language; U.S. based)

• MercadoLibre.com (B2C; Latin America)

• Mercatrade.com (B2B; Latin America)

• Walmart.com (consumer products; 

U.S. based)

• B2Wdigital.com (consumer products; 

Latin America)

• Etsy.com (art and collectibles; U.S. based)

• DHgate.com (English language; 

China based)

• iOffer.com (English language; U.S. based)

• Tradeindia.com (English language; 

India based)

• Tradekey.com (multiple languages; China 

based but global marketplace)

• Rakuten.com (global; Japan based)

• kaymu.com (emerging markets throughout 

Africa, Asia, the Middle East, and Europe)

• Newegg.com (computers, electronics, and 

consumer goods; U.S. based)

Social Media Stores

Social media is another emerging e-commerce channel. For example, you can now create stores 

on Facebook, Google Shopping, and other sites. These channels are in their infancy, and their 

market share is low. But Facebook claims to have 50 million business pages. No data is available 

on their effectiveness for reaching cross-border buyers. However, social media is hugely popular 

abroad, especially in Asia, which has some of the highest concentrations of social media use 

(255 million Facebook users, for example). Consumers regularly discuss and evaluate products. 

Friends’ recommendations can lead to purchases.

In the Republic of Korea, for example, social media 

users share information about U.S. companies and 

product websites. Friends of friends then go to the 

sites, make purchases, and direct that the deliveries 

go to a U.S.-based forwarder, from which they are 

shipped to Korea. (The intermediary is needed 

because many U.S. businesses that have websites will 

not ship internationally.) Word of mouth will bring 

buyers to your site. According to a study by Forrester 

Research, 33 percent of buyers surveyed worldwide 

learned of a purchase opportunity from someone they 

knew. However, 58 percent of surveyed buyers still 

relied on search engines.

Influencing purchasing decisions in other countries using social media is not easy. To learn tips 

and strategies, contact your local U.S. Commercial Service trade specialist.

Social media is incredibly popular 

all over the world—especially in 

Asia. Consumers talk with friends, 

colleagues, and even strangers 

about both the products they buy 

and their experiences with sellers.
Chapter 2: Primary Sales Channels 23

Home Shopping on Television

Television shopping doesn’t fit neatly into the typical e-commerce models, but it needs to be 

considered on its own merits. The best-known practitioner is QVC, a U.S.-based company that 

has expanded to the United Kingdom, China, and other countries. You may be familiar with its 

U.S. presence, a 24/7 cable TV channel on which hosts showcase and sell many different kinds 

of consumer items. Featured products are competitively selected. To be considered, you need to 

send a sample to QVC, and the staff members will evaluate it based on what they think will sell 

in a particular market. If interested, they will buy the products from you in sufficient quantities 

to meet the demand. Being featured on their shows is, of course, a potential product promotion 

bonanza. Details about QVC’s selection process can be found at QVC.com.

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 25

Chapter 3 

Your Company Website

A good website is an important part of your e-commerce strategy, and it doesn’t 

need to be expensive to create. International buyers actively search online across 

borders for products to buy. According to a recent study by 

Forrester Research, 58 percent of buyers who make online 

purchases from outside their own country find the vendors through 

online searches. Another large portion of buyers learn about 

products and vendors by word of mouth, presumably from 

acquaintances who find them through online searches. Another 

source for reaching cross-border e-commerce customers is online 

ads that refer potential buyers to a website.

Types of Websites

There are two main types of websites: marketing and transactional. A marketing 

site promotes the product and brand and provides information on how the product 

can be purchased. A transactional site allows the buyer to select the product, pay 

for it, and have it delivered. Both forms allow opportunities to interact with the 

buyer and enhance the all-important “customer experience.” For example, in South 

Africa, a local company sells kitchen goods on its website and still manages to put a 

handwritten thank-you note in each box.

You may have the means to receive payment and the 

willingness to ship goods. Even then, some inexperienced 

international buyers may be reluctant to buy directly from 

your site, but they still may look at your site and even 

contact you for information. Look at the metrics available 

from Google to see the home countries of the shoppers 

who visit your site. Then you can experiment with Google 

ads targeted at consumers in those countries and drive 

more of them to your site, or to your virtual store in one of 

the global marketplaces that has tools to collect payment, 

arrange shipping, and handle returns.

It’s your call whether to have your website precede your store on a big marketplace. 

Some experts advocate setting up both. Others advise getting your feet wet with a 

Nearly 60 percent of 

online shoppers rely on 

search engines to find 

international sellers.

Much as with brick-and-mortar 

stores, word of mouth and “viral” 

customer stories can quickly lead 

to many new customers—as long 

as people have good things to 

say about you!
26 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

store in a marketplace, then creating your company website and applying lessons learned. No 

single answer is best for everyone or for every market. Whatever option you choose, you can 

build your own site, have one built for you, or create a store online by using services such as 

PrestaShop, Shopify, Magento, and Volusion.

In 2015, a Forrester Research survey for FedEx captured how customers found online merchants 

outside their home country:

• Search engines: 58 percent

• Online ads: 39 percent

• Word of mouth: 33 percent

• Social media: 31 percent

• E-mail promotion: 27 percent

Advantages of Using Your Company Website

• Buyers worldwide can find your company and view your products.

• You can choose to use the site to generate offline inquiries or to sell direct.

• You can build a fully transactional site yourself or outsource the building of it.

• You can use readily available apps to create an online store and start selling the same day.

• You can acquire apps for processing payment and arranging delivery.

• You can acquire apps that make your site smartphone friendly and improve search engine 

optimization (SEO).

• You can acquire apps to manage selling across numerous platforms, including your site, 

third-party marketplaces, and social media stores.

• You control the entire customer experience.

Disadvantages of Using Your Company Website

• It takes work and planning to create a good one.

• Too many businesses merely create the site and forget about it.

• Too many businesses create a site for U.S. buyers and ignore international buyers.

• A fully transactional site that appeals to an international buyer requires an investment (but 

prices have fallen to the point that most businesses can afford to have an effective site).

• Accepting credit card payments means putting in place procedures to detect fraud.

• You control the entire customer experience.

Regardless of whether you sell directly to online buyers, use one or more of the large 

marketplaces or their country-specific affiliates, or do a combination of both, you should take 

several steps to ready your company website for global commerce. You can do this work yourself 

or outsource most or all of it. For the do-it-yourself reader, or for individuals who want a little 

more detail, we will discuss the importance of domain names in the next section.
Chapter 3: Your Company Website 27

Step 1—Select a Domain Name

A key component to establishing a web presence is choosing a web address, also known as 

a uniform resource locator (URL). A web address should be short, simple, descriptive, and 

memorable to customers in the target market. ICANN-accredited registrars can concurrently 

register your web address for each country in which you register.

Using Country-Level Domain Codes

Every country (as well as some territories) has a reserved, two-letter country code domain (e.g., 

the United Kingdom has the domain .uk; for a complete list, visit bit.ly/1NhhWkY). An online 

exporter might want to choose domain names localized for its target markets. Locally branded 

domain names can increase brand awareness, web address recall, and even brand sales and 

loyalty. In addition, local search engines may display locally relevant content by filtering search 

results to include local country code domains only—something to consider when deciding 

whether to localize or internationalize your site. Companies that want to have a local domain 

name should research the rules for the particular country, as registration requirements vary. For 

more information, please visit iana.org.

Internationalizing Your Domain Name

Companies seeking foreign customers may also consider an 

“internationalized” or “multilingual” domain name. Such domain names 

are web addresses written in characters other than the Roman alphabet. 

For example, a company called “Bright Light Bulbs” wishing to sell in China 

could have a domain name that would use the Chinese characters for 

“bright light bulbs” in its web address. Internationalized domain names 

allow customers to search and access sites in their native language. Again, 

most ICANN-accredited registrars can assist you in registering domain 

names in various countries.

Step 2—Choose a Web Host

A web host is simply a company that “hosts” your website’s files—basically, storing them on 

powerful Internet-connected computer systems and allowing them to be accessed by users all 

over the world. A variety of free and subscription-based web host services is available. Hosting 

may be purchased from many different kinds of companies offering a wide range of services.

Hosting services often go beyond website maintenance to include domain name registration, 

website design, and search engine optimization. For some online exporters, it may be most 

feasible to use a web host in their target market to take advantage of all of these localized 

services. The location or nationality of the host does not typically affect accessibility of the site. 

However, when choosing a host, companies should ensure that the host servers reside within 

a stable infrastructure and are maintained to ensure optimal reliability. Companies also should 

consider whether they will be storing the personal information of citizens of the European Union 

(EU) or of other nations that restrict exporting personal data. The personal data of EU citizens 

A localized domain name (e.g., 

ending in .uk for the United 

Kingdom) is sometimes a good 

way to show customers you’re 

serious about their market
28 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

can be sent only to countries deemed “adequate,” or to companies using approved model 

contracts and binding corporate rules, or to those participating in the EU-U.S. Privacy Shield 

program. Companies also should take into account potential negative perceptions if they store 

personal data in nations in which fraud or identity theft is rampant.

As with domestic hosting services, agreements should be clear and enforceable regarding the 

ownership of intellectual property, performance specifications and warranties, security, privacy, 

the right to transfer the site to a different host, and contract termination. The hosting service 

that you contract with should agree to provide the same level of security and privacy that your 

company promises clients whose information it collects.

Step 3—Get Visible on Search Engines

Most people use search engines to find information on the Internet. Major U.S. search engines 

such as Google and Bing will find your website automatically; however, in some markets, you 

may need to register your site with multiple local search engines.

There are a number of international search engines. Some search engines, such as baidu.com, 

are in native languages and characters. Others are popular U.S. search engines with international 

links, such as br.search.yahoo.com. Online exporters should find out if they need to register with 

each target market’s preferred search engines.

Step 4—Localize and Internationalize Your Content

Companies seeking foreign audiences will want to localize or internationalize their websites, 

or provide a mixture of both approaches. Forrester Research notes that “visitors linger twice as 

long [on international sites] as they do at English-only URLs; business buyers are three times 

more likely to buy if addressed in their own language; and customer service costs drop when 

instructions are displayed in the user’s language.”

Localization consists of adapting your website to meet the linguistic, cultural, and commercial 

requirements of a targeted market. Internationalizing a company’s website enables the company 

to be multilingual and to be sensitive to cultural conventions without the need for extensive 

redesign. Localization or internationalization must be part of the online exporter’s corporate 

strategy for website and business development. Features that should be considered include

• Language

• Cultural nuance, such as differences in color association and symbols

• Payment preferences

• Pricing in the appropriate currency or currencies

• Web metrics and visitor reports

• Regular maintenance and updating of content

More information on localization and internationalization can be found at gala-global.org.
Chapter 3: Your Company Website 29

Step 5—Fulfill Orders

Guidelines for order execution and after-sales service are similar for offline and online 

transactions. You can easily add a checkout app to your website from a growing number of 

vendors. You can specify the payment methods that you will accept. Keep in mind that overseas 

buyers may have different payment methods than you’re used to and that the app or third-party 

checkout service you acquire needs to provide these options.

You can also create your own site and online store using vendors such as Shopify. These services 

provide templates, which can be customized—up to a point. You can purchase a domain name 

and install a checkout function. Some vendors claim to have a store up, running, and taking 

orders within a couple of hours—and no computer programming skills are needed.

Is Your Website Mobile Friendly?

Most of us carry mobile phones that have more computing power than our desktop computers 

did 10 years ago. We rely on these devices to perform many tasks—including shopping.

The mobile e-commerce trend is global, but buyers in some countries are more avid than those 

in others. Shoppers in mainland China make more mobile purchases than do shoppers of any 

other country. According to a recent survey by eBay, 33 percent of all e-commerce orders were 

placed through a mobile device, including smartphones and other wireless devices, rather than 

on a desktop computer.

Even if your product photos look great on a regular computer screen, they may appear squeezed 

or amateurish on a smaller smartphone screen. Fortunately, apps are available to translate your 

web pages into formats that look good on small-screen wireless devices.

In general, keep the design of your site simple and the pages easy to navigate. Use inviting 

colors that contrast well. Avoid gimmicks such as text that pulsates or objects that spin. Keep in 

mind that English is a second language for most of your international visitors. Simplicity, brevity, 

and clarity are good design principles for all visitors.

Vendors who provide online stores say that they are “mobile compatible”: trust but verify by 

testing on your own mobile devices.

Check Out the Checkout

Provide a currency calculator so that buyers from other countries don’t have to search the 

Internet for one. Collect only the minimum amount of information to prevent data entry 

frustration. Abandoned shopping carts, which are left when the customer closes the browser 

and does not complete the transaction, are a common headache for online sellers. They are also 

a metric that you can retrieve and use to try to determine why customers are leaving your site 

before hitting the pay button.
30 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Try using your site as a marketing vehicle while conducting transactions offline. Work with a 

third party, such as the U.S. Commercial Service, to help you attract prospective buyers, to 

conduct due diligence, and to pass qualified leads to you. Customers—especially potential 

distributors in markets you’re new to—will welcome your company’s personal involvement in 

the transaction. Smaller companies often excel at this kind 

of customer service, and some buyers love and expect it.

How many tasks your website can perform depends on 

your products and how scalable you want production and 

sales to be. If you want to sell and collect payment on your 

site, you’ll need some tools that are readily available in the 

e-commerce marketplace.

Other Fulfillment Solutions

E-commerce may be your sole business model. More likely, you are managing multiple selling 

channels and have only recently become excited by the prospects of cross-border trade. You 

likely may prefer not to do the payment collection and fulfillment yourself.

A number of fulfillment providers are available, including 

Bongo International and UPS i-parcel. You can integrate 

them with your website. They can manage the shopping 

cart, calculate landed costs for shipment to customers, 

figure out the lowest-cost shipping, prepare all customs 

documents, collect the money in whatever currency the 

buyer prefers, and even translate the checkout page into 

multiple languages. They will also arrange the shipping, 

taking advantage of volume and consolidation to procure 

good rates. 

They take a percentage of sales as their fee, but you can add 

it to the cost of goods for pricing purposes. The fulfillment 

services also will handle returns, which customers require 

and businesses hate to arrange.

These kinds of services can address some overseas buyers’ 

aversion to buying online from small sellers in faraway 

places. A FedEx-funded survey of consumers around the 

world indicated a strong preference for purchasing from the 

mega e-commerce platforms because of trust and reliability 

concerns. U.S. companies that won’t ship internationally also 

lose sales from cross-border buyers. Outsourcing fulfillment 

is a way to prevent those missed sales.

Exchange rate and VAT 

calculators let international 

customers buy from you without 

struggling to figure out the cost.

Third-Party Logistics Supplier 

App Checklist

• Offers ease of use

• Accepts multiple forms of payment used 

by international buyers

• Provides fraud protection

• Offers language translation

• Consolidates and tracks shipments

• Repackages to save money on freight 

costs

• Has a foreign currency calculator

• Facilitates customs clearance

• Checks compliance with U.S. export 

regulations

• Offers transparent costs and fees

• Has a full landed costs calculator

• Implements a returns policy

• Provides customer service
Chapter 3: Your Company Website 31

As always, shop around for the best deal. What happens after that is up to you. Just remember 

what the buyer wants: clear photos and descriptions of products, easy-to-understand pricing 

and payment options, a choice of transit times, data security, and a simple returns policy.

Providing those requirements in one automated solution allows smaller companies to rocket to 

the front of the cross-border e-commerce pack.

Making Your Site Visible

A number of steps are required to ensure that your e-commerce site will appear when customers 

are looking for the kinds of products you sell.

Lay the SEO Foundation for Your Site

Most people create a website before developing their store. This is an important first step, 

because not only does your website serve as a kind of calling card but also you can use it to 

develop your brand. The store component of your website can be added later. What’s important 

is that you include quality information without gimmicks or irrelevant content, so that search 

engines will recognize your site as useful.

You can choose from multiple vendors, such as Ecwid, which allows your store to easily integrate 

into any existing website. The store can then appear on social media sites such as Facebook and 

related selling platforms.

Use Intuitive Site Structure

Build your site so that it’s simple and user friendly. Make it easy for 

visitors to find what they are looking for. Use plain language and avoid 

buzzwords, keeping in mind that your international visitors may not be 

fluent in English. The last thing you want is for visitors, including search 

robots, to get lost on your site. Consider welcoming international visitors 

prominently and telling them that you ship internationally.

Make your contact information clear and easy to find. All search engines 

pay attention to whether there is contact information on the site, 

including phone numbers and e-mail addresses.

Use Original Content and Include Relevant Keywords

It should be obvious to your website visitors what your company does, what services you 

provide, and what products you sell. You also may include useful content on your website, 

such as a section about your company history or an “about us” paragraph on your home page. 

Original content also may come in the form of a blog, which can help bring more traffic to your 

site. If your product is made or designed in the United States, be sure to mention it, because 

international buyers overwhelmingly have a high opinion of U.S. products. Make sure you 

describe products in detail, as some international buyers will prefer more information to less.

If your products qualify under 

existing free trade agreements, 

your website should say that, 

so buyers are aware they’ll save 

money. Also, make it easy for 

wholesalers and distributors 

to get in touch—pallets and 

containers may be even more 

profitable than individual orders.
32 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Use Your Own Photos

Whenever possible, take and use your own product photos. Doing so will enable those images, 

with links to your store, to be found by Google Image Search. Consider hiring a specialist 

product photographer.

Use Links That Are Easy to Understand

Whenever possible, use plain language to name your site’s deeper pages. For instance, instead of 

machine-generated characters (such as example.com/index.htm/?path=4215e7&first=yes), name 

your pages with understandable words, such as example.com/about/ourteam. Plain language 

web addresses are easier to read—by people, but also by search engines. The easier a search 

engine can see where it’s being led, the higher a web address may rank in search results. Many 

website builders allow you to name or rename the new pages you create for your site.

Apply Unique Metadata

Metadata tags describe content in a few words. They make it easier for search engines to display 

your site in the results from relevant search queries. Whenever possible, add tags to your photos 

and videos.

Keep Your Content Fresh

You should update your content as often as possible, even if you add just a few new items at a 

time. Compelling content will keep visitors on your site longer. The more time they spend, the 

more relevant your site will be, which affects your search ranking.

Use Search Widgets and Categories

A well-designed menu can help visitors navigate 

through a store by showing the main categories of 

products. A search field can help visitors quickly find 

specific products for which they may be looking. 

And if search engines see that your site is easier to 

navigate than your competitors’ sites, your site will be 

ranked higher than theirs.

Get Shoppers to Buy More

Tantalize the visitor into clicking more links to see 

additional products or services. Consider using a 

widget that shows what other customers commonly 

buy in addition to a specific product, or what items are 

currently popular or on sale. Let users set up automatic reminders for products they 

need regularly.

Checklist for Online Store Providers

• Multiple types of electronic payments accepted 

from multiple countries

• A currency converter at checkout so customers 

can easily determine cost

• Capability to translate store web pages into 

different foreign languages

• Content management system that allows you to 

write blogs, solicit feedback, and archive what 

you or others write

• Optimization for different-sized screens, 

including desktop monitors, tablets, and phones
Chapter 3: Your Company Website 33

Mine Data for Best Results

Don’t just put up the site and the store and then forget about them. Your site can be a source 

of valuable data on where visitors are coming from and what they’re looking at. Are buyers 

abandoning the checkout page before completing the transaction? If you track their activity, you 

may discover a problem with payment options or some other stumbling block. Maybe you need 

an app that enables the buyers to switch to a page in their native language. To assess visitor 

behavior, consider an analytics tool that will integrate with store apps. Google Analytics is one 

example. If visitors are coming from a particular part of the world, consider using search engine 

ad tools to attract more of them to your site. You pay for the ad only when someone clicks 

through to your website or online store.

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 35

You’ve decided to start selling your products globally, and you now have the 

opportunity to market and sell to the 95 percent of the world’s population that 

lives outside the United States. But new opportunities bring new responsibilities: in 

this case, complying with regulations, collecting additional information about your 

product, and managing new risks. Don’t be discouraged. Thousands of small and 

medium-sized companies are thriving in the global marketplace.

This chapter describes the information you’ll need to complete international 

sales and integrate that information into your business operations from the very 

beginning of the sales-and-fulfillment process. 

We’ll explore the steps you’ll need for going global, in terms of both operations 

and sales fulfillment. Before beginning these tasks, however, your business should 

conduct the proper steps for developing a new market or territory, such as creating 

a market-development plan, allocating proper resources, and ensuring senior 

management buy-in. The U.S. Commercial Service offers one-on-one business 

consulting to help walk you through the process of developing an export plan. 

You don’t need a plan to sell internationally, but taking advantage of the growing 

opportunities and managing risks will be difficult without one.

Intellectual Property Protection

You should take steps to protect your intellectual property (IP), including your brand 

names, company name, trademarks, logos, and anything else that’s part of your 

company or product identity. Simply because you have protected your IP in the 

United States does not mean it is protected anywhere else. Patent and trademark 

“trolls” search the Internet looking for IP that they can grab and register in other 

countries. Then, when your business arrives (e.g., in a large marketplace’s countryspecific e-commerce platform, such as Alibaba.com), the trolls inform you that 

you’ve violated their IP and demand large fees to license property that you didn’t 

know you don’t own.

One way to protect your investment is to register your IP in markets you’ve targeted. 

Registration is often easy and inexpensive. In the European Union (EU), for instance, 

you register only one time and gain protection in all EU countries. For additional 

information on registering and protecting your IP in key countries around the world, 

visit stopfakes.gov or contact your local U.S. Commercial Service trade specialist. 

Chapter 4 

The Global Marketplace
36 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Collecting Product Information

When exporting products, you typically have to provide more information to government 

agencies and shipping companies than when selling domestically. This information is 

transmitted in certificates of origin, commercial 

invoices, packing slips, and special export-reporting 

systems. We’ll discuss those documents and systems 

later in this book. In this section, we’ll take a look at 

the information you need to complete those 

documents, and we’ll suggest strategies for collecting 

and storing the information.

First, we’ll explain the basic concepts behind product 

classification and then review some strategies to help 

you classify your products.

Harmonized System Codes

Every imported or exported item is assigned a 

classification code that corresponds to its product 

type. These numerical codes are used by countries 

worldwide for statistic-gathering purposes. They 

also determine which tariffs, if any, will be applied to 

the product. Additionally, foreign trade regulations 

require exporters to include the correct classification 

code on export documentation. 

All import and export codes used by the United 

States are based on the Harmonized System (HS) of 

the Harmonized Tariff Schedule (HTS). Virtually all 

countries base their tariff schedules on this system, 

making it easier to conduct international trade.

The HS assigns specific six-digit codes for varying 

classifications of products and commodities. Countries 

that use the HS can classify their products even 

further by adding additional digits.

For example, the United States uses 10-digit codes to 

classify products. The first six digits are the standard 

HS number that any country would use. The last four 

digits are unique to the United States and classify the 

product more specifically. The entire 10-digit code is 

known as a Schedule B code. Schedule B codes are 

administered by the U.S. Census Bureau, and they are important to know when exporting. 

E-Commerce Plan Checklist

• Which e-commerce channels should you select 

and why?

• What are your target countries (Englishspeaking countries, free trade agreement 

partners, those with high rates of cross-border 

purchases, etc.)?

• What are your projected sales and revenues 

versus anticipated e-commerce expenses?

• Are the target countries compatible with the 

e-commerce channels?

• Who is selling similar goods? How are they 

describing the products, and in which 

marketplaces and at what prices?

• What can be learned from online buyer 

comments?

• What goods will you sell, and what prices will 

you charge, taking into account your costs and 

the costs to the customer (including estimated 

duties and taxes)?

• How will you handle fulfillment? What parts, if 

any, will you outsource?

• Will you work with government export 

assistance programs?

• How will you protect your intellectual property 

(IP), such as trademarks and designs? Should 

you formally file for protection in each 

international market?

• What are the steps for complying with U.S. and 

foreign market regulations, and who on your 

staff will be responsible for compliance?

• What are your customer service policies for 

international sales?

• How will you handle warranty matters and 

returns?

• How will website content be managed in 

accordance with best practices?

• What metrics will be used, and how will 

analyses be acted on?
Chapter 4: The Global Marketplace 37

Let’s look at how the United States and Japan classify a men’s wool overcoat with a fur-lined 

hood. In the United States, the Schedule B number is 6201.11.0000; in Japan, where overcoats 

with fur are distinguished from those without, the number is 6201.11.100. Both numbers start 

with the same six “harmonized” digits, but Japan adds three and the United States adds four. 

These variations in classification can make a big difference.

Overcoats with fur are taxed at 12.8 percent in Japan, whereas overcoats without are taxed at 9.1 

percent. If the Japanese buyer purchases an overcoat without fur but gets charged the duty rate 

for a coat with fur, the buyer unknowingly pays almost 4 percent more than he or she should 

have. The more you know about the codes and the duty rates for your products in specific 

markets, the lower the landed cost price will be, and the more you can save your customer.

Why You Need to Know Your Product’s Schedule B and HS Codes

Exporters need to know their product’s Schedule B and HS codes so they can

• Determine applicable import tariff rates and determine whether a product qualifies for a 

preferential (lower) tariff under a free trade agreement.

• Complete the many required shipping documents, including commercial invoices, 

certificates of origin, and other documents.

• Comply with U.S. law, where applicable.

How to Identify Your Product’s Schedule B Code

You need to determine the Schedule B code for each item you plan to export. Modifying your 

inventory system—adding a data field for each product’s Schedule B code—will simplify your 

export process because you’ll have ready access to the relevant Schedule B codes. The U.S. 

Census Bureau offers a free, widely used Schedule B search tool (uscensus.prod.3ceonline.com) 

that can help you classify your products. The Schedule B search tool is the most commonly 

used method for classifying products. Simply follow the easy on-screen instructions to find the 

appropriate code for your product. To learn more about Schedule B and the search engine, visit 

census.gov/scheduleb.

If your product is difficult to classify, the Customs Rulings Online Search System (CROSS) 

database (available at rulings.cbp.gov) can help you find the Schedule B code. CROSS contains 

official, legally binding rulings from other exporters’ and importers’ requests for Schedule B 

codes. Use this database to determine whether other exporters or importers requested a ruling 

on the same or a similar product and, if so, what that ruling was.

If at any point you need help classifying your product, contact your local U.S. Commercial Service 

trade specialist. He or she can help you identify the appropriate HS and Schedule B codes, as well 

as duties and taxes for specific countries.
38 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Multiple Items Shipped as a Set

For the most part, determining a product’s Schedule B code is straightforward. For example, let’s 

consider an unassembled bicycle that is sold in a box containing the bicycle frame, handlebars, 

pedals, and seat. On official documentation, this product would be classified as a bicycle 

(because the item is sold as one unit) and not as several different components. Some sets, 

however, are harder to classify. Rule 3 of the HTS General Rules of Interpretation (GRI) addresses 

composite goods, mixtures, and items that are sold in a set. The GRI has established a three-step 

process for determining the Schedule B code in such situations:

3(a) The heading that provides the most specific description shall be preferred to headings 

providing a more general description. However, when two or more headings each refer 

to parts only of the materials or substances, contained in mixed or composite goods, 

or to parts only of the items in a set put up for retail sale, those headings are to be 

regarded as equally specific in relation to those goods, even if one of them gives a more 

complete or precise description of the goods.

3(b) Mixtures, composite goods consisting of different materials or made up of different 

components, and goods put up in sets for retail sale, which cannot be classified by 

reference to 3(a), shall be classified as if they consisted of the material, or component, 

that gives them their essential character, insofar as this criterion is applicable. 

3(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified 

under the heading that occurs last in numerical order among those that equally merit 

consideration.

Special Circumstances: Textiles and Apparel Shipped as a Set

Unique rules govern Schedule B codes for textiles and apparel sets. Let’s say that Company X 

sells a set consisting of a hat, a shirt, and a pair of pants. According to the GRI passage excerpted 

above, a set should be classified under one Schedule B code. However, textiles are treated 

differently, as per Chapter 50, Note 14:

Unless the context otherwise requires, textile garments of different 

headings are to be classified in their own headings even if put up in sets for 

retail sale. For the purposes of this note, the expression “textile garments” 

means garments of headings 6101 to 6114 and headings 6201 to 6211. 

(Note: These heading numbers include most articles of clothing.)

If the shirt and pants are composed primarily of textiles with different headings (i.e., the first 

four digits of the Schedule B number), then each item in the set must be listed separately under 

its own product classification. In our example above, export documentation must list the shirt, 

pants, and hat under separate product codes.

Many countries and regions, including Canada and the European Union, apply these atypical 

rules to textiles.
Chapter 4: The Global Marketplace 39

Tips for Your Business Strategy: HS Codes

Determining the HS and Schedule B codes for your products can be complicated, depending on 

how many products you have and how diverse your product line is. The following strategies can 

help you simplify the product classification process.

Working with Your Suppliers

If you need to classify a large number of products, asking your suppliers to provide HS or 

Schedule B numbers could save you time. If you resell products that you purchased wholesale, 

your suppliers may have classified them already, especially if those suppliers have exported 

or imported them in the past. If you’re reselling products imported from an international 

supplier, then the shipping documentation probably lists the HS number and may contain the 

full Schedule B number. Keep in mind that modifying the product (e.g., adding new trim) may 

change its classification.

Always remember, though, that you, the exporter, are responsible for correct reporting to the 

U.S. government, regardless of any classification your supplier may suggest. This is important 

when determining whether simply to accept your supplier’s suggested Schedule B numbers.

Top Sellers

If your company has thousands of items in inventory, you may not 

need to classify all of them, especially if you’re just beginning the 

classification process. Remember, you need to assign Schedule B 

codes only to items that will actually be exported. If you plan to sell 

only some, rather than all, of your items to international clients, or if 

you think there is no market outside of the United States for certain 

products, then classify only the ones you plan to export. 

Start by classifying your top-selling products. Use these criteria to 

determine which products to code first:

• Products with a history of international sales, if any

• Top-selling products overall

• Products you have determined to be the top prospects for international sales

• Items in sales materials (catalogs, your website, etc.) that can be accessed by international 

customers

Grouping

Another time-saving strategy for classifying large numbers of products is to group them by 

product type. As noted earlier, the Schedule B book is divided into chapters, with similar 

products found in the same chapter. For example, Chapter 65 addresses headgear. Grouping 

all your hats, helmets, and headbands together and classifying them simultaneously according 

to the information in Chapter 65 would be much easier than constantly jumping from product 

to product in your catalog. By focusing on one chapter at a time, you will become much more 

Additional suggestions for using 

your supplier’s HS codes:

• Use them as a guide to direct you to the 

approximate location of the code in the 

Schedule B book, and then use your own 

analysis to determine which code you will use.

• Conduct your own product classification, and 

then use the supplier’s code as a way to doublecheck your work.
40 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

familiar with the classification codes in the chapter so you can quickly identify the correct codes 

for your products.

Worldwide Sales Permission

If you sell products that you didn’t manufacture, be sure that your distribution agreements allow 

you to resell the products internationally. Some manufacturers don’t want their products sold 

internationally because they are concerned about issues such as liability and warranty coverage. 

If an item you offer domestically can’t be sold internationally, don’t spend time classifying it.

Pricing

In general, you’ll want to select products that let 

you earn a profit. At the same time, you need to be 

conscious of what competitors are charging for similar 

products. You can easily get this information the same 

way buyers do: by comparing products and prices 

online. 

These days, on- and offline exporters must carefully 

monitor the prices of their products against the value 

of the dollar. For example, some buyers may have to 

pay 25 percent more for your product this year than 

last. Depending on the product and the market, little 

profit may be possible from the sale, but you can 

take some practical, common-sense actions to help 

manage a changing dollar’s effect on your pricing and 

profit.

Dealing with Distributors

Distributors purchase larger quantities than do 

individual consumers, so selling in bulk is usually more 

efficient and profitable. Distributors in other countries 

may come across your website or products (in 

e-commerce marketplaces, for example) via keyword 

searches or social media. You can also seek out 

distributors: research which countries demonstrate 

potential demand for your products, and then 

seek out reputable distributors in those countries. 

Regardless of how you start to work with distributors, 

keep the following basic considerations in mind (your 

company can tailor this checklist to its own needs; 

key factors will vary significantly depending on the 

products distributed and countries involved):

Ways to Manage a Strong Dollar

• Stress quality and total cost of ownership over 

up-front cost.

• Find new ways for your customers to save on 

shipping—e.g., slower shipping if items aren’t 

needed quickly, or bulk sales if your product 

isn’t perishable.

• Offer longer payment terms.

• Focus on free trade agreement countries, so 

buyers will pay fewer taxes and fees.

• Expand operations in foreign countries that 

use the U.S. dollar as currency or that peg their 

currency to the dollar.

• Help your resellers or distributors with the cost 

of promotions and trade events, so they can pass 

savings on to retail customers.

• Talk to your logistics providers about 

international warehousing—depending on the 

market, you may save on shipping and storage 

fees.

• Find new ways to pack and ship your product. Is 

your product a liquid, and can it be concentrated 

or powdered? Do you use elaborate packaging, 

and is it cheaper to print and package in the 

foreign market, instead of at home?

• Be aware of de minimis values. If your product 

currently costs a little more than the de 

minimis value and you drop the price just a few 

dollars, your product might actually become 

dramatically cheaper! See Appendix D for a 

reference of major markets’ de minimis values.

• Communicate with your buyers frequently. Ask 

about changes in their marketplace and what 

you can do to keep their business. Customer 

service goes a long way!
Chapter 4: The Global Marketplace 41

Size of Sales Force 

• How many field salespeople does the 

representative or distributor have? 

• What are the distributor’s short- and longterm expansion plans, if any? 

• Would the representative company need 

to expand to accommodate your account 

properly (e.g. hire more staff, expand its 

warehouse)? How quickly would it be able 

to do so, once a contract is signed?

Sales Record 

• Has the company experienced consistent 

sales growth? If not, why not? Try to 

determine the company’s sales volume for 

the past five years. 

• What is the average sales volume per 

outside salesperson? 

• What are the distributor’s sales objectives 

for next year? How were those objectives 

determined? 

Territorial Analysis 

• What sales territory does the 

representative company cover? 

• Is the sales territory consistent with 

the coverage you desire? If not, is the 

representative or distributor able and 

willing to expand the territory? 

• Does the representative company have 

any branch offices in the territory to be 

covered? If so, are they located where your 

sales prospects are greatest? 

• Does it have any plans to open additional 

offices, either in your existing target 

markets or in places you may wish to 

expand to later?

Product Mix 

• How many product lines does the 

representative company handle? 

• Are these products compatible with yours? 

• Is there any conflict of interest (e.g., does 

the representative company distribute any 

competing products)?

• Does the distributor represent any other 

U.S. companies? If so, which ones (names 

and addresses)? 

• Would the representative company be 

willing to alter its present product mix to 

accommodate yours? 

• What is the minimum sales volume that 

the representative or distributor needs 

to justify handling your lines? Do its sales 

projections reflect that minimum figure? 

From what you know of the territory 

and the prospective representative or 

distributor, is the projection realistic? 

Facilities and Equipment 

• Does the representative company have (or 

can it readily acquire) adequate warehouse 

facilities? 

• What is the method of stock control? 

• Does the distributor use a computerized 

inventory management and fulfillment 

system? Is the system compatible with 

yours? 

• What communications capabilities do they 

have (fax, broadband, e-mail)? 

• If your product requires servicing, is the 

representative company equipped and 

qualified to perform that service? If not, is 

it willing to acquire the needed equipment 

and arrange for training? To what extent 

will you have to share the training cost? 

Are there alternative ways in the market to 

service the product? 

• If required, is the representative or 

distributor willing to inventory repair parts 

and replacement items?
42 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Marketing Policies

• How is the sales staff compensated?

• Does the representative company have 

special incentive or motivation programs?

• Does it use product managers to 

coordinate sales efforts for specific 

product lines?

• How does it monitor sales performance?

• How does the representative or distributor 

train its sales staff?

• Would it pay or share expenses for its sales 

personnel to attend factory-sponsored 

seminars?

Customer Profile

• What kinds of customers is the distributor 

currently in contact with?

• Are the distributor’s interests compatible 

with your product line?

• What are the distributor’s key accounts?

• What percentage of the total gross receipts 

do those key accounts represent?

Principals Represented

• How many principals are currently 

represented by the representative or 

distributor?

• Would you be the distributor’s primary 

supplier?

• If not, what percentage of the total 

business would you represent? How does 

that percentage compare with other 

suppliers’ share of total business?

Promotional Thrust

• Can the representative company help you 

compile market research information to be 

used when making forecasts?

• What media does it use, if any, to promote 

sales?

• How much of the company’s budget 

is allocated to advertising? How are 

those funds distributed among various 

principals?

• Will you be expected to contribute funds 

for promotional purposes? If so, how will 

your cost be determined?

• If the representative or distributor uses 

direct mail, how many prospects are on the 

mailing list?

• What type of print and electronic media 

does the distributor use to describe 

the companies and products that it 

represents?

• If necessary, can the company translate 

your advertising copy?

• Does the representative have a website to 

promote the product?

• Can it provide product demonstrations 

and training, if needed?

Country of Origin

HS codes and country of origin are both used to determine the tariff on goods entering a 

country. A certificate of origin is an official statement that indicates in which country the goods 

were produced. 
Chapter 4: The Global Marketplace 43

Country-of-origin determinations are governed by many rules; in certain circumstances, 

discerning a product’s origin is difficult. For example, if you import raw plastic pellets but then 

process them to manufacture a telephone handset in a U.S. facility, is the handset considered 

to be of U.S. origin? Or if you import telephone handset parts but then assemble and paint the 

finished product in the United States, what is that product’s country of origin?

It depends. We’ll discuss why we need to determine country of origin first, and then we’ll discuss 

strategies for how to do it. 

Why Do You Need to Specify Country of Origin?

Countries enter trade agreements with one another to lower tariffs on items produced in those 

countries. For example, Country A and Country B sign a trade agreement that lowers the tariffs 

on goods traded between the countries to 0 percent. As a result of the agreement, to get the 

lower rate, manufacturers must certify that their products originated in Country A or B. If a 

product originated in Country C, then was shipped to Country B, and then was reshipped to 

Country A, that product is not eligible for the lower tariff, because the lower rate applies only to 

items originating in Country A or B.

The United States, Canada, and Mexico are members of the North American Free Trade 

Agreement (NAFTA), which offers preferential (i.e., lower) tariffs for items produced in those 

three countries. For example, Canada wants to ensure that items coming from the United States 

were actually produced there and not simply shipped to the United States from a non-NAFTA 

country, only to be forwarded to Canada. Therefore, Canada demands certificates of origin for 

all imports and a specific NAFTA Certificate of Origin for items produced in the three NAFTA 

countries. 

Each country participates in multiple trade agreements, so each must determine a product’s 

country of origin to apply the appropriate tariff rate. In addition, many countries restrict imports 

or have quotas on imports from certain regions, so certificates of origin are used to ensure 

compliance with those regulations.

Strategies for Determining Your Product’s Country of Origin

Wholesale Products

If you’re a retailer, not a manufacturer, then determining a product’s country of origin should 

be fairly simple: ask the manufacturer. The manufacturer will know the sources of the product’s 

raw materials and will have the most accurate information for determining the country of origin; 

sometimes only the manufacturer can determine a product’s country of origin.

If the inventory you purchase is imported and shipped directly to you, the country-of-origin 

information should be noted on the import documentation. In such cases, you can simply enter 

that information in your inventory-management system. If you use multiple suppliers from 

different countries (e.g., you’ve been using a supplier from Mexico and then decide to buy from 
44 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

one in Japan), you need to separate your inventory by country of origin, keep all necessary 

documentation, and make sure that your inventory-management system accurately reflects the 

country of origin for every item.

Manufactured Products

Determining the country of origin of the products you manufacture requires you to identify, 

assign a value to, and determine the country of origin of every component of your product. 

You then calculate the value of the foreign parts used in your product as a percentage of 

the total cost of all components. The resulting percentage can be used to determine from 

which country your product originates. An 

alternative method is to indicate the country 

where the components underwent the 

substantial transformation that turned them 

into the finished product. You can find more 

information about classifying your product by 

searching export.gov.

Free Trade Agreements

The United States has negotiated multiple 

free trade agreements with partner countries, 

giving those countries preferential tariff rates 

on items that originate in the United States; 

those rates can be as low as 0 percent. A list of 

current U.S. free trade agreements is provided 

by the Office of the U.S. Trade Representative 

(ustr.gov). Additional agreements are in the 

negotiation process.

NAFTA was created to facilitate tariff-free trade among Canada, Mexico, and the United States; as 

a result, the United States trades more with these partners than with any other countries. Under 

NAFTA, unique origin determination rules apply; you can find them on export.gov. The site also 

explains how to comply with the Rules of Origin (found in Section 401 of the agreement) and 

how to complete a NAFTA Certificate of Origin.

Country-of-Origin Documentation

Commercial Invoice

The country of origin is listed on two documents used during shipping: the commercial invoice 

and the certificate of origin. Every shipment must include a commercial invoice that lists the 

country of origin for each product it contains; the information on that invoice will be used to 

determine the tariff rates for exports.

Always keep track of your paperwork, and 

make sure your software is up to date!

If you imported what you’re selling and reexporting, look at your import paperwork 

to find the country of origin.

If you use multiple suppliers from different 

countries—e.g., you buy some items from 

Mexico and others from Japan—when you 

export, you’ll need to mention each item’s 

country of origin.
Chapter 4: The Global Marketplace 45

Certificate of Origin

A certificate of origin is an official document signed by the exporter certifying the country of 

origin for each product contained in the shipment. With lower-value shipments (e.g., those 

under USD 1,000) customs officials will accept the country-of-origin information on the 

commercial invoice. Shippers may want to include a certificate of origin with larger-value 

shipments to ensure that nothing is held up in customs as a result of insufficient documentation. 

Certificates of origin certified by the U.S. Chamber of Commerce or local chambers are now 

issued by ecertify.com for a nominal fee. 

NAFTA Certificate of Origin

NAFTA requires a specific certificate of origin; you should familiarize yourself with it, because 

you’re likely to send goods to either Mexico or Canada. Sometimes a certificate of origin 

is not required. If the goods are valued at USD 1,000 or less, the exporter may simply add 

an explanatory statement to the commercial invoice. You can find information about such 

statements on export.gov.

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 47

Chapter 5 

Export Controls

To protect national security, foreign policy, and economic interests, the United 

States has established regulations that limit, or even prohibit, certain exports. 

Known as export controls, these regulations also limit transactions with certain 

individuals, organizations, or countries. Because there are compelling reasons to 

prohibit certain transactions, noncompliance (i.e., exporting to certain parties or 

failing to acquire a needed license) can lead to severe punishments and penalties. 

Most products exported from the United States, including shipments facilitated 

by e-commerce, don’t require a license, but some knowledge of the regulations is 

needed to avoid trouble.

Do I Need a License?

This is one of the most frequently asked questions we receive at the U.S. Commercial 

Service. The answer usually is “no,” because 95 percent of all items exported from 

the United States to foreign buyers don’t require an export license, even though the 

items are subject to U.S. government export control laws and regulations. These laws 

and regulations determine whether you can sell your product to an international 

buyer, which countries you can export it to, and which buyers you can sell to. 

However, just because your product is among the 95 percent that don’t require a 

license doesn’t mean that you can sell it anywhere and to anyone.

Export Administration Regulations and the Bureau of Industry and Security

Most U.S.-sourced items and some internationally sourced items that are considered 

dual-use (possessing both commercial and military proliferation applications), as 

well as certain purely commercial and munitions items, are subject to the Export 

Administration Regulations (EAR), which are administered by the Bureau of Industry 

and Security (BIS). The EAR are available at bis.doc.gov.

To determine whether your item is subject to the EAR, you will need to refer to 

the EAR’s Commerce Control List (CCL) to see if your item has an Export Control 

Classification Number (ECCN). Every item specifically listed in the EAR has an 

assigned ECCN. If your item falls under the jurisdiction of the U.S. Department 

of Commerce and is not listed on the CCL, it is designated as EAR99. Most EAR99 

commercial products will not require a license to be exported. However, depending 

on the destination, end user, or end use of the item, even an EAR99 item may require 

a BIS export license.
48 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Although relatively few items subject to the EAR require export licenses, licenses are required 

in certain situations involving national security, foreign policy, short supply, nuclear nonproliferation, missile technology, chemical and biological weapons, regional stability, crime 

control, or anti-terrorism. 

Management and Compliance 

To ensure compliance with the EAR and to manage export-related decisions and transactions, 

you can establish an Export Management and Compliance Program (EMCP). An EMCP lets you 

analyze pieces of information and individual decisions, and then build them into an organized, 

integrated system. 

The BIS website has information on the nine core elements of an effective EMCP. In particular, 

note the EAR’s mandate for sufficient record keeping. 

If you have a catalog of dozens or hundreds of items that you want to sell globally, you should 

create a written compliance plan. In addition to studying the online BIS videos and publications, 

the person responsible for managing your company’s plan should consider attending specific 

EAR and export-control seminars. Visit bis.doc.gov or contact your local U.S. Commercial Service 

office to learn more about training or to sign up for seminars. You can also contact BIS for 

guidance on developing your plan and to review the final document. 

Strategy 

An item subject to the EAR either will have a specific ECCN or will be designated EAR99. When 

adding a product to your inventory or reviewing your current product line, ask your suppliers 

whether they can provide the necessary classification information. Then, create a “classification 

information” data field in your inventory-management system, and add a related field that lists 

the countries to which export of that product is prohibited by the EAR or is subject to licensing 

requirements. If you are obtaining classification information from your suppliers, work closely 

with them to understand how they determine the ECCN. Remember that, as the exporter, you 

ultimately are responsible for obtaining any necessary licenses. 

All of your export documentation must include your export classification and license numbers. 

When you create a commercial invoice or an Automated Commercial Environment (ACE) filing, 

you should be able to pull the numbers directly from your inventory-management system. For 

certain types of exports listed in Section 758.1 of the EAR, BIS requires the filing of electronic 

export information in ACE, regardless of value or destination. When completing forms (on paper 

or online), the U.S. Postal Service and major freight carriers may require you to enter “NLR” (No 

License Required) for certain EAR shipments. Details on EAR99 can be found at bis.doc.gov.

It’s a good idea to establish a company-wide policy for product classification under the EAR 

and the associated HS numbers (see Chapter 4). That way, if the inventory-management 

system doesn’t list an ECCN or EAR99 designation, your company knows the item is ineligible 

for international shipping. If possible, adapt your inventory-management software so it flags 

problematic orders. You need to be especially careful with items that are subject to the EAR, 

whether the items have ECCNs or are EAR99; you don’t want to inadvertently violate the EAR. 
Chapter 5: Export Controls 49

International Traffic in Arms Regulations 

The International Traffic in Arms Regulations (ITAR) control the sale of defense items and defense 

services. These items and services provide the United States with critical military or intelligence 

capabilities. If you produce or sell these items, you need to learn about the ITAR, including 

potential requirements to register with the U.S. Department of State’s Directorate of Defense 

Trade Controls (DDTC). Details can be found at pmddtc.state.gov.

Start by finding out whether your item for export (hardware, technical data, or defense service) 

is on the U.S. Munitions List (USML) found in Part 121 of the ITAR. If it is, then explore the ITAR 

website for complete information on ITAR licensing. 

Exporting controlled items that are listed on the USML without first obtaining proper licensing 

has very serious legal consequences.

Persons Subject to Trade Restrictions 

Both the U.S. Department of the Treasury’s Office of Foreign Assets 

Control (OFAC) and BIS administer and enforce economic and trade 

sanctions against certain foreign countries, companies, and individuals. 

OFAC and BIS maintain lists of persons (natural persons and entities, 

including corporations) that are subject to trade restrictions, including 

restrictions on the export of items that fall within their jurisdictions. 

Both agencies also maintain trade restrictions on certain countries, 

including countries that are subject to trade embargoes. You can 

find the consolidated screening lists from BIS, OFAC, and the U.S. 

Department of State at 1.usa.gov/1J7UYY2.

If you need help performing these obligations, you can hire a third-party company to conduct 

these checks for you in real time. You can also purchase software to help you remain in 

compliance. Freight forwarders also may flag problematic transactions. Please be aware that, as 

the exporter, you bear primary responsibility for compliance with export controls, and you are 

responsible for obtaining any required licenses. 

Anti-diversion Clause 

To help ensure that U.S. exports go only to legally authorized destinations, a destination control 

statement (DCS) must generally be entered for items subject to the EAR—except for items 

designated EAR99 and items eligible for certain license exceptions. The commercial invoice and 

bill of lading (or air waybill) for nearly all commercial shipments leaving the United States must 

display a statement notifying the carrier and all foreign parties (the ultimate and intermediate 

consignees and purchaser) that the U.S. material has been exported pursuant to the EAR and 

may not be diverted. The minimum anti-diversion statement for goods exported under U.S. 

Department of Commerce authority says, “These commodities, technology, or software were 

exported from the United States in accordance with the Export Administration Regulations. 

Diversion contrary to U.S. law is prohibited.” 

As the exporter, it’s your 

responsibility to comply with all 

export controls and acquire any 

needed licenses. If you want to 

know if you’re compliant, talk to 

your local U.S. Commercial Service 

trade specialist before you ship.
50 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Exceptions to the use of the destination control statement are listed in Part 758.6 of the EAR. The 

U.S. Department of Commerce, an attorney, or the freight forwarder can provide advice on the 

appropriate statement to use.

Import Regulations of Foreign Governments 

Import documentation requirements and other regulations imposed by foreign governments 

vary from country to country. As an exporter, you must be aware of the regulations that apply to 

you. For instance, some governments (especially in the Middle East) require consular invoices. 

Other countries may require certificates of inspection, health certification, and various other 

documents. If required documents are missing or inaccurate, the shipment may be delayed 

until the paperwork is in order. Shipping companies are very good at helping you through the 

customs clearance process, but you should plan ahead and learn what is required.

The U.S. Commercial Service offers a collection of more than 125 Country Commercial Guides at 

export.gov/ccg. Each country guide includes a section on import regulations, including required 

documents and any unique or unusual requirements. The large e-commerce marketplaces also 

have good information, but unless you have them or some other third party do the packing and 

shipping for you, the responsibility for getting things right is yours.

Protecting Your Intellectual Property

Just as there are more channels than ever through which to sell your products, there are 

now more opportunities for others to steal your trademarks and copy your designs. The 

rights granted by registering a U.S. patent, trademark, copyright, or mask work (design of a 

semiconductor chip) extend only throughout the United States. Rights provided by a foreign 

country may be greater or less than rights provided under U.S. law. There is no such thing as an 

international patent, trademark, or copyright—and no real shortcut to worldwide protection of 

intellectual property. However, some treaties and international agreements do provide minimum 

standards for the protection and enforcement of intellectual property.

International Agreements 

The Paris Convention for the Protection of Industrial Property is the oldest treaty relating to 

patents, trademarks, and unfair competition. More than 160 other countries are parties to the 

Paris Convention; it sets minimum standards of protection and provides two important benefits: 

the right of national treatment and the right of priority. National treatment under the Paris 

Convention means that a signatory country will not discriminate against nationals of another 

signatory country in granting patent or trademark protection. The rights provided by a foreign 

country may be greater or less than those provided under U.S. law, but the rights will be the 

same as those that the country provides to its own citizens. 

The Paris Convention’s right of priority allows the applicant one year from the date of the first 

patent application filed in a Paris Convention country (six months for a design or trademark) 

in which to file in other countries. This means that after the first filing, neither publication nor 
Chapter 5: Export Controls 51

sale of an invention will jeopardize patentability in countries that grant a right of priority to U.S. 

applicants, as long as their application is submitted before the end of the priority period. 

Not all countries adhere to the Paris Convention, but similar benefits may be available under 

another treaty or bilateral agreement. These substantive obligations have been incorporated 

into the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual 

Property Rights (TRIPS) and are binding for all WTO members. 

The United States also is a party to the Patent Cooperation Treaty (PCT), which provides 

procedures for filing patent applications in its member countries. The PCT allows you to file one 

“international” application with the U.S. Patent and Trademark Office to designate member 

countries in which a patent is sought. Filing the international application extends by 18 months 

the period in which you may fulfill the national requirements for each country.

Additionally, the Hague Agreement Concerning the International 

Deposit of Industrial Designs (also known as the Hague System) allows 

for registration of up to 100 industrial designs in member countries. You 

can apply using a single application and in a single language. 

The United States is also a member of the Madrid System for the 

International Registration of Marks, which allows for filing of trademark 

protection in member countries.

Contact the U.S. Patent and Trademark Office to file a patent, trademark, 

or design registration application outside the United States. 

Trademark Law

A trademark is a word, symbol, name, slogan, or combination of these that identifies and 

distinguishes the source of sponsorship of goods and that may serve as an index of quality. 

Service marks perform the same function for businesses dealing in services rather than goods. 

In most countries, trademark rights are acquired only through registration, and many countries 

require local use of the registered mark to maintain the registration. Whether a given mark can 

be registered in a particular country will depend on the law of that country. For example, some 

countries do not protect service marks.

If your business is expanding, your mark may be known and registered in the United States. Even 

though you may not be quite ready to do business abroad, you should—as soon as possible—

decide where you will need trademark protection and apply for it. Deciding where to file is a 

business issue: you must balance the expense of registration against its benefit. At a minimum, 

you will want to file in countries in which you will do business. You may also find it desirable 

to file in countries that are known sources of counterfeit goods, although some national laws 

require local use to maintain a registration.

Although trademark laws impose no deadlines for registering a mark, you should register 

promptly. If you wait too long, you might find someone else has already registered it, and then 

recovering your mark may be costly—or even impossible.

There is no such thing as an 

international patent, trademark, 

or copyright—and no real shortcut 

to worldwide protection of 

intellectual property. However, 

some treaties and international 

agreements do help make IP 

protection and enforcement easier.

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 53

You’ve worked hard to build a marketable product, make your brand recognizable, 

launch a great website, and create compelling product pages that attract 

international customers. Now is the time to maximize payment options for your 

international buyers while minimizing the risk of online fraud. Also, you want to 

ensure that you are collecting the appropriate information from your international 

customers, as well as communicating all the responsibilities that buyers and sellers 

have in any online transaction.

Collecting Order Information

When you’re ready to sell internationally, make sure that essential customer 

information doesn’t fall through the cracks. Use these tips to create clear, customerfriendly payment pages: 

• Label your fields as clearly as possible, and provide alternatives field names to 

help customers who don’t speak English as their primary language. For example, 

“First” could be displayed as “First Name/Given Name” and “Last” as “Last Name/

Family Name/Surname.”

• Include four lines for the address field to accommodate longer international 

addresses.

• Add a field for “Country.”

• Insert a “Country Code” field above or beside the “Telephone Number” field.

• Ask for “State/Territory/Province,” rather than just “State.”

• Request “ZIP/Postal Code” rather than just “ZIP Code.” Also, if your system uses 

the “ZIP Code” entry to automatically fill in the “City” and “State” fields, you might 

want to offer separate fields for “ZIP Code” and “Postal Code”—many other 

countries use five-digit postal codes, and a postal code keyed into the “ZIP Code” 

field could introduce errors in the customer’s address.

Many online vendors now offer apps that you can install for a seamless look and feel 

on your existing online store or website. These apps generally include information 

for shipping and payment, and some are available in multiple languages, allowing 

the buyer to choose which language appears in the app.

Payment Options for Your International Customers

Now that you have the customer’s order details and delivery information, it is time 

to collect payment. 

Chapter 6 

Ordering and Payment
54 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

U.S. companies that sell online most likely accept payment by credit cards that have been issued 

by banks in other countries. American Express, Visa, MasterCard, and Discover are the most 

frequently used payment systems worldwide, in both brick-and-mortar and online stores. In 

some countries, though, other payment methods are just as popular, if not more so. In many 

European countries, for example, people buying online often pay by wire transfer or with 

country-specific payment cards (e.g., CB in France). If you have determined that there is a large 

market for your products in a particular country, you may want to research that country’s favored 

payment methods to determine if accepting them would increase sales. 

Western Union has a payment-by-wire app that can be added to your website. Another payment 

option is PayPal, a third-party service that processes payments from customers’ credit cards and 

bank accounts and then forwards you the money in the manner you choose. PayPal has become 

increasingly popular among U.S. companies selling online to foreign buyers. Sellers like it 

because they don’t assume the risk of collecting the buyer’s payment information, and because 

PayPal, which collects from the buyer’s bank account or credit card, essentially guarantees 

payment to the seller. PayPal is most popular in North America and Latin America, and it is 

gaining popularity worldwide. However, it also may have drawbacks. For example, it may take 

more time to access your money than with a traditional payment processor.

Before you enter into a payment processing agreement, find out how payment disputes are 

resolved. In some cases, a credit card holder can dispute a charge weeks (or even months) after 

the seller has received payment. It’s also important to know who takes the hit in the event of a 

fraudulent transaction. If it’s you, keep shopping around.

You’ll also want to consider the costs associated with every payment option. If you are already 

selling online, discuss with your current bank and payment processor the fees associated with 

international payments. Many companies specialize in processing payments from international 

customers, and it’s important for you to be familiar with the risks, benefits, and potential pitfalls 

of working with them before you set up an account.

The Culture of Online Fraud

Accepting online payment, even from established credit card 

companies or payment processors, exposes the seller to some 

risk. According to a recent CyberSource Annual Online Fraud 

Report (available at cybersource.com), U.S. merchants continue 

to reject three times as many international orders (7.7 percent) 

as domestic orders (2.4 percent). Merchants reject orders they 

suspect may be fraudulent. But there is some good news: the 

same survey notes that actual international e-commerce fraud rates for U.S. merchants have 

been declining. The drop can be attributed in part to companies that apply safeguards against 

unauthorized credit card use.

Although the trends in online fraud are encouraging, U.S. companies still need to be vigilant, 

especially in countries that used to be considered “safe” for e-commerce retailers. The U.S. 

Dealing with fraud is part of 

doing business, both at home 

and abroad. A reputable 

payment processor can help 

reduce your company’s risk.
Chapter 6: Ordering and Payment 55

Commercial Service has a long history of reports from U.S. exporters about online fraud coming 

from China and Nigeria, but now fraudulent activity is occurring in places where it once was rare; 

the U.S. Commercial Service is now receiving complaints about fraudulent activity in Singapore, 

the Nordic countries, and other previously low-risk countries. In response, many e-commerce 

marketplaces manage fraud risk, and some third-party logistics providers also have payment 

services that protect sellers against fraud.

Chargebacks

The possibility of incurring chargebacks (when the cardholder’s issuing bank 

requests a reversal of charges on behalf of the cardholder) is one of the more 

frustrating aspects of accepting payments online. Weeks, and sometimes 

months, after having received payment and delivered goods, a U.S. exporter 

might hear from a credit card holder, or credit card issuer, that wants the 

exporter to reverse a charge for various reasons, including fraudulent use 

of the card or dissatisfaction with the product. Excellent products, good 

customer service, and clear return policies should reduce chargebacks and returns.

According to a recent CyberSource Annual Online Fraud Report, chargebacks account for nearly 

50 percent of fraud claims. (The other half are claims made by the cardholder to the issuing 

bank, which then issued its own credit on the account). Because of the dollar volume involved in 

fraud, credit card issuers are playing a more active role in the mediation process on chargebacks. 

The CyberSource report noted that merchants win about 42 percent of the chargebacks they 

dispute with credit card companies.

Ways to Minimize the Risk of Fraud

Common Sense

If something seems wrong—for example, if a buyer’s billing and 

shipping addresses don’t match (especially if the addresses are in 

different countries)—don’t process the order until you’re sure the 

credit card and delivery address are legitimate. 

Address-Verification System (AVS)

Ask your bank how you can ensure that a buyer’s credit card is valid. An AVS—available from 

your credit card processing company and used to verify the identity of a card holder in Canada 

or the United Kingdom—can determine whether the address on a buyer’s credit card account 

matches the address the buyer typed into your online order form. 

Card Security Code (CSC)

At the time of purchase, many sellers require the customer to enter not only the credit card 

number but also a three- or four-digit security code (usually found on the back of the card, 

often referred to as a CVV or CVN). In theory, that number is available only to the cardholder, 

Every payment option has 

associated risks and costs, 

but also benefits. The U.S. 

Commercial Service can help 

you find what’s right for you.

Lots of technologies and tools can help 

minimize fraud. Sometimes, though, 

your best defense is just being mindful 

and using common sense.
56 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

so requiring it helps reduce the incidence of fraud. However, as more sellers require buyers 

to provide CSCs, savvy crooks likely will find ways to capture them, thus reducing the CSC’s 

effectiveness as a fraud-prevention tool.

Internet Protocol (IP) Geolocation

Geolocation is available from several companies and enables a seller to identify a prospective 

buyer’s geographic location (country, region, ZIP/postal code) through the IP address of the 

computer being used. If the country or region of the buyer’s credit card address doesn’t match 

that of the IP address, the seller can flag the order and then investigate further or reject the 

order outright. This method is increasing in popularity, particularly among larger exporters.

Background Checks

U.S. exporters—especially if involved in business-to-business (B2B) sales totaling thousands 

to millions of dollars to a foreign agent or distributor—should conduct background checks on 

prospective buyers, even if that means taking the payment process offline or placing it on hold. 

Background checks may involve purchasing a credit report on the prospective buyer, calling 

up references, or other practices. Conducting online due diligence in certain countries can be 

difficult; information about the company might be published in a language you can’t translate, 

or the practice of posting reviews of buyers and sellers online might not be popular. Several 

companies can provide financial information about foreign buyers, and the U.S. Commercial 

Service can also assist (export.gov/salesandmarketing). Background checks can be costly and 

time-consuming, so they should be used only for higher-value orders. 

Country Exclusions

If your company is small and you’re just testing the export waters, you might not want to ship 

to countries where the risk of fraud is high. Just be sure that your site lists those countries; that 

way, prospective customers won’t waste time building an order that can’t be filled. 

Third-Party Payment Products

You can shift fraud risk to a third party, such as PayPal or Alipay. The third party will take on 

the responsibility of vetting the buyers and their creditworthiness. Similar to providers of 

commercial bank cards, the payment product company will charge a transaction fee and a fee 

for converting a foreign currency into dollars.

Additional Resources

The best resources you have for combating fraud are your bank and the credit card companies 

themselves. These groups spend millions of dollars to combat credit card fraud, and then they 

share that information with you in an effort to reduce fraud. You can also visit usa.gov and 

search for “Internet fraud” to find more information on reporting and combating fraud.
Chapter 6: Ordering and Payment 57

Incoterms

When the goods you export arrive at their destination, the importing country requires that all 

applicable tariffs (import taxes levied by the destination country) and local taxes, including 

value-added tax (VAT), be paid. Many companies require the buyer to pay these tariffs and taxes. 

Buyers typically want to know the final price, with shipping and taxes included (known as the 

landed cost), before they agree to buy, but you might not be able to provide it. Tariffs and taxes 

vary widely throughout the world, so determining those rates before you ship can be difficult. Be 

clear about your policy on tariffs—specifically, who pays and when payment will be due. The 

shipping companies you select often act as freight forwarders, helping you complete shipping 

documents, helping you estimate duties and taxes, prepaying them for you, and then invoicing 

you. If you use the U.S. Postal Service for lighter-weight shipments, its local partner in the buyer’s 

country will collect duties and taxes.

Shippers worldwide use standard trade definitions (called Incoterms) to spell out who’s 

responsible for the shipping, insurance, and tariffs on an item; they’re commonly used in 

international contracts and are protected by International Chamber of Commerce copyright. 

Familiarize yourself with Incoterms so you can choose terms that will enable you to provide 

excellent customer service and clearly define who is responsible for 

which charges. You can find a list of Incoterms at export.gov/logistics

or with help from your local U.S. Commercial Service trade specialist.

The most common Incoterms are EXW (ex works); FOB (free on 

board); CIF (cost, insurance, and freight); CPT (carriage paid to); DDU 

(delivered duty unpaid); and DDP (delivered duty paid). Most B2B 

e-commerce agreements will use EXW, CPT, or CIF; most business-to 

consumer (B2C) transactions will use CPT or CIF (and sometimes DDP). 

With the exception of DDP, these Incoterms require the buyer to pay 

all tariffs and taxes upon arrival. To make sense of all these terms, you 

should take the time to understand their usage.

For sample language you can use on your website, check out the 

“Two Examples of Standard Terms” box on this page. Also, keep in 

mind that some (maybe even most) customers are unfamiliar with 

Incoterms; whenever you use one, be sure to spell out in plain 

language what it means.

Standard Terms for Shipping

Customers will expect you to post international shipping terms on your website. Your legal 

counsel should review all your terms and conditions.

International Order Preparation Fees

Selling internationally is labor intensive. Shipping preparations take longer; plus, you spend 

time adding product information to your inventory-management system. To recover these costs, 

Two Examples of Standard Terms

“Orders that are shipped to countries outside 

the United States may be subject to import 

taxes, customs tariffs, and fees levied by the 

destination country or the shipping company. 

These charges are the customer’s responsibility 

and will be billed by the delivery company. 

We have no control over these charges and are 

unable to estimate them. Tariffs and taxes are 

neither collected nor included in your price 

calculation at the time of your order; for an 

estimate of these fees, which vary by region, 

contact the customs office in your area. “

“It is the buyer’s responsibility to ensure that 

the product can be lawfully imported to the 

destination country. The recipient must bear any 

additional charges for customs clearance; we 

have no control over such charges and cannot 

predict what they may be.”
58 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

a company might charge its international customers an international order preparation fee—a 

type of handling charge. Some companies opt for a flat fee, while others use a sliding scale or a 

percentage of the total order to determine the fee. Whatever method you choose, if you charge 

an international order preparation fee, display it clearly on the checkout page.

Introduction to Tariffs and Taxes

According to export.gov, a tariff (also known as a duty) is a tax levied by a government on the 

value of an imported product. In some instances, sales taxes, local taxes, and customs fees also 

will be levied. Tariffs increase the prices of imported goods; as a result, such goods may be less 

competitive within an importer’s home market.

Tariffs and taxes can significantly increase the final price of your product, so you need to 

understand not only how they will affect sales and pricing, but also how to communicate these 

extra charges to your customers so there are no surprises during the purchasing process.

Managing Customer Expectations on Tariffs and Taxes

Understanding what happens after you ship goods to your international customers will help you 

provide the best possible, most cost-effective customer service. Depending on which Incoterms 

you apply to the order, one of two things will happen. 

• Delivered Duty Paid (DDP): A package arrives at the buyer’s shipping address with all tariffs 

paid. The delivery service might ask the buyer to sign 

for it before handing it over. 

• Other Delivery Incoterms, with Duties Unpaid (e.g., 

CPT, CIF, or DDU): The buyer is responsible for paying 

all tariffs and taxes when the goods arrive. The 

delivery service either will take the package to the 

buyer’s address and release it only after the buyer has 

paid all applicable tariffs and taxes or will send a note 

informing the buyer that the package has arrived, that 

tariffs and taxes are owed, and that the package will 

be released upon payment of those charges.

Delivery Methods: Advantages and Disadvantages

Delivered Duty Paid 

For the buyer, DDP is the easiest option—the package arrives and the buyer doesn’t need to 

do anything other than open it. The seller, however, assumes a fair amount of risk. For one 

thing, you have to estimate what the tariffs and taxes will be when the order arrives and charge 

the customer the appropriate amount. If you calculate incorrectly, you might undercharge 

the customer and lower your profit (or even lose money) on the transaction, or you might 

overcharge the client and risk losing business. 

When you communicate taxes 

and tariffs effectively, your 

customers encounter fewer 

surprises. And good experiences 

mean happier customers.
Chapter 6: Ordering and Payment 59

Delivered Duty Unpaid 

Although in this scenario the buyer bears a more obvious burden (the buyer has to pay 

additional fees when the package arrives), the seller might bear one, too. If buyers don’t know 

beforehand that they are responsible for paying taxes and tariffs, they might take their business 

elsewhere and perhaps even refuse delivery of the package. Both scenarios cost the seller 

money; in the latter, the seller has to pay for return shipping. 

To avoid any hiccups, never assume that your buyers know about the fees associated with 

international shipping. Always be as clear as you can; even if you can’t provide an estimate, tell 

the buyer which circumstances will generate additional fees. 

Overnight or two-day delivery is possible from North America to most of the world, but the cost 

can be steep, especially for large or heavy items. International mail via the U.S. Postal Service 

may be a lower-cost option, though your goods may take longer to get to the customer. Several 

online services exist to help you find the best shipping deals.

How to Calculate Tariffs

Calculating taxes can be difficult and time-consuming, especially when you want to ship 

multiple items in multiple orders to multiple countries. To calculate a tariff, you’ll need the item’s 

Harmonized System (HS) or Schedule B number, its country of origin, its destination, and the 

value of the shipment (in many cases, the value includes shipping costs). 

The item’s HS code (the first six digits of its Schedule B number) will help you determine the 

individual tariff on that item. More information, including links to tariff schedules, sales tax, and 

VAT rates, is available through links at export.gov/logistics.

Note that the European Union (EU) requires all retailers to collect VAT for online sales of digital 

products and services to EU customers. If your company sells directly to EU customers, VAT 

registration will be required in one of the EU countries. Many third-party e-commerce providers 

can offer solutions that include VAT collection.

When you search for any product’s tariff rate, you’ll notice that its Schedule B number isn’t 

identical to its product identification number in the destination country. 

Always remember that only the first six digits of these product identification codes will match. 

The United States uses 10-digit classification numbers, but that’s not true of all countries. To 

determine the tariff on your product, you’ll have to reclassify it using the destination country’s 

product identification number.

Real-Time Calculation for Clients

As mentioned earlier, calculating taxes is not particularly easy. The method outlined above is 

not possible to do on your website in “real time.” You will need to devise some strategies for 

calculating in real time. One is to use the duty calculators available in the large e-marketplaces. 

Their checkout function estimates the amount of duties and taxes and charges the buyer for 
60 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

them at checkout. The customer is charged for everything only once. There are no surprises, 

which reduces the chances that the product will be refused or returned.

Narrowing Your Geographic Focus

If you find that your products are doing particularly well in a few countries, you might consider 

limiting your exports to those spots. Doing so will allow you to learn the tax systems of just a 

few countries, instead of dozens. As you become more comfortable with tariffs and have the 

resources to expand your product distribution, you may want to target additional countries 

where you think your products will do well. You might consider posting country-specific 

information on your website—e.g., “If your order is going to the United Kingdom, the estimated 

duty on this compressor will be 5 percent, and the VAT will be 23 percent.”

This doesn’t mean you need to ignore orders from other countries. For customers from other 

countries, explain that you will still accept their order, but that it must be submitted using 

another method (such as e-mail) so that you can provide all the correct details.

Narrowing Your Product Focus

Another way to simplify operations is to sell only a portion of your line internationally; consider 

making only core products eligible for export. For example, if you mainly sell sunglasses but you 

also sell eyewear accessories (e.g., lens cleaners and repair kits), you might want to make those 

accessories ineligible for international shipping. Fewer products mean fewer HS numbers and, in 

turn, fewer tariff calculations. 

“Ballparking”

Another strategy when calculating tariffs is to get your figures in the ballpark and not worry 

about hitting home runs. You’re in the business of retailing, not shipping. As long as you’re 

earning good margins on your core products and your tariff estimates are reasonable, you 

should be fine. Estimate the tariffs on categories of your product line for specific countries or 

regions with the highest current or anticipated sales. Assume that you’ll overestimate some 

tariffs and underestimate others, and that ultimately you’ll break even. Individual tariff rates 

change frequently, so you can’t hope for 100 percent accuracy.

Your Customs Broker

When calculating tariffs, remember that someone—usually a customs broker—will have to 

collect the tariffs and remit them to the proper government agency. Most shipping companies 

will provide these services for a fee. Find out what the fee is, and try to incorporate it into the 

final cost you give your buyer. Shipping companies also provide online tariff calculators.

Third-Party Assistance

Many third-party service providers have developed customized and off-the-shelf solutions 

to help you manage international tariff calculations. The available solutions offer different 

approaches for calculating tariffs, taxes, and shipping costs.
Chapter 6: Ordering and Payment 61

For example, let’s say your website transfers customer orders to a shopping cart on an 

e-commerce service provider’s website, where the customer completes the transaction. 

Depending on your service contract, the service provider may be responsible for tariff 

calculation, shipping, fraud protection, product classification, licenses, and export compliance.

Shipping and Returns

Like tariffs and other taxes, shipping costs can affect the price your customer pays for your 

products significantly. There are several ways to reduce costs associated with shipping small 

packages by air. You can find information about larger shipments (e.g., those sent by oceangoing container load) at export.gov/logistics.

Setting Rates

The rates for shipping your item will be based on factors including its value, dimensions, and 

weight, as well as your profit margin. When selling small, lightweight items with high margins 

(e.g., jewelry), you might choose to charge the customer a flat rate or no shipping fee at all. 

When selling an item with a low margin (e.g., consumer electronics), you’ll need to find 

inexpensive shipping options and calculate the cost accurately to preserve your profits. 

Shipping companies can be valuable partners when you are calculating shipping fees; many 

offer real-time tools that can be used on your website. Shipping fees typically fall into three 

categories: flat rate, in which the seller charges a set rate per item purchased or a set rate per 

order; percentage, in which the seller multiplies the total purchase price by a set percentage; 

or real time, in which the seller calculates shipping charges at the time 

of purchase on the basis of the item’s weight and dimensions. If you’re 

familiar with shipping items domestically, then you know that a package’s 

weight typically determines its shipping cost. However, for international 

shipping, the package’s dimensions are just as important, so you’ll 

want to find out the ideal package size—often the smallest container 

possible. Also, you’ll need to enter each item’s weight and dimensions in 

your inventory-management system so you can accurately calculate its 

shipping cost. 

Choosing a Provider

Like any supplier, a shipping company will take into account your volume when setting prices 

and agreeing upon which services to provide. Sticking with one vendor rather than spreading 

your orders among many could help keep your shipping prices low. Keep in mind, though, 

that the shipper you want to work with might not be able to deliver to every country. Try to 

anticipate where you’ll be shipping, and ask the company about its resources in those countries; 

for example, does it have employees on site, or does it outsource to a subcontractor? You’ll 

probably want to build relationships with both a primary shipper and a reliable backup. That 

way, you’ll be covered if your primary shipper encounters workplace or customs problems in any 

given country.

You may already be used to 

figuring out shipping weight. 

However, for international 

shipping, package dimensions 

are often just as important.
62 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The U.S. Postal Service (USPS) provides excellent value on international packages weighing less 

than 70 pounds. The USPS does not bill for duties and taxes, so buyers must pay them at the post 

office in the country where they live. Expedited service is available for an additional fee.

Some online services offer to shop for the best freight rates for you. You give them your 

package’s parameters (e.g., size, destination, preferred delivery time), and they tell you which 

carriers have the best price.

Tracking

Some shippers allow you and your customer to track packages in transit. When choosing a 

shipping provider, find out what tracking services they offer and the cost for those services. 

If the cost is high, you might want to increase your shipping charges on international orders 

accordingly or offer tracking as an optional service (at the buyer’s liability).

Alternative Delivery Locations

Some international buyers, especially those in Asia, prefer the flexibility to ship to an alternative 

delivery location (e.g., a local store or a neighbor’s home). Some U.S. freight companies gladly 

provide delivery to these locations and may also have storefronts that will hold packages for 

pickup. As you plan your fulfillment strategy, keep these customer preferences in mind, and 

select service providers that can accommodate them. Some providers’ apps can fit seamlessly 

with your checkout page; in some cases, they offer comprehensive checkout solutions in which 

the buyer can select payment method and shipping options, including alternative delivery 

locations. 

Communicating with Buyers: Returns

When your customer places an order, you must specify the exact terms (shipping, returns, 

insurance costs, etc.). Be particularly careful when identifying who’s responsible for paying tariffs 

and other taxes (as well as any other fees that might be incurred), and clearly state how your 

company handles returns.

Returning an international package is costly and time-consuming; clear communication about 

returns could save you time and money. State your returns policy in plain language, and specify 

who is responsible for shipping charges and restocking fees. Be sure to make clear in your 

sales terms that any customer who wants to return merchandise must first request a return 

merchandise authorization (RMA), which will contain specific information about returning 

merchandise. List the e-mail address and phone number the customer should use to request 

an RMA. (To see how other retailers handle RMAs, search the web for “return merchandise 

authorization,” or visit your favorite web retailers’ RMA pages.) Finally, keep in mind that sending 

a replacement or refunding the purchase price and letting the buyer keep the item might be 

cheaper than paying for return shipping; you can weigh the various costs when reviewing a 

customer’s RMA request. 
Chapter 6: Ordering and Payment 63

The best way to avoid returns is to provide your customers with the most comprehensive 

product description you can. Your online description should contain everything you know about 

the product, as well as several clear photos. Also, be aware that warranty laws differ from country 

to country. If you’re shipping directly to consumers, you might be required to honor a longer 

warranty period.

Insurance

If you want to insure your packages, you can buy insurance from either your shipping company 

or a third-party insurance company. You can purchase insurance on each package that is sent, 

or you can arrange to be charged a monthly fee based on your shipping volume and your loss 

history; do some research to determine what would be most cost-effective for you. If you want to 

give your customers the option of insuring their purchases, your shipping provider or shippinginsurance company can help you develop a formula that will set the insurance fee for any order.

Extra Fees

International shipments entail additional costs, such as document preparation and broker’s fees. 

To defray these expenses, some sellers add a flat handling fee to every international shipment. 

Terms and Conditions

Here are some terms and conditions you might want to consider adding to your website (your 

legal counsel should review all your terms and conditions): 

• Export Regulations: All commodities, technology, and software are exported from the United 

States in accordance with the Export Administration Regulations. Diversion contrary to U.S. 

law is prohibited. 

• Tariffs and Taxes Paid: Tariffs and taxes will be prepaid, and a (add amount) broker’s fee will 

be assessed per order. 

• Tariffs and Taxes Unpaid: The recipient is responsible for all tariffs, taxes, and customs fees at 

time of delivery. We will estimate these charges upon request.

• Nondelivery: If you refuse delivery of an item after it reaches its 

final destination, if you refuse to pay tariffs and taxes, or if you are 

unavailable for delivery after a certain number of attempts, you will 

be responsible for any import tariffs, taxes, and shipping and handling 

fees incurred to send the shipment back to the merchant in the United 

States, as well as any restocking fees that may be applicable.

Automated Commercial Environment

Federal law requires every exporter to use the Automated Commercial 

Environment (ACE) to report any shipment in which a product (or group of products classified 

under the same Schedule B number) is valued at USD 2,500 or more, or any shipment that 

requires an export license. You can ask your shipping company for assistance (for a nominal fee, 

the shipper will complete the ACE for you). For more information on ACE filing requirements and 

instructions, visit cbp.gov/trade/automated or contact the U.S. Commercial Service.

Be careful when specifying 

shipping terms. Leaving out 

details may increase your costs—

or even lead to angry customers.

part ii

Success Stories
66 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

scott eder gallery

Comic Art on a 

Global Canvas

The Company

The Scott Eder Gallery specializes in collecting 

and selling comic book art. Located in New 

York City, the Gallery started 25 years ago and 

was virtual until recently, when exhibition 

space opened in Brooklyn.

About 30 percent of the company’s sales 

are international, and many of them are via 

e-commerce, according to owner Scott Eder. 

Buyers are mainly from Europe, especially the 

United Kingdom, Germany, France, Italy, and 

Spain. Eder also has customers in Singapore 

and Hong Kong.

Channels

The Scott Eder Gallery specializes in a niche 

art product, and to increase exposure it uses a 

multichannel approach: both its website and 

eBay. The company generates sales from both, 

but eBay produces the most (in particular, 

auction sales); in turn, Eder has rewarded 

eBay with exclusive business loyalty for the 

past 20 years. Eder says, “I’m considering 

trying a competitor, just to compare them, 

but I’m happy with the volume of business 

I have and don’t really have the time to 

manage much more.” 

As for the company’s own website, it can 

accept credit card payment and has a 

checkout function built by a company that 

specializes in comic book art websites. For 

that, Eder pays USD 100 a month.

Eder likes eBay because its brand is well 

known and trusted around the world. 

“Buyers are attracted to American products 

and brands, and they appreciate American 

business practices.”

So far, Eder has seen no reason to appear 

on country-specific versions of eBay’s main 

platform (e.g., eBay Hong Kong) because, 

in his experience, buyers looking for art 

are comfortable with English or can use 

translation software to understand what they 

need to know: “Buyers in those countries—

browsing products on the country-specific 

platforms—are not expecting to find U.S. 

goods on their local eBay sites, but do expect 

to find them on the main platform, which is 

the one that buyers in the U.S. use.”

Platforms like eBay are essentially enormous 

catalogs with the ability to accept payment 

and ship what you buy (or sell). Eder finds 

that the auctions are the most successful 

sales tool because of the excitement they 

generate; the last few minutes are a shot of 

adrenaline—bids pour in!

Eder sets the minimum price he will accept 

for his item before the auction begins. He 

used to put one item on the auction block 

each week, but he has cut back to every 

other week because too much exposure puts 

downward pressure on his prices.

Eder knows of other eBay sellers who 

grumble about the increasing fees eBay has 

charged its sellers over the years, but he still 

feels that eBay is a good deal because of the 

amount of traffic and sales it can generate. 

Eder estimates that for the different service 
Part II: Success Stories 67

options he uses, he pays about 10 percent of 

the purchase price, which he factors into his 

sales price.

Once he has made a sale over eBay, Eder fulfills 

the order himself. Even though he could pay 

eBay to do this for him, he prefers to do it 

himself, largely because of the special handling 

required for works of art. Eder also appreciates 

having direct contact with his customers. He 

is keenly aware that he must follow eBay’s 

terms of service, especially when it comes to 

shipping out orders within 24 hours of receipt. 

Tardy deliveries and other poor service lead to 

negative reviews, which can hurt future sales—

and repeat offenders can be booted off the 

platform.

In 15 years of selling online, Eder has been 

the victim of fraud only once. “In that case, 

which happened many years ago, my company 

bought some art that turned out to be not as 

advertised.” For sales through his website, he 

checks the purchaser’s credit card status with 

the card’s issuing bank before sending the 

goods.

Lessons Learned

Eder has several pieces of advice:

• Establishing and maintaining the buyer’s 

trust is the key to repeat business. If you 

use an e-commerce platform to list your 

goods, you must retain the buyer’s trust 

by getting favorable customer reviews or 

the platform will dump you. In addition to 

feedback about tardy shipping, customers 

will give you negative feedback if their 

goods arrive in poor condition. Eder has 

his shipping containers made to order so 

that the art is carefully protected, largely 

eliminating damage and the expense of 

returning rejected art. “Over the years, 

I’ve learned what works best—how much 

thickness is needed to protect the art 

while not wasting space and keeping the 

weight (and therefore the shipping cost) 

as low as possible.”

• Good customer service is as important 

online as off. “I’m available to customers 

and readily engage them via e-mail. If 

there’s an issue, I address it immediately. 

As a result, I get a lot of repeat business.”

• “You learn by doing. I’ve done thousands 

of auctions over the years, and you get a 

feel for how to do them and to make the 

most from them. What’s key is to get in 

there and get the experience. It’s fun. It’s 

exciting.”

• “Take advantage of the seminars and 

other learning opportunities that the big 

platforms provide sellers, usually for free. 

They’ll help you get better results, because 

the technology and buyer psychology 

change.” 

• “I’m a better buyer than I am a seller. I 

like buying and holding art, enjoying it, 

then selling it years later for a big profit. 

I like flipping things rapidly much less. If 

I paid closer attention to changing the 

product mix and analyzing what happens 

on the platforms and my website, I could 

make a lot more money. E-commerce has 

made that possible like nothing else in 

my lifetime.”
68 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

ruffwear

Made in Oregon, 

Unleashed in Japan

The Company

Ruffwear designs and manufactures products 

for dogs, such as backpacks, booties, leashes, 

and assorted gear. Launched 17 years ago 

in Bend, Oregon, the company now sells to 

buyers in about 50 countries.

Tripp Sickler is Ruffwear’s international 

business planner, one of 20 employees 

working for founder Patrick Kruse. Kruse 

started the comnpany after he went on 

a camping trip in the Oregon wilderness; 

his dog was thirsty, but he didn’t have 

a convenient water container to carry 

around. He invented a “reverse tent,” a 

nylon, collapsible device that holds rather 

than repels water. The product, designed 

and marketed in the United States but 

manufactured under Ruffwear’s supervision in 

Vietnam, was an instant hit.

Parched pooches can now find relief in 

Germany, France, and the United Kingdom. 

Recently, Japan has come on strong, with 

sales of more than USD 300,000 last year. 

China will soon be in the mix, once a 

squabble over trademarks is resolved. Norway 

is a good market because, in Ruffwear’s 

experience, folks there are dog lovers and 

have lots of leisure time to enjoy their dogs’ 

company. Russia looked good for a time, but 

recent international sanctions and a nosediving ruble have been bad for business. 

Currently, 25 percent of sales are 

international, with annual growth in double 

digits. Owner Kruse’s focus on refreshing 

Ruffwear’s product line every six months with 

new and updated items keeps customers 

coming back for more, and it also keeps 

copycats chasing their tails.

Channels

Ruffwear has a different business model 

than other companies profiled in this book. 

Its chief strategy is to build a network of 

distributors in the United States and abroad. 

Sickler explains that, because Ruffwear 

doesn’t want to compete for sales with its 

distributors, it has avoided doing businessto-business or business-to-consumer 

e-commerce on its U.S.-based website. 

But that doesn’t prevent distributors or 

retailers from selling products via their local 

websites, and they do just that. After all, they 

know their customers and pet-parenting 

habits best. They also know that customers 

appreciate having both brick-and-mortar and 

e-commerce options.

“We are in advanced discussions with our 

European distributors to create a ‘Pan 

Europe’ e-commerce website,” said Sickler, 

“and it would take advantage of supply 

chain efficiencies that larger shipping and 

warehousing volumes can generate.”

The web, then, plays a different but important 

role in generating international sales. The 

corporate site is translated into French and 

German. These languages were selected 

because France and Germany have been 

excellent markets, and consumers there are 
Part II: Success Stories 69

interested in abundant product descriptions 

and dog-lover content. “Our website provides 

effective online education about our products 

and our company,” says Sickler.

Lessons Learned

Sickler’s experience offers several lessons:

• The company’s website supports its brand 

and is a source for conveying brand values 

to distributors, retailers, and consumers. 

The site is filled with photos and stories 

of dogs and their families having fun 

in outdoor settings. The photos online 

and in the company’s product catalog 

feature Ruffwear employees and their 

pets enjoying time outdoors in Oregon’s 

waterways and forests. “We don’t fly in 

supermodels from Los Angeles for photo 

shoots,” saya Sickler. “We love our dogs 

and our products, and we want to convey 

that to our customers.” And customers get 

to see the very people they’re buying their 

pet gear from, with their own dogs. It’s a 

good story, well told.

• Just because the company doesn’t sell 

directly to consumers doesn’t mean 

its distributors and retailers don’t. In 

fact, Ruffwear supports those channels’ 

e-commerce efforts with photos and text 

descriptions. After all, it’s easier, faster, 

and cheaper for Ruffwear’s distributors 

and retailers to exchange or return items 

because they’re located in the same 

country as the customer. It’s also cheaper 

for them to ship lots of items to a single 

location than for Ruffwear to send one 

item to many.

• Translating web pages into different 

languages can be expensive, so Sickler 

recommends that you get a good feel 

for your customers’ whereabouts before 

making the investment. When translating 

product descriptions, you should use only 

native speakers or highly skilled nonnative speakers. Language recognition 

software, though improving, is no 

substitute—mistakes can be comical, 

embarrassing, or even offensive.

• If you choose the distributor business 

model described here, make sure you offer 

excellent customer service. Work with 

distributors on inventory management 

and logistics so products can be shipped 

immediately instead of having to be backordered, resulting in customer frustration 

and lost sales. “We put a lot of effort into 

making an efficient supply chain,” says 

Sickler, “and it really pays off.”

• To reduce the risk of trademark trolls, 

register your intellectual property (IP) 

in countries that could be relevant to 

future sales growth. The process is neither 

difficult nor expensive, and it could save 

you a lot of headaches and expense later 

if you had to litigate or pay a troll to buy a 

trademark that belongs to you—but only 

in the United States. (Registering your IP 

internationally is discussed 

in Chapter 5.)

• Take advantage of 

state and federal 

export assistance 

programs. For 

advice on 

registering IP 

in China and 

finding overseas 

distributors, 

Sickler has 

reached out 

to the U.S. 

Commercial 

Service, which 

has more than 

100 offices 

throughout the 

United States 

(including one in 

Portland, Oregon) 

and offices in more 

than 80 countries.

Sickler is very bullish on 

the role of international trade 

and how it can help small U.S. businesses grow 

bigger and smarter. “We depend on trade and 

want to see freer, more transparent trade in 

the future,” he says, adding that he’d like to see 

more free trade agreements.

When I was in Japan, 

our new distributor asked me,

What’s it like 

to be going down 

this street in Japan, 

dragging a suitcase 

full of dog products?

I said to him,

I wouldn’t trade 

this moment 

or this job 

for anything.
70 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

vto saddlery

Jockey for Position in 

Global E-Commerce

The Company

Paul Arnold and his wife own VTO Saddlery, 

which specializes in English-style horseriding apparel and equipment. Most sales 

are generated via the web, with about 

10 percent coming from international 

customers. VTO Saddlery’s best international 

markets are Canada, New Zealand, and 

Australia. Arnold has also noted an uptick in 

sales to Japan and Brazil. The company has 

seven employees, including the owners. 

Channels

For international sales, Arnold relies mainly 

on his own website, which has operated 

since 2000. For his shopping cart and site 

design, he subscribes to Miva (miva.com).

The average order is a little over USD 100, 

though saddles can exceed USD 1,000 or 

more. Arnold does all shipping himself. So 

far, Arnold’s pages are in English only, and 

prices are in U.S. dollars, but he provides 

a currency converter at checkout. Also at 

checkout, buyers are informed that they are 

responsible for paying duties and taxes.

To generate international sales, Arnold uses 

Google ads and some paid newspaper ads 

in foreign markets with strong demand 

(e.g., Australia). He has experimented with 

major e-commerce platforms, but Arnold 

says their fees are too high to make the 

needed product margins—”The almost 15 

percent of every purchase we’d have to pay 

is a bit rich for what we need to charge.” For 

Arnold, it makes more sense to focus on 

one platform—his own. Because a lot of his 

business is generated by word of mouth, his 

brand’s international penetration does not 

matter as much.

Arnold admits he spends less time these 

days attracting new international customers, 

because it is easier to grab low-hanging fruit: 

U.S. buyers are spending again after a long, 

painful absence. A common business pitfall 

is to ignore or abandon their international 

customers during times of plenty at home. 

He admits, “There are just so many hours 

in a day. But there are interesting things 

happening in e-commerce, so you have to 

keep an open mind.”

Lessons Learned

Arnold’s biggest lesson is the importance 

of providing excellent customer service. He 

and his employees promise to ship within 

24 hours of receiving an order. They scan the 

order, and if they think a customer may have 

made an error (e.g., buying two of the same 

item, not realizing the item already comes 

in pairs), they will contact the buyer. “Good 

communication has decreased our return 

rate to less than 5 percent of all shipments,” 

Arnold says. Prompt responses and quick 

problem solving also generate positive word 

of mouth, leading to more sales.

One of the biggest lessons for Arnold is 

the amount and sophistication of fraud in 

the world. He’s stopped accepting orders 
Part II: Success Stories 71

from Nigeria, Russia, Indonesia, and Thailand 

because of the volume of bogus orders from 

those countries and the volume of stolen 

credit cards in circulation: “I’ve even had bogus 

orders from Singapore and noticed that when 

I was scammed from there, I suddenly started 

receiving orders from all over the region.” 

Arnold believes that thieves share information 

and immediately target a business that has 

been successfully duped once. He realizes 

he will probably end up rejecting legitimate 

orders, but at this point in his business 

development, that’s a cost he’s willing to pay.

Arnold also has received fraudulent orders 

from Canada, where up to 50 percent of his 

legitimate orders come from. He feels that 

about one in four orders is suspect, so he’s 

spent considerable time creating procedures 

to weed out the bad ones. Now, more than 90 

percent of fraudulent orders are caught.

Crooks also use computer programs to 

generate millions of numerical combinations, 

hoping that one will be an active account 

belonging to someone. In another scam, 

thieves have the numbers from dozens 

of stolen cards and punch in numbers on 

different sites until one of them works.

Third-party logistics services exist that actually 

take ownership of your goods and are then 

responsible for loss, damage, or fraud. They 

have robust systems for detecting fraud.

Arnold also uses the U.S. Postal Service to 

reduce the high cost of freight. Saddles cost 

around USD 140 to ship to overseas customers 

by Postal Service, and air freight costs about 

USD 800 for the same item; Arnold makes 

certain his online customers appreciate the 

difference. “The downside,” Arnold explained, 

“is that there’s a weight limit on what the 

Postal Service will accept, tracking can be an 

issue, and the Postal Service in the buyer’s 

country will not deliver until duties and taxes 

are paid.” An additional upside (other than 

lower costs) is that the Postal Service does not 

charge brokerage fees, which the large freight 

forwarders sometimes charge.

Arnold also has many pieces of advice:

• Use Geobytes (geobytes.com) or a similar 

service to identify a 

customer’s IP address 

using an e-mail 

address or credit 

card information. 

Knowing a 

customer’s 

IP address 

can help you 

determine his 

or her physical 

location.

• Check the 

customer’s 

physical address 

against the IP 

address. If the 

physical address 

is Miami but the 

IP address is, say, 

Venezuela (which has 

happened more than once), 

Arnold won’t ship.

• Call the phone number given by 

the customer, and match the e-mail 

address given with the one used when 

communicating about the purchase.

• If a customer makes multiple attempts 

to purchase with different credit cards, 

Arnold assumes that the cards are stolen.

• If a customer uses a proxy server 

(Geobytes will tell you), Arnold won’t 

ship. “Why,” he asks, “would a person in 

Germany use a proxy server in Maryland?” 

• Arnold also red flags customers if they 

order a large quantity of an item in the 

same size or color.

• If a customer selects the first item on the 

web page for more than one purchase, it’s 

a red flag, suggesting that the buyer isn’t 

shopping for his or her own use but to 

fence the goods upon arrival.

• Be wary if a buyer uses the fastest/most 

expensive shipping option, especially for 

cheap items.

If you have a 

popular product with 

limited availability in 

specific markets,

you’re in a 

good position 

for e-commerce 

success.
72 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

spf depot

Holmes on Homes 

Sparks Interest in Foams

The Company

Pat Gililland had been working in the 

fluid-power industry and plastic injection 

molding field for years when he lost his job 

after Hurricane Katrina in 2007. However, he 

soon found opportunity from watching the 

Holmes on Homes television show, picking 

up on the idea of using spray foams for roof 

insulation and investing USD 45,000 to start 

his own business.

Today, Gililland is president of SPF Depot, 

a Bossier City, Louisiana, manufacturer and 

refurbisher of spray-foam equipment, spray 

guns, hoses, and other tools used to spray 

foam insulation, bed liners, asphalt paving 

machines, roofing applications, and displays. 

“If you’ve seen Jurassic Park, the monsters are 

created by use of spray foam, as well as the 

rock waterfall features in Las Vegas,” Gililland 

says. “In Kuwait, the military used our spray 

devices to put foam on military tents for 

insulation. We have several hunting-supply 

manufacturers that use our products to 

construct deer stands and duck blinds. These 

are just a few examples.” 

About 30 percent of the company’s overall 

business is international, with e-commerce 

accounting for all of its export sales. SPF 

Depot ships to about 36 countries. Its 

leading markets include Canada, Poland, 

New Zealand, Japan, Russia, and China. 

Channels 

Gililland’s foray into e-commerce exporting 

was unintentional. It started in 2007, when 

a prospective customer in Canada found 

SPF Depot’s website and tried to buy some 

parts on open credit. Gililland wasn’t able to 

take credit cards at the time; still, he shipped 

the order on open terms and soon received 

payment. Soon thereafter, a customer in 

Malta made inquiries; this time, Gililland was 

prepared, making a small sale and delivery 

to Malta via the U.S. Postal Service, with 

payment made through PayPal.

A few months later, Gililland discovered that 

a huge manufacturer in Canada was using 

SPF Depot’s products in its training classes. 

He learned that people attending the classes 

would go back to Europe wanting to use 

the same products they had used in their 

training. This was a major breakthrough that 

led SPF Depot to begin selling throughout 

Europe. 

“Our business originated on eBay; we would 

recondition the worn parts people sent and 

back our work with a one-year warranty,” 

Gililland says. “This allowed the customer to 

get a part like new for less than a new one, 

and one that would last years rather than the 

parts of other manufacturers, which might 

last for just days or weeks.” 

Having started on eBay, the company 

gravitated to Google, Yahoo!, and Bing. 

“Once you start on one, they multiply,” 

Gililland says. “eBay is the fastest by far, with 
Part II: Success Stories 73

products going instantly to the top of the 

search engine page where other platforms 

pick it up, often with good results.” For 

example, earlier this year, SPF Depot garnered 

USD 13,000 in sales in one month, a nearrecord for the company.

“I picked eBay because it was the fastest, 

cheapest, and easiest, and I was already very 

familiar with the channel,” Gililland says. 

“Previously, I had my own site for a couple 

months, but it wasn’t much, and soon found I 

needed a store site with better support.”

“On Google and Yahoo!, one of the keys is 

picking out specific words so people will see 

your products,” he explains. “For example, if 

you are selling auto parts, you need to be 

specific, such as ‘bumper for ‘49 Chevy,’ or 

‘antique auto parts.’ I use an e-commerce 

provider that provides templates for creating 

our web pages, and it makes it very easy for 

me to do it all myself.” 

As for other marketing strategies, the company 

finds Facebook minimally useful, but it does 

get some exposure from LinkedIn. More 

prominently, Gililland’s blog, “Pat’s Tech Tips,” 

is very effective. The blog has positioned 

SPF Depot as a resource for buyers while 

also attracting customers who might have 

been dissatisfied with the level of service 

competitors provided.

“Customers value after-sales service, even if 

they have to pay more initially for the original 

product,” Gililland says.

SPF Depot has 

held off selling to 

distributors in the 

United States 

and Canada, 

preferring 

direct orders. 

Contractors 

make up the bulk 

of SPF Depot’s 

customers, 

and having 

distributors in 

these markets won’t 

grow the company’s 

market as much as shift 

it. However, overseas, the 

company has distributors in 

Kuwait, Poland, and China; SPF Depot currently 

is pursuing new distributorships in Germany, 

Ireland, and Dubai. A new manufacturing and 

distribution facility in Ireland will help speed 

up deliveries to Europe.

Lessons Learned

Gililland says he isn’t sure where he would be 

without e-commerce. “I wouldn’t have this 

business. I could be riding on the back of a 

Without e-commerce,

I wouldn’t have 

this business.

But after seven years in this field,

I could open something 

new tomorrow

and soon make 

$1–2 million

a year.
74 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

garbage truck, or mowing grass, I have no 

idea. But after seven years in this field, I could 

leave it today, open something new tomorrow, 

and be making USD 1 million to USD 2 million 

a year fairly fast. If you’d told me five years 

ago that I’d be doing USD 2.5 million to USD 3 

million annually through e-commerce export 

sales, I’d have thought you were nuts.”

Gililland has learned several other lessons 

along the way: • When it comes to selecting a bank for 

doing international business, be sure 

to pick a larger institution that deals 

internationally on a regular basis. 

Many smaller banks are ill equipped to 

easily deal with international business 

transactions.

• Get your company set up to accept credit 

card payments to help ensure you will be 

paid—but be aware of the hidden fees the 

companies charge. “Early on, I didn’t have 

a credit card account, and I shipped on 

open terms,” Gililland says. “I didn’t have 

too many problems getting payment, but 

you can’t take that risk forever, so a credit 

card or PayPal is the way to go. Also, find 

out about any shipping restrictions on 

your product. I wasn’t aware that aerosol 

cans, oils, and fluids can only be shipped 

by ground. As such, I’ve had to improvise, 

providing empty canisters that can be 

filled at the point of destination. 

• Be aware that you will need harmonized 

codes for the components of your 

products, and you will need certificates 

of origin to ship to NAFTA countries. 

“Everyone on our staff is trained on the 

export shipper systems of UPS, FedEx, 

DHL, and USPS, as well as harmonized 

codes and tracking service so we know 

when customers receive the goods.”

• Be aware of sensitive terminology related 

to your product. “For example, we are 

careful not use the term ‘spray guns’ when 

going through customs. Instead, we use 

the term ‘foam sprayers.’”

• Be selective about using distributors. 

They can be helpful if they market your 

products, but many times they simply sell 

your products on the web at big discounts, 

undercutting your market price and 

reducing your margins. 

• “Consider how you will handle typical 

customer pain points, such as returns, 

payment, duties and taxes, cost, language, 

and other issues,” Gililland says. “The most 

important thing is taking a preventive 

approach. I have photos of my products 

with my logo, so regardless of language 

barriers, people can easily find and 

describe what they want. My website 

also has the ability to translate into more 

than 100 languages. It’s rare that I have 

any issues with customers, but when I do, 

I get back to them right away and offer 

replacements.”

• International addresses may not always be 

as consistent or precise as U.S. addresses. 

“Once, I sent an order that was never 

received. After the customer called, I sent 

a replacement that was returned to me 

because somehow the mail carrier could 

not find the address,” Gililland says. Before 

shipping to a new international market, 

do some research or talk to your shipping 

partners.

• “For the European market, I sell direct to 

anyone outside of Poland. But if it’s a small 

order any place in the EU region, I pass 

it on to our distributor in Poland, so the 

customer can get the order fast and save a 

bundle on shipping fees. “

• Take advantage of resources that help 

businesses learn about e-commerce. 

“UPS and FedEx offer an import/export 

school where companies can learn about 

harmonized codes, NAFTA forms, and so 

forth. Our university here, Louisiana State 

University, offers classes on e-commerce, 

and the U.S. Commercial Service conducts 

export symposiums that anyone can 

attend to get help on exporting their 

products.” But keep in mind that not 

every lesson applies to every market. Be 

sure to check out the courses carefully 

beforehand, and don’t be afraid to ask 

questions before signing up.

• Finally, realize that your early and biggest 

mistakes likely will be your most expensive 

ones. Try not to make the same 

mistake twice. 
Part II: Success Stories 75
76 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

ameroc export inc. 

Let Your Partners Help 

with the Heavy Lifting

The Company

Sophia Leaguedi is a serial entrepreneur; her 

latest creation, Ameroc Export, is a wholesaler 

and manufacturer’s representative for forklifts 

and forklift tires. She says she was born with 

a fire inside her and it burned bright through 

her early life, enabling her to leave her native 

Morocco and eventually settle in Chicago—

once known as the city of broad shoulders 

and now, increasingly, of brains.

“These different manufacturers don’t want to 

export on their own,” says Leaguedi, whose 

accent has traces of her native Arabic and 

French, two of the five languages she speaks 

fluently. Wholesalers are the largest category 

of U.S. exporters; significantly more numerous 

than companies that make the things they 

sell, wholesalers play a key role in the creation 

of wealth and jobs.

Leaguedi purposely represents only U.S. 

manufacturers. “I want to give back to the 

county that has given me so much,” she says. 

“In North Africa and other parts of the world, 

there are certain restrictions on what kinds of 

roles people, especially women, are allowed 

to have. That’s not the case here.”

Channels

Leaguedi has a company website that 

mentions her nomination for the State of 

Illinois Exporter of the Year Award, but it’s not 

a transactional site. Instead, she pays 

Alibaba.com USD 1,200 (with a 50 percent 

discount this year) for a “Gold” membership. 

Alibaba lists her products, vets potential 

buyers (in her case, distributors), and 

promotes her products via the platform. 

Alibaba offers two lower-cost membership 

levels, but Leaguedi prefers the extra services 

included with Gold. After being an Alibaba 

member for only a few months, she had 

several “serious” inquiries from Africa and the 

Middle East, and was soon in the final stages 

of negotiating a distributor agreement in 

Jordan worth about USD 70,000 per month.

Leaguedi does not use Alibaba to generate 

sales leads in China, because Chinese makers 

of similar products are her worldwide 

competitor, and she can’t compete with them 

successfully in their own home market—at 

least not now. She also uses Tradekey.com, an 

e-marketplace focusing on Asia.

Leaguedi is bullish on prospects for solving 

one of the exporter’s biggest needs: 

finding overseas buyers inexpensively. “This 

technology [sites like Alibaba] has given 

small companies like mine the means to sell 

products and services anywhere, anytime, to 

anybody,” she says.

In 2015, there was so much business that 

Leaguedi needed to hire a manager for 

her e-commerce marketing and sales. Her 

longtime goal of creating a successful 

company selling U.S. products and hiring U.S. 

workers seems closer to fruition.
Part II: Success Stories 77

Lessons Learned

Leaguedi has many insights to share:

• All markets are different; it’s smart to 

prioritize a small group of markets rather 

than casting your net widely and sitting 

passively by to see what turns up.

• Leaguedi focuses on countries that have 

free trade agreements (FTAs) with the 

United States. Twenty countries have 

such agreements (including Jordan), 

and additional agreements are being 

negotiated.

• Leaguedi reasons that Jordanian buyers 

save a great deal of money by purchasing 

her tires instead of those made in India, 

Sri Lanka, or China. Even if those countries 

eventually sign FTAs with other markets 

that also have FTAs with the United States, 

she will have first-mover advantage.

• Leaguedi also believes that U.S. products 

and business practices have a competitive 

advantage in the world, which is why she 

chooses to represent only them.

• Company websites and e-commerce 

marketplaces are insufficient as Leaguedi’s 

only channels. To find additional 

opportunity, she joins U.S. Department 

of Commerce trade missions, which find 

and screen buyers interested in buying 

U.S. products. Recently, Leaguedi went on 

a mission to the Middle East, where she 

signed an Israeli distributor to a longterm agreement. The mission was led by 

a deputy under secretary, who ranked 

high enough to gain the cooperation of 

foreign host governments. Leaguedi has 

since joined the Department of Commerce 

trade mission to Latin America, which 

covers several trade agreement countries, 

including Peru, Chile, and Colombia.

• Leaguedi also makes use of Chicago- and 

Illinois-based export assistance resources, 

including Small Business Development 

Centers, which introduced her to Alibaba; 

the local U.S. Commercial Service office; 

and the Illinois State International Trade 

Office, which offers grants to help defray 

the cost of international marketing 

efforts. “A trade mission can cost around 

USD 16,000 to visit several countries in a 

region,” Leaguedi says. “To get a grant for 

half of that amount is a big deal, especially 

when you walk away with a deal worth 

many thousands [of dollars], as we did in 

Israel.”

• Start with a few products on an 

e-commerce platform. The products 

selected should be ones for which you can 

charge a decent margin to justify freight 

costs, taxes, and other costs paid by the 

buyer. Before you start, figure out whether 

everyone will make money after you pay 

all the expenses.

• Make sure any manufacturer you represent 

has the capacity to fulfill both domestic 

and international orders. After all your 

work, the worst thing your company 

could discover is that there’s not enough 

product. Federal loan guarantee programs 

can help cover the costs of producing 

more inventory, offering extended terms 

to buyers, and marketing products and 

services in overseas markets.

• Jump on inquiries when they come in. If 

communication is an issue, use translation 

software or an online translation service, 

or find a local native speaker who can at 

least get you over the initial introductions. 

You shouldn’t rely on translation software 

to set up contracts, but software may at 

least help you and a potential customer 

start a conversation.
78 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

wheeling truck center

Wheeling and Dealing— 

West Virginia to the World

The Company 

When you travel domestically or overseas 

and come across a truck made in the United 

States, there’s a good chance it has a part 

supplied by Wheeling Truck Center. So 

says Chad Remp, president of the fourthgeneration family business started by his 

grandfather in 1933 and based in Wheeling, 

West Virginia. 

“We sell around the world and have an 

inventory of more than 10,000 truck parts,” 

says Remp. “Most of the parts are for U.S.-

built models that are 10 to 15 years old. With 

some 210,000 trucks sold each year in the 

United States and thousands more overseas, 

we’ll be seeing good demand for years.” 

The company’s customers include truckrepair facilities, truck fleets, and companies 

with maintenance and repair shops. Along 

with its strong domestic presence, Wheeling 

Truck Center exports to nearly 100 countries, 

including Malaysia, Australia, Singapore, 

Peru, Chile, the Republic of Korea, Bolivia, 

the United Arab Emirates, Poland, and 

Turkey. Exports account for 50 percent of the 

parts division’s sales. 

“Altogether, our company made over USD 

2 million in international sales in 2014, but 

of course, we’re looking to do much more,” 

Remp says. “Free trade agreements [FTAs] 

have benefited our company, and some of 

the most profitable markets are U.S. FTA 

partners, with Korea being a particularly 

good example.” 

Channels 

Wheeling Truck Center started exporting 

around 2010, when Remp was looking to get 

rid of obsolete parts and inventory. Given 

his prior experience invoicing international 

orders to Canada, Remp decided that 

actively promoting international orders was 

a viable option. It proved to be a turning 

point for the company, and things grew 

from there. 

“We put some items on our website and 

heard from a prospective buyer in Peru, 

and [we] made a sale,” Remp says. “Then a 

colleague mentioned we should look up the 

local U.S. Commercial Service. They arranged 

a business matchmaking trip for us to Peru, 

where we met up with our customer and 

many new prescreened prospects that led to 

additional sales.” 

In the process, Remp’s father, who was 

influential in his son’s starting the exporting 

business, became a convert. Previously 

skeptical when the U.S. government would 

step in to assist in the export process, 

Remp’s father became convinced after his 

son landed additional customers in Peru 

from the U.S. Commercial Service business 

matchmaking service. Wheeling Truck 

Center soon stepped up its web presence, 

which now accounts for the majority of sales 

because of its flexibility and the types of 

products available. 

“Most of our customers are other businesses 

and want to talk with us beforehand 
Part II: Success Stories 79

to ensure they are getting the right part, 

which is critical for us in building long-term 

relationships,” Remp says. “With eBay or 

Amazon, the interaction is much more limited. 

That’s fine if you are buying a book or a shirt, 

but it’s not effective for our line of business.”

Remp sells some items, such as engine parts, 

filters, and sensors, through eBay and Amazon 

because of his familiarity with their platforms. 

Remp says e-commerce is rapidly evolving: 

what the company is doing today, it could not 

have done just a few years ago. 

“We’re advertising on Facebook. Google 

Shopping didn’t exist years ago. We’re also 

marketing and retargeting with banner ads 

based on customers who have contacted us 

previously. We also have specific analytics on 

demographic information and know which 

country an inquiry is coming from. We work 

closely with the marketing company Direct 

Online Marketing in planning our strategies.” 

Because Wheeling Truck Center doesn’t sell 

exclusive products but is a retailer offering 

truck parts that other companies can provide, 

it doesn’t use international distributors. 

When it comes to handling customer pain 

points such as returns, payment, duties, 

taxes, cost, language, and so on, Remp sees 

smooth sailing for the most part, although 

sometimes the company needs to send a new 

replacement part if one fails. While shipping 

may be expensive, building and maintaining 

customer loyalty takes precedence. Although 

most buyers are aware of duties, the 

paperwork can sometimes be challenging, 

depending on the market. 

Where would Remp be without e-commerce? 

“That’s a good question,” he says. “My sales 

would be much smaller, no question.” 

Remp also sees new market opportunities on 

the horizon: “My goal is to help my customers 

keep on truckin’. I’m looking to expand into 

more markets. One of my new targets is Africa, 

and I plan to travel there in the near future. 

And I’m hitting the road next week to 

South America.” 

Lessons Learned 

Remp has learned many valuable lessons:

• Have an export game plan. Check the 

denied-seller lists to find out where and 

to whom you are allowed to sell your 

products. Target international markets. 

Remp says, “We make extensive use of U.S. 

Commercial Service programs, such as 

export counseling, business matchmaking, 

and business facilitation services. We have 

a list of prospective customers, and the 

U.S. Commercial Service’s overseas posts 

will make additional recommendations. 

Having the U.S. government as part of the 

process brings a lot of credibility in the 

eyes of the buyer, and we’ve seen 

good results.”

• Think long term to grow your business. Be 

careful—if something sounds too good 

to be true, it probably is. If anyone is in a 

hurry or offers to pay more, that might be 

a red flag. 

• “We use credit cards initially,” Remp notes. 

However, as your business relationship 

grows, your customer might want to make 

much larger purchases, which can be 

facilitated better by making bank transfers 

or by financing through the Export-Import 

Bank of the United States.”

• “Find a good marketing partner,” Remp 

advises. “We work with Direct Online 

Marketing, which helps us with web 

templates and marketing strategies.”

• “Paperwork can sometimes be a 

challenge,” says Remp. “For example, 

Russia, Brazil, and Argentina usually do not 

accept FedEx invoices, so we create our 

own. Sometimes it’s the little things.”
80 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

alignment simple solutions

Racing into 

Global Markets

The Company 

It’s not hard to find Tess Winningham and 

Gary Gann—find them at any race track in 

Alabama. (Gann used to race in NASCAR at 

the old Birmingham International Raceway.) 

A few years ago, during some amateur racing 

events, Gann began to see demand for a 

quicker, easier way to diagnose wear and 

tear on tires and suspensions.

In his garage, he started working on a 

new prototype system. Soon, Winningham 

resigned from her business development 

job to help Gann market the product. The 

husband-and-wife team formed Alignment 

Simple Solutions in 2011. They successfully 

tested the first prototype at the Charlotte 

Motor Speedway in North Carolina during 

the ChumpCar World Series of Racing.

“Our ‘QuickTrick’ compact portable wheel 

alignment diagnostic systems cost less 

than 10 percent of traditional fixed stateof-the-art equipment,” says Winningham. 

“Our system weighs only 15 pounds. Almost 

anybody can use it after watching our fiveminute training video.”

“In many parts of the world, people are 

keeping their vehicles longer, and roads 

are often rough and the weather uneven, 

which means gradual wear and tear on 

suspension and alignment,” Winningham 

explains. “Hobbyist do-it-yourselfers are our 

largest market, as well as people who run 

maintenance and alignment shops. We’re 

also selling to a lot of hot-rod enthusiasts.” 

The product also allows for better preventive 

maintenance: potential alignment problems 

can be diagnosed early on, saving an 

average of 184 sets of tires for every 1,000 

vehicles, according to one client study. 

“About 20 percent of our business is 

international, with e-commerce as the 

primary source,” Winningham says. “We have 

sold direct to consumers and businesses 

in more than 95 countries and just signed 

an agreement with our first international 

distributor in New Zealand and Nigeria. We 

are also in talks with companies in Canada, 

the United Kingdom, and Australia.”

Channels

Winningham says the company started 

exporting via eBay almost from its start, 

eventually expanding to Amazon, Google 

Shopping, Sears Marketplace, and eCRATER. 

Winningham explains, “eBay was the easiest 

and most obvious choice and is a great 

platform for proof of concept, because there 

are no major costs involved to place your 

products, and it’s a popular global platform. 

If your product has a value to people, it’s 

a perfect testing spot, and people pay in 

advance. The other platforms we’ve used are 

among the most commonly known, so we 

felt they were good additional choices.”

Winningham’s experiences with different 

e-commerce platforms vary greatly, with 

eBay being easier and others more complex. 

For example, Amazon is great for customers, 
Part II: Success Stories 81

she says, but can be more difficult for sellers, 

depending on the type of product being 

marketed—a seller may need to provide UPC 

codes, proof of concept, and proof of demand.

Winningham adds: “We employ a variety of 

marketing strategies in target markets. Our 

international customers found us originally as 

they were searching for a solution. Now we do 

some social media advertising and promotion, 

newsletters, and a few international 

publications when needed. We always keep up 

with the latest trends and tips on our blog.”

Winningham also gets export counseling from 

her local U.S. Commercial Service and Small 

Business Development Center offices. She was 

encouraged to join an Alabama Department of 

Commerce trade mission to Bremen, Germany, 

through which she met several prospective 

distributors through prescreened meetings 

arranged by the U.S. Commercial Service, as 

well as introductions made by the Alabama 

Department of Commerce. 

“As a result, we developed an enhanced export 

strategy, and within a few months, we made 

sales to more than 30 countries,” Winningham 

reports. “We also established a foothold in 

Germany, from where we made new sales to 

the United Kingdom, Finland, and Norway.” 

One of Alignment Simple Solutions’ biggest 

advocates has been the Alabama International 

Trade Center, which collaborates closely with 

the Alabama Department of Commerce and 

has provided international market studies and 

help finding industry contacts.

“Our future goals are to balance our domestic 

sales with international for a more sustainable 

sales cycle,” says Winningham. “Our biggest 

competitor has a presence in every developed 

country and some emerging economies. But 

with the help of new free trade agreements, 

there will be additional opportunity for 

more exports—for us, and for other U.S. 

businesses—which will create jobs and help 

our economy as a whole.”

Lessons Learned

Winningham offers important guidance to 

other new exporters:

• More than 90 percent of potential 

customers are outside the United States, 

and competition may be less fierce in 

many areas. Establish new international 

relationships early on to mitigate risk. 

Then maximize your use of e-commerce to 

market your product or service.

• “With all the no- or low-cost export 

resources from the U.S. Commercial 

Service, U.S. Small Business 

Administration, Export-Import Bank of the 

United States, and other federal, local, and 

state export resources, there is absolutely 

no reason not to be selling outside of the 

United States,” Winningham says.

• “Know the consumer market you are 

selling to, as it may be different than in the 

United States,” Winningham advises. “For 

example, in the United States, our major 

market is males ages 40 to 65 who don’t 

use a lot of social media. But in Japan, 

our target audience is much younger, and 

they use social media and enjoy modifying 

their cars.”

• “Our greatest e-commerce challenge was 

understanding the benefits and tools 

that are available at no cost,” Winningham 

notes. “l encourage everyone to use the 

free consultation calls, tools, marketing 

and analysis reports, and everything else 

that is offered at no cost. This will greatly 

contribute to your success and provide 

much-needed support.”

• “One benefit of selling internationally is 

that it makes us immune to decreased 

sales during different times of the year,” 

Winningham says. “Many of our customers 

like to get out and work on their cars in 

the spring and summer. We see a decrease 

in enthusiast customers when the weather 

gets cold at home. But our fall and winter 

are Australia’s spring and summer, so 

when U.S. enthusiasts are waiting for next 

year, our Kiwi friends and Australian mates 

are ready to work on their cars, so we have 

a more steady revenue stream.”
82 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

jordana

Sitting Pretty with 

E-Commerce

The Company

California-based Jordana produces and sells 

cosmetics under two major brands, including 

about 1,500 different products. In the 20 

years since the family-run business started, 

the company has expanded sales to more 

than 40 countries, with international sales 

generating about 50 percent of revenue and 

continuing to grow. The company has about 

60 employees in the Los Angeles area.

Channels

Jordana’s major U.S. retail customer is 

Walgreens. Most international customers 

buy directly from Jordana’s website. Foreign 

distributors are another important part of 

the mix, and some of them sell online on 

their own websites in their own countries. 

Jordana is now evaluating marketplaces that 

operate only in countries of interest.

According to international sales director Lisa 

de la Flor, a Chinese e-marketplace recently 

imported several of Jordana’s products—and 

sold 2,000 units in two hours, with all of the 

activity taking place after midnight.

Lessons Learned

Jordana’s experience with e-commerce has 

yielded several lessons:

• Pricing is the key to expanding the 

e-commerce business and achieving 

the desired margin. When the company 

started selling via e-commerce, it was 

happy to get orders. Then it noticed that 

its products began appearing on other 

websites. That those websites were not 

specifically authorized to sell Jordana 

products on the web was one issue; 

that the sales prices were below what 

Jordana and its authorized distributors 

were selling for was another. “You need 

to learn from your mistakes,” says de 

la Flor. “You have to think about the 

what-ifs and try to control them as much 

as possible.” The solution will likely be 

specific terms and conditions to address 

the pricing and reselling issues.

• These terms and conditions will come in 

handy with Jordana’s new e-commerce 

venture in China, because the Chinese 

platform operator has an interest in 

preventing unauthorized sellers from 

accessing the product.

• Knockoffs and trademark infringement 

are another problem in China. One 

attempt to trademark the Jordana name 

has already been made, with a Chinese 

party altering the name slightly. Efforts 

are underway to get it to cease and 

desist.

• Appointing distributors in foreign 

markets is a good way to increase sales 

and prevent unauthorized sellers and 

intellectual property theft. There are 

many traders, both honest and shady, 

who monitor online sales activities and 

chatter about products. They use this 

information to identify new products 

to pursue. This kind of product research 

brought an inquiry from Morocco. De la 

Flor referred the lead to her distributor 

in that country, who will then determine 

what expanding to Morocco would bring 

to the team.

• Look at how e-marketplaces in your 

target countries promote products. In 

the Chinese marketplace, products are 

photographed from every conceivable 
Part II: Success Stories 83

angle. Promoters even put a ruler next 

to the Jordana lipstick to show exactly 

how long the product is. These details are 

important to Chinese consumers.

• Reputations can be damaged just as 

quickly as data travels over the Internet. 

You might not permit animal testing on 

your products, but a country where you’d 

like to sell your product may require 

it. Animal rights groups also have an 

international presence and have criticized 

small and medium-sized companies for 

allowing their products to be tested on 

animals, even though it is against the 

company’s stated policy. Make sure you 

enter the international market with your 

eyes open.

• Simply creating a web presence with 

the functionality to collect payment and 

fulfill orders is not enough to generate 

substantial sales. Just as you promote in 

your domestic market, you must promote 

your e-commerce 

presence. You need 

to blog about your 

product and get 

others to blog. 

Create buzz. Use 

social media to 

promote your 

brand and your 

products. The 

e-commerce 

channels are just 

that—channels. You 

have to manage them, 

and you have to promote 

on them.

• The U.S. Commercial Service can find 

distributors for your products, provide 

advice on regulations, and help identify 

the best markets. Its services are excellent, 

and the cost is either free or highly 

affordable.

A Chinese e-marketplace 

recently imported several 

products made by Jordana.

In just two hours, 

2,000 units sold—

all after midnight.

part iii

Country Briefs
86 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

africa and the middle east

Israel

Statistics

Population: 8.3 million

GDP (USD): 305 billion

Currency: Shekel (ILS)

Languages: Hebrew, Arabic

Contact

Joseph White

Deputy Senior Commercial Officer

joseph.white@trade.gov

+972-3-519-8509

Summary

Cross-border purchasing is a driving force in 

the global marketplace. The most popular 

category is fashion. Cross-border shoppers 

are valuable consumers: they spend double 

what domestic online customers spend. In 

Israel, 72 percent of consumers shopped 

online and 82 percent shopped cross border 

in the past year. Free shipping and security 

can drive cross-border trade.

Market Entry

Popular E-Commerce Sites

• eBay Israel

• Walla!Shops

• GetIT

• P1000

• Best Buy

Digital Advertising

Digital ads can appear in search engines, 

display or banner ads, and digital video. Lead 

generation occurs through sponsorship, 

e-mail, and rich media (interactive media).

Current Market Trends

According to a survey conducted by PayPal 

in 2014, 72 percent of Israelis shopped 

online in the past 12 months.

Online Payment

Credit cards and PayPal are the most popular 

methods of online payment.

Cross-Border E-Commerce

Eighteen percent of online purchasers 

shop only domestically, 72 percent shop 

both domestically and cross border, and 10 

percent shop only cross border.

Mobile E–Commerce

In 2013, mobile spending was USD 169 

million—10.23 percent of the total 

spent online. 

Social Media

Facebook, Twitter, Instagram, and LinkedIn 

are the most popular social media sites.
Part III: Country Briefs 87

Current Demand

Percentages of Goods Sold Online

• Baby and children’s supplies: 42

• Consumer electronics: 52

• Appliances and furniture: 26

• Entertainment and education: 41

• Clothing and apparel: 32

• Cosmetics and beauty products: 19

• Gardening supplies and tools: 16

Total Online Commerce (2013–16)

Year Value (USD millions) Change (%)

2013 1.733

2014 2.047 +18

2015 2.336 +14

2016 2.608 +12

Source: Ipsos Research, 2014; 2015 and 2016 values are projected.

Services

• Tourism: hulyo.co.il (hotels and flights)

• Education: lamdan.co.il (database of 

private teachers)

• Financial services: etrader.co.il (a broker)

Major Buying Holidays

• Rosh Hashanah

• Sukkot 

• Hanukkah

• Pesach (Passover)

• Israeli Independence Day

• Black Friday (same day as U.S. Black Friday)

Challenges

Intellectual Property Rights

Israeli intellectual property law is pursuant to 

the Agreement on Trade-Related Aspects of 

Intellectual Property Rights (TRIPS); therefore, 

Israeli customs is authorized to enforce any 

intellectual property right, trademark, and 

copyright violations caused by imported 

products. 

Data Collection

According to Israel’s Protection of Privacy 

Law, data gathering is allowed only with the 

agreement of the user; any usage of the data 

also requires the user’s consent.

Regulation

In 2011, Israel’s legislature passed an 

e-commerce bill that regulates electronic 

documents related to e-commerce. The 

legislation determines the terms of receiving 

and sending orders by electronic messages and 

establishes new instructions regarding Internet 

companies’ duty of confidentiality in regard to 

“distributors of information.”

The Israeli Bureau of Consumer Protection 

and Fair Trade oversees enforcement of Israel’s 

consumer protection law.

Prohibited Products

Any product that might be considered a threat 

to national security, public health, public safety, 

or the environment is prohibited. Imported 

products from hostile countries or from 

countries that do not have diplomatic relations 

with Israel are forbidden.
88 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

africa and the middle east

Kenya

Statistics

Capital: Nairobi

Population: 45 million

GDP (USD): 61 billion

Currency: Shilling (KES)

Languages: English, Swahili

Contact

Janet Mwangi

Commercial Specialist

janet.mwangi@trade.gov

+254 2 0363 6725

Summary

Kenya has well-defined business-toconsumer (B2C) and business-to-business 

(B2B) market segments in major sectors such 

as telecommunications, banking, and retail. 

B2B includes business-process outsourcing, 

Internet marketing and advertisement, 

information security services, and enterprise 

resource planning. B2C includes premiumrate subscription services (e.g., downloaded 

ringtones, music, and games); consumer 

mobile services; toll-free telephone service; 

and online banking. 

Generally, U.S.-made products are appealing 

to consumers for a variety of reasons; top 

among the reasons is that Kenyan consumers 

feel U.S. products are of better quality than, 

for example, Chinese products. According 

to Kenya National Bureau of Statistics 

data, the value of U.S. exports to Kenya rose 

to KES 29.5 billion (around USD 289 million) 

in May 2015, compared with China’s 

KES 21.1 billion (around USD 207 million). 

Kenyan trade experts expect Kenyan 

demand for U.S. products and services to 

continue to increase steadily.

Market Entry

Popular E-Commerce Sites

The most commonly used sites are

• jumia.com (general shopping)

• cheki.co.ke (cars)

• olx.co.ke (similar to eBay or Craigslist)

• rupu.co.ke (general shopping)

Global sites such as Amazon and Alibaba 

also are gaining popularity.

Digital Advertising

Consumers now have access to 3G- or 

4G-enabled smart devices, and ads are now 

often placed on social media platforms. 

However, traditional ad placements on 

TV, in print, and on the radio are common 

and most preferred, as they reach a wider 

audience. Digital and traditional billboards 

(found on major highways) are also used.

Fulfillment

• FedEx

• DHL

• Aramex

• Express Kenya
Part III: Country Briefs 89

Current Market Trends

Ninety-four percent of transactions in Kenya 

are still made in cash, according to McKinsey. 

However, an increasing number of consumers 

with reliable Internet access are choosing to 

make purchases online. Eighty-five percent 

of Kenyans have adopted electronic means of 

payment, including bank accounts, prepaid 

cards, or other payment products. According 

to a new study by MasterCard, some factors 

affecting online purchasing include broadband 

costs, logistics, fragmented and open markets, 

poor literacy rates, and distrust because of 

Internet fraud and cybersecurity issues.

According to a World Bank report, Kenya’s 

economy is larger and growing more quickly 

than previously estimated (following a rebasing 

of growth figures), further elevating the country 

as an economic powerhouse in Sub-Saharan 

Africa. As a result of ongoing infrastructure 

projects and the recent decrease in oil prices, if 

current trends continue, Kenya’s gross domestic 

product (GDP) was projected to have grown 

6.0 percent in 2015 and 6.6 percent in 2016. 

The report continued to say that even if growth 

slowed, GDP should increase 5.6 percent in 

both 2015 and 2016, and 5.7 percent in 2017. 

Online Payment

Ticketsasa is used to purchase advance theater 

and movie tickets. Mobile payment platforms 

such as M-Pesa and web store–integrated 

platforms such as Jumia and Rupu are the most 

popular methods of accepting payment. Online 

credit card use remains low, representing less 

than 1 percent of Kenyan online shoppers.

Cross-Border E-Commerce

Currently, less than 5 percent of Kenya’s 

population engages in cross-border 

e-commerce. However, an increasing number 

of consumers and small and medium-sized 

businesses are beginning to shop cross border.

Mobile E-Commerce

About 5 percent of consumers make 

e-commerce purchases on their cell phones. 

Active marketing by companies such as Jumia 

and OLX has contributed to the increase in 

demand. Nearly 90 percent of Safaricom’s 

mobile subscribers use the M-Pesa mobile 

payment platform to make money transfers 

and cashless payments for goods and services. 

(The “M” stands for mobile and pesa is the 

Swahili word for money.) Once customers 

create an M-Pesa account, they put cash into 

their account through any of the 65,000 agents 

located countrywide. The service now enables 

mobile diaspora remittances to and from the 

United Kingdom through Skrill and to the 

United States through Western Union. 

Social Media

Facebook, Twitter, Instagram, and LinkedIn are 

the most popular social media sites.

Current Demand

Services

Tourism and hospitality websites such as 

tripadvisor.com and sleepout.co.ke are major 

online hotel booking service providers. Online 

banking and other mobile financial services are 

also popular.

In the education sector, distance learning is 

available at the graduate level through virtual 

classrooms, videoconferences, and online 

blackboards.
90 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Major Buying Holidays

• Valentine’s Day

• Easter

• Eid

• Christmas

Challenges

Intellectual Property Rights

Any content that violates intellectual property 

rights is prohibited. This prohibition applies to 

all intellectual property, such as movies, music, 

and patents.

Data Collection

The Communications Authority of Kenya (CAK; 

formerly the Communications Commission 

of Kenya) regulates information and 

communication technology (ICT). CAK may 

impose licensing restrictions for safeguarding 

online consumer information collection and 

distribution.

Regulation

CAK provides licensing for transformational 

e-commerce initiatives. ICT is covered under 

a variety of laws, including the Science and 

Technology Act (Cap. 250) of 1977, the Kenya 

Broadcasting Corporation Act of 1988, and the 

Kenya Communications Act of 1998. Overall, 

a proper legal and regulatory framework for 

e-commerce is lacking in Kenya. According 

to CAK, increased use of e-commerce and 

other e-transactions may lead to increased 

cybercrimes and attacks, which will need to be 

addressed through robust legal frameworks 

and enhanced network security.

Prohibited Products

• Soaps and cosmetic products 

containing mercury

• Used tires for light commercial and 

passenger vehicles

• Narcotic drugs

• Counterfeit goods of all kinds

• Agricultural and industrial chemicals listed 

in the East African Community Customs 

Management Act of 2004
Part III: Country Briefs 91

africa and the middle east

South Africa

Statistics

Capital: Pretoria

Population: 51.7 million (2011)

GDP (USD): 350.63 billion (2013)

Currency: South African rand (ZAR)

Languages: English (business), others

Contact

Sanjay Harryparshad

Commercial Specialist

sanjay.harryparshad@trade.gov

+27 11 290 3120

Summary

Business-to-business (B2B) customers are 

frequently also business-to-consumer 

customers, so relationships are generally the 

same. Both types of customers have become 

accustomed to performing consumer 

product research online. As a result, both 

are using either consumer websites or B2B 

versions of consumer websites to purchase 

products and services either for their 

companies or as individuals. 

Market Entry

Popular E-Commerce Sites

• takealot.com

• amazon.com

• bidorbuy.co.za

• groupon.co.za

• ebay.com

• game.co.za

• computicket.com

• mrp.com

• zando.co.za

• picknpay.co.za

• clicks.co.za

• edgars.co.za

• spar.co.za

• woolworths.co.za

Digital Advertising

Studies have shown the effectiveness of 

digital ads that appear on mobile devices. 

South Africa currently boasts a mobile 

penetration rate of 135 percent, and as data 

prices and smartphone prices continue to 

drop, mobile devices will be at the forefront 

of digital advertising. Other forms of digital 

advertising often appear on popular social 

media, news, and e-commerce sites. 

Current Market Trends

• 45 percent of online shoppers are in 

Gauteng, the South African province 

that encompasses both Pretoria and 

Johannesburg (two of the country’s 

largest cities).

• 9.2 percent of shoppers have household 

income of over ZAR 70,000 per month 

(around USD 4,850).

• 73.7 percent of shoppers use 

e-commerce to make payments, pay 

utility bills, and transfer money at least 

once a week.

Online Payment

Credit cards, cash cards, bank transfers, and 

PayPal are all used in South Africa. Special 

online shopping credit cards are the most 

frequently used.

Cross-Border E-Commerce

The South African consumer market tends to 

trust international retailers more than local 

business. As a result, international sites are 

used much more frequently.
92 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Mobile E–Commerce 

More than 38 percent of South African 

consumers use their mobile devices for 

online purchases.

Social Media

• Facebook

• Twitter

• Tumblr

• LinkedIn

• Pinterest

• Instagram

• Flickr

• Google+

• Badoo

Current Demand

Services

Books, airline tickets, hotel reservations, and 

event tickets are the service-related items most 

often purchased online.

Major Buying Holidays

Apart from major internationally observed 

holidays, such as Christmas and Valentine’s Day, 

there are none. Certain e-commerce sites run 

daily promotions to promote online purchases.

Challenges

Intellectual Property Rights

South African authorities are eager to improve 

compliance with intellectual property rights 

(IPR) laws, as required by the Agreement on 

Trade-Related Aspects of Intellectual Property 

Rights (TRIPS). However, there are still concerns 

about copyright, piracy, and trademark 

counterfeiting.

Businesses must comply with all IPR legislation 

pertaining to the consumer market. The 

U.S. Commercial Service can provide more 

information and help with registering products 

and trademarks.

Regulation

E-commerce is regulated in South Africa by the 

Consumer Affairs Committee. The committee 

sets out basic guidelines that require that 

suppliers (not users) of “cryptography” 

services or products register their names and 

addresses (and the names of their products, 

with brief descriptions) with the Department 

of Communications. Unless a (local or foreign) 

supplier has registered, it cannot provide 

services or products in South Africa.

Prohibited Products

• Drugs

• Pornographic material

• Plants, seeds, bulbs, and raw cotton

• Furs

• Unwrought gold

• Uncut diamonds

• Ammunition

• Furniture

• Honey and beeswax

• Dry ice

• Uncooked meat and poultry

• Dangerous goods as defined by the 

International Air Transport Association
Part III: Country Briefs 93

the americas

Canada

Statistics

Capital: Ottawa

Population: 35.75 million (est. 2015)

GDP (USD): 1.785 trillion (est. 2014)

Currency: Canadian dollar (CAD)

Languages: English, French

Contact

Cindy Biggs

Principal Commercial Officer

cindy.biggs@trade.gov

+1 (403) 265-2116

Summary

Most online sales in Canada are business 

to business (B2B). Manufacturing and 

wholesale retailing are the most active 

business e-commerce sectors. B2B 

transactions are generally used to buy 

indirect supplies and direct materials, to sell 

products and services to new vendors, to 

leverage an online presence, and to invest in 

e-procurement solutions. 

A survey conducted in 2006 by Statistics 

Canada indicated that approximately 68 

percent of e-commerce transactions were 

B2B exchanges. Business-to-consumer 

(B2C) channels have a lower volume in 

Canada. Canada is very large and has lower 

population densities than the United States, 

so physical distribution channels have been 

slower to develop. Therefore, electronic 

orders (with the exception of digital delivery, 

such as airline tickets) are not very costeffective, and B2C online transactions 

are not as strong within Canada. The B2C 

model usually consists of an electronic 

storefront (e.g., a website) that sells online 

to consumers.

In 2010, retail e-commerce in Canada was 

a USD 15.3 billion market, double its 2005 

value. Consumers spent an average of 

USD 1,362 per person, and 89.4 percent paid 

by credit card. In 2014, online sales made up 

5 to 8 percent of Canada’s total retail sales, 

generating more than USD 20 billion. 

Seventy percent of Internet-connected 

Canadian small and medium-sized 

enterprises (SMEs) make online purchases, 

yet only 18 percent make online sales. 

Among Canadian SMEs selling online, 

72.5 percent indicated that only 25 

percent or less of total sales come from 

online channels. In a 2011 Canadian 

Federation of Independent Business survey, 

Canadian SMEs indicated that the cost of 

implementing an e-commerce platform was 

the biggest obstacle to accepting electronic 

payments. 

Market Entry

Popular E-Commerce Sites

The most popular e-commerce sites are 

Amazon, eBay, Costco, and Walmart. The 

most popular e-commerce site, amazon.ca, 

controls 7 percent (about USD 1.5 billion) of 

the total USD 21.6 billion e-commerce sales 

in Canada, followed by eBay, Costco, and 

Walmart, which together account for close to 

10 percent of e-commerce. 
94 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Digital Advertising

Given the increasing access to and presence 

of the youth population on social media sites, 

digital ads have more consistently targeted 

social media rather than the traditional online 

news and information sources. Currently, 36 

percent of digital ads are placed on social 

media, 18 percent on entertainment sites, 

and 12 percent on portals. The remaining ads 

are placed on news and information sites, 

directories, and similar outlets.

In terms of consumer preferences, younger 

Canadians make more mobile purchases and 

are more responsive to mobile ads. According 

to the Interactive Advertising Bureau of Canada, 

2013 online ad revenue amounted to USD 

3.8 billion from desktop and laptop ads and 

USD 443 million from mobile ads, showing a 

growing revenue rate for mobile ads. 

Digital video advertising is also becoming 

more popular. According to comScore, mobile 

commerce (m-commerce) is on the rise, 

because of the increasing mobile connectivity 

of smartphones and tablets. Digital advertising 

now has surpassed TV advertising revenues and 

is poised to become the favorite advertising 

venue in Canada. As mentioned in a 2014 

Ernst & Young report, “Retailers should invest 

in better mobile-enabled technology and 

enhanced websites for tablet users.” Ernst & 

Young advises, “They should also consider 

a significant shift in spending to digital 

advertising and social media.”

Fulfillment

• amazon.ca

• integratedfulfillment.com

• farrow.com

• shipwire.com

• directdistribution.ca

• radial.com

• wiptec.com

• rakutensl.com

North American Free Trade Agreement

Under the North American Free Trade 

Agreement (NAFTA), no customs duties or tariffs 

are levied on qualified U.S.-made products 

entering Canada. To get duty-free status under 

the NAFTA rules of origin, a commercial NAFTA 

import over CAD 1,600 (around USD 1,200) 

must be accompanied by a NAFTA Certificate 

of Origin, and a commercial import less than 

CAD 1,600 requires only a statement of origin 

from the exporter that the product is U.S. made. 

Canada looks at the origins of the component 

parts of an item and evaluates whether they 

are transformed in the process of manufacture 

into another category to determine whether 

the product is entitled to NAFTA treatment. 

This process can be quite complex; for more 

assistance, including instructional videos, you 

can visit 1.usa.gov/1IprYOW or contact your 

local U.S. Commercial Service trade specialist.

Current Market Trends

Online purchases that have digital delivery, 

such as travel tickets, are the items most often 

purchased online: 58 percent of Canadians 

shop online for airline tickets, followed by 

services such as hotel bookings and car rentals. 

According to the Canadian Internet Registration 

Authority, the top five types of goods and 
Part III: Country Briefs 95

services purchased most often online by 

Canadians are

• Travel arrangements: 58 percent

• Entertainment event tickets: 52 percent

• Clothing, jewelry, and accessories: 

42 percent

• Books, magazines, and online newspapers: 

42 percent

• Music: 35 percent

In general, items that are the same from one 

retailer to another sell better online than do 

items unique to a specific store or items that 

customers want to see or touch, such as cars, 

food, and similar products.

Social Media

Social media is becoming very popular 

throughout Canada. According to Statistics 

Canada, more than two-thirds of Canadians 

who spent time online visited social networking 

sites such as Facebook or Twitter. Canada’s most 

popular social media sites are

• Facebook

• Twitter

• LinkedIn

• Tumblr

• Pinterest

• YouTube

• Google+

• Myspace

Current Demand

In 2012, Canadians spent USD 18.9 billion 

online for goods and services, up 24 percent 

from 2010. Demographically, younger 

Canadians (ages 25 to 34) were more likely to 

purchase online, and 67 percent of them made 

web purchases. The number of Canadians over 

the age of 65 rose from 40 percent in 2010 to 

48 percent in 2012, suggesting one potential 

reason that online purchasing represents only 

about 4 percent of total retail sales. 

Census metropolitan areas with the highest 

rates of Internet use include Kelowna (93 

percent), Regina (90 percent), Victoria (90 

percent), and Calgary (89 percent ).

Services

• Tourism (tickets, sports equipment, and 

travel packages)

• Education (books, magazines, and 

newspapers)

• Financial services (tax software and 

brokerage accounts)

• Leisure (music, toys, games, and videos)

• Technology (software and hardware)

Challenges

Intellectual Property Rights

Companies must be aware of their copyright, 

trademark, domain, and patent rights—not 

only to safeguard their own efforts, but also to 

prevent accidental unauthorized use of other 

individuals’ intellectual property. 

Canada remains on the Special 301 “Watch 

List.” The International Intellectual Property 

Alliance (IIPA) has advised Canada to prioritize 

legislative and regulatory reform and related 

enforcement. An IIPA report states, “It is hard 

to avoid the conclusion that Canada remains 

a magnet for sites whose well-understood 

raison d’etre is to facilitate and enable massive 

unauthorized downloading.” 

Canada has introduced legislation with the goal 

of addressing intellectual property right issues. 

Data Collection

Canadian data collection restrictions are 

essentially similar to U.S. laws. The most 

important data-gathering restrictions in Canada 
96 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

pertain to data on children and other sensitive 

information. 

• When a company places ads on social 

media sites (such as Facebook) known to 

be used by minors (persons under 18 years 

of age), the company cannot collect or use 

the minors’ data without parental consent. 

Therefore, children’s web-browsing 

behaviors are not automatically used to 

target online advertising. 

• Sensitive information cannot be collected 

without explicit consent by the consumer. 

Most data-gathering restrictions, apart from 

restrictions related to sensitive information, 

concern the consumer’s willingness to disclose 

information to first and third parties. Although 

asking for permission is highly recommended, 

there are no specific rules regulating nonsensitive consumer information.

The Digital Advertising Alliance of Canada 

has started an “opt out” initiative, in which 

consumers can decide whether they want to 

receive targeted advertising messages. Data 

gathering of specific user behavior strictly for 

the purpose of delivering online advertising 

can be declined by the consumer. Separate 

provisions exist for first parties, third parties, 

and service providers that engage in online 

behavior-based advertising.

Regulation

U.S. companies need to comply with Canada’s 

federal data privacy laws, including the Privacy 

Act and the Personal Information Protection 

and Electronic Documents Act (PIPEDA), as 

well as provincial privacy laws. PIPEDA requires 

persons or companies that collect personal 

information during the course of commercial 

activities to inform the subject of all possible 

uses of the data and to obtain consent for 

their use. 

Since 1998, the government has adopted a 

“technology-neutral” approach to e-commerce 

taxation, which avoids Internet-specific taxes.

Taxes and Other Costs

Import Duties 

The main barrier faced by companies that ship 

to Canada is import duties. The maximum dutyfree value of a shipment to Canada is extremely 

low—the maximum personal exemption limit 

(PEL) is CAD 20 (about USD 15), compared to 

the U.S. maximum PEL of USD 180.

U.S. businesses exporting U.S.-originated 

merchandise into Canada are not required to 

pay duties on shipments going into Canada. 

This does not apply to merchandise without 

U.S. origin. Many U.S. businesses find it difficult 

to ship to Canada if they are selling products 

not made in the United States. For example, 

when a U.S. company ships a product labeled 

“Made in China” to Canada, the Canadian 

customer must pay the import duties 

associated with Chinese products. Several U.S. 

companies have reported that when Canadian 

customers refuse to pay import duties, the 

U.S. companies are then left to bear the cost, 

eliminating much or all of any gross margin 

they realized as part of the sale. 

Further, many U.S. retailers feel that the 

collection of duties by Canadian authorities can 

be unpredictable.

Import Taxes

In Canada, there are three types of sales taxes: 

provincial sales tax (PST); federal sales tax, 

called the goods and services tax; and the 

combined harmonized sales tax (HST). Every 

province except Alberta implements a PST or 

the HST. The territories of Yukon, Northwest 

Territories, and Nunavut do not have territorial 
Part III: Country Briefs 97

sales taxes. These taxes may or may not apply 

to goods being shipped into Canada. For more 

information on applicable taxes, please visit 

bit.ly/1FCIsMQ.

If taxes are not collected up front, the 

customer will have to pay them on delivery. 

Collecting taxes upon purchase of the goods 

is a procedural hurdle that many small U.S. 

retailers find onerous and not worth the 

effort, although several service providers offer 

time-of-purchase tax collection services to 

streamline the process.

Brokerage Fees 

Brokerage fees tend to make up the bulk of the 

cost for most cross-border shipments. The fees 

are included in UPS or FedEx air shipments, but 

they are not included in ground shipments, 

and the driver may be required to collect them. 

According to several e-commerce websites, 

shipping to Canada via the U.S. Postal Service 

(USPS) is the “safest” way for a U.S. company to 

reduce the risk of extra fees when shipping to 

Canada. The USPS is also widely reported to be 

the cheapest option.

Unless the U.S. shipper instructs otherwise, 

most carriers (DHL, UPS, FedEx, and others) will 

add their own brokerage fees automatically 

when the product enters Canada, and many 

vendors complain that the rates are quite 

high (often 10 percent of the declared value 

of the goods). U.S. companies that ship to 

Canada often hire customs brokers, who have 

a reputation for being faster and cheaper than 

the major carriers.

If a customer refuses to pay the duties, sales 

tax, or brokerage fees, the carrier can bill 

the shipper. In some cases, if the Canadian 

customer does not accept the shipment and it 

is returned, the shipper will be charged duties, 

taxes, and brokerage fees going into Canada 

and brokerage plus freight on the return trip 

to the United States. These issues make some 

companies hesitant to ship to Canada.

Prohibited Products

Dangerous items or products that mimic the 

appearance of dangerous items, such as inert 

or replica munitions and lighters containing 

fuel, are prohibited from entering Canada. The 

Canada Border Services Agency will prevent 

these products from entering Canada through 

the mail. For more information on items that 

can’t be mailed, refer to Canada Post via 

bit.ly/1QUv7Ji.
98 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

the americas

Colombia

Statistics

Capital: Bogotá

Population: 48,227,000

GDP (USD): 378.4 billion

Currency: Colombian peso (COP)

Language: Spanish

Contact

Paola Lugari

Commercial Specialist

paola.lugari@trade.gov

+57 (1) 2752796

Summary

It is safe to do business in Colombia. 

Moreover, Colombians have an affinity 

for U.S. goods and frequently visit the 

United States as tourists and shoppers. 

Many Colombians have post office boxes 

in the United States, used to receive goods 

purchased from U.S. online vendors who 

refuse to ship internationally. Colombians 

then organize their own shipments to their 

businesses or homes.

Small and medium-sized enterprises (SMEs) 

play an important role in the Colombian 

economy. It is easier than ever to reach 

Colombian SMEs online, and for them to 

reach suppliers in the United States. SMEs, 

often referred to in Colombia as MiPyMEs

(an acronym for micro, pequeña, y mediana 

empresas—literally, micro, small, and 

medium enterprises), include about 90,000 

companies, which generate 40 percent of 

the country’s GDP and 80 percent of all jobs. 

They are focused in the industrial, retail, 

and service industries. The share of SMEs 

connected to the Internet rose to 60 percent 

by the end of 2013, compared with only 7 

percent in 2010.

Market Entry

Popular E-Commerce Sites

Although no information about online 

commerce platforms is openly available, 

portions of studies carried out by companies 

such as FedEx, PayU Latam, and comScore 

indicate that the most prominent online 

commerce platforms include

• mercadolibre.com.co

• dafiti.com.co

• linio.com.co

• mercadoshops.com.co

Current Market Trends

According to a recent FedEx study, businessto-business and business-to-consumer SME 

e-commerce is estimated to have reached 

a combined USD 3.5 billion in Colombia, 

an increase of 41.3 percent compared 

with the previous year (above the world 

average of 29 percent). A separate report 

by PricewaterhouseCoopers quoted within 

the FedEx study (using data gathered from 

Colombian payment-processing companies) 

estimates Colombia’s total online commerce 

at USD 8.3 billion (2.2 percent of 2013’s GDP.)
Part III: Country Briefs 99

Online Payment

• Credit card: 55 percent

• Cash at authorized collection points: 

34 percent

• Debit (checking or savings): 11 percent

Current Demand

Several types of items are commonly purchased 

online:

• Airline tickets

• Hotel reservations

• Coupons

• Electronics

• Clothing

• Footwear

The majority of transactions came from the 

cities of Bogotá, Medellín, and Cali.

Challenges

Colombia’s tax and customs agency, DIAN, does 

not specifically impose additional taxes on 

online sales. However, the associated goods in 

the transactions are subject to the appropriate 

value-added tax (VAT) and tariffs, and added 

costs are associated with the taxes levied on 

payment-processing companies (withholding 

tax of 1.5 percent, VAT withholding of 2.4 

percent, and 0.414 percent industry and 

trade withholding tax, for a total of about 4.3 

percent). For more information, please visit 

bit.ly/1O6ktxL.
100 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

the americas

Mexico

Statistics

Capital: Mexico City

Population: 120 million (est. 2013)

GDP (USD): 1.26 trillion (2014)

Currency: Mexican peso (MXN)

Language: Spanish

Contact

Teresa Verthein

Commercial Specialist

teresa.verthein@trade.gov

+52 (55) 5080 2000 x5228

Summary

Mexico’s business-to-consumer market is 

much more developed than its businessto-business (B2B) market. Mexican 

development bank NAFIN is developing a 

new platform to promote B2B e-commerce.

Companies entering the market can use 

English. Their customers are likely to belong 

to the upper-middle class and will know 

English. However, companies wanting 

greater market penetration should offer 

Spanish-language sites.

Market Entry

Popular E-Commerce Sites

Airplane tickets and hotel reservations have 

traditionally been the most popular online 

purchases, so travel sites such as despegar.

com, Expedia, and TripAdvisor are among 

the most popular. The Spanish Privalia and 

Brazilian Netshoes sites also have been 

successful in the clothing and accessories 

market. Online marketplaces such as 

Mercado Libre are also used, as is iTunes for 

video and music purchases.

Digital Advertising

E-mail marketing is the most popular 

method, followed by search engine 

advertising, social network pages, social 

network ads, and online portal banner ads. 

Fulfillment

Amazon opened a fulfillment center in 

Mexico in 2015. Most companies use the 

fulfillment centers of logistics companies 

such as DHL and FedEx.

Current Market Trends

There are currently 50 million Internet users 

in Mexico; 37 percent claim to have made an 

online purchase. In 2013, the e-commerce 

market was valued to be USD 9.2 billion, an 

increase of 42 percent from 2012. Buyers 

are evenly distributed along gender lines. 

Nearly a third of buyers (32 percent) are age 

25 to 34, followed by buyers age 18 to 24 (31 

percent) and 35 to 44 (17 percent).

Online Payment

• Credit card: 64 percent

• Direct bank deposit: 12 percent

• Online wire transfer: 11 percent

• Cash in participating stores: 9 percent
Part III: Country Briefs 101

Cross-Border E-Commerce

• Mexican sites only: 44 percent

• Mexican and foreign sites: 39 percent

• Foreign sites only: 5 percent

Mobile E–Commerce

No data is available specific to purchases, but 

12 percent of consumers access e-commerce 

via a smartphone, and 8 percent from a tablet.

Social Media

Facebook, Twitter, LinkedIn, and YouTube are 

the most popular social media sites in Mexico.

Promotions and Discounts

From most to least popular, Mexican shoppers 

look for discounts, free shipping, some number 

of months without interest payments, and (to a 

lesser degree) gifts and reimbursements.

Current Demand

During 2013, tourism (airline and bus tickets) 

fell from the top ranking for online purchases 

(double most other categories) to sixth 

place behind music and movies, computers, 

entertainment tickets, clothing and accessories, 

and hotel reservations.

Major Buying Holidays

Christmas (online purchases begin to 

spike in November because of the Buen Fin

promotions—the Mexican equivalent of Black 

Friday). The month of May also sees a lot of 

e-commerce traffic (Mother’s Day and the 

beginning of the summer holiday season). 

Challenges

Intellectual Property Rights

Mexico has no intellectual property rights (IPR) 

regulation specific to e-commerce. Either the 

Mexican Institute for Industrial Protection (IMPI) 

or the National Copyright Institute (INDAUTOR) 

will likely oversee e-commerce IPR, but no final 

decision has been made. 

Data Collection

Federal law includes preliminary regulations 

for protection of personal data held by private 

parties. Companies must generate a privacy 

notice for all their electronic communications 

(including websites), advising customers of 

the way their data will be handled. Mexico is 

adopting a self-regulation model concerning 

further data protection legislation. Compliance 

will not be mandatory, but companies that 

do comply will gain incentives, such as a 

better reputation, facilitation of international 

data transfers, and avoidance of penalties. 

The self-regulation framework is still under 

development by the National Institute for 

Transparency, Access to Information, and 

Protection of Personal Data (IFAI).

Profeco, the Mexican consumer protection 

agency, is also becoming involved in data 

privacy and has signed a memorandum of 

understanding with the U.S. Federal Trade 

Commission. The Mexican Internet Association, 

AMIPCI, issues a trust seal for e-commerce 

sites and is a member of the World Trustmark 

Alliance. 

Regulation

E-commerce is featured in Mexico’s national 

digital strategy, to be developed via better 

connectivity throughout the country. ProSoft, 

a program of the Mexican Ministry of Economy, 

promotes the use of online platforms both to 

consumers and to the Mexican industrial sector. 

The National Institute for Entrepreneurs, also 

under the Mexican Ministry of Economy, has 

programs in place to encourage e-commerce 

among small and medium-sized companies.
102 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

the americas

Peru

Statistics

Capital: Lima

Population: 31,151,643 (est. 2015)

GDP (USD): 403.322 billion (proj. 2015)

Currency: Nuevo sol (PEN)

Languages: Spanish, Quechua, Aymara

Contact

Gustavo Romero

Commercial Specialist

gustavo.romero@trade.gov

+51 (1) 434-3040

Summary

By the end of 2014, Peru was estimated to 

have had nearly 12.6 million Internet users, 

with a market penetration rate of 38 percent. 

This figure is still well below countries 

such as Panama, Chile, Argentina, Mexico, 

Brazil, and Colombia, which each exceed 50 

percent market penetration. Further, only 

about 30 percent of the population has 

at least one bank account, well below the 

regional average of 50 percent.

Peru lacks much of the infrastructure 

needed for e-commerce. However, there 

are signs that the situation is improving. 

New communication technology is being 

installed throughout the country, and 

smartphones are becoming increasingly 

popular. As a result, more people are gaining 

Internet access.

In 2014, the mobile market expanded to 31.9 

million lines, representing a high national 

density of 107 percent (more lines than 

people). In addition, Peru’s Red Dorsal de 

Fibra Óptica (fiber-optic network) is currently 

in development. The network is intended to 

unite 180 provincial capitals and 21 regional 

capitals by adding 13,400 kilometers of 

electrical cable to the country’s current 

electric distribution infrastructure. This 

project aims to reduce the cost of Internet 

access and began operation in mid-2016.

In contrast to the limited access available, 

Peruvian users spend an average of 18.2 

hours a month on the Internet—Latin 

America’s second-highest average usage, 

surpassed only by that of Argentina. The 

majority of Internet users (56 percent) are 

men between the ages of 15 and 24.

Of Peru’s 200 top private companies, only 

72 percent conduct electronic transactions 

through their own website or through a 

third party. On the regulatory side, SUNAT 

(Peru’s tax authority) uses electronic means 

to exercise the detailed control of tax 

collection. Therefore, SUNAT has issued a 

regulation (Resolution 188-2010-SUNAT) 

to establish the electronic invoice, norma 

de la factura electrónica. However, unlike 

other countries, Peru has no comprehensive 

state policy promoting the widespread 

growth of information and communications 

technology.

Businesses are beginning to use their own 

business e-mail accounts, instead of informal 

personal e-mail addresses (through Hotmail 

or Gmail) to conduct business. Owning 
Part III: Country Briefs 103

a company e-mail server allows Peruvian 

businesses to appear more professional.

Market Entry

Popular E-Commerce Sites

According to April 2014 data from comScore 

Media Metrix, from April 2013 to April 2014 the 

most visited retail sites (by unique visitor) in 

Peru were

• Mercado Libre: 976,000

• Amazon: 480,000

• sagafalabella.com.pe: 377,000

• eBay: 273,000

• alibaba.com: 263,000

• apple.com: 261,000

• Linio: 244,000

• buscapecompany.com: 184,000

• cineplanet.com.pe: 176,000

• www.ripley.com.pe: 170,000

• netflix.com: 137,000

The use of travel-related sites is increasing, with 

above-average use for the region (not including 

Brazil). According to the same data, the most 

visited travel sites in 2014 were

• lan.com: 378,000

• despegar.com.pe: 195,000

• tripadvisor.com: 168,000

• travelspike.com: 112,000

• priceline.com: 105,000

• booking.com: 98,000

• aviance.com: 98,000

• atrapalo.com: 92,000

• marriott.com: 71,000

• perutoptours.com: 70,000

According to Arellano Marketing (2013), 7 

percent of online purchases come from people 

ages 18 and over. Common purchases are 

products (79 percent), services (33 percent), 

discount coupons (8 percent), and tablet and 

smartphone apps (7 percent). 

Digital Advertising

The main means of digital advertising are

• E-mail marketing

• Social networking sites

• Search engine optimization

• Publicity (banners) in search engines

In 2013, 56 percent of online shoppers reached 

vendor sites through social networking sites. 

Additionally, according to recent surveys, the 

main retail companies plan to develop mobile 

marketing strategies. 

Fulfillment

The company BSF Almacenes del Perú rents 

fulfillment centers; it has two properties, one 

130,000 m2 facility in Villa El Salvador and a 

second, larger 700,000 m2 facility in Lurín. The 

company also offers freight elevators and office 

space rentals. It currently provides services 

for Saga Falabella, Ripley, Sodimac, Tottus, 

Cencosud, Plaza Vea, and Supermercados 

Peruanos.

Linio also has its own fulfillment center in Villa 

El Salvador.

Current Market Trends

E-commerce transactions via credit card grew 

from 2.2 million in 2012 to 4.1 million in 2014, 

representing an 89 percent increase in two 

years. At the same time, the amount traded has 

increased 80 percent, from USD 668 million in 

2012 to USD 1.868 billion in 2014.
104 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The Lima Chamber of Commerce (Cámara de 

Comercio de Lima, or CCL) predicts that in 

2015 there will be a 50 percent increase in 

e-commerce sales, owing to an increase in sales 

related to food and entertainment industries. 

Lima continues to be the country’s main 

economic hub, and other cities such as Cusco, 

Trujillo, and Chiclayo are starting to show 

positive economic results.

A 2014 survey showed that 75 percent of 

the population owned a cell phone, with 16 

percent being smartphone users. In addition, 

smartphones accounted for 49 percent (6.7 

million units) of mobile equipment sold 

nationwide. The growth and use of mobile 

devices (especially smartphones) allow users 

to make online purchases more easily, mainly 

through the use of apps—both from Peruvian 

companies and across borders. As a result, 

mobile e-commerce should continue to grow.

Items such as food, apparel, and utility bills are 

expected to be the most relevant to consumers 

who use mobile payment systems.

Online Payment

• Credit cards

• Debit cards

• Prepaid cards

• Bank agencies

• Cash on delivery

• Bank deposit

• Payment in store, after ordering online

Cross-Border E-Commerce

A majority of purchases (63 percent) are of 

foreign products, demonstrating the lack of 

local supply.

Social Media

According to 2014 comSource Media Metrix 

data, the most visited social media sites 

(counting total unique visitors) between April 

2013 and April 2014 were

• facebook.com: 5,101,000

• linkedin.com: 2,468,000

• taringa.net: 1,992,000

• ask.fm: 1,232,000

• twitter.com: 753,000

• scribd.com: 333,000

• tumblr.com: 277,000

• deviantart.com: 155,000

• tagged.com: 152,000

Although Facebook leads Peru’s list of most 

visited social media sites, it is not the only one 

being visited. Recent data shows that Instagram 

is becoming increasingly popular in Peru. 

Instagram, a social media network through 

which users share photos and content, can give 

exposure to global and local brands. 

Promotions and Discounts

E-commerce in Peru is known for deals and 

discounts. A single national promotion can let 

some companies sell more over a short period 

of time than they would normally sell all year 

in their physical stores. Sites such as Groupon, 

OferTop, and Cuponatic are popular among 

price- and value-conscious Peruvian consumers.
Part III: Country Briefs 105

Current Demand

Services

Travel and Tourism

• Tourism packages and set-date promotions 

are popular (for example, products related 

to the Christian Holy Week, July national 

holidays, and New Year’s Day).

Education

• Online certification courses and 

postgraduate programs.

Financial Services

• Internet banking and mobile banking.

Planning

• Online project management software in 

Spanish may grow in demand.

Engineering and Architecture

• Online programs for designing may 

become popular.

Major Buying Holidays

Since 2012, CCL has promoted Cyber Monday, 

which takes place on the Monday after the U.S. 

Thanksgiving holiday. Cyber Monday usually 

occurs in late November or early December. 

Also, since 2014, CCL has promoted CyberMami, 

which is held right before the Peruvian Mother’s 

Day, which is celebrated on the second Sunday 

of May.

Some companies, such as Saga Falabella, also 

launch their own seasonal promotions, such 

as Madrugón, which takes place when a new 

season arrives.

Challenges

Intellectual Property Rights

Peru has signed the Tratado Derecho de Autor 

de la Organización Mundial de Propiedad 

Intelectual and the Tratado de Interpretación 

o Ejecución y Fonogramas de 1996. Also, the 

framework of the United States–Peru Trade 

Promotion Agreement includes a chapter 

on intellectual property, including brands, 

geographical indications, web addresses, 

innovation, and technological development. It 

also seeks to protect the moral and economic 

rights of the authors who own the intellectual 

property. The aspects covered in the chapter 

on intellectual property were incorporated into 

national legislation through Law No. 29316 on 

January 14, 2009.

In spite of this, Peru has remained on the Office 

of the U.S. Trade Representative’s special 301 

“Watch List” since 1992 because of continued 

high piracy rates, inadequate enforcement of 

intellectual property rights (IPR) laws, and weak 

or unenforced penalties for IPR violations. 

Data Collection

Recently, unauthorized sharing of users’ 

personal data has become a top issue. The 

government has begun to implement laws, 

such as 2013’s Law of Protection of Personal 

Data, to both improve safeguards of personal 

data and protect a user’s reputation and 

privacy.
106 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

All companies who do business in Peru and 

handle user data are obligated to follow the 

law, and are required to declare

• An online privacy policy to inform users of 

the purpose and audience for the data

• The owner of the database

• Consequences of sharing the information

• Means to exercise users’ rights

Regulation

Currently, Peru has no specific law on 

e-commerce, nor has any proposal been 

discussed. Peru’s most recent e-commerce–

related actions are included in Chapter 15 

of the United States–Peru Trade Promotion 

Agreement and cover aspects such as electronic 

service delivery, digital products, transparency, 

consumer protections, authenticity, and 

paperless trade administration, with the 

purpose of eliminating barriers and promoting 

the development of e-commerce. Additionally, 

Peru’s private sector has developed proposals 

to promote e-commerce: for example, the CCL 

promotes the creation of the Instituto Peruano 

de Comercio Electrónico (Peruvian Institute 

of Electronic Commerce), which would be an 

observer and advocate of the sector.

The Asociación de Bancos del Perú (ASBANC) 

is also helping to create a stable and secure 

e-commerce market. ASBANC has been 

working on the Proyecto de Dinero Electrónico 

(Electronic Money Project), called Modelo Perú, 

which seeks to create a platform for conducting 

financial transactions using mobile phones. 

Electronic money users can make money 

transfers and pay utility bills and taxes up 

to PEN 4,000 (approximately USD 1,268) per 

month. Soon, users will be able to purchase 

goods and services from providers who take 

part in this safe and secure electronic platform.

Prohibited Products

The General Customs Law (Decreto Legislativo 

No. 1053), its regulations (Decreto Supremo 

No. 010-2009-EF), and the Customs Crimes 

Act (Ley No. 28008) dictate what tradable 

commodities are prohibited or restricted. The 

laws aim to safeguard national security as well 

as the right to life, health, and the environment, 

among other local concerns related to customs 

processes. In addition to administrative 

penalties and fines, any person who brings in or 

removes such merchandise may be subject to 

imprisonment for 8 to 12 years.

A detailed list of prohibited and restricted 

goods is available at bit.ly/1ETkzWT.

Resources

Arellano Marketing. 2013. “Un 7% de Peruanos 

Realiza Compras por Internet.” February 12. 

bit.ly/1UIZsgN.
Part III: Country Briefs 107

asia

China

Statistics

Capital: Beijing

Population: 1.67 billion

GDP (USD): 10.3 trillion

Currency: Renminbi (RMB)

Language: Mandarin Chinese (official)

Contact

Joshua Halpern

Commercial Specialist

joshua.halpern@trade.gov

+86 (10) 8531-4325

Summary

E-commerce is rapidly increasing in China. 

In May 2015, it accounted for around 10.6 

percent of all retail sales. Of the more than 

632 million Chinese Internet users, 47 

percent are online shoppers—equivalent to 

nearly the entire U.S. population.

According to the Chinese government’s 

National Bureau of Statistics (CNBS), 

e-commerce sales totaled USD 449.12 

billion in 2014, up 49.3 percent from USD 

300.74 billion in 2013. In comparison, U.S. 

e-commerce sales totaled USD 304.91 billion 

in 2014, according to U.S. Department of 

Commerce estimates (February 2015). And 

China’s e-commerce market is growing more 

than three times more quickly than the U.S. 

e-commerce market.

Although Chinese online shoppers have 

an official average income much lower 

than that of the average American, Chinese 

middle-class income is growing rapidly 

according to CNBS. The Chinese research 

company iResearch forecasts that China’s 

e-commerce market will grow at a 27 

percent rate over the next four years.

U.S. companies planning to sell products 

via Chinese e-commerce platforms can 

use a traditional approach and establish 

a company in China, such as a subsidiary, 

a joint venture, a wholly owned entity, or 

a local distributor or agent. Or they can 

use cross-border e-commerce to sell the 

products directly from the United States. 

Within the massive growth of e-commerce in 

China, an additional format—called bonded 

online shopping—allows cross-border 

online shopping via government-approved 

websites. Goods imported via bonded 

shopping are exempt from certain import 

duties, consumption taxes, and value-added 

taxes; the goods are only subject to personal 

postal articles tax. Cross-border e-commerce 

is still relatively new and is likely to 

experience significant changes as additional 

regulations are put in place.

Market Entry

In 2014, approximately 18 billion Chinese 

consumers purchased an estimated USD 

161 million in foreign goods. More than 

2,000 Chinese enterprises focus on crossborder e-commerce, but only a handful 

are experiencing significant volume: Tmall 

Global, USA Shop, and a few others.
108 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Popular E-Commerce Sites

Alibaba accounts for 50 percent of the online 

business-to-consumer (B2C) market with its 

Tmall platform and for more than 90 percent of 

the consumer-to-consumer (C2C) market with 

its Taobao platform.

JD.com is Alibaba’s chief rival, at 25 percent 

market share. It relies on better logistics and 

has a reputation for selling authentic, nonfraudulent products.

Other big players include NASDAQ-listed 

Dangdang, Walmart-invested Yihaodian, and 

Amazon. However, all together, these three 

companies together have less than 3 percent 

market share.

There are ongoing efforts to make more U.S. 

goods available to Chinese buyers. Chinese 

middlemen generally buy foreign-sourced 

goods and take care of China’s complex 

licensing process. To avoid the licensing process 

entirely, a U.S. company can ship its product 

directly from the United States, so the products 

are treated as sold outside the country (and 

thus do not need in-country licensing).

For example, Alibaba operates Tmall Global, 

a marketplace designed to help non-Chinese 

companies sell to Chinese consumers. Jingdong 

Mall (JD) is also working to sell more U.S. 

products through a similar channel that is 

tailored for smaller companies.

If you wish to sell via Tmall or Taobao, you 

must properly register the products with the 

sites—a process that requires a Chinese partner 

or expertise in the Chinese market. Your local 

U.S. Commercial Service trade specialist can 

connect you to our China offices for support 

with the process.

Digital Advertising

Digital ads can be placed in all the venues 

familiar to U.S. companies: e-commerce sites, 

focused portals, search engines, blogs, and 

online forums. Placing them programmatically 

is a problem, however, given China’s strict 

licensing rules for advertisers. Consumer 

preferences depend on the offering and the 

context; however, in terms of conversion, 

efficiency, and scalability, search engine 

advertising is hard to beat. Although typically 

less than 1 percent of people who view an ad 

click on it, those who do so have prequalified 

themselves as serious prospects. The low bid 

prices and easy testing parameters further 

distinguish search engine marketing as a go-to 

tactic.

Current Market Trends

Authenticity and diversity of goods have 

become the two biggest priorities for online 

consumers, leading to major growth in China’s 

cross-border e-commerce industry. E-commerce 

import value was roughly USD 161 million 

in 2014, driven by approximately 18 million 

Chinese shoppers. 

More than 80 percent of Chinese use mobile 

devices as their primary means of Internet 

access. Also, an increasing number of 

e-commerce sites specialize in specific product 

categories, such as imported food, baby 

products, and independent designer brands. 

Specialty sites are growing in popularity, fueled 

by large amounts of venture capital. They are 

not necessarily eating into the market share of 

Alibaba, China’s biggest e-commerce provider, 

though. Plenty of opportunity exists, given 

the 30 percent average annual growth of the 

industry as a whole.
Part III: Country Briefs 109

Online Payment

Alibaba’s payment gateway, Alipay, has roughly 

half of China’s online payment market share. 

The remainder is dominated by Tencent’s 

Tenpay and by UnionPay. However, credit cards 

are growing in popularity. Visa and MasterCard 

are now offered through China Construction 

Bank and HSBC China.

Mobile E-Commerce

In 2014, Chinese consumers spent close to 

USD 150 million via their smartphones and 

tablets, up 239 percent from 2013, according 

to iResearch. Mobile computing is expanding 

much more quickly than desktop computing, so 

mobile e-commerce is incredibly important.

Social Media

Recently, WeChat has been gaining in 

popularity. Former champion Weibo began 

hemorrhaging active users in 2013, following a 

variety of events in China’s online community.

WeChat is a mobile app that provides much 

more intimacy than Weibo did, as well as voice 

messaging and other added-value features. 

It has quickly grown to approximately half 

a billion users. As a result, parent company 

Tencent has made in-app stores possible and 

integrated with Alibaba rival JD. Although there 

are C2C success stories for those stores, JD 

integration has not been the threat to Alibaba 

that was expected, and Tencent is now even 

selling products on Tmall. 

Tencent is now concentrating on in-stream 

targeted ads—similar to some Facebook ads—

and the app’s main e-commerce value will 

most likely be in online to offline use, which its 

mobile-first user experience is suited for.

Other once-big social sites based on 

microblogging, such as Renren and Kaixin, 

have basically fallen by the wayside in the 

rush to mobile multimedia communication. 

Interestingly, Tencent’s QQ application, the 

predecessor of WeChat, has more than 700 

million users and is China’s most popular instant 

messaging app, preferred over e-mail and 

phones for a wide variety of communications.

Promotions and Discounts

Group buying and flash sales are most 

commonly used on Chinese e-commerce sites. 

They are generally used for products with 

highly recognizable, competitive brands or for 

restaurant meals and movie tickets. Holiday 

promotions, including for Christmas and 

Valentine’s Day, also are very common. 

Current Demand

Both B2C and B2B have been revolutionized 

by the Internet. Alibaba has changed the way 

China does business; it empowers smaller 

vendors and customers with transparency 

and escrow payments. B2B was particularly 

hampered by postsocialist, traditional modes 

of patronage and kickbacks. Now more than 70 

percent of China’s 2014 USD 1.6 trillion in total 

e-commerce transactions is B2B. As for B2C, this 

channel comprised 9 percent of China’s total 

retail for 2014.

High-end shopping malls are becoming more 

popular in urban centers; however, China’s 

population is spread over a huge geographic 

area. As a result, China’s booming consumer 

class often needs to rely on e-commerce.

Major Buying Holidays

China’s Singles’ Day, November 11, is easily the 

world’s largest e-commerce sales day, topping 

over USD 9 billion in 2014. However, because 

of the deep discounts offered by China’s major 
110 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

sellers, Singles’ Day is actually more about 

brand-boosting than profit.

Contrary to what one might expect, the Lunar 

New Year does not drive huge e-commerce 

numbers. Because of the massive number of 

people taking time off to visit family, delivery 

is slowed.

Challenges

Leaving some English in one’s packaging helps 

convey a sense of international quality and 

adds to a brand’s foreign cachet, but 99 percent 

of marketing copy must be in Mandarin.

Sales copy must be both accurately translated 

and effectively written, but finding a qualified, 

capable, and bonded translation company can 

be difficult.

Intellectual Property Rights

Copycatting is a byword for doing business 

in China. However, the huge publicity around 

fraudulent goods has led to China’s adoption of 

a streamlined process for registering copyrights 

and trademarks. The process, including legal 

fees, can cost a few thousand dollars or less.

Luxury brands have suffered the most from 

intellectual property theft, and many iconic 

U.S. companies find copyright claim-jumpers 

awaiting them in China. For a relatively 

unknown U.S. brand, there is less threat 

of piracy.

Issues mainly arise when a company has a 

vested interest in developing and making 

products within China—defense components, 

cloud software, and aerodynamics equipment. 

However, legal remedies are evolving rapidly, 

particularly in the e-commerce space. The 

government is trying to promote transparent 

e-commerce as a pillar of its consumer 

economy.

Regulation

The government has taken a very public stance 

in promoting e-commerce. There have also 

been several highly publicized crackdowns on 

online sellers of fraudulent goods. Streamlined 

regulations have been created to govern 

consumer transactions.

Issues mainly arise when U.S. companies fail to 

acquire the proper license. However, a Chinese 

e-commerce platform can advertise on behalf 

of a U.S. company that does not have a license, 

provided that the company’s products are 

clearly advertised as coming from overseas.

Certification of products for major product 

categories, such as cosmetics and health 

supplements, is quite strict and timeconsuming. Cross-border commerce enables 

Western goods to clear customs rather than be 

licensed for sale in China, an advantage that 

has helped fuel the rapid rise of cross-border 

e-commerce in China.
Part III: Country Briefs 111

asia

India

Statistics

Capital: New Delhi

Population: 1.22 billion

GDP (USD): 5.07 trillion

Currency: Indian rupee (INR)

Languages: Hindi, English

Contact

Sandeep Maini

Senior Commercial Specialist

sandeep.maini@trade.gov

+91 11 2347 2222

Summary

Three business-to-business (B2B) 

transactions are common in India:

• Buyer-controlled: A consortium of 

buyers aggregates its purchases. 

This enables buyers to manage the 

procurement process efficiently with 

lower administration costs and uniform 

pricing.

• Seller-controlled: Sellers catering to 

fragmented markets such as chemicals, 

electronics, and auto components come 

together to establish a common trading 

platform for the buyers.

• Third-party exchanges: Exchanges are 

controlled neither by actual buyers nor 

by actual sellers, but by a third party. 

An exchange provides a platform for 

business transactions between the 

buyers and sellers and thrives purely on 

the fees and commissions generated by 

matching buyers with sellers. 

Several variants of the business-to-consumer 

(B2C) model operate in India:

• E-tailing: An online transaction occurs 

between the buyer and the holder of 

inventory or a reseller for retail goods. 

Online sale of retail goods, such as 

apparel, home goods and furnishings, 

baby products, health care products, and 

automobiles, comes under the purview 

of e-tailing. Myntra and Jabong are two 

websites that Indians use for e-tailing. 

• Financial services: Online transactions 

involving insurance services and fundbased transactions such as utility bills 

fall under this category. PolicyBazaar 

and Insurance Bazaar are two websites 

used for financial services. 

• Online classifieds: Online job listings, 

matrimony sites, and sites selling cars 

or real estate are examples of online 

classifieds. Naukri and Monster are two 

examples.

• Other online services: Entertainment 

ticketing, prepared food delivery, and 

grocery delivery fall under this category. 

Examples include Indian Railway 

Catering and Tourism Corporation 

(IRCTC), BookMyShow, and foodpanda.

The B2C e-commerce ecosystem broadly 

includes

• E-commerce players that provide the 

platform and set up support processes 

to facilitate online transactions

• Regulatory bodies that define 

regulations affecting incumbents, new 

players, and other constituents

• Service providers and other supporting 

elements that facilitate the flow of cash, 

information, and goods and services

E-commerce is growing heavily in India. 

Marketplaces such as Flipkart, Snapdeal, 

and Amazon are currently the biggest. 

The Indian government forbids foreign 
112 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

direct investment (FDI) in B2C, so non-Indian 

companies can operate only as marketplaces 

for locally sourced goods.

Jabong and Myntra have exclusive agreements 

to sell international brands in India. For 

example, Jabong sells Dorothy Perkins and 

River Island. These brands do not have a direct 

presence, but companies such as Jabong and 

Myntra offer them a way to sell in India. 

Currently, FDI in India’s multibrand retail market 

is limited to 51 percent. Amazon would benefit 

the most if there were any changes in the rule, 

because it could bring its U.S. sellers into the 

marketplace. Currently, 100 percent FDI is 

allowed in B2B e-commerce, a policy that helps 

companies like Walmart operate a cash-andcarry business. Recently, the government began 

to review FDI in B2C e-commerce, amid a sharp 

divide between Indian and foreign players. 

Although companies like Amazon argue that 

opening up this sector to FDI will be good for 

consumers, Indian companies say that Amazon 

will squeeze and manipulate small businesses 

and flood the market with Chinese products.

So although the channels for smaller U.S. 

exporters may currently be limited and the 

available ones take some work to develop, the 

market may open further in the future.

Market Entry

Popular E-Commerce Sites

• Flipkart

• Snapdeal

• Amazon

• eBay

• Myntra

• MakeMyTrip

• Yatra

• Cleartrip

• Ibibo

• BookMyShow

Digital Advertising

Ads are placed on mobile platforms, on 

websites, in newsletters, and in videos. The 

shares of digital media are

• Search: 30 percent

• Display: 23 percent

• Social media: 18 percent

• Mobile: 14 percent

• Video: 12 percent

• E-mail: 3 percent

Current Market Trends

E-commerce has increased significantly, from 

USD 4.2 billion in 2010 to USD 14 billion in 

2014. It has grown 53 percent since December 

2013. Growth has been driven mainly by 

the online travel industry—booking rail, air, 

and bus tickets; hotel accommodations; tour 

packages; and travel insurance—which is 

expected to contribute 61 percent to India’s 

total 2015 e-commerce. E-tailing, which 

includes purchases of various consumer 

products and services, such as books, apparel, 

footwear, jewelry, home and kitchen appliances, 

consumer durables, electronics (mobile phones, 

computers, and laptops), and home furnishings, 

now constitutes nearly 29 percent of the overall 

share.

Online Payment

The most popular electronic payment methods 

are netbanking (44 percent); debit cards (32 

percent); credit cards (21 percent); and mobile 

wallets, prepayments, and Immediate Payment 

Service (3 percent). However, 60 to 70 percent 

of payments are made using cash on delivery.
Part III: Country Briefs 113

Mobile E-Commerce

More than 13 percent of all e-commerce 

transactions currently are made on 

mobile devices.

The number of mobile subscribers in India 

jumped from 261 million in 2007–08 to 

940 million in 2014. Internet penetration is 

soaring in rural and urban India. Rural Internet 

use is growing by 58 percent per year, with 

smartphones and 3G subscriptions driving 

growth. In 2016, India is projected to have 

approximately 382 million smartphone users, 

up from 29 million in 2012. Similarly, the 

number of 3G subscribers could expand at a 

compound annual growth rate of 84 percent—

from 23 million to 266 million—during the 

same period.

Thanks to rising Internet penetration, the total 

number of India’s Internet users now exceeds 

the number of people who have completed 

primary education. This shift emphasizes the 

increasing relevance of India’s digital economy. 

Social Media

Facebook and Twitter are the most popular 

social media sites.

Current Demand

Currently, e-travel makes up nearly two-thirds 

of the total e-commerce market. E-tailing, 

which includes online retail and online 

marketplaces, has become the fastest-growing 

segment in the larger market, having grown 

around 56 percent between 2009 and 2014. 

As of 2015, the e-tail market is estimated to be 

USD 6 billion. Books, apparel and accessories, 

and electronics are the best-selling products 

through e-tailing, constituting around 80 

percent of product distribution. The increasing 

use of smartphones and tablets via broadband 

and 3G has led to a strong consumer base, 

which is likely to increase further. Verticalspecific e-commerce players in India are

• Travel: MakeMyTrip, Goibibo, Yatra, IRCTC, 

and Cleartrip

• Real estate: MagicBricks, CommonFloor, 

99acres, and Housing

• Fashion: Jabong, Myntra, Yepme, Zovi, and 

FashionandYou

• Furniture: FabFurnish, Pepperfry, Urban 

Ladder, and Zansaar

• Health: HealthKart, Lenskart, and Portea 

Medical

• Education: EduKart, Meritnation, Edureka, 

Toppr, and Embibe

Recently, more consumers are shopping online 

for groceries, hygiene products, and health care 

products.

Major Buying Holidays

• Diwali

• Dussehra

• Rakhi

• The last week of 

December

Challenges

Intellectual Property Rights

The Internet is boundless with minimum 

regulation, and therefore protecting intellectual 

property rights (IPR) is challenging and a 

growing concern. Although some laws in India 

protect IPR in the physical world, it is unclear 

whether they apply to e-commerce. There are 

currently several significant IPR issues.

Copyright

There is limited copyright protection of the 

content and design of websites, the software 

underlying the platform, and the content 

transmitted over such platforms.
114 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Trademarks

In addition to protecting its own trademarks, 

an e-commerce business that sells or markets 

other brands on its portal would also have to 

ensure the protection of those trademarks.

Patents

Where permitted by law, patents protect the 

functionality of software and the methods 

underlying e-commerce. In India, there is no 

patent protection for a computer program 

per se, so alternative methods are needed to 

protect software or trademarks owned by a 

third party, and an e-commerce business has to 

obtain the requisite approvals.

Hyperlinking, Framing, and Meta Tagging.

E-commerce companies need to market their 

business and their ability to constantly adapt. 

E-commerce companies sometimes have to 

deal with issues related to hyperlinking, deep 

linking, framing, and meta tagging. Companies 

need to understand the legal implications 

of each.

Third-Party Platform and Content Development

Often, questions about intellectual property 

ownership relate to the platform on which 

the business is carried out. Often e-commerce 

companies outsource web or platform 

development and content creation to thirdparty contractors. You can use several strategies 

to protect your ownership:

• Use a written agreement that clearly spells 

out the ownership of the IPR, including 

clauses on terms, territory, and the nature 

of the right.

• If third-party intellectual property is used 

by the contractors, put in place a written 

agreement on the chain of title with 

respect to third-party IPR and permissions. 

Be mindful of the terms and conditions 

under which software has been licensed. 

• Recognize that content available on public 

websites may require permission from its 

owner or author before you can reuse it. 

Content can include, for example, product 

details, factual information, and third-party 

logos. In all of those instances, the IPR, such 

as copyright, may be infringed.

Data Collection

Data privacy and protection laws are in place. 

Sensitive personal data or information is 

defined in the Information Technology Act.

Prohibited Products

These products, as well as products related to 

them, are prohibited:

• Liquor

• Narcotics

• Firearms

• Tobacco
Part III: Country Briefs 115

asia

Japan

Statistics

Capital: Tokyo

Population: 127,064,340 (2014)

GDP (USD): 4.901 trillion (2014)

Currency: Yen (JPY/¥)

Language: Japanese

Contact

Erick Kish

Commercial Officer

erick.kish@trade.gov

+81-3-3244-5091

Summary

Japan’s e-commerce market is one of the 

largest and fastest growing in the world. 

Japan’s Ministry of Economy, Trade, and 

Industry estimated the business-toconsumer e-commerce market in Japan in 

2013 at USD 91.8 billion, with 17.4 percent 

annual growth. The business-to-business 

e-commerce market in Japan in 2013 was 

estimated at USD 1.5 trillion, with 4.4 

percent annual growth.

U.S. companies selling via e-commerce have 

multiple options to consider for e-commerce 

platforms, payment methods, shipping 

logistics, and customer service. Several large 

e-commerce companies offer services and 

solutions to help U.S.-based merchants sell 

their products in Japan.

When considering the Japanese e-commerce 

market, exporters should keep in mind that 

communicating in Japanese and providing 

excellent customer service are incredibly 

important to Japanese consumers.

Market Entry

According to Bloomberg and Euromonitor 

International, the major e-commerce 

companies in Japan and their estimated 

market shares include

• rakuten.co.jp: 29 percent

• amazon.co.jp: 15 percent

• apple.com/jp: 4.5 percent

• shopping.yahoo.co.jp: 3.2 percent

Popular E-Commerce Sites

Numerous other e-commerce companies 

operate in Japan, and many niche sites focus 

on narrow ranges of products.

Department Stores

• Sogo & Seibu: edepart.omni7.jp

• Isetan: isetan.mistore.jp

• Mitsukoshi: mitsukoshi.mistore.jp

• Daimaru: daimaru-matsuzakaya.jp

• Takashimaya: 

takashimaya.co.jp/shopping

• Aeon: aeonmall.co.jp
116 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Apparel

• Zozotown, zozo.jp

• Mash Style Lab, 

ms-lab.com/fashion.html

• Adastria, adastria.co.jp

• FIVE FOXes, online.fivefoxes.co.jp

• F.O. International, fo-kids.co.jp

• Onward Kashiyama, www.onward.co.jp

• Origami, origami.co

Groceries

• Ito-Yokado, www.itoyokado.co.jp

• Maruetsu, www.maruetsu.co.jp

• Daiei, netsuper.daiei.co.jp

• Apita, apita.co.jp

Books and Media

• Book-Off, bookoff.co.jp

• Kinokuniya, www.kinokuniya.co.jp

• Sanyodo, webshop.sanyodo.co.jp

• Tsutaya, tsutaya.tsite.jp

Digital Advertising

Digital ads are often placed on websites and 

mobile platforms, and many options exist.

In 2014, Internet advertising exceeded 

USD 8 billion for the first time ever and grew 

at a 12.1 percent rate, driven by growth in 

smartphone and video ads and ads using new 

advertising technologies.

In comparison, 2013 Internet advertising total 

expenditures were more than USD 7.5 billion, 

approximately 15.7 percent of all advertising 

expenditures, growing at a rate of 8.1 percent 

per year (Dentsu 2014).

Fulfillment

The major fulfillment centers in Japan include 

Amazon Japan (11 fulfillment centers), 

Rakuten (1 fulfillment center and plans for 

2 new distributors), and Yahoo Shopping 

(7 distributors).

Current Market Trends

Online Payment

Credit cards are the most popular form of 

payment for e-commerce transactions.

Convenience store cash payments are also 

popular in Japan. Amazon Japan and other 

e-commerce companies allow customers to 

order online, choose a convenience store for 

delivery, and pay in cash before picking up their 

order. This process caters to the large number 

of Japanese consumers who prefer to pay 

in cash.

Mobile E-Commerce

The most significant online purchasing 

trend in Japan is the rapid increase in mobile 

e-commerce transactions (m-commerce). In the 

first quarter of 2015, m-commerce transactions 

topped 50 percent for the first time, according 

to the 2015 Criteo State of Mobile Commerce.

The mobile device share of transactions is 

higher in Japan than in any other country. In 

2015, more than 50 percent of e-commerce 

transactions were via mobile device. About 90 

percent of mobile transactions are made using 

smartphones, and the other 10 percent on 

tablets. By the end of 2015, m-commerce was 

expected to represent at least 60 percent of 

total e-commerce transactions.

Japanese consumers are very engaged in the 

mobile shopping experience. They view three 
Part III: Country Briefs 117

times more products on mobile applications 

than do consumers in the United States, 

and the overall sales conversion rate is 9.3 

percent—almost four times higher than in the 

United States—according to Criteo, a mobile 

advertising company. 

According to comScore research (2013),

• 86 percent of all Japanese Internet users 

visit online retail sites, among the highest 

percentage in the world, ahead of the world 

average by 9 percent.

• 54 percent of Japanese mobile users 

are over 45 years old, the highest 

percentage for this age group among 

the developed markets.

Social Media

According to 2015 data from GaiaX Social 

Media Lab, LINE, Facebook, and Twitter are the 

most common social media sites. Instagram, 

Ameba (a blogging site), Mixi, and Google+ also 

are commonly used. 

• LINE (52 million users, 30 million daily)

• Facebook (24 million monthly users)

• Twitter (19.8 million monthly users)

• Google+ (15 million users )

Promotions and Discounts

Most e-commerce companies in Japan offer 

loyalty or frequent-shopper programs.

Most stores offer loyalty points that can be 

redeemed to buy goods or get discounts. Yahoo 

Shopping and Rakuten have had loyalty point 

programs for many years, and Amazon Japan 

started its program in May 2015. 

Yahoo Shopping collaborates with Tsutaya, a 

large company that operates rental stores and 

convenience chains, participating in the Tsutaya 

t-point system that partners with many stores, 

convenience stores, hotels, and online travel 

sites. Since 2013, the partnership has enabled 

Yahoo Shopping customers to spend t-points 

earned through purchases at participating local 

convenience stores. 

Rakuten has a Rakuten Super Points program 

that allows 1 percent of the purchase price to 

accrue as points. On Fridays and Saturdays, the 

Super Points rate is doubled. Rakuten partners 

with some of Japan’s top convenience stores, 

gasoline stands, and even funeral homes. 

Rakuten also has a credit card program that 

provides a 2 percent return on purchases made 

at Rakuten. Signing up for the credit card is 

easy—even for foreigners, who usually have 

difficulties obtaining a Japanese credit card.

Current Demand

The percentage of Japanese consumers who 

report some cross-border online purchases 

is relatively low: 59 percent, compared with 

a global average of 82 percent, according 

to market research by Forrester Research 

(forrester.com). Communicating with 

consumers in Japanese, providing high-quality 

customer service, and understanding Japanese 

consumer behavior are important factors 

to consider. U.S. companies often find that 

partnering with Japanese companies or selling 

via Japanese e-commerce platforms helps them 

reach more Japanese consumers.

Market analyses estimate that cross-border 

purchases make up 10 to 20 percent of 

transactions.

Services

Tourism e-commerce is well established in 

Japan. The number of travelers booking online 

continues to rise.
118 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Popular tourism websites include

• expedia.co.jp

• travel.rakuten.com

• jtbgmt.com

• jalan.net

• travel.yahoo.co.jp

• travel.mapple.net

Major Buying Holidays

Giving gifts and celebrating the start of the four 

seasons are important parts of Japanese culture 

that fuel shopping and sales. 

The most significant season is winter, from the 

end of November until the New Year, when 

many national holidays and important events 

occur. Baseball, the national sport of Japan, 

is a key part of the winter sales season, with 

the Japan Series held in November. In 2013, 

Rakuten offered major discounts and extra 

loyalty points when the company’s Tohoku 

Rakuten Golden Eagles baseball team won 

the championship.

One of Japan’s two traditional gift-giving 

seasons, Oseibo, occurs between Christmas 

and New Year’s Day, making it a busy time of 

year for gift purchases. At the beginning of the 

year, many shops offer fukubukuro, or “lucky 

bags,” filled with goods at a steep discount. 

Special online fukubukuro are increasingly 

commonplace. Online fukubukuro are appealing 

to consumers because they can relax in their 

homes instead of fighting the crowds to get 

one of the lucky bags.

Many stores also celebrate Hatsu-uri, literally 

“first sale,” at the beginning of the year. Because 

many people can take off only a couple of days 

during this time, customers often purchase gifts 

online and have them delivered directly, rather 

than giving them in person during a trip home.

The summer season, from June until September, 

is another important time of year for giving 

gifts and shopping, fueled by annual summer 

bonuses and summer vacation. Ochugen, 

Japan’s other traditional gift-giving season, 

takes place in July, and Obon (honoring of one’s 

ancestors) is in mid-August. In Japan, families 

often live apart, so during this vacation family 

members return home, bearing gifts to 

show gratitude.

Spring is considered a season of beginnings. 

The new school year starts, and companies 

announce department transfers. Golden Week, 

a week-long break from the end of April until 

the beginning of May, is a peak shopping time. 

Challenges

U.S. companies selling online through their 

U.S. or global websites should carefully 

research Japan’s shipping regulations. Japan 

strictly prohibits entry of narcotics and related 

paraphernalia, firearms, firearm parts and 

ammunition, explosives and gunpowder, 

precursor materials for chemical weapons, 

microbes that are likely to be used for criminal 

acts, counterfeit goods or imitation coins or 

currency, obscene materials, or goods that 

violate intellectual property rights (IPR). 

Other restricted items include, but are not 

limited to, certain agricultural and meat 

products; endangered species; and ivory, fur, 

and other animal parts banned from trade by 

international treaty. For more information on 

prohibited goods, please visit bit.ly/1EVNBod.

In addition, Japan imposes restrictions on 

the sale or use of certain products, including 

medical products, pharmaceuticals, agricultural 

products, and chemicals. Japan Customs 
Part III: Country Briefs 119

reviews and evaluates these products for 

import suitability before shipment to Japan. The 

use of certain chemicals and other additives in 

foods and cosmetics is severely regulated and 

follows a “positive list” approach. 

Regarding personal use, Japan restricts entry of

• More than one month’s supply of medicines 

that are toxicants, dangerous products, or 

prescription drugs

• More than two months’ supply of medicines 

that are non-prescription drugs or 

quasi-drugs

• More than 24 units (normal size) of similar 

cosmetic products

Body (hand) soaps, shampoos, toothpastes, 

hair dyes, and other toiletries all fall under the 

categories of either quasi-drugs or cosmetics. 

Veterinary drugs are subject to import 

restrictions in accordance with Japan’s 

Pharmaceutical Affairs Law. 

For more information on prohibited and 

restricted imports, please visit bit.ly/1IYNlA1.

Intellectual Property Rights

Japan generally has strong protections for IPR. 

As in the United States and other countries, 

companies should protect their intellectual 

property and trademarks.

Regulation

The Ministry of Economy, Trade, and Industry 

(METI) is the main government ministry 

concerned with e-commerce. The Interpretative 

Guidelines on Electronic Commerce and 

Information Property Trading were developed in 

March 2002. They facilitate trade by clarifying 

how the Civil Code and other relevant laws 

apply to various legal issues surrounding 

e-commerce, intellectual property trading, 

and related matters. Revisions were recently 

adopted and are summarized in the METI report 

titled Revision of the Interpretative Guidelines on 

Electronic Commerce and Information Property 

Trading, available at bit.ly/1OdrwDP.

Japan has several laws and regulations 

that govern cross-border data flow. Japan 

is currently in the process of amending its 

regulatory framework regarding personal 

information and data.

Language

Most Japanese e-commerce platforms require 

the use of Japanese by merchants and 

suppliers. Japanese is also recommended when 

targeting cross-border shoppers to e-commerce 

sites in the United States.

Resources

Government

• Ministry of Economy, Trade, and Industry, 

www.meti.go.jp/english

• “Towards eQuality: Global E-Commerce 

Presents Digital Opportunity to Close the 

Divide Between Developed and Developing 

Countries—MITI’s Proposal for WTO 

E-Commerce Initiative” (2nd Draft), 

bit.ly/1OA3ZuV

• Ministry of Internal Affairs and 

Communications, bit.ly/1hYtlYK

• Japan Customs, 

www.customs.go.jp/english/index.htm

Trade and Industry Associations

• Japan Association of New Economy, 

bit.ly/1EOY84S

• The Japan Chamber of Commerce and 

Industry, www.jcci.or.jp/english

• JETRO, www.jetro.go.jp/usa
120 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Data

• comScore. 2013. “2013 Japan Digital Future 

in Focus.” bit.ly/1Mcd27U

• Criteo. 2015. “State of Mobile Commerce: 

Growing like a Weed.” Q1 2015, 

bit.ly/1Kau6Jd

• Dentsu. 2014. “Advertising Expenditures in 

Japan, 2013.” bit.ly/1iegfXX

• GaiaX Social Media Lab. 2015. Web report 

posted Jan. 15, bit.ly/1VO28GV

• btrax. “Selling in Japan: Six Characteristics 

of Japanese E-Commerce” (infographic). 

bit.ly/1XMymV5

Personal Information Protection Act

• Jones Day. 2014. “Framework for 

Amendment to Japan’s Personal 

Information Protection Act.” August, 

bit.ly/1KEP3y6

• Japan, Act on the Protection of Personal 

Information, Act No. 57 of 2003, 

bit.ly/1LXTVvj

• Strategic Headquarters for the Promotion 

of an Advanced Information and 

Telecommunications Network Society. 

2013. “Directions on Institutional Revision 

for Protection and Utilization of Personal 

Data.” Dec. 20, bit.ly/1gag5ir

• Strategic Headquarters for the Promotion 

of an Advanced Information and 

Telecommunications Network Society. 

2014. “Policy Outline of the Institutional 

Revision for Utilization of Personal Data.” 

June 24, bit.ly/1JUACQM

IPR

• World Intellectual Property Organization 

(WIPO), “Intellectual Property Issues Related 

to Electronic Commerce.” bit.ly/1XMz7O1

• WIPO, “Understanding How Intellectual 

Property (IP) Relates to E-Commerce,” 

bit.ly/1NiDzir

• Intellectual Property Association of Japan, 

ipaj.org/index_e.html

• Japan Patent Office, www.jpo.go.jp

• WIPO Index of Japan IP-Related Laws and 

Regulations, bit.ly/1ieh6bj

Loyalty Points

• Amazon and Yahoo Loyalty Point Programs, 

bit.ly/1FymLO9

• Yahoo Shopping T-point Partnerships, 

bit.ly/1JUBrZQ
Part III: Country Briefs 121

asia

Korea, Republic of

Statistics

Capital: Seoul

Population: 49.04 million (2014)

GDP (USD): 1.45 trillion (2014)

Currency: S. Korean won (KRW)

Language: Korean

Contact

Jinjoo Lee

Commercial Specialist

jinjoo.lee@trade.gov

+82-2-397-4535

Summary

Sales from foreign online sellers to Korean 

buyers have grown rapidly for several years 

and exceeded USD 2 billion in 2015. U.S. 

retailers and manufacturers should focus 

on promotions designed to attract Korean 

consumers. Korea is one of the most wired 

countries in the world, and consumers 

actively shop across borders, primarily from 

U.S. online retailers. Cost-conscious Koreans 

and U.S. companies alike benefit from the 

U.S.-Korea Trade Agreement (KORUS FTA). 

Several factors make Korea an excellent 

market to target:

• Koreans’ cross-border e-commerce 

purchases are expected to reach USD 

8 billion by 2018. Online purchases 

reached USD 1.5 billion in 2014, up from 

USD 274 million in 2010. 

• Domestic retail prices are often higher 

in Korea than in other countries. The 

Korean government has encouraged 

“parallel imports” and other direct 

purchases from overseas online 

shopping malls as a way to help Korean 

consumers find less-expensive products.

• Multibrand online retailers such as 

Amazon and eBay are the e-commerce 

sites most visited by Koreans.

• Some Korean consumers pay for a U.S.-

based reshipment service to use as a 

U.S. mailing address. This allows them 

to shop at U.S.-based e-commerce sites 

and purchase products not targeted 

for international shipping. U.S.-based 

reshipment centers often have multiple 

warehouses in different states, each 

offering different benefits. For example, 

Delaware-based warehouses offer lower 

taxes, and California-based warehouses 

allow for faster ship time to Korea.

• Seventy-three percent of all of Koreans’ 

overseas online purchases are from the 

United States. Of 15.5 million Korean 

customs clearance records in 2014, 

11.4 million parcels were from U.S. 

online retailers. 

• The most popular products purchased 

by Koreans from foreign websites 

are apparel (19 percent), dietary 

supplements (14 percent), footwear (13 

percent), food (11 percent), cosmetics 

(11 percent), and handbags (8 percent). 

Market Entry

Korea’s historically high consumer prices 

were often caused by import and sales 

channels that were dominated by Korean 

conglomerates, which maintained exclusive 

distributorship agreements. Consumer 

complaints about overpriced goods led the 

government to encourage parallel imports 

and direct purchases from international 
122 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

e-commerce sites. As part of the effort, and 

following the guidelines set forth in the KORUS 

FTA, in 2014 the Korean government simplified 

customs procedures for almost all consumer 

goods, excluding restricted items such as 

medicines. Items listed as restricted must go 

through import customs clearance, with a dutyfree range up to KRW 150,000 (around USD 

130).

U.S. goods valued at less than USD 200 

(including taxes, shipping, and handling), or 

goods from other countries valued at less than 

USD 100, are eligible for the simplified customs 

procedure—list clearance, a quick, one-day 

customs clearance procedure—if the logistics 

or courier company provides the full packing 

list to Korea Customs and the item qualifies as 

a personal use item. If it does not qualify as a 

personal use item, the product is considered to 

be for commercial use and is subject to taxation 

and a normal import customs clearance 

procedure.

Popular Online Retailers

According to a 2014 study by the Korea 

Consumer Agency (KCA), Amazon and eBay are 

Korea’s most frequently used online shopping 

sites. Single-brand e-commerce sites such as 

Polo Ralph Lauren or Gap are not as popular 

as multibrand online retailers. Amazon and 

eBay are typical online open markets where 

registered individual sellers offer various 

products at competitive prices. Because 

Koreans are very price sensitive, they often 

shop via multiple major international online 

marketplaces.

KORUS FTA

KORUS FTA went into effect on March 15, 2012. 

As stated in Chapter 7, Article 7.7 (g), express 

shipments from the United States are duty free 

only when the product is sold for less than USD 

200, including taxes, shipping, and handling.

Chapter 6, Article 6.16 (a), states that a 

purchaser of online goods sold for under USD 

1,000, per shipment and imported from the 

United States can enjoy KORUS FTA benefits 

and is exempt from KORUS FTA certification or 

documentation. The purchaser can continue 

to purchase items and import them as long as 

the purchase does not exceed USD 1,000 each 

time the items are shipped to the customer and 

as long as the consumer is not trying to evade 

compliance with KORUS FTA. However, Chapter 

6 also gives Korea Customs the right to verify 

that purchases are indeed being purchased 

from overseas in good faith and not as a tactic 

to evade KORUS FTA documentation. Article 

6.16 (b) generally relates to products that are 

already enjoying a 0 percent basic tariff rate.

Current Market Trends

Koreans have consistently increased the 

amount they spend on international 

e-commerce. According to Korea Customs 

Service (KCS), online purchases were USD 274 

million in 2010 but reached USD 1.5 billion 

in 2014 for a compound annual growth rate 

(CAGR) of 54.1 percent. Korean media sources 

indicate that foreign direct purchases will grow 

to USD 8 billion by 2018.

According to Statistics Korea, the domestic 

retail industry has also grown but not at the 

same pace as purchase demand. In 2014, 

domestic sales totaled USD 264 billion. The 

CAGR has been only 3.8 percent.

Jikgu, a Korean term for direct purchasing from 

foreign retailers, used to be mainly for products 

not available in the Korean market. Today, 

however, jikgu is common, and every year more 

people are shopping across borders. According 

to the Korean magazine MK Economy, prior 
Part III: Country Briefs 123

to 2012 only 10.3 percent of Koreans made 

overseas purchases and used foreign websites. 

That number grew to 36.2 percent in 2013 and 

then to 53.2 percent in 2014.

According to a 2014 report by the Korea 

Chamber of Commerce and Industry (KCCI), 57.4 

percent of survey respondents had purchased 

goods through foreign online retailers at least 

once in the previous year. Ninety-six percent of 

the respondents from another KCCI survey said 

they would continue to purchase from overseas 

online retailers. In 2015, MK Economy noted that 

57.1 percent of consumers who had purchased 

goods from overseas websites said they plan to 

increase the amount of their purchases because 

they were “satisfied with the purchasing 

experience.” 

Good prices and good deals were listed as 

the main reasons for cross-border shopping. 

A 2013 report conducted by the lobbying 

group Consumers Korea lists Korea as one of 

the more expensive places in the world for 30 

out of 60 researched products. Korea is the 

third-most-expensive place to buy Heineken 

beer and the fifth-most-expensive place to buy 

Chanel perfume. Surprisingly, some Koreanmade products such as TVs and smartphones 

are more expensive in Korea than anywhere 

else. South Korean manufacturers argue 

that the domestic prices on those goods are 

often higher because they include delivery, 

installation, and long-term warranties, which 

increase the purchase price. However, many 

Korean consumers have started buying Koreanbrand goods from foreign websites because the 

cost is lower, even after international shipping 

fees and import duties.

Buying Agents

Between 2001 and 2010, Korean consumers 

usually purchased imported products from 

Korean e-commerce sites. Registered sellers 

still act as buying agents for Korean sites; 

however, registered sellers are becoming less 

popular as more people choose to buy directly 

from overseas websites. Registered sellers 

either purchase large quantities of goods 

from overseas sources before they get orders 

from customers, or they purchase goods after 

getting orders from customers and then sell the 

products at prices that include international 

shipping, tariffs, and a commission fee. Using 

Korea’s Most Popular International Online Retailers

Rank Company Origin Major Items

1 Amazon U.S. All items

2 eBay U.S. All items

3 iHerb U.S. Dietary supplements, functional food, groceries, etc.

4 Shopbop U.S. Women’s fashion

5 6pm U.S. Apparel, shoes, bags, accessories, etc.

6 Amazon Japan Japan All items

7 drugstore.com U.S. Beauty care, diet, apparel, infant care products, etc. 

8 Walmart U.S. Apparel, sundries, home appliances, groceries, etc. 

9 Rakuten Japan All items

10 Taobao China All items

Source: Korea Consumer Agency; Note: as of October 2016, drugstore.com is no longer in operation and now forwards to walgreens.com
124 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

a buying agent is still common for consumers 

who lack foreign language skills and who 

lack a U.S. mailing address, because some 

U.S.-based sellers do not offer international 

shipping. According to a 2014 survey by the 

KCA, CaniShow and Wizwid scored the highest 

in consumer satisfaction among e-commerce 

providers that offer buying services.

The KCA reported that the five Korean buyingagent websites with the highest satisfaction 

rates are

• canishow.co.kr

• wizwid.com

• njoyny.com

• gmarket.co.kr

• auction.co.kr

Reshipment

Since 2010, warehouse companies have started 

opening reshipment centers in the United 

States to provide mailing addresses to Korean 

consumers, thereby enabling more Korean 

consumers to buy goods directly from overseas 

websites—and save more money. Reshipment 

centers are often located in California, 

Delaware, New Jersey, and Oregon, allowing 

Korean consumers to choose either to pay 

less sales tax or to receive their products more 

quickly. (For example, shipment from Delaware 

takes longer, but no sales tax is charged.)

According to KCA, Korea’s five most popular 

reshipment companies are

• malltail.com

• box.wemakeprice.com

• nygirlz.co.kr

• iporter.co.kr

• ohmyzip.com

Reasons Koreans Shop Across Borders

According to 2015 data from MK Economy, the 

four main reasons are

• Lower prices: 71.4 percent

• Brand not available in Korea: 20.6 percent

• More variety available: 5.0 percent

• Better-quality products: 3.0 percent

Current Demand

Of 15.5 million customs clearance records in 

2014, 11.4 million parcels were from U.S. online 

retailers. The United States is the source of 

nearly 75 percent of Koreans’ total cross-border 

e-commerce purchase, primarily because of the 

benefits permitted by KORUS FTA.

Import Clearance by Source (2014)

Source Parcels (#) Share (%)

United States 11,412,000 73.5

China 1,697,000 10.9

Germany 839,000 5.4

Hong Kong 568,000 3.7

Japan 365,000 2.4

United Kingdom 219,000 1.4

France 124,000 0.8

New Zealand 109,000 0.7

Others 197,000 1.3

Total 15,530,000

Source: Korea Customs Service

According to the report The Shopping Habits of 

Korean Consumers, Koreans spend, on average, 

USD 827 annually on foreign websites. In 

January 2015, the magazine MK Economy noted 

that more than 50 percent of Koreans make 

purchases from overseas websites multiple 

times a year:

• 1–2 times: 48.2 percent

• 3–12 times: 35.7 percent

• 13+ times: 16.1 percent
Part III: Country Briefs 125

KCS reports that in 2014, 96.7 percent of 

cleared products were valued at less than USD 

200. Although items valued over USD 1,000 

occupied only 0.3 percent of clearances, this 

category demonstrated a 757 percent growth 

rate since 2009. KCS stated that Koreans started 

to purchase expensive products such as TVs, 

smartphones, bikes, and watches from overseas 

websites because of the big gap between the 

price for these products within Korea and the 

price for the same or similar products from 

other countries, even when tariffs are included.

Korean Customs Clearances (2014)

Value (USD) Products 

(approx. #)

Share 

(approx. %)

< 50 503,855,000 25.0

50–99.99 5,764,000 37.0

100–149.99 4,155,000 27.0

150–199.99 1,274,000 8.0

200–999.99 400,000 3.0

1,000+ 52,000 0.3

Total (approx.) 515,500,000

Source: Korea Customs Service

A 2014 study commissioned by four Korean 

credit card companies (Shinhan, Samsung, 

Hyundai, and KB) and reported in 2015 by 

Ho-Jeong found that Korean men spend more 

at overseas websites than Korean women. 

More than 54 percent of all purchases using 

those four companies’ credit cards were made 

by Korean men who purchased electronics 

and information technology products. Korean 

women purchased apparel, handbags, and 

shoes. The study also stated that people in 

their 30s were the most active purchasers, 

accounting for 47.6 percent of all online 

purchases, with consumers in their 20s 

becoming more active. 

Challenges

When shipping items to Korea, always be 

careful to follow the correct procedures 

and regulations. KORUS FTA has removed 

or simplified many former barriers, but 

incorrect paperwork or declarations can create 

unexpected costs.

Resources

Government

• KORUS FTA Rules of Origin and Procedures, 

1.usa.gov/1MbSvAp, 1.usa.gov/1Ode6Yz, 

and 1.usa.gov/1g9Yxmq

• Flow chart of the processing of 

international parcels, bit.ly/1IYGMgY

• Parcel clearance, bit.ly/1LkvsO6

• Parcel clearance—scope of allowance, 

bit.ly/1LkvAgr

• Statistics Korea (KOSTAT), 

kostat.go.kr/portal/english

• Korea Customs Service (KCS), 

bit.ly/1OzGthq

• Ministry of Strategy and Finance (MOSF), 

english.mosf.go.kr

• Korea Consumer Agency (KCA), 

english.kca.go.kr

Media

• The Economist. 2015. “Won Over: Locals, Fed 

Up of Paying over the Odds, are Shopping 

Abroad.” January 17. econ.st/1L28jnG

• Lee Ho-Jeong. 2015. “Men Spend More 

Than Women on Foreign Websites.” Korea 

Joongang Daily, January 27. bit.ly/1ixr47v

• M. H. Lee. 2014. “Per-person Annual 

Spending on Overseas Direct Purchase 

Reaches More Than $800...KCCI.” Korea 

Bizwire, October 26. bit.ly/1QoG56L

• MK Economy. 2015. “Cover Story.” January 

16. bit.ly/1EOOXS6
126 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

asia

Singapore

Statistics

Population: 5.47 million

GDP (USD): 307 billion

Currency: Singapore dollar (SGD)

Languages: English (business), 

Mandarin, Malay, Tamil

Contact

Swee Hoon Chia

Senior Commercial Specialist

sweehoon.chia@trade.gov

+65 6476-9403

Summary

Online shopping in Singapore tripled from 

SGD 1.1 billion (around USD 788.6 million) 

in 2010 to SGD 3.5 billion (around 

USD 2.5 billion) in 2014. It was expected 

to increase to SGD 4.4 billion (around 

USD 3.154 billion) in 2015, and it may reach 

SGD 46.3 billion (around USD 33.2 billion) 

by 2020. Singapore has an ultrahighspeed, pervasive, and trusted information 

and communications technology (ICT) 

infrastructure and has dedicated itself to 

becoming the world’s first Smart Nation. The 

World Bank has already ranked Singapore 

the easiest place to do business in the 

world. A stable government of law, strong 

intellectual property protection, and an 

advanced infrastructure network, combined 

with widespread use of English, allow U.S. 

companies excellent opportunities to sell to 

Singapore’s growing e-commerce market. 

Moreover, Singaporeans enjoy one of the 

highest disposable incomes in Asia. Situated 

at a crossroads of international shipping 

and air routes, Singapore is a center for 

transportation and communication in the 

region and an ideal gateway into the Asia 

Pacific e-commerce market.

Market Entry

E-commerce sites popular with Singaporeans 

include

• Amazon

• Groupon

• eBay

• Apple

• Reebonz/

Kwerkee

• RedMart

• Qoo10

• Luxola

• HipVan

• Bellabox

• Clozette

• Rakuten 

Singapore

• VanityTrove 

• Wego

• Taobao 

Singapore

• ZALORA

• Carousell

According to BPost International, 

Singaporeans reported five main reasons for 

buying from foreign e-commerce sites:

• No local availability: 58 percent

• Greater choice: 48 percent

• Less expensive: 44 percent

• Better discounts: 42 percent

• Strong Singaporean dollar: 35 percent
Part III: Country Briefs 127

Some effective online promotions on 

e-commerce sites include percentage 

discounts, buy-one-get-one deals, and free 

delivery. Promotions for Black Friday, Christmas, 

Chinese New Year, and Google Online Shopping 

Festivals also drive online purchases in 

Singapore.

Fulfillment

Singapore is a major center for transportation 

and communication in Southeast Asia. 

Singapore hosts many local fulfillment centers, 

and some, such as Singapore Post, provide a 

full-service, end-to-end–managed e-commerce 

solution. And Singapore’s Changi Airport, 

featuring more than 90 airlines serving more 

than 200 cities, has established itself as a major 

regional aviation hub. Singapore is also a 

leading international maritime center, home to 

more than 120 international shipping groups. 

The World Bank’s Logistics Performance Index 

ranked Singapore as Asia’s top performer 

with regard to global freight forwarding and 

express carriers. Its well-developed logistics 

and infrastructure network has attracted major 

international logistics companies such as 

FedEx, UPS, and DHL to locate major hubs 

in Singapore.

Current Market Trends

Singapore has room to grow rapidly. According 

to Euromonitor, Singapore and neighboring 

Malaysia generate nearly half of Southeast 

Asia’s total online retail sales, even though the 

two countries account for only 8 percent of the 

region’s population.

According to Forrester Research, 60 percent 

of Singapore’s e-commerce sales come from 

cross-border orders, a significant percentage 

compared with countries such as Malaysia (40 

percent), Japan (18 percent), and the Republic 

of Korea (25 percent). The Financial Study 

Association of Amsterdam also highlights 

Singapore’s suitability as an e-commerce test 

bed, noting that the high share of cross-border 

trade offers businesses unique insights into Asia 

Pacific’s online shopping behavior.

Singapore has the most mature e-commerce 

payment infrastructure in Southeast Asia. A 

survey by Payvision showed that most domestic 

e-commerce sales are paid for using credit 

cards and bank transfers. Cash on delivery is 

not as commonly used in Singapore as in other 

countries in Southeast Asia. (For cross-border 

purchases, Singapore’s preferred payment 

methods are credit cards and PayPal.)

Social Media

Singaporeans are among the world’s most 

active users of social media. They use Facebook, 

YouTube, Google, LinkedIn, Instagram, Twitter, 

Tumblr, and Pinterest, as well as various 

messaging apps.

Current Demand

Singaporeans are avid shoppers, and shopping 

online is especially popular with young adults 

and higher-income households. A recent study 

by Visa stated that 26 percent of Singaporeans 

shop online at least once a week—the highest 

percentage in Southeast Asia. Consumers ages 

25 to 44 most frequently shop online.

Singapore has one of the most developed ICT 

infrastructures in the world, with a nationwide 

ultrahigh-speed fiber-optic broadband 

network. According to the Infocomm 

Development Authority of Singapore (IDA), 

86 percent of Singaporean households are 

connected to the Internet. In February 2015, 

Singapore’s smartphone penetration reached 

148 percent, with 4.4 million 3G subscriptions 
128 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

and 3.3 million 4G subscriptions. Singapore 

is a leading early-adopter market for tablet 

ownership, with household penetration 

estimated to be 54 percent at the end of 2014. 

The high adoption rate for mobile devices is 

driving mobile e-commerce, with 55 percent of 

online shoppers choosing to shop using their 

mobile devices, according to PayPal.

Singaporean shoppers are spending more 

money online; the average consumer spends 

USD 1,861 a year on purchases, according to 

PayPal. More than a quarter of this money goes 

toward travel expenditures, with 75 percent 

of consumers making their vacation bookings 

online. Almost half of them do so using their 

mobile devices. According to Vulcan Post, the 

most common items that e-retailers sell 

online include

• Travel services

• Fashion and beauty products

• Entertainment and lifestyle products

• General insurance

• Electronics and information technology

Challenges

Singapore is generally a free port and an open 

economy. More than 99 percent of imports 

enter Singapore duty free. However, Singapore 

levies high excise taxes on beer, wine, liquor, 

tobacco products, motor vehicles, and 

petroleum products. The government controls 

importation of items it considers a threat to 

health, security, safety, and social decency.

Full lists of prohibited products and controlled 

goods and their corresponding controlling 

agencies can be found at bit.ly/1hUHlCR and 

bit.ly/1QmMjEm.

Items under export control can be found at 

bit.ly/1ObhfYY.

The IDA identifies and facilitates the adoption 

of ICT to enhance Singapore’s competitiveness 

and drive economic growth. It offers a variety of 

programs and initiatives to meet industry needs 

and develop new areas of growth. It actively 

encourages businesses in Singapore to embrace 

e-commerce. The Singaporean government 

has strengthened statutes and regulations to 

boost consumer confidence in e-commerce. 

U.S. companies interested in doing business in 

Singapore should be aware of the applicable 

regulations and laws:

• Electronic Transactions Act 

• Sale of Goods Act 

• Misrepresentation Act

• Computer Misuse Act 

• Copyright Act 

• Trade Marks Act

• Personal Data Protection Act

According to the Inland Revenue Authority 

of Singapore, license fees payable for the 

importation of computer software are 

considered royalty income because the fees 

are a payment made for the “use or right to use 

any movable property as well as commercial, 

scientific, technical, or industrial knowledge 

or information.” These imports are subject to a 

withholding tax of 10 percent if the payment is 

made by a Singapore resident to an e-merchant 

outside Singapore. The tax does not apply to 

shrinkwrapped software, user-downloaded 

software, site-licensed software, and hardwarebundled software.

A 7 percent goods and services tax (GST), 

similar to a sales tax, is levied on all imported 

goods and services valued above SGD 400 

(about USD 320), payable directly to Singapore 

Customs at the point of import. For more 

information, please visit bit.ly/1Fwve4o.
Part III: Country Briefs 129

Resources

Trade Events

• eTail Asia, etailasia.wbresearch.com

• Seamless 2017, 

terrapinn.com/exhibition/seamless

Contacts

• Infocomm Development Authority of 

Singapore, ida.gov.sg

• Singapore Customs, customs.gov.sg

• Singapore Business Federation, 

www.sbf.org.sg

• Department of Statistics, singstat.gov.sg

• SP e-commerce, 

spe-commerce.com/knowledge-centre

Media

• AT Kearney. 2015. “Lifting the Barriers to 

E-Commerce in ASEAN.” bit.ly/1ivaOUq

• Jeremy Cheong. 2015. “The Spending 

Habits of South-east Asia e-Commerce 

Consumers.” Morgan McKinley. June 1. 

bit.ly/1XHPOtY

• Hashmeta. bit.ly/1H5755Q

• Dhara Ranasinghe. 2014. “Pricey Singapore: 

Savvy Shoppers Go Online.” CNBC, 

December 28. cnb.cx/1NZEZzS

• Singapore: SP e-commerce. 2015. 

“Developing eCommerce Market Entry 

Strategies in Asia Pacific: Advisory Report 

2015.” bit.ly/1g7V0VG

• Statista. bit.ly/1UzK7Pw

• Daniel Tay. 2014. “14 Popular ecommerce 

Sites in Singapore.” Tech in Asia, May 6. 

bit.ly/1JQJFSO

• The Tech Bulletin (blog). 2014. “Top 10 

eCommerce Sites in Singapore.” September 

12. bit.ly/1NZFfPn

• Jacky Yap. 2013. “Online Shopping Statistics 

in Singapore.” Vulcan Post. bit.ly/1JStWVf

• Eileen Yu. 2014. “Singapore Shoppers Spend 

$1.1B via Mobile.” ZDNet, November 25. 

zd.net/1KCO5lI
130 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

europe

The Benelux Union

Statistics

Capital: Brussels

Population: 28.5 million

GDP (USD): $1.379 trillion (est. 2013)

Currency: Euro (EUR/€)

Languages: Dutch, French, German, 

Luxembourgish

Contact

Philip Hammerstein

Commercial Specialist

philip.hammerstein@trade.gov

0031 70 310 2416

Summary

Formed in 1944, the Benelux Union 

comprises three countries: Belgium, the 

Netherlands, and Luxembourg. Wedged 

between France and Germany and bordering 

the North Sea, the three countries share 

close cultural ties. The politico-economic 

union has its own institutions, including 

the Benelux Parliament. Although some 

customers speak English, targeting them in 

their own languages will more likely lead to 

success.

Market Entry

Fulfillment Centers

Many of Europe’s largest fulfillment centers 

are located in the Netherlands. (Companies 

that have only one European fulfillment 

center generally find the Netherlands to 

be the best location.) Regional fulfillment 

centers (serving both online and brick-andmortar needs) are available in every market 

for larger exporters with special needs. 

However, the largest brands often prefer a 

location in northern continental Europe.

• Holland International Distribution 

Council, ndl.nl

• S&H Multi-channel Fulfilment, 

bit.ly/1QMrMt5

• MCS Fulfilment, bit.ly/1JfbuSY

• Bol.com, bit.ly/1KmxQUC

Online Payment

According to Marketingfacts, the electronic 

payment system iDEAL is the most common 

way to pay in the Netherlands. It allows 

customers to buy products on the Internet 

using direct online transfers from their bank 

account. In 2014, Ecommerce News reported 

that because Amazon and eBay do not 

accept iDEAL, they have not gained much 

market penetration in the Netherlands. In 

Belgium, 85 percent of online payments are 

made using Ogone.

Social Media

According to a 2015 report by Oosterveer, 

Facebook, YouTube, Google+, LinkedIn, 

and Twitter are all very popular in the 

Netherlands. Instagram and Snapchat are 

gaining in popularity, especially for users 

between 15 and 39 years of age. Pinterest is 
Part III: Country Briefs 131

widely used by both young people and people 

over age 20. Facebook usage is declining in the 

youngest age range as it increases among much 

older users. The largest social media platform, 

overtaking even Facebook, is WhatsApp, 

according to a January 2016 update.

In 2015, Luxembourg Wort reported that 

Facebook was by far the 2014 social media 

leader in Luxembourg, with users representing 

57 percent of the population, followed by 

LinkedIn (9 percent), and Google+ and Twitter 

(8 percent each). Only 1 percent of Luxembourg 

residents used WhatsApp. 

Statista (n.d.) reports that, in 2013, the most 

popular websites in Belgium were Facebook, 

YouTube, Wikipedia, Google+ and Twitter.

Digital Advertising

Online advertising is outpacing print 

advertising throughout Benelux. Most 

businesses take advantage of browser cookies 

for direct advertising and product placement 

on other websites. Ads appear on social media 

and search engines, in web stores, and on 

news websites.

Companies are actively developing 

programmatic media technologies (also known 

as programmatic marketing or programmatic 

advertising) to automate media buying, 

placement, and optimization. Companies 

decide how to place ads using automated 

systems that track business progress and 

consumer habits, thereby allowing for highly 

directed ad targeting. Most publishers view it 

as an essential part of their marketing strategy. 

eMarketer reports that, in a February 2014 

study conducted by FaR for Improve Digital, 

89 percent of publishers said they were selling 

between 51 percent and 100 percent of their 

inventory programmatically.

The Netherlands has the highest programmatic 

advertising adoption rate in all of Europe. 

According to Marketingfacts (2014a and 2014b), 

online advertising sales in the Netherlands add 

up to USD 1.7 billion. Only the United Kingdom, 

Germany, France, Italy, and Russia boast higher 

sales volume—and the Netherlands has the 

most valuable sales-to-population ratio.

Current Market Trends

Benelux residents are among Europe’s most 

avid e-commerce users. In 2015, Eurostat 

reported that 79 percent of Luxembourg’s 

population ages 16 through 79 made online 

purchases—the third-highest percent among 

European Union (EU) member countries. Only 

the United Kingdom and Denmark had higher 

proportions of e-buyers. The Netherlands was 

only slightly behind, at 71 percent.

In 2014, within Belgium, Luxembourg, and the 

Netherlands, total online spending increased 

by 31.7 percent compared with 2013, and 

consumers made 2 percent more online 

purchases. This increase in spending led to a 10 

percent increase in revenue from shoppers. In 

the coming years, Marketingfacts projects that 

these numbers will continue to increase.

According to a 2014 PostNord survey of both 

Belgium and the Netherlands, in 2012 the two 

countries’ top eight e-commerce products were

• Clothing and footwear: 38 percent

• Home electronics: 28 percent

• Books: 23 percent

• Cosmetics: 13 percent

• CDs: 13 percent

• Films and DVDs: 12 percent

• Children’s articles: 11 percent

• Home furnishings: 9 percent
132 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Online travel services also are popular 

purchases. According to Eurostat, In 2015 

travel was the most popular online purchase 

in Luxembourg and was only slightly behind 

clothing and sporting goods in Belgium and 

the Netherlands.

Some of Europe’s popular web stores 

are located within Benelux, according to 

Ecommerce News (2014). Among them, 

wehkamp.nl, bol.com, Coolblue, HEMA, and 

food-ordering platform thuisbezorgd.nl

are headquartered in the Netherlands; ZEB, 

Schoenen Torfs, and Bel&Bo are headquartered 

in Belgium. Only two of Europe’s most popular 

web stores are headquartered outside Benelux: 

Zalando (Berlin) and H&M (Stockholm).

Thuiswinkel (2013) reports that in the 

Netherlands, 13 percent of 2013’s total 

e-commerce purchases were made 

via e-commerce over mobile phones 

(m-commerce). However, m-commerce 

popularity keeps growing in popularity: during 

just the second half of 2013, total e-commerce 

spending was USD 1.7 billion. Of that, about 

USD 976 million (more than 57 percent) was 

via m-commerce; of m-commerce transactions, 

30 percent (USD 270 million) were via 

smartphones and 70 percent (USD 706 million) 

were via tablets. 

Current Demand

Cross-Border E-Commerce

According to Ecommerce Europe (2015), 

Luxembourg has Europe’s highest rate of crossborder online purchase. As a small country, it 

has limited domestic online offerings. Thus, 

65 percent of its online consumers buy their 

products and services from other countries. 

About 2.8 million Dutch purchased goods 

from a foreign website in 2014; total crossborder spending was USD 519 billion. Twenty 

percent of Dutch consumers purchased goods 

via a foreign website, according to Ecommerce 

News (2015). The United States ranks fourth 

with regard to the Netherlands’ crossborder spending. 

Many Belgian retailers were relatively late to 

use e-commerce, so more foreign companies 

are active in Belgium than in the Netherlands. 

German, French, and Dutch companies are 

the most important e-commerce players in 

Belgium, and Belgium’s market is more open to 

foreign companies than is the Dutch market. 

Both countries are strong in services such as 

warehousing and infrastructure, according to 

AT Kearney (2015). 

Major Buying Holidays

• Valentine’s Day (February 14)

• Carnaval (February–March)—costumes

• King’s Day (April 27, Netherlands)—orange 

and Dutch goods

• Mother’s Day (second Sunday of May)

• Father’s Day (third Sunday of June)

• Grand Duke’s Day (June 23, Luxembourg)

• Halloween (October 31)—gaining 

popularity, but not as popular as in the 

United States

• Sint-Maarten (November 11, Belgium)

• Sinterklaas (December 5, Netherlands; 

December 6, Belgium)—equivalent to 

Christmas sales

• Christmas (December 25 and 26)

Challenges

In Benelux, the largest websites are not in 

English. According to Welink research from 

2014, addressing a target audience through 

advertising in English is sometimes possible, 
Part III: Country Briefs 133

but—as the Kissmetrics blog reports—it may 

not be advisable:

Countries like Norway, Denmark, 

and the Netherlands score well on 

the ability to speak English. That’s 

why many American e-commerce 

businesses decide to target these 

countries in English. However, it’s 

also important to take national 

pride into consideration here, 

meaning that even Norwegian, 

Danish, and Dutch customers 

appreciate if you target them in 

their own language, resulting 

in better success rates.

However, even if you decide 

to go for a local language, you 

should be careful. Both the Dutch 

and close to half of the Belgians 

(the Flemish) speak Dutch as a 

native language. But just like 

American English is different 

from British English, Dutch in the 

Netherlands differs from Dutch 

in Belgium. And, both the Dutch 

and the Flemish prefer to be 

addressed in their own language.

In general terms, you should 

aim for local languages 

as much as possible. 

Data Collection and Usage

Cookies are allowed, but if tracking cookies 

are used, the law requires that they be 

mentioned on the website. Companies are not 

allowed to share personal information unless 

permission has been asked for and granted. The 

Netherlands has incorporated key EU directives 

on privacy into its national law, including the 

personal data, data retention, and privacy and 

electronic communications directives.

In the Netherlands, processing any personal 

data requires the data subject’s unambiguous 

consent. However, certain types of personal 

data—for example, concerning a person’s 

religion—may not be processed at all.

Internet service providers have an obligation 

to protect the privacy of users and subscribers. 

The Dutch Data Protection Authority is 

involved in protecting personal data, but two 

other agencies also play a role in supervising 

telecommunications service providers and the 

telecom market.

Additionally, a constitutional amendment 

on the protection of digital rights has been 

discussed in the Netherlands. More information 

on this topic is available from the Library of 

Congress at 1.usa.gov/1J0QwXS.

Regulation

Belgium and the Netherlands each have an 

e-commerce sellers association, BeCommerce 

(becommerce.be) and Thuiswinkel.org, 

respectively. All e-commerce companies 

may join, provided they meet the necessary 

entry criteria. Members then may display the 

organization’s quality mark.

For example, member companies must

• Have a privacy policy showing company 

information, including contact details

• Show product prices including value-added 

tax (VAT)

• Mention the delivery time

• Give the customer at least a 14-day return 

period

• Have a clear complaints procedure

• Be financially stable

In 2014, Thuiswinkel reported that in the 

Netherlands, many member company 

criteria are established by law, but a few are 

Thuiswinkel’s own.
134 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Prohibited Products

• Counterfeit goods

• Endangered species (animals and plants)

• Animal products and foodstuffs (e.g., live 

animals and animal products)

• Plants, flowers, fruit, and vegetables

• Weapons and ammunition, toy weapons, 

and fake weapons

• Medicines

• Drugs

• Articles of cultural interest (cultural 

goods—artwork, antiques, etc.)

• Environmentally hazardous substances 

(e.g., fireworks)

Resources

• AT Kearney. 2015.” Global Retail 

E-commerce Keeps on Clicking: The 2015 

Global Retail E-commerce Index,” April. 

bit.ly/1KWdcjB

• Ecommerce Europe. 2015. “Luxembourg 

E-commerce Association Joins Ecommerce 

Europe.” Press release, September 23. 

Published September 30 on About 

Payments website, bit.ly/1nP1tZM

• Ecommerce News. 2015. “Ecommerce in the 

Netherlands Grew to €13.96 billion in 2014.” 

March 16. bit.ly/1Jfd6fx

• Ecommerce News. 2014. “E-commerce in The 

Netherlands.” June. bit.ly/1gyrSXX

• eMarketer. 2014. “In the Netherlands, 

Programmatic Advertising Is the Norm.” 

June 17. bit.ly/1JfddrB

• Eurostat. 2015. “1 out of 2 Persons in the EU 

Purchased Online in 2015.” Press release, 

December 11. bit.ly/1TOTJoD

• Luxembourg Wort. 2015. “Facebook Most 

Popular Social Network in Luxembourg.” 

May 12. bit.ly/1PcunsU

• Marketingfacts. 2014a. “Stats Dashboard: 

Omzet Online Advertising Europa Naar 

Land.” July. bit.ly/1OE0u8S (in Dutch)

• Marketingfacts. 2014b. “Stats Dashboard: 

Online advertising.” July. bit.ly/1QMu8rF (in 

Dutch)

• Danny Oosterveer. 2015. “Social Media 

in Nederland 2015: Jongeren Haken af 

van Facebook en Twitter. Marketingfacts.” 

February 2. bit.ly/1YlkAsK (in Dutch)

• PostNord. 2014. “E-commerce in Europe 

2014.” bit.ly/1FlmVNW

• Statista. n.d. “Most Popular Social Media 

Sites in Belgium 2013.” bit.ly/1QYDku3

• Thuiswinkel. 2014. “Assessment Framework 

for Members of Thuiswinkel.org.” February 

19. bit.ly/1NICfam

• Thuiswinkel. 2013. “Infographic 2e helft 

2013.” bit.ly/1MwfeqO (in Dutch)

• Bertram Welink. 2014. “What American 

Ecommerce Businesses Should Know about 

European Customers.” Kissmetrics (blog). 

bit.ly/1P9gq17
Part III: Country Briefs 135

europe

France

Statistics

Capital: Paris

Population: 67 million (2014)

GDP (USD): 2.27 trillion (2014)

Currency: Euro (EUR/€)

Language: French

Contact

Rose-Marie Faria

Commercial Specialist

rose-marie.faria@trade.gov

+33 (0) 1 43 12 71 49

Summary

In 2014, 59 percent of the French population 

(nearly 34 million people) shopped online. 

The total business-to-consumer (B2C) sales 

was EUR 57.5 billion (USD 64 billion), and 

business-to-business (B2B) sales (made by 

20 percent of companies) were estimated 

at EUR 71 billion (USD 79 billion). France 

ranks sixth in the world for e-commerce 

(B2C) and third in Europe behind the United 

Kingdom and Germany. The shares of B2B 

and B2C e-commerce represent, respectively, 

3 percent and 9 percent of France’s total 

commerce.

Market Entry

Popular E-Commerce Sites

About 28.7 million Internet users have 

visited one of the top 15 e-commerce sites at 

least once. 

The top five sites in France, in order of 

unique visitors per month, are

• Amazon: more than 16 million 

• Cdiscount (everything from high-tech 

items to food): 9.8 million

• Fnac (cultural and electronic goods): 

more than 9 million

• eBay: 8.65 million

• Price Minister: 7.79 million

Digital Advertising

Digital ads rank second, after TV but ahead 

of print, in France’s advertising investments, 

with 25 percent of market share and a total 

investment of EUR 2.9 billion (around 

USD 3.15 billion). Ads are mainly served 

via social media (41 percent of total digital 

market), video (28 percent), and mobile 

applications (14 percent).

French Internet users feel ads should be 

related to the web content; as a result, 

traditional advertising is no longer as 

efficient. New advertising methods such 

as “native advertising” are emerging to 

cope with the challenges of the mobile 

environment.
136 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Fulfillment

• Diffusion Plus, www.dataone.fr

• Viapost, viapost.fr

• Amazon, amzn.to/1UICuq9

• ID Logistics, www.id-logistics.com

• France Routage (press), f-r.fr

Current Market Trends

Online Payment

In France, common payment methods include

• Credit cards: 80 percent

• Virtual wallet: 27 percent

• Gift cards: 14 percent

• Virtual credit cards: 11 percent

• Installment plans: 8 percent

• Debit cards: 7 percent

• Checks: 5 percent

• Bank transfers: 5 percent

Common alternative payment methods include 

Allopass, which allows customers to pay via text 

or phone call; CM-CIC Paiement, which offers 

online payment for small businesses; HiPay, an 

e-wallet; Moneo, a service allowed on French 

bankcards to make small purchases; PayPal; and 

Paysafecard, a payment-processing service that 

allows customers to pay with a username and 

password instead of a PIN.

E-commerce via smartphones and tablets is 

becoming more popular. It currently accounts 

for EUR 2.6 billion of e-commerce sales. “Click 

and collect,” in which people order online 

and then pick up their goods at a store or 

locker, is increasingly popular. Collaborative 

consumption also is becoming more 

common—for example, web-based car sharing 

and food purchases directly from the producer.

Cross-Border E-Commerce

In France, consumers buy domestically and 

across borders on web shops, in Germany (41 

percent), in the United Kingdom (29 percent), 

and across the European Union (EU). They also 

purchase from web shops in (French-speaking) 

Canada (18 percent) and from the United 

States (18 percent). In France, shoppers plan 

and pay for their business trips and vacation 

expenses online, but they also purchase books, 

music, fashion, and consumer electronics from 

web shops across Europe. Compared to the 

European average (15 percent), more French 

online buyers cross-border shop (19 percent).

Cross-border e-commerce offers multichannel 

retailers business opportunities for 

international expansion. Approximately 25 

percent of France’s online merchants already 

sell internationally, generating 10 percent of 

their sales. Sales are supported by international 

demand for French fashion and beauty brands.

Language is a main driver for cross-border 

e-commerce: 368 million people worldwide 

speak French. Many French speakers live in 

northern Africa, 10 million live in Canada, and 

11 million are in neighboring Belgium and 

Switzerland.

Mobile E-Commerce

In 2014, 33.8 million people (7 percent 

of France’s population) made purchases 

online—4.6 million of them via their 

smartphones and tablets.

Social Media

More than 30 million French people use social 

media; 86 percent say that they belong to at 

least one social media site, but only 50 percent 

are active users. 
Part III: Country Briefs 137

The top nine sites in France by total number of 

members are

• Facebook: 63 percent

• Skype: 47 percent

• Copains d’avant: 36 percent

• Google+: 32 percent

• Deezer: 28 percent

• YouTube: 27 percent

• Twitter: 17 percent

• Trombi: 14 percent

• LinkedIn: 14 percent

Facebook, YouTube, and Google+ are leaders 

and still growing. Twitter, Spotify, Dailymotion, 

Instagram, Tumblr, and Pinterest also are 

growing. Trombi and Copains d’avant have 

many members but are thought to be 

in decline.

Promotions and Discounts

A variety of online promotions are used. 

Many companies offer no-interest installment 

payments or free samples. In addition, free 

shipping, free next-day delivery, or free returns 

often attract customers.

The key to success is not only having a 

professionally translated website, but also 

choosing the right partners to promote your 

brand and website to clients. This is essential to 

optimize your chances in the sophisticated and 

highly competitive French market.

Current Demand

On average, French online shoppers make 18 

purchases per year, with an average expense of 

EUR 1,515 (USD 1,685). They mainly buy tourism 

services (62 percent); online subscriptions, 

tickets, and similar items (54 percent); cultural 

products (52 percent); clothing (49 percent); 

beauty products (27 percent); and home decor 

(27 percent).

Major Buying Holidays

• Christmas

• Mother’s Day (last Sunday in May)

• Father’s Day (second-to-last Sunday 

in June)

• Valentine’s Day

In addition, seasonal sales (les soldes) run for 

six weeks in early January to mid-February, and 

again in the summer from late June until early 

August. They are, without a doubt, France’s 

most important national sales promotions.

Challenges

Data Collection

Seller responsibilities include

• Notifying customers if their data will be 

collected and saving customer data

• Allowing customers free access to any 

stored personal data, including whether 

or not the company has any information 

stored about them

• Providing all information in plain language 

and fully explaining any codes or shorthand

• Correcting errors or deleting customer 

data, upon reqest by the customer

At the moment of data collection, customers 

can prohibit their information’s use for 

commercial purposes or release to a third 

party. All collection must be performed without 

fraudulent, unfair, or illegal practices.

Anyone in France may ask the National Data 

Processing and Liberties Commission (CNIL) 

to proceed with checks of his or her personal 

information. The information may be recorded 

in files concerning state, defense, or public 

security (right of indirect access); the CNIL 
138 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

verifies relevance and accuracy and keeps 

information up to date. The CNIL can also 

demand that information be corrected 

or removed.

Data controllers’ obligations include

• Reporting the file and its characteristics to 

the CNIL, except when exempted by law or 

by the CNIL

• Ensuring that citizens are in a position to 

exercise their rights through information

• Maintaining security and confidentiality to 

keep data correct and prevent release to 

unauthorized third parties

• Accepting on-site inspections by the CNIL 

and replying to any request for information

Regulation

France follows the EU regulatory framework 

for e-commerce: Directive 2000/31/CE of 

June 8, 2000. The rights of consumers engaged 

in electronic commerce are governed by the 

French Consumer Code.

In France, the consumer has specific rights 

related to online purchases. For instance, the 

seller’s full contact details should always be 

fully available to shoppers, the full cost of 

products or services (including any extra fees) 

must always be clearly declared, and delivery 

and return policies and fees must be clearly 

laid out.

U.S. companies entering France should 

understand not just France’s e-commerce laws, 

but also EU laws.

For more information, visit bit.ly/1VSfm5C.

Language

The French language is a major part of French 

culture; English is very uncommon, and most 

French Internet users don’t speak much English. 

In addition, the Toubon Law (Law 94-665 of 

August 4, 1994, relating to usage of the French 

language) requires French to be used for all 

written, spoken, or audiovisual advertising. 

Therefore, both to appeal to French customers 

and to avoid any legal issues, U.S. sellers 

should be prepared to have a French-language 

website—or, at minimum, some form of easyto-access French translation that includes 

product details and other important web 

content.

Product packaging, instructions, and manuals 

must also be in French.

Prohibited Products

A long list of items have export barriers—

essentially, anything that would require an 

export license. Common items in this category 

include medical devices, machinery and 

equipment, and anything involving emissions 

into the environment. Prohibited items include 

hazardous materials, such as weapons and 

chemicals. For more details on forbidden or 

restricted products, please visit bit.ly/1KJlETm.

For details on the European Commission’s 

e-commerce directive, visit bit.ly/1ik1MKi.
Part III: Country Briefs 139

europe

Germany

Statistics

Capital: Berlin

Population: 83.8 million (2013)

GDP (USD): 3.4 trillion (2013)

Currency: Euro (EUR/€)

Language: German

Contact

Mathias Koeckeritz

Senior Commercial Specialist

mathias.koeckeritz@trade.gov

+49-30-8305-1910

Summary

Germany’s e-commerce sector is the third 

most active in the world, behind only the 

United States and the United Kingdom.

According to The Paypers, in 2013, the 

number of cross-border sales made by 

German shoppers totaled 11.1 million for the 

United Kingdom, 8.6 million for the United 

States, and 6.2 million for China.

Market Entry

Popular E-Commerce Sites

Many large U.S. players are also well 

established in Germany. In April 2014, 

Ecommerce News reported that Germany’s 

most popular shopping websites were

• amazon.de: 22.5 million visitors

• ebay.de: 21.0 million visitors

• otto.de: 4.7 million visitors

• tchibo.de: 4.0 million visitors

• zalando.de: 3.8 million visitors

Most business-to-consumer (B2C) customers 

prefer German-language websites.

Digital Advertising

Many successful ads appear on mobile apps. 

In a recent 7,000-person Internet World 

survey, 72 percent of Germans surveyed 

said they were open to having retailers 

communicate with them on their mobile 

devices and wanted to use point-of-sale 

technology to help inform purchases. Pricerelated promotions were most popular 

among those surveyed: 47 percent said 

they would like to receive special offers and 

discounts, 43 percent expressed an interest 

in accessing detailed product information, 

and 43 percent wanted to be able to reserve 

or arrange delivery using their smartphones 

while in the store.

In 2014, EUR 1.198 billion (around USD 

1.3 billion) was spent in Germany on 

e-commerce advertising. Ströer Digital 

reached 38.33 million users with its 

advertisements in 2015, InteractiveMedia 

CCSP reached 34.49 million, and Axel 

Springer Media Impact reached 

34.18 million.

Fulfillment

Numerous qualified fulfillment centers are 

available throughout Germany, as well as 

the European Union (EU) as a whole. The U.S. 
140 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Commercial Service can assist you in identifying 

a suitable partner.

Current Market Trends

Online Payment

According to data from About-Payments, 

in 2012 the four most popular means of 

payment were

• Payment on account: 58 percent

• Online payment service providers, such as 

PayPal: 52 percent

• Direct debit: 46 percent

• Credit card: 34 percent

Mobile E–Commerce

In 2014, the blog Econsultancy reported that 15 

percent of German consumers make a monthly 

purchase via their smartphones.

Social Media

Facebook is by far the dominant social media 

site. More than 20 million Germans used 

Facebook in July 2012, according to SonnComm 

Marketing. Total social media penetration 

includes

• Facebook: 56 percent

• Stayfriends: 9 percent

• XING: 7 percent

• Google+: 6 percent

• Twitter: 6 percent

Promotions and Discounts

Internet Retailer Magazine studied effective 

e-commerce promotions (bit.ly/1Q4FuGt) and 

found that surveyed customers said the most 

persuasive promotions or deals were:

• Unconditional free shipping: 73 percent

• Free returns: 70 percent

• Sales and specials: 62 percent

• Coupons/rebates for cash or percentage 

off: 56 percent

• Percentage discounts: 54 percent

• Rewards or loyaly points: 46 percent

• Limited-time deals: 43 percent

• Free shipping based on minimum purchase 

amount: 42 percent

• Quantity-based discounts: 34 percent

• Free gift with purchase: 31 percent

Current Demand

A Pitney Bowes poll asked Germans which 

products they had purchased online over the 

past 12 months and had delivered to their 

home:

• Books: 61 percent

• Clothes: 61 percent

• Magazines: 45 percent

• Shoes: 42 percent

• Electronics: 38 percent

• Movies: 33 percent

• Beauty products: 32 percent

• Groceries: 27 percent

• Toys: 26 percent

Major Buying Holidays

The Christmas season is the key e-commerce 

season. Green Monday (the first Monday in 

December), an online shopping promotional 

event prior to Christmas, is Germany’s single 

biggest online shopping day.
Part III: Country Briefs 141

Challenges

Intellectual Property Rights

To effectively manage intellectual property 

rights (IPR) in the EU:

• Companies must have an overall strategy to 

protect their intellectual property.

• IPR are protected differently in the 

European Union than in the United States.

• Rights must be registered and enforced in 

the EU under local laws.

U.S. trademark and patent registrations will not 

provide protection in the EU. No “international 

copyright” exists to automatically protect 

an author’s writings throughout the entire 

world. Protection against unauthorized use in 

a particular country depends on the national 

laws of that country. However, most countries 

do offer copyright protection to foreign works 

under certain conditions. Those conditions 

have been greatly simplified by international 

copyright treaties and conventions.

Registration of patents and trademarks 

is on a first-in-time, first-in-right basis, so 

entrepreneurs should consider applying for 

trademark and patent protection even before 

selling products or services in the EU market. 

Companies must understand that intellectual 

property is primarily a private right and that 

the U.S. government generally cannot enforce 

rights for private individuals in the EU. It is the 

responsibility of the rights holders to register, 

protect, and enforce their rights where relevant, 

retaining their own counsel and advisers. 

Companies may wish to seek advice from local 

attorneys or IPR consultants who are experts 

in EU law. The U.S. Commercial Service can 

provide a list of local attorneys on request.

Although U.S. government officials want 

to assist U.S. businesses, they cannot offer 

help if the rights holders have not taken the 

fundamental steps necessary to secure and 

enforce their IPR in a timely fashion. Moreover, 

in many countries, rights holders who delay 

enforcing their rights on a mistaken belief that 

the U.S. government can provide a political 

resolution to a legal problem may find that 

their rights have been eroded or abrogated 

because of legal doctrines, such as statutes of 

limitations; laches; estoppel; or unreasonable 

delay in prosecuting a lawsuit. Advice from 

the U.S. government is not a substitute for the 

obligation of a rights holder to promptly pursue 

a case.

Furthermore, businesses are advised to conduct 

due diligence on potential partners. Negotiate 

and give your partner clear incentives to honor 

the contract. A good partner is an important 

ally in protecting IPR. Consider carefully, 

however, whether to permit a partner to 

register your IPR on your behalf. Doing so may 

create a risk that your partner will list himself or 

herself as the IPR owner and fail to transfer the 

rights should the partnership end. Keep an eye 

on the cost structure, and reduce the margins 

(and the incentive) of would-be bad actors. 

Projects and sales in the EU require constant 

attention. Work with legal counsel familiar with 

EU laws to create a solid contract that includes 

non-compete clauses and confidentiality or 

non-disclosure provisions.

Data Collection

Data protection and privacy laws are stringent, 

and consumer protection guidelines and 

competitive advertising also are highly 

regulated. Companies should consult with a 

lawyer before collecting, storing, or processing 

any sort of data in Germany. Other potential 

challenges involve laws pertaining to unfair 

competition and rebates.
142 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The EU’s general data protection directive spells 

out strict rules concerning the processing of 

personal data. Businesses must tell consumers 

that they are collecting data, the purpose of 

the data collection, and to whom the data will 

be disclosed. Data subjects must be given the 

opportunity to object to the processing of 

their personal details and to opt out of having 

such data used for direct marketing purposes. 

This opt-out should be available at the time of 

collection and at any point thereafter. Although 

the EU is considering new legislation (the 

General Data Protection Regulation), the 1995 

directive remains in force.

EU-U.S. Privacy Shield Framework

The EU’s current data protection directive 

provides for the free flow of personal data 

within the EU and also provides for protection 

of the data leaving the EU.

The U.S. Department of Commerce and the 

European Commission negotiated the EUU.S. Privacy Shield Framework to provide U.S. 

companies with simple, streamlined means of 

complying with the adequacy requirement. The 

framework allows U.S. companies that commit 

to a series of data protection principles (based 

on the current directive)—and that publicly 

state that commitment by annually “selfcertifying” on a dedicated website—to continue 

to receive personal data from the EU. Signing 

up is voluntary, but the rules are binding on 

any companies that do. For more details, visit 

export.gov/safeharbor.

The Federal Data Protection Act 

(Bundesdatenschutzgesetz) implements the EU 

directive on data protection and is Germany’s 

main legal source of data protection.

Examples of sectoral laws include

• Telemedia Act (Telemediengesetz), which 

applies to providers of telemedia services 

(such as websites)

• Telecommunication Act 

(Telekommunikationsgesetz), which applies 

to providers of telecommunication services

• Criminal Code (Strafgesetzbuch)

• Social Security Codes I, II, IV, V, and X, 

which regulate the processing of health 

and other personal data in connection 

with the provision of medical and social 

security services

Regulation

The e-commerce directive provides rules for 

online services in the EU. It requires providers 

to abide by rules in the country where they 

are established (country of origin). Online 

providers must respect consumer protection 

rules and indicate contact details on their 

websites, clearly identify advertising, and 

protect against spam. The directive also grants 

exemptions from liability for intermediaries 

that transmit illegal content by third parties 

and for unknowingly hosting content. For more 

information, visit bit.ly/1O4fAW1.

The EU applies value-added tax (VAT) to sales 

by non-EU–based companies of electronically 

supplied services (ESS) to EU-based nonbusiness customers. U.S. companies that are 

covered by the rule must collect and submit 

VAT to EU tax authorities. Starting on January 

1, 2015, all supplies of telecommunications, 

broadcasting, and electronic services are 

taxable at the place where the customer 

resides. In the case of a business customer, 

this location is either the country where the 

business is registered or the country in which 

it has fixed premises. In the case of consumers, 

the location is where they are registered, have 

their permanent address, or usually live.
Part III: Country Briefs 143

As part of the legislative changes of 2015, the 

commission launched the Mini One-Stop Shop 

(MOSS) scheme, use of which is optional. The 

MOSS is meant to facilitate the sales of ESS from 

taxable to nontaxable persons (B2C) located in 

EU member states in which the sellers do not 

have an establishment to account for the VAT. 

The scheme allows taxable persons (sellers) 

to avoid registering in each member state 

where customers live. A taxable person who 

is registered for the MOSS in a member state 

(the member state of identification) can 

electronically submit quarterly MOSS VAT 

returns detailing supplies of ESS to nontaxable 

persons in other member states (the member 

states of consumption), along with the VAT.

The most important pieces of legislation on VAT 

are the EU VAT Directive 2006/112/EC and its 

implementing regulation, 282/2011. For further 

information relating to VAT on ESS, please visit 

bit.ly/1KdrrOM.

Resources 

• About-Payments. 2012. “Most popular 

German e-commerce payment method is 

payment on account.” October 12. 

bit.ly/1O4hqWM

• Ecommerce News. 2014. “The top 10 online 

stores in Germany.” July 18. bit.ly/1Kbt8rF

• The Paypers. 2013. “Cross-Border 

E-commerce Report—Germany.” 

bit.ly/1SYFz0v

• Christopher Ratcliff. 2014. “32% of 

UK Consumers Make Purchases on a 

Smartphone: Stats.” Econsultancy (blog). 

March 13. bit.ly/1KdsYnY
144 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

europe

The Nordic Region

Statistics

Population: 25 million

Currencies: Swedish krona (SEK), 

Norwegian krone (NOK), 

Danish krone (DKK), Euro (EUR/€)

Languages: Swedish, Finnish, 

Norwegian, Danish

Contact

Heming Bjorna

Senior Commercial Specialist

heming.bjorna@trade.gov

+47 21308760

Summary

The Nordic region—Sweden, Finland, 

Norway, and Denmark—is Europe’s sixthlargest economy. Despite possessing 

four languages and cultures, consumer 

preferences are relatively homogeneous.

Generally speaking, Nordic consumers are 

early adopters when it comes to technology. 

They have the highest Internet penetration 

in Europe, and they have high disposable 

incomes. On average, a larger percentage 

of the Nordic population uses smartphones 

than in the rest of Europe.

English is spoken widely in all the Nordic 

countries, and it can be used business to 

business (B2B). For business to consumer 

(B2C), language depends on business 

strategy. Generally, B2C websites should be 

in a local language and should accept local 

payment services, in addition to general 

European e-commerce best practices.

Vendors that enter the Nordic region’s 

B2B market generally need to present the 

same level of service to their business 

customers as they would to consumers. B2B 

likely makes up at least 50 percent of the 

e-commerce market, so providing a highquality B2B e-commerce experience—not 

just B2C—is essential for success.

Market Entry

Popular E-Commerce Sites

• Komplett: electronics, home, wellness—

Norway, Sweden, Denmark, and Finland

• Elkjøp: omnichannel electronics—

Norway, Sweden, Denmark, and Finland 

• H&M: domestic, apparel—Norway, 

Sweden, Denmark, and Finland

• IKEA: furniture—Norway, Sweden, 

Denmark, and Finland

• Ellos: domestic, apparel—Norway, 

Sweden, Denmark, and Finland

• Bolia: furniture—Norway, Sweden, 

Denmark, and Finland

• Dustin Home: electronics—Norway, 

Sweden, Denmark, and Finland

• Nelly—acecssories, apparel—Sweden

• NetOnNet: electronics—Norway, 

Sweden, Denmark, and Finland

• Adlibris: books—Sweden

• cdon.se: electronics, music, books—

Norway, Sweden, Denmark, and Finland 

• Elgiganten: electronics—Norway, 

Sweden, Denmark, and Finland

• Dansk Supermarked: appliances, apparel, 

general merchandise—Denmark

• Coop—appliances, apparel, general 

merchandise—Denmark

• XXL: sporting goods—Norway and 

Sweden

• DealExtreme: electronics—international
Part III: Country Briefs 145

In addition to Nordic e-commerce sites, many 

consumers shop with eBay and Amazon.

Digital Advertising

Traditional ad channels include

• Google ads and affiliates

• Facebook

• Online newspapers

• National classified services

– Finn.no is Norway’s primary real estate 

and job posting website. The site is 

also a portal for airplane tickets, rental 

properties, boats, and motorcycles.

• Blogs

– Paying top bloggers for publicity can 

sometimes open huge opportunities. 

Bloggers increasingly take on some 

of the codes of conduct applied by 

traditional media houses, such as 

revealing their sponsors.

• Other online ads

Fulfillment

Many of Europe’s largest fulfillment centers 

are located in the Netherlands. (Companies 

that have only one European fulfillment center 

generally find this to be the best location.) 

Regional fulfillment centers (serving both 

online and brick-and-mortar needs) are 

available in every market for larger exporters 

with special needs. However, the largest brands 

often prefer a Northern continental 

Europe location.

Omnichannel Retailing

To achieve seamless e-commerce, a company 

must meet the consumer in all available 

channels. Omnichannel refers to the integration 

of the physical and digital channels so that 

consumers can easily find information and 

make purchases. Omnichannel opportunity 

awareness is increasing among retailers in the 

Nordic countries, in parallel with consumers’ 

heightened expectations for seamless 

e-commerce. Retailers are also increasingly 

aware of the importance of availability and 

logistics, including inventory. For seamless 

e-commerce to function, products need to be 

available in all channels.

Traditional integration has involved brick-andmortar retailers reaching out to their customers 

online. However, the next generation of 

retailers is starting with a global online business 

model and then allowing consumers to pick up 

their purchases at local stores or other physical 

locations. For example, Amazon recently 

created its “Amazon Lockers,” so consumers can 

buy products online and, at their convenience, 

visit their assigned locker and pick up 

their delivery.

The largest global omnichannel retailers are 

starting with the largest European markets, 

such as the United Kingdom, Germany, and 

France. In time, this may help local Nordic 

retailers, such as IKEA, H&M, Bolia, XXL, and 

Elkjøp, get a head start with omnichannel retail, 

since they may be able to take advantage of 

existing infrastructure.

Note that omnichannel strategies often require 

significant capital investments. They’re typically 

pursued mainly by larger corporations with 

strong brand names (or major aspirations).

Current Market Trends

In 2014, Nordic consumers shopped online for 

a total of EUR 15.4 billion (around USD 16.7 

billion), according to a PostNord (2015) study. 

Nordic e-commerce–related B2C transactions 

increased 15 percent over the previous year. 

PostNord found that the Nordic countries had 

the second-highest spending per year per 

capita, after the United Kingdom.

E-Commerce Europe uses a different method 

for listing the e-commerce revenues, estimating 
146 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

that the Nordic market adds up to EUR 42.5 

billion (around USD 46.08 billion). Growth 

rates are about the same in each of the Nordic 

countries, ranging from 14.2 percent in Finland 

to 18.1 percent in Denmark.

Clearly, the region is a leader in per capita 

e-commerce spending. E-Commerce Europe 

suggests that Norwegian e-commerce 

customers, who spent EUR 2,592 per capita 

(around USD 2,810), are the biggest spenders 

in Europe. Sweden, Finland, and Denmark are 

among the top countries.

Because the PostNord and E-Commerce Europe 

studies consider only commodities—not 

services or more intangible products such 

as airplane tickets and hotel rooms—the 

actual market values may be even higher than 

reported.

Online Payment

Debit and credit cards are the most popular 

form of payment for e-commerce transactions. 

However, individual consumer preference 

varies considerably from country to country. 

For example, according to 2015 PostNord data, 

consumers in Sweden and Finland report a 

preference for paying directly via bank account.

Cross-Border E-Commerce

Nordic peoples have always been 

internationally focused. The countries are open 

for international trade, and the region has the 

highest share of imports in relation to total 

e-commerce transactions. The region also has 

a close relationship with the United States, and 

consumers are generally receptive to U.S. goods 

and services. U.S. SMEs interested in using 

e-commerce are likely to find customers in the 

Nordic countries.

Online stores from the United Kingdom are the 

most popular. On average, 41 percent of Nordic 

residents who shop online from foreign sites 

(including 50 percent of Danish e-commerce 

consumers) buy from sites based in the United 

Kingdom. The United States and Germany are 

nearly tied for second place, and China is third 

but increasing in popularity.

Consumers in the Nordic countries understand 

English well; the language can be less of a 

barrier than the perceived distance from 

the seller. Customers in the Nordic countries 

commonly use international websites that 

are poorly localized—or maybe not localized 

at all. In such cases, the vendor has to offer 

something unique that the customer cannot 

find locally or sell the product at a compelling 

price. Free shipping may also help convince 

the customer to place an order. However, if the 

customer needs to deal directly with customs, 

then the inconvenience may cause them to 

shop elsewhere.

Because the Nordic countries are somewhat 

remotely located, customers have traditionally 

accepted long delivery times. However, just as 

e-commerce continues to let business move 

more rapidly, customers increasingly want 

shorter delivery times. The average acceptable 

delivery time is 4.3 days, but over the past 

year, 1 in 10 Nordic residents have grown to 

expect their deliveries within 1 or 2 business 

days. In Denmark it’s even higher—2 in 10. 

This preference indicates suppliers may have 

to deal with increasingly tight delivery times, 

and e-tailers may need to seek out alternate 

delivery methods for their customers.

Mobile E-Commerce

According to an E-Commerce Europe report, 

57 percent of Finns own smartphones, as do 

69 percent of Danes, 68 percent of Norwegians, 

and 75 percent of Swedes.

At the June 2015 E-Commerce Europe Annual 

Conference, a representative of the UK brand 
Part III: Country Briefs 147

Accessorize reported that no consumers 

used their mobile phones to shop for the 

brand four years ago. Today, 70 percent use 

their mobile devices. Although Accessorize 

targets its clothes and accessories to one 

specific demographic, its experience follows 

larger business trends. (Accessorize has an 

omnichannel strategy in all Nordic countries.)

More than one in seven Nordic residents stated 

that they shopped for goods online using 

only their mobile devices during October 

through December 2014, according to a 

PostNord study (2015). Mobile shopping was 

even more popular in Sweden—nearly one in 

five. Swedish consumers may have adapted 

more quickly because Sweden’s omnichannel 

selling is more advanced than it is in the other 

Nordic countries, and because many Swedish 

retail chains have websites that work well in 

the mobile space. Denmark reports the lowest 

proportion of shoppers using mobile devices, 

perhaps because Denmark does not yet have 

many large e-commerce companies. The 

websites of Danish companies, therefore, may 

not be as responsive as sites in Sweden.

Social Media

Nordic people generally use sites such as 

Facebook, LinkedIn, Instagram, Twitter, and 

Pinterest. Facebook is especially dominant, and 

Norway is one of the few countries of the world 

where Facebook ranks number one in terms of 

most visited sites. (Google is the most visited 

site in most other countries.)

Current Demand

As of 2014, and across all Nordic countries, the 

top product category is clothing and footwear. 

The second-most popular is generally home 

electronics, except in Sweden, where books 

take second place. Other popular products are 

cosmetics, skin care, and hair products, and 

sport and leisure items.

Sweden

• Top cross-border sources were the United 

Kingdom (42 percent), the United States 

(29 percent), and Germany (25 percent).

• On average, 33 percent of Swedes 

purchased products from foreign sites at 

least once every three months.

• Total cross-border e-commerce was 

approximately EUR 1.2 billion (around 

USD 1.3 billion)—about 21 percent of total 

e-commerce spending.

• Swedish online purchases from foreign sites 

account for only 7 percent of cross-border 

e-commerce.

Finland

• Top cross-border sources were the United 

Kingdom, Germany, Sweden, and the 

United States.

• On average, 49 percent of Finns purchased 

products from foreign sites at least once 

every three months.

• Total cross-border e-commerce was 

EUR 961 million (around USD 1.4 million)—

about 40 percent of total e-commerce 

spending.

Norway

• Top cross-border sources were the United 

States (41 percent), the United Kingdom (41 

percent), and China (27 percent).

• On average, 36 percent of Norwegians 

purchase products from foreign sites at 

least once a month, and 62 percent at least 

once every three months.

Denmark

• Top cross-border sources were the 

United Kingdom (50 percent), Germany 

(29 percent), and the United States 

(18 percent).

• On average, 38 percent of Danes purchased 

products online from foreign sites at least 

once every three months.

• Total cross-border e-commerce was EUR 

770 million (around USD 835 million)—

about 24 percent of total e-commerce 

spending.
148 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Major Buying Holidays

• Christmas is by far the largest commercial 

driver for e-commerce.

• Halloween and Valentine’s Day also drive 

some sales.

• The U.S. Black Friday creates only limited 

additional sales because the Nordic 

countries do not observe the Thanksgiving 

holiday. However, retailers seem to pick 

up on American holidays to generate extra 

traffic, so Black Friday could become a 

significant factor in a few years. 

Challenges

Intellectual Property Rights

Manufacturers need to make sure their 

intellectual property is protected, whether 

they produce a physical product or something 

intangible such as software, art, or music. 

Enforcement has generally been good and was 

recently strengthened throughout Europe.

Enforcing intellectual property rights (IPR) 

violations on intangible products has been 

less of a priority for police and customs in the 

Nordic countries, but the laws are currently 

being updated. Sweden has been a particular 

problem for the motion picture and music 

industries, mainly because of piracy via peerto-peer download services. However, a lack of 

government response has also been a problem.

IPR considerations are regulated by each 

country’s official patent offices. Regionally, 

the Nordic Patent Institute was established 

by the governments of Denmark, Iceland, and 

Norway to enhance the patent services of each 

member’s national patent office.

Data Collection

The Nordic countries maintain a relatively 

strict policy on storage of personal identity 

information compared with the rest of the 

world. The general regulatory framework 

mirrors the European Union (EU) policies, and 

additional national restrictions may apply. 

U.S. online resellers need to be mindful of 

their customers’ data and follow all required 

standards.

The Norwegian Data Protection Authority is 

responsible for protecting individuals’ right to 

privacy and processing of their personal data. 

Regulations are available at bit.ly/1MnoSK3.

Regulation

The Nordic region is a part of the European 

Single Market; therefore, effective strategies 

should apply to Europe as a whole, even for 

companies focusing on the Nordic region. 

E-commerce is a priority of the European 

Commission, through the Digital Single Market. 

The European Union intends to

• Harmonize consumer and contract rules 

with more efficient and affordable parcel 

delivery.

• Simplify VAT arrangements to boost 

the cross-border activities of business, 

especially SMEs (which typically have 

trouble dealing with complex foreign 

tax rules).

Prohibited Products

The Nordic region generally follows the 

European Union restriction regarding levels of 

hazardous materials—Restriction of Hazardous 

Substances Directive and Waste Electrical and 

Electronic Equipment Directive. (Norway is 

not part of the EU, but has similar regulations.) 

Contact your local U.S. Commercial Service 

trade specialist for an up-to-date list of items.

Resource

• PostNord. 2015. “E-Commerce in the 

Nordics 2015.” bit.ly/1OAedLD
Part III: Country Briefs 149

europe

The United Kingdom

Statistics

Capital: London

Population: 64.6 million

GDP (USD): 2.8 trillion

Currency: Pound sterling (GBP/£)

Language: English

Contact

Richard Stanbridge

Senior Commercial Specialist

richard.Stanbridge@trade.gov

+44 (0) 20 7894 0437

Summary

The United Kingdom (England, Wales, 

Scotland, and Northern Ireland) has a long 

history as a major player in international 

affairs. It fulfills an important role in the 

European Union, United Nations, and North 

Atlantic Treaty Organization. The United 

Kingdom is a leading trading power and 

financial center and is the third-largest 

economy in Europe after Germany and 

France. Although part of the European 

Union, the United Kingdom is not part of the 

Eurozone, and so its currency is not the euro.

More than 80 percent of homes in the United 

Kingdom have access to broadband.

UK consumers have more devices than ever. 

In 2015, the average consumer owned 3.3 

devices, up 10 percent from 2014. Some 51 

percent own tablets, and 75 percent own 

personal computers. The British are heavy 

Internet users: 85 percent go online at least 

once a day. That figure rises to 92 percent 

among individuals under 44 years old.

With so many Internet-connected devices at 

their fingertips, the British increasingly are 

multiscreening. For example, 64 percent go 

online while watching TV, with 63 percent 

using their smartphones and 36 percent 

using a tablet, desktop, or laptop.

Market Entry

Popular E-Commerce Sites

The top 20 UK e-commerce sites (in order of 

popularity) are

• amazon.co.uk: general e-commerce

• ebay.co.uk: general e-commerce

• rightmove.co.uk: residential property

• gumtree.com: general e-commerce

• tesco.com: groceries

• apple.com: technology

• netflix.com: movies and television shows

• autotrader.com: automobiles

• booking.com: travel and vacations

• zoopla.co.uk: residential property

• johnlewis.com: clothing and home 

goods

• asos.com: fashion

• marksandspencer.com: clothing and 

home goods

• diy.com: home improvement

• asda.com: groceries

• next.co.uk: fashion

• etsy.com: arts and crafts

• currys.co.uk: appliances and electronics

• boots.com: health and personal care

• ikea.com: furniture and home goods
150 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

The most popular types of e-commerce sites are

• General online retailers

• Price comparison sites

• Department stores

• Bus or train companies

• Banks and other financial institutions

• Airlines

• Supermarkets and grocery stores

Digital Advertising

Spending on digital advertising in 2014 was 

more than USD 11 billion, up 14 percent from 

2013. Mobile advertising accounted for 59 

percent of the market. The breakdown includes

• Paid search: 52 percent

• Display: 32 percent

• Classified: 15 percent

• Other: 1 percent

The United Kingdom is on course to become 

the first country in the world where spending 

on digital advertising outstrips all traditional 

formats combined. As consumers increasingly 

shop on smartphones and tablets, more than 

half of the nation’s 2015 advertising budget 

was expected to go to digital media, including 

a boom in paid-for results on search engines 

such as Google. The total UK advertising market 

was expected to hit USD 24 billion in 2015, up 

5.5 percent from 2014. Just over USD 12 billion 

was expected to be spent on advertising via 

search engines, in mobile apps, on newspaper 

websites, or through video-on-demand services 

such as ITV Player or 4oD.

Fulfillment

The United Kingdom has a robust fulfillment 

infrastructure with many options.

• United Kingdom Warehousing Association, 

ukwa.org.uk

• Asendia, asendia.co.uk

• DK Group, dkfulfilment.co.uk

• DMC, dmcdist.co.uk

• James and James, e-commercefulfilment.com

• ProFS, profulfilment.com

• Storeship, storeship.co.uk

Current Market Trends

Online sales grew 13 percent year-on-year 

in April 2015, following an unprecedented 

four months of merely single-digit growth, 

according to the latest figures from the IMRG 

Capgemini e-Retail Sales Index. April sales were 

up 4 percent month-on-month, the highest 

recorded for this period since 2007, as online 

shoppers were apparently unaffected by the 

uncertainty regarding who would win the 

upcoming general election.

The global increase in average temperatures 

seemed to provide a boost to UK clothing sales; 

as a result, clothing industry growth increased 

15 percent. The travel sector also continued 

to perform well in April, up 20 percent yearon-year. Mobile commerce continued to drive 

overall online sales growth. April’s figures 

showed that mobile sales increased 52 percent 

year-on-year and 8 percent over March.

Today, 59 percent of British buyers research 

products online before they purchase offline. 

Conversely, nearly half (49 percent) research 

products offline before making a purchase 

online. A quarter of British consumers (25 

percent) research their purchases online 

only. The effect of growing Internet use and 

mobile penetration is particularly relevant for 

local businesses. Four out of 10 people use 

smartphones to look for local information, 

such as products and prices, and 61 percent do 

research locally a day or less before purchase.
Part III: Country Briefs 151

Online Payment

Almost all UK-based online businesses accept 

credit or debit cards, including Visa and 

MasterCard. American Express, Diners Club, 

and JCB are less popular. Many websites use 

PayPal or other similar services. UK consumers 

are becoming much more aware of the issue of 

online identity theft and will generally conduct 

financial transactions only on secure websites.

Popular payment methods include

• Credit cards: 40 percent

• Debit cards: 35 percent

• PayPal: 21 percent

• Other: 4 percent

Mobile E-Commerce

Nearly three-quarters (71 percent) of 

residents have a smartphone (compared 

with the European average of 61 percent), 

and 60 percent use search engines via their 

smartphone at least once a week.

A recent study by vouchercodes.co.uk and 

the Centre for Retail Research shows that 

smartphones and tablets are now used for onethird of purposes leading up to a purchase, with 

20 percent of consumers shopping on their 

smartphones regularly and 14 percent using 

them as their primary shopping device.

The study revealed that mobile is now a key 

tool for shoppers’ discovery and research. 

Nearly half (46 percent) of consumers research 

purchases and read reviews, 43 percent browse 

online stores, and 38 percent make price 

comparisons. Mobile in-transit was also shown 

to be a significant untapped sales opportunity 

for retailers. Although only approximately 11 

percent of consumers make transactions while 

traveling to work, two-thirds of these customers 

spend between GBP 10 and GBP 200. On 

their way home, 16 percent of consumers will 

research specific products, browse social media, 

or check online stores for inspiration.

As consumers shift to more engaged shopping, 

16 percent will research coupons and discount 

codes, 15 percent will make price comparisons, 

and 20 percent will read product reviews.

Two in five shoppers (40 percent) had used their 

mobile phones for shopping purposes while in 

physical stores in the previous three months. 

The most common smartphone uses when 

out shopping were killing time while waiting 

for friends, family members, or a partner (89 

percent); finding out more about a product (56 

percent); and purchasing goods (43 percent).

One-third (33 percent) of shoppers had used 

their mobile device in-store to get discount 

codes, and 15 percent had used mobile 

applications to find the most relevant products. 

More than a fifth (21 percent) also claimed 

that discount coupons delivered to their 

smartphones would drive them into a store 

they had not planned to visit.

Increased mobile shopping activity means 

improved mobile offerings can benefit 

retailers’ overall e-commerce sales. Consumers 

comfortable shopping via their smartphone 

make 4.5 more online transactions and spend 

GBP 238.56 more in a three-month period (GBP 

668.82 compared with GBP 430.26) than do 

non-mobile shoppers.

Social Media

• Facebook

• YouTube

• Twitter

• LinkedIn

• Reddit

• Instagram

• Imgur

• Tumblr

• Pinterest

Promotions and Discounts

Coupons are popular with consumers. A 

number of websites provide coupons that give 
152 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

discounts at most of the United Kingdom’s 

leading retailers. Popular sites include

• vouchercodes.co.uk

• wowcher.co.uk

• groupon.co.uk/vouchers

Current Demand

Services

There is a special scheme for non-EU companies 

selling downloadable software over the 

Internet to clients within the European 

Union. The European Union classifies this 

type of transaction as an electronically 

delivered service. Non-EU companies selling 

downloadable software to EU customers 

must be registered for value-added tax (VAT) 

in at least one member state within the EU. 

Different requirements apply for accounting for 

VAT, depending on whether the customer is a 

corporation or an individual and depending on 

where the customer is physically located. This 

is a complex subject; companies should either 

engage an accountant to advise them or ensure 

that they are familiar with the regulations. For 

more information about the United Kingdom’s 

“electronically supplied services: special 

scheme for non-EU businesses,” please visit bit.

ly/1UIxMIX.

Major Buying Holidays

• New Year’s Day

• Valentine’s Day (February 14)

• Easter

• Mother’s Day (second Sunday of May)

• Father’s Day (third Sunday of June)

• Black Friday—UK retailers are slowly 

adopting Black Friday sales, even though 

Thanksgiving is not a UK holiday.

• Christmas Day and Boxing Day (December 

25 and 26)

Challenges

Intellectual Property Rights

The UK legal system provides a high level of 

intellectual property rights (IPR) protection. 

Enforcement mechanisms are comparable 

to those available in the United States. The 

United Kingdom is a member of the World 

Intellectual Property Organization (WIPO), the 

Berne Convention for the Protection of Literary 

and Artistic Works, the Paris Convention for the 

Protection of Industrial Property, the Universal 

Copyright Convention, the Geneva Phonograms 

Convention, and the Patent Cooperation Treaty. 

The United Kingdom has signed and, through 

various EU directives, implemented both the 

WIPO Copyright Treaty and WIPO Performances 

and Phonograms Treaty, known as the “Internet 

treaties.”

The UK Trade Marks Act of 1994 (bit.ly/1K36EfI) 

provides for the registration and protection of 

trademarks and has been harmonized with the 

EU trademark directive.

Trademarks are considered personal property 

in the United Kingdom and are normally 

registered for a period of 10 years with an 

option to renew. However, trademarks may be 

removed from the register if a period of five 

years has elapsed, during which time there 

has been no bona fide use of the trademark in 

relation to the goods by the proprietor.

Trade secrets, confidential test data, and other 

commercially sensitive information are not 

specifically subject to legal protection, but the 

misappropriation of such information from 

business premises may be subject to criminal 

law. Action under employment law also may be 

taken against an employee who, by disclosing 

information, breaches a contract with his or her 

employer. In addition, confidential test data, 

submitted in conjunction with a registered 
Part III: Country Briefs 153

application for pharmaceuticals or veterinary 

products, enjoy 10 years of exclusive protection 

from the date of authorization, provided the 

product is marketed in the United Kingdom.

For additional information, visit ipo.gov.uk.

Data Collection

Cookies are allowed, but websites must tell 

people if they set cookies and must clearly 

explain what the cookies do and why. The 

website must also get the user’s consent, 

typically through a pop-up box. Consent must 

be knowingly given.

An exception is made for cookies that are 

essential to provide an online service at 

someone’s request (such as to remember what’s 

in an online basket or to ensure security in 

online banking). The same rules also apply if 

companies use any other type of technology 

to store or gain access to information on 

someone’s device.

The Data Protection Act regulates the use 

of personal data in the United Kingdom. For 

information about the scope of the regulations, 

definitions, and more, visit bit.ly/1O6cnVJ.

The Privacy and Electronic Communications 

Regulations (PECR) give people more privacy 

in relation to electronic communications. There 

are specific rules on

• Marketing calls, e-mails, texts, and faxes

• Cookies (and similar technologies)

• Security for communication services

• Customer privacy regarding traffic and 

location data, itemized billing, line 

identification, and directory listings

Regulation

The main rules covering sales on the Internet 

are the Consumer Contracts Regulations of 

2013 (bit.ly/1NnbBlQ). These rules set out the 

rights that consumers have when making 

purchases over the Internet.

The Information Commissioner’s Office helps 

organizations comply with PECR and promotes 

good practices by offering advice and guidance. 

It will take enforcement action against 

organizations that persistently ignore their 

obligations, starting with those that generate 

the most complaints. For more information, 

visit bit.ly/1OHQ71I.

Prohibited Products

Goods that are prohibited from being imported 

into the United Kingdom include

• Illegal drugs

• Offensive weapons, such as switchblades

• Self-defense sprays, such as pepper spray 

and CS gas

• Endangered animal and plant species

• Rough diamonds

• Indecent and obscene materials

• Personal imports of meat and dairy 

products from most non-EU countries

• Goods suspected of infringing IPR (such as 

“pirate” copies of movies or music)

In addition, some goods are restricted, 

including firearms, explosives, and ammunition. 

A special license is required to bring them into 

the United Kingdom. Some food and plant 

products also are restricted.

Conclusion

U.S. Commercial Service • Preparing Your Business for Global E-Commerce 157

Summary 

A Look Ahead

E-commerce has grown by leaps and bounds, and all signs point to more growth to 

come. Its cross-border twin also is growing rapidly. The distinction between business 

to business and business to consumer has become increasingly blurred as individual 

consumers and businesses seeking new products or vendors use the same tools and 

marketplaces to find what they need.

There are several pain points for small businesses seeking online cross-border sales:

• Regulation compliance

• International shipping costs

• Widening e-commerce channels

• Payment methods

• Complex paperwork

• Returns

• Fraud

International buyers have their own pain points:

• Cost of goods and services

• Duties and taxes

• Ship times and missing deliveries

• Customer service, communication, 

and product return issues

• Missing or counterfeit goods

Despite mutual pain, the number of international sellers and buyers continues to 

expand. Reasons for growth include improvements in worldwide connectivity, smart 

devices with access to global products, the marriage of e-commerce and social 

media, a growing global middle-class with money to spend, a desire for novelty, 

and the thrill of a good deal. Also, smaller businesses can engage in cross-border 

e-commerce more easily these days, further expanding the universe of available 

goods. As this book illustrates, advances in technology and a hyper-savvy tech 

service industry have created tools that make it easier to sell to buyers in other 

countries. For a modest investment, a small company can begin taking and fulfilling 

international orders in a matter of hours. That’s worth repeating: in a matter of 

hours. Most of the pain points can be addressed by acquiring the right set of apps 

and outsourcing all or some of the fulfillment process.

Yes, the Millennials (those who reached young adulthood around the year 2000) 

may be leading the charge into the online future, but members of Generation Z (the 

generation born after the Millennials) are very comfortable with digital commerce 

and have started consuming online and influencing their peers about what and 

where to buy.
158 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Trade Agreements

If you are interested in cross-border e-commerce, you have additional reason for optimism: 

more trade agreements. As this book goes to press, the Trans-Pacific Partnership (TPP) is still a 

hot topic, and its implications are still making news headlines. The law also would provide more 

intellectual property protection and better treatment for investments.

An additional agreement is being negotiated with countries of the European Union. If approved 

by all parties, the agreement would further lower tariffs on qualifying goods in Europe. In 

addition, technical standards would be harmonized, lowering the delays and expense incurred 

by companies trying to bring their products into compliance. The result should be more trade 

and more opportunities for cross-border e-commerce. 

Separately, the European Union is trying to amend regulations that are unfriendly to small 

businesses. Amendments under consideration include a series of exemptions for small 

businesses that would reduce compliance and operating costs. Foreign small businesses trying 

to sell into the European Union also would benefit. Currently, small businesses in Europe 

struggle to sell across borders, even within the continent. The European Union government 

estimates that changes to the current welter of regulations limiting cross-border trade could 

save the small exporter up to USD 30,000 per year in unnecessary costs.

The U.S. Congress has approved legislation that raises the limit on low-value exports subject to 

duties from USD 200 to 800. This action is not reciprocal in other countries, but the legislation 

directs the administration to negotiate similar terms with other governments.

Trade Facilitation

The World Trade Organization’s Trade Facilitation Agreement is intended to reform customs 

procedures (especially in developing countries) in order to provide more efficiency, 

transparency, and speed for goods crossing borders. Various glitches and snafus add significant 

costs to the process of moving goods from one country to another. This agreement, if fully 

implemented by member states, should lower the costs of doing business and generate more 

trade, especially in Africa, India, and Southeast Asia.

The only two country markets with populations of more than 1 billion—China and India—have 

been cautious about opening their markets to foreign competition, especially with regard to 

e-commerce. However, China is placing more emphasis on increasing consumer spending, which 

in time should increase imports of consumer products. Alibaba, by far the largest e-commerce 

player in China, has vowed to make it easier for small foreign companies to sell to Chinese 

consumers. These efforts are in their early stages, and it’s not possible to judge their significance.

India is in the midst of a debate over how to roll out economic reforms, including opening the 

domestic market to more foreign investment and competition. There is general agreement 

within India that reforms are needed. U.S. companies have few options to sell via e-commerce, 

but those options may soon expand. Meanwhile, keep an eye on developments, and test the 

available channels by contacting the U.S. Commercial Service in India. 
159

Single Window Initiative

The Single Window Initiative is a U.S. effort to make the processes for expediting goods in and 

out of the country more efficient. For exports, a company would submit all documentation 

to a single agency (window) for processing and approval. Documents would be submitted, 

responded to, and tracked electronically. Interagency and information technology coordination 

are formidable. The system is scheduled to be in place by 2017 and should make the 

documentation and regulatory side of shipping goods easier and less costly. 

Expanding Access to the Internet

Countries vary widely in their ability to access information (as well as goods and services) via the 

Internet. In 2013, the Boston Consulting Group developed a scheme to score countries on the 

basis of factors such as access to high-speed Internet, the degree to which governments limit 

Internet access, and the amount of business transacted via digital means, among others. None 

of the rankings is particularly surprising, though a couple of countries in the Middle East (e.g., 

Qatar and the United Arab Emirates) come out ahead of European stalwarts Italy and Spain. The 

countries with “low-friction” scores are likely to be better positioned to engage in e-commerce; 

as such, the scores provide another criterion for market selection, promotion, and sales.

Every day, the United States works in front of but mostly behind the scenes to lower trade 

barriers for U.S. companies. Taken together, all of these initiatives (when fully in place) should 

make cross-border e-commerce easier and more profitable. There’s no reason to hesitate before 

opening a virtual store on your own website or in an e-commerce marketplace. As we like to say, 

“The world is open for your business.”

Cli
160 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Appendix A: Glossary of Terms

Alibaba

Chinese e-commerce company that provides consumer-toconsumer, business-to-business, and business-to-consumer sales 

services through web portals.

Amazon

Seattle-based online marketplace that claims an active user 

base of 244 million customers. Amazon operates web stores in 

13 countries in addition to the United States. The company offers 

services that range from listing a business’s inventory in its online 

store to order fulfillment and payment services.

Apple

California-based technology company that was a pioneer in 

personal computers and easy-to-use interfaces. Apple has created 

consumer markets in both hardware and software by introducing 

the iPod personal media player and the accompanying 

iTunes media player software, the iPhone smartphone and 

accompanying apps, and the iPad tablet computer.

Automated Commercial Environment (ACE)

System that replaces the document used to control exports and 

acts as the source for official U.S. export statistics. ACE is required 

for shipments when the value of the commodities, classified 

under any single Schedule B number, is more than $2,500. ACEs 

must be prepared and submitted, regardless of value, for all 

shipments requiring an export license or destined for countries 

restricted by the Export Administration Regulations (EAR). The 

exception is Canada, where the ACE filing is not required except 

for products requiring an export license.

B2B

See Business to Business.

B2C

See Business to Consumer.

B2G

See Business to Government.

Bill of Lading

Contract between the owner of the goods and the carrier. For 

vessels, there are two types: a straight bill of lading, which is not 

negotiable, and a negotiable, or shipper’s orders, bill of lading. 

The latter can be bought, sold, or traded while the goods are in 

transit.

Bing

Microsoft search engine.

Black Friday

In the United States, the day after Thanksgiving and the unofficial 

kickoff to the Christmas shopping season. Many stores offer 

promotions and early opening hours to attract customers, many 

of whom have the day off as part of a four-day weekend.

Blog

Regularly updated web page or website written in an informal 

style. Some blogs contain personal information and are like 

online diaries; others feature news and commentary.

Booted Off

Removed from a platform, usually because the user failed to 

follow the platform’s terms of service.

Brand Value

Premium that consumers will pay to obtain a good or service 

from a particular company because of loyalty, perceived quality, 

status, or other factors.

Brick and Mortar

A store that has an actual, permanent location and is not virtual.

Business Facilitation Services

Logistical and administrative support to businesses involved in 

international trade. Services range from assisting in obtaining 

visas to organizing meetings and arranging for drivers and 

interpreters. 

Business Matchmaking

Service that provides opportunities for business leaders to meet 

to potentially arrange sales or deals. Often small businesses are 

brought together with larger companies or the government in 

their own or different countries. Business matchmaking is one 

service provided by the U.S. Commercial Service.

Business Model

Plan that describes the way a business makes money.

Business to Business

Business model in which a business sells goods or services to 

another business. Business to business is often abbreviated B2B.

Business to Consumer

Business model in which a business sells goods or services to 

consumers. Business to consumer is often abbreviated B2C.

Business to Government

Business model in which a business sells goods or services to the 

government. Business to government is often abbreviated B2G.

C2C

See Consumer to Consumer.
Appendix A 161

Certificate of Export Declaration

Customs form completed and submitted by an exporter at the 

port of export to provide information on the amount, nature, 

and value of the exports. A certificate of export declaration also 

serves as an export control document. Such documents are now 

generally filed electronically. 

Certificate of Origin

Signed statement required in certain nations attesting to the 

origin of the export item. Certificates of origin are usually 

validated by a semiofficial organization, such as a local chamber 

of commerce. A North American Free Trade Agreement (NAFTA) 

Certificate of Origin is required for products traded among the 

NAFTA countries (Canada, Mexico, and the United States) when 

duty preference is claimed for NAFTA-qualified goods.

CFR

Incoterm indicating that cost and freight will be paid by the seller 

to a named port of destination. The risk transfers to the buyer 

after the goods leave the port. The shipper is not responsible for 

final delivery or for insurance. See also CIF, CPT.

Chinese New Year

Most important social and economic holiday in China, marking 

the beginning of the new year according to the lunar calendar 

and celebrated with a week off work to visit family. Chinese New 

Year falls in January or February. Celebrated for 15 days, Chinese 

New Year is also known as Spring Festival and is an occasion for 

sales promotions in Asian countries and other locations, such as 

the United States.

Christmas

Christian holiday falling on December 25 and commemorating 

the birth of Jesus. Christmas has become both a religious and a 

secular tradition in many countries. The tradition of giving gifts 

has encouraged retailers to offer promotions in Western countries 

and throughout the world. The Christmas shopping season starts 

as early as October and runs until Christmas Day.

CIF

Incoterm indicating that cost, insurance, and freight will be 

paid by the seller to a named overseas post. The seller quotes a 

price for the goods shipped by ocean (including insurance), all 

transportation costs, and miscellaneous charges to the point of 

debarkation from the vessel. See also CFR, CPT.

Commercial Invoice

Document prepared by the exporter or freight forwarder and 

required by the foreign buyer to prove ownership and to arrange 

for payment to the exporter. The commercial invoice should 

provide basic information about the transaction, including 

a description of goods, the addresses of the shipper and the 

seller, and the delivery and payment terms. In most cases, the 

commercial invoice is used to assess customs duties.

Consignment

Delivery of merchandise to the buyer or distributor, whereby the 

latter agrees to sell it and only then pays the U.S. exporter. The 

seller retains ownership of the goods until they are sold but also 

carries all of the financial burden and risk.

Consumer to Consumer

Business model in which consumers sell goods or services to one 

another through online auctions. Consumer to consumer is often 

abbreviated C2C.

Contract

Written or oral agreement that is legally enforceable.

Copyright

Protection granted to the authors and creators of literary, artistic, 

dramatic, and musical works; sound recordings; and certain 

other intellectual works. A computer program, for example, is 

considered a literary work in the United States and in some other 

countries. 

Counterfeit

A fraudulent imitation of another company’s product. Registering 

copyrights, patents, and trademarks is essential, particularly in 

countries that are known sources of counterfeit goods.

CPT

Incoterm indicating that carriage will be paid by the seller to a 

named destination. This term replaces CFR and CIF for all modes 

of transportation, including intermodal. See also CFR, CIF.

Currency Converter

Tool used for calculating the value of currency or the cost of an 

item on the basis of the current exchange rate between two 

countries. 

DHL

International shipping company that is part of the Deutsche Post 

DHL Group. It has a presence in 220 countries and territories 

worldwide.

Distributor

Merchant in the foreign country who purchases goods from the 

U.S. exporter (often at a discount) and resells them for a profit. 

The foreign distributor generally provides support and service 

for the product, thereby relieving the U.S. exporter of these 

responsibilities.

Distributor Business Model

Business model in which manufacturers contract with a 

distributer that handles transactions with wholesalers and 

retailers. Manufacturers and distributors do not deal directly with 

consumers under the model.
162 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

eBay

Originally a marketplace for online auctions. However, eBay 

now also serves as an online presence for retailers, providing 

fulfillment, shipping, and payment services. The company has 

fulfillment centers in the United States, Europe, and Asia. 

E-commerce

Practice of buying and selling over the Internet.

E-Commerce Europe

Association representing companies that sell goods and services 

in Europe. Ecommerce Europe’s activities include lobbying 

on behalf of its members and certifying companies with the 

Ecommerce Trustmark.

Ecommerce Trustmark

Initiative of Ecommerce Europe to provide a symbol that appears 

on websites to ensure potential customers that their consumer 

rights will be enforced. Participating companies promise to 

uphold the program’s quality standards and to follow the 

program’s procedures for handling disputes with consumers. 

eCRATER

Online marketplace and e-commerce website builder based in 

Irvine, California.

Euromonitor International

Market-research company based in London that provides 

business intelligence reports and data.

Export-Import Bank of the United States

Official export credit agency of the U.S. government. Acting as a 

government corporation, the bank finances and insures foreign 

purchases of U.S. goods for customers unable or unwilling to 

accept credit risk.

Export License

Government document that authorizes the export of specific 

goods in specific quantities to a particular destination. Some 

countries require an export license for most or all exports. Other 

countries require the document only under special circumstances.

Export Packing List

List that itemizes the exported material in each package and 

indicates the type of package, such as a box, crate, drum, or 

carton. An export packing list is considerably more detailed and 

informative than a standard domestic packing list. It also shows 

the individual net, fare, and gross weights and measurements for 

each package (in both U.S. and metric systems).

Ex Works (EXW)

International trade term that describes an agreement in which 

the seller is required to make goods available, suitably packaged, 

and ready for pickup at the seller’s business. The buyer assumes 

all other transportation costs and risks.

Facebook

Social networking website that provides businesses with 

the opportunity to advertise to consumers directly through 

advertising. In addition, businesses interact with their customers 

on Facebook pages that both post information to consumers and 

accept comments from them. 

FedEx

Global courier delivery service based in Memphis, Tennessee. 

FedEx provides additional services to businesses seeking to 

participate in e-commerce.

Fence 

Intermediary who purchases goods, sometimes illegally, for 

eventual resale.

Financial Study Association of Amsterdam

Organization that links business students at the University 

of Amsterdam to faculty and businesses. Activities include 

conducting studies of e-commerce.

FOB

Incoterm that means free on board and is used in international 

sales contracts. In an FOB contract, a buyer and a seller agree on a 

designated FOB point. The seller assumes the cost of having goods 

packaged and ready for shipment from the FOB point, whether 

it is the seller’s own place of business or some intermediate 

point. The buyer assumes the costs and risks from the FOB point, 

including inland transportation costs and risks in the exporting 

country, as well as all subsequent transportation costs, such as 

the cost of loading the merchandise onto a vessel. If the contract 

stipulates “FOB vessel,” the seller bears all the transportation costs 

to the vessel named by the buyer, as well as the costs of loading 

the goods onto that vessel. The same principle applies to the 

abbreviations FOR (free on rail) and FOT (free on truck).

Free Carrier

Seller is required to deliver goods to a named airport, terminal, or 

other location in which the carrier operates. Once the goods are 

delivered to the carrier, the costs of transportation and the risk of 

loss transfer to the buyer. 

Free Trade Agreement (FTA)

Treaty signed by at least two countries to reduce trade barriers, 

such as import quotas and tariffs, and to increase the trade of 

goods and services between the signatories.

Freight Costs

Costs incurred in moving goods. Such costs include packing, 

palletizing, documentation, and loading and unloading costs; 

carriage costs; and marine insurance costs. 
Appendix A 163

Freight Forwarder

Agent for moving cargo to an overseas destination. Freight 

forwarders are familiar with the import rules and regulations of 

foreign countries, the export regulations of the U.S. government, 

the methods of shipping, and the documents related to foreign 

trade.

Fulfillment Service

Third-party warehouse that prepares and ships orders for a 

business.

Google

American technology company that specializes in Internetrelated products and services, including online advertising 

technologies, cloud computing, and software. Probably best 

known for its search engine, Google restructured in 2015, 

becoming a subsidiary of a new parent company, Alphabet.

Groupon

Global e-commerce marketplace that connects subscribers with 

local merchants by offering activities, travel, goods, and services 

in more than 28 countries. 

Harmonized Commodity Description and 

Coding System

Internationally standardized system of names and numbers used 

to classify traded products. The harmonized codes have six digits, 

which describe the item in sets of two-digit numbers. Each set of 

numbers provides a progressively specific description of the item.

ICT Infrastructure

Information and communications technology infrastructure, 

which comprises all of a business’s computer hardware and 

software as well as its communication equipment. 

Incoterms

See Terms of Sale.

Infocomm Development Authority (IDA)

Singapore government agency that identifies and facilitates the 

adoption of information and communications technology (ICT) 

to enhance Singapore’s competitiveness and to drive economic 

growth.

Inland Revenue 

Name used by many countries for their tax collection agency. 

Great Britain formerly had an Inland Revenue Service, but it 

has been merged with HM Customs and Excise and is now HM 

Revenue and Customs.

Instagram

Online mobile photo-sharing, video-sharing, and social 

networking service that enables users to share photos and 

videos publicly or privately on the app or through other social 

networking platforms.

Intellectual Property

Creations of the mind, such as inventions; literary and artistic 

works; designs; and symbols, names, and images used in 

commerce. See also Intellectual Property Rights.

Intellectual Property Protection

Means of protecting intellectual property involving the 

registration of copyrights, patents, and trademarks.

Intellectual Property Rights (IPR)

Collective term used to refer to new ideas, inventions, designs, 

writings, films, and other creations of the mind that are protected 

by a copyright, patent, or trademark.

Intellectual Property Theft

Violation of intellectual property rights through unauthorized 

use of intellectual property protected by a patent, trademark, 

registered design, or copyright.

Internal Revenue Service (IRS)

Agency of the U.S. government that is responsible for collecting 

taxes and enforcing tax laws.

Internet Protocol (IP)

Method by which information is sent from one computing device 

to another. See also IP Address.

IP Address

Unique address that a computing device such as a personal 

computer, tablet, or smartphone uses to identify itself and 

communicate with other devices on the Internet Protocol (IP) 

network. 

Knockoff

Inferior copy, generally of an expensive, popular product.

Lessons Learned

Useful information gained through experience that an 

organization retains for future use and that can be shared with 

other organizations.

Licensing

Arrangement in which a company sells the rights to use its 

products or services but retains some control. Although not 

usually considered to be a form of partnership, licensing can lead 

to partnerships.

LinkedIn

Business-oriented social networking site.

Market Price

Economic price for which a good or service is offered in the 

marketplace.
164 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Marketing Partners

Companies, professionals, or salespeople who join forces 

for marketing and sales in the hope that their similar or 

complementary offerings will expand the market for each. The 

partnerships often involve joint advertising but may also include 

the creation of a product that combines elements of each brand. 

Marketing Strategy

Combination of a company’s marketing goals into one plan. A 

marketing strategy should take into account market research 

and focus on the right product mix to create maximum profit 

potential and sustain the business.

Multichannel Approach

Business effort to interact with potential customers on various 

platforms. For example, print and television advertising could be 

accompanied by efforts to reach consumers on social networking 

sites.

North American Free Trade Agreement (NAFTA)

Trade agreement between the United States, Canada, and Mexico 

featuring duty-free entry and other benefits for goods that 

qualify.

Outsourcing

Contracting a part of a business process to another party.

Packing List

See Export Packing List.

Patent

Right that entitles the patent holder, within the country that 

granted or recognizes the patent, to prevent all others, for a set 

period of time, from using, making, or selling the subject matter 

of the patent.

Payvision

Amsterdam-based company that handles cross-border processing 

of payments in e-commerce.

Pinterest

Visual bookmarking tool that enables users to track and share 

ideas, including suggestions of items and services to purchase.

Platform

Business model that creates value by facilitating exchanges 

between businesses and customers. 

Product Mix

Range of product lines that a company offers to consumers.

Proxy Server

Computer server or application that acts as an intermediary 

between the company’s server and the open Internet. The proxies 

protect the company’s server and increase performance speeds 

by reducing the traffic on the company’s server. 

Sanctions

Actions taken against other nations for political reasons. 

Economic sanctions include trade barriers and restrictions on 

financial transactions.

Search Engine

Software system that searches for information on the Internet.

Sears Marketplace

Online store for the Illinois-based retail chain. The website is a 

marketplace for merchants to advertise and sell their products 

to Sears customers. Sears provides payment transactions so that 

consumers’ credit card information is not distributed to individual 

merchants. Merchants may hire Sears to provide fulfillment and 

arrange for shipping or do so themselves.

Smart Nation

Singapore’s national effort to create a future of better living 

through tech-enabled solutions.

Social Media

Internet-based applications that enable people or companies to 

create, share, or exchange information and user-created content.

Supply Chain

Sequence of processes involved in the production and distribution 

of a commodity. 

Tariff

Tax imposed on a product when it is imported into a country. 

Some countries also apply tariffs to exports.

Terms of Sale

Terms that define the obligations, risks, and costs of the buyer and 

seller in the delivery of goods involved in the export transaction. 

These terms are commonly known as Incoterms.

TradeKey

E-marketplace that focuses on Asia.

Trademark

Word, symbol, name, slogan, or combination thereof that 

identifies and distinguishes the source of sponsorship of goods 

and may serve as an index of quality of a particular product.
Appendix A 165

Trademark Infringement

Unauthorized use of a trademark or service mark on or in 

connection with goods or services in a manner that is likely to 

cause confusion or deception about the source of the goods or 

services. 

Translation Software

Programs that enable people to translate content from one 

language to another on a computer.

Troll

Person who posts inflammatory or off-topic comments in an 

online community or in response to other people’s Internet posts 

with the deliberate intention of upsetting readers or disrupting 

normal discussion. The term has also come to mean one who 

engages in Internet harassment.

Tumblr

Microblogging platform and social networking website that 

enables users to post multimedia and other content to a shortform blog.

Twitter

Online social networking service that enables users to send and 

read messages, or “tweets,” of up to 140 characters, as well as 

photos. 

Universal Product Code (UPC) 

Type of barcode that is used to track retail items. 

UPS

Atlanta-based freight company that provides logistics and 

distribution services throughout the world and that offers 

international trade management and customs brokerage, supply 

chain design and planning, and other business services.

U.S. Free Trade Agreement Partners

Twenty countries that have signed a free trade agreement with the 

United States to reduce trade barriers, such as tariffs and import 

quotas, and increase trade of goods and services. At present 14 

free trade agreements are in effect, with other agreements at 

various stages of negotiations. The U.S. free trade agreement 

partners are Australia, Bahrain, Canada, Chile, Colombia, Costa 

Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, 

Israel, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, 

the Republic of Korea, and Singapore.

U.S. Postal Service (USPS)

Independent agency of the U.S. government that, in addition to 

providing domestic postal services, provides shipping services to 

more than 180 countries.

Virtual Company

Organization that uses computer and telecommunications 

technology to extend its capabilities by working with employees 

or contractors throughout the country or the world.

World Bank

Group of five development institutions working to alleviate 

poverty worldwide.

World Bank’s Logistics Performance Index 

Interactive benchmarking tool created to help countries identify 

the challenges and opportunities they face in their performance 

on trade logistics and determine what they can do to improve 

their performance. 

Yahoo!

California-based technology company known for its web portal, 

search engine, mail service, news and media website, and related 

services.

YouTube

Video-sharing website that provides a distribution platform for 

original content creators and advertisers of all sizes.
166 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Appendix B: Definitions of Abbreviations

ACE Automated Commercial Environment

AV adjusted value

AVS address-verification system

B2B business to business

B2C business to consumer

B2G business to government

BIS Bureau of Industry and Security

C2C consumer to consumer

CAFTA-DR Central America and Dominican Republic Free 

Trade Agreement

CCL Commerce Control List

CDC Centers for Disease Control and Prevention

CEO chief executive officer

CFR cost and freight

CIA Central Intelligence Agency

CIF cost, insurance, and freight

CIP carriage and insurance paid to 

COO certificate of origin or chief operating officer 

(depending on context)

CPA certified public accountant

CPT carriage paid to

CROSS Customs Rulings Online Search System

CS U.S. Commercial Service

CSC card security code

CTO chief technology officer

CVN Card Verification Number

DCS destination control statement

DDP delivered duty paid

DDTC Directorate of Defense Trade Controls

DDU delivered duty unpaid

DHL DHL (formerly DHL Worldwide Express)

DOC U.S. Department of Commerce

DOE U.S. Department of Energy

DOS U.S. Department of State

EAR Export Administration Regulations

ECCN Export Control Classification Number

EMC Export Management Company

EMCP Export Management and Compliance Program

ESS electronically supplied services

ETC Export Trading Company

Ex-Im Bank Export-Import Bank of the United States

EXW ex works

FAS Foreign Agricultural Service or free alongside 

ship (depending on context)

FCA free carrier

FDI foreign direct investment

FedEx FedEx (formerly Federal Express)

FOB free on board

FTA free trade agreement

FTZ free trade zone

GDP gross domestic product

GEE Global Entrepreneurial Ecosystem

GRI General Rules of Interpretation

HS Harmonized System

HTS Harmonized Tariff Schedule

IBP International Buyer Program

ICT information and communications technology

IDA Infocomm Development Authority

IIPA International Intellectual Property Alliance

IP Internet Protocol or intellectual property 

(depending on context)

IPR intellectual property rights

IRS Internal Revenue Service

ITA International Trade Administration

ITAR International Traffic in Arms Regulations

LLC Limited Liability Corporation

LLP Limited Liability Partnership

MDB Multilateral Development Bank

NAFTA North American Free Trade Agreement

NC net cost

OFAC Office of Foreign Assets Control

PCT Patent Cooperation Treaty

RA return authorization

RMA return merchandise authorization

ROI return on investment

ROO rules of origin

RVC regional value content

SBA U.S. Small Business Administration

SBDC Small Business Development Center

SEO search engine optimization

SME small and medium-sized enterprise

TANC trade agreements negotiations and compliance

TFC Trade Fair Certification Program

TRIPS Agreement on Trade-Related Aspects of 

Intellectual Property Rights

TV transaction value

UPC Universal Product Code

UPS UPS (formerly United Parcel Service)

URL uniform resource locator

USAID U.S. Agency for International Development

USDA U.S. Department of Agriculture

USML U.S. Munitions List

USPS U.S. Postal Service

USTDA U.S. Trade and Development Agency

USTR Office of the U.S. Trade Representative

VAT value-added tax

VNM value of nonoriginating materials

VOM value of originating materials

VP vice president

WTO World Trade Organization
Appendix C 167

Appendix C: Free Trade Agreements Chart Year Implemented Merchandise Processing Fee Transit and Transhipment Direct Shipment Imported Directly Rule of Origin Citation Rule of Origin Calculation Method Regional Value Content Automotive Goods De Minimis Rules of Origin Chemical Reaction and Related Special Origination Rules Drawback Restriction Documentation Required Responsibility for Compliance Repair and Alteration Provision

NAFTA 1994 1 3

GN* 12 (b), 

19 CFR 181, 

append. II §4

7,8 14 Yes,20 25 Yes, for certain 

petroleum products 27 Yes Yes,31 Exporter Duty Free

Chile 2004 1 3,4 GN 26 (b), 19 

CFR 10.451 7,9 15 No,21 26 Yes, HTS†

 Ch. 27–38, 

GN 26 (m) (vi) No Yes No,32 Importer Duty Free

Singapore 2004 1 5 GN 25 (b), 19 

CFR 10.531 7,9,10 15 No,21 26 Yes, HTS Ch. 27–40, GN 25 (n) (v) 28 No No,32 Importer Duty Free

Australia 2005 1 5 GN 28 (b) 7,9

15

(automotive 

only)

22 26 Yes, HTS Ch. 27–40, 

GN 28 (m) (vii) No No No,32 Importer Duty Free

Israel 1985 1 6 Agreement 

Annex 3 11 16 No No No 29 No 33 Importer No

Jordan 2001 2 6 GN 18 (b) 11 16 No No No No No No,32 Importer No

Bahrain 2006 1 5 GN 30 (b) 11,12 17 No No No No No No,32 Importer Duty 

Free

Morocco 2006 2 5 GN 27 (b) 11,12 17 No No No No No No,32 Importer Duty 

Free

Oman 2009 1 5 GN 31 (b) 11 or 13 17 No No No No No No,32 Importer Duty 

Free

CAFTA-DR 2006–

2009 2 3,4 GN 29 (b) 7,9 18 Yes,23 26 Yes, HTS Ch. 27–40, GN 29 (m) (vii) 30 No No,32 Importer Duty Free

Peru 2009 1 3,4 GN 32 (b) 7,9 18 Yes,24 26 Yes, HTS Ch. 27–40, 

GN 32 (m) (vii) No No No,32 Importer Duty Free

Korea, Rep. of 2012 1 3,4 GN 33 (b) 7,9 18,19 Yes,23 26 Yes, HTS Ch. 27–40, 

GN 33 (m) (vii) No No No,32 Importer Duty Free

Colombia 2012 1 3,4 GN 34 (b) 7,9 18 Yes,24 26 Yes, HTS Ch. 27–40, 

GN 34 (m) (vii) No No No,32 Importer Duty Free

Panama 2012 1 3,4 GN 35 (b) 7,9 18 Yes,23 26 Yes, HTS Ch. 27–40, 

GN 35 (m) (vii) No No No,32 Importer Duty Free

* General Note

† Harmonized Tariff Schedule

1 Exempt for Originating Goods

2 No exemption

3 Transhipment—may not leave customs control or undergo 

production in a third country

4 Transit—may not leave customs control or undergo production in a 

third country

5 May leave customs control but may not undergo production in a 

third country

6 May change hands in non-retail sale for re-export; may not undergo 

further production in third country

7 Wholly obtained or produced

8 Wholly of originating materials, tariff shift, and/or Regional 

Value Content

9 Wholly of originating materials, tariff shift, and Regional 

Value Content

10 Integrated Sourcing Initiative (ISI)

11 Wholly of Growth, Product, or Manufacture or Value Content plus 

Substantial Transformation

12 19 CFR 102 or Product Specific Tariff Shift

13 Product Specific Tariff Shift

14 Transaction Value and Net Cost method where there is regional value 

of content (RVC)

15 Build-Up or Build-Down method where there is RVC

16 U.S. materials plus direct cost of processing must equal 35 percent of 

appraised value (up to 15 percent second market content)

17 U.S./second market materials plus direct cost of processing must 

equal 35 percent of appraised value

18 Build-Up, Build-Down, Net Cost (limited)

19 Indirect materials are disregarded when computing value of 

originating materials in Build-Up RVC

20 Tracing the value of certain non-originating materials and Net Cost 

required

21 RVC percentage is 30 percent Build-Up or 50 percent Build-Down 

method where there is RVC

22 Certain tariffs require net cost

23 Automotive goods may use Net Cost, Build-Up, or Build Up for RVC

24 Automotive goods must use Net Cost RVC

25 7 percent of transaction value with exceptions

26 10 percent of transaction value with exceptions

27 Preference Criterion E for certain high-tech goods

28 Integrated Sourcing Initiative for certain high-tech goods imported 

from Singapore

29 Qualified Industrial Zones: Gaza, West Bank, parts of Jordan

30 Qualifying goods for certain agricultural products

31 NAFTA certificate of origin must be in importer’s possession at time 

of claim

32 Freeform paperwork of required type (certification, supporting 

statement, declaration) with data elements upon request 

by Customs

33 Green Form unless approved exporter
168 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Appendix D: De Minimis Values

Maximum Values for which Goods May Be Duty Free

The chart below is provided only for general reference. Exchange rates change daily; local de minimis values 

may change periodically. For the latest information, please consult your preferred foreign exchange converter 

or contact your local U.S. Commercial Service trade specialist. For a list of offices, visit export.gov/usoffices.

Country Value (local) Value (USD)

Andorra EUR 12 13.41

Armenia AMD 

150,000 314.34

Australia AUD 1,000 777.12

Austria

EUR 1501 167.55

EUR 222 24.57

Azerbaijan USD 1003 1,000.00

USD 2003 200.00

Bahrain N/A N/A

Belarus EUR 10 11.17

Belgium EUR 1501 167.55

EUR 222 24.57

Bolivia USD 1004 100.00

Bulgaria EUR 1501 167.55

EUR 152 16.75

Brunei BND 400 296.35

Cambodia KHR 204,297.50 50.00

Canada CAD 20 16.03

Chile CLP 18,767.85 30.00

China RMB 501,2 8.06

Croatia

EUR 1501 167.55

EUR 222 24.57

Cyprus

EUR 1501 167.55

EUR 172 19.01

Denmark EUR 1501 167.55

EUR 222 24.57

Dominican 

Republic DOP 8925 200.00

Ecuador USD 4003 400.00

Estonia

EUR 1501 167.55

EUR 21.982 24.58

Ethiopia EUR 20 22.37

Finland EUR 1501 167.55

EUR 222 24.57

France

EUR 1501 167.55

EUR 222 24.57

Georgia 

GEL 5003,5,6 218.32

GEL 10003,5,7 434.64

GEL 3000 3,5,7,8 1,309.93

Country Value (local) Value (USD)

Country Value (local) Value (USD)

Germany

EUR 1501 167.55

EUR 222 24.57

Greece

EUR 1501 167.55

EUR 222 24.57

Guatemala N/A N/A

Honduras USD 5009 500.00

Hungary

EUR 1501 167.55

EUR 222 24.57

Iceland ISK 1,000 7.54

India INR 10,0005 156.30

Indonesia IDR 661,050 50.00

Iran USD 50 50.00

Ireland EUR 1501 167.55

EUR 222 24.57

Israel ILS 385.35 100.00

Italy EUR 1501 167.55

EUR 222 24.57

Japan JPY 10,000 80.58

Jordan JOD 2010 28.23

Korea, 

Rep. of USD 10011 100.00

Latvia

EUR 1501 167.55

EUR 222 24.57

Liberia 12,699 LRD 150.00

Lithuania EUR 1501 167.55

EUR 222 24.57

Luxembourg EUR 1501 167.55

EUR 222 24.57

Malaysia MYR 500 0.46

Malta EUR 1501 167.55

EUR 222 24.57

Mexico MXN 775.26 50.00

Morocco MAD 300 30.91

Netherlands EUR 1501 167.55

EUR 222 24.57

New 

Zealand NZD 400 286.97

Norway NKR 200 25.90

Panama USD 200 200.00

Country Value (local) Value (USD)

Country Value (local) Value (USD)

Paraguay PYG 509,551 100.00

Peru PEN 631.60 200.00

Philippines PHP 15 0.48

Poland EUR 1501 167.55

EUR 222 24.57

Portugal EUR 1501 167.55

EUR 222 24.57

Qatar USD 822 822.00

Romania

EUR 1501 167.55

EUR 222 24.57

Russia RUB 7,964 147.16

Rwanda USD 400 400.00

Singapore SGD 400 297.90

Slovak 

Republic

EUR 1501 167.55

EUR 222 24.57

Slovenia EUR 1501 167.55

EUR 222 24.57

Spain 

EUR 1501 167.55

EUR 222 24.57

Sweden EUR 1501 167.55

EUR 222 24.57

Switzerland CHF 5 5.35

Taiwan TWD 3,000 97.52

Thailand THB 1,000 29.72

Uganda UGX 30,850 10.00

Ukraine UAH 2,095 100.00

United 

Kingdom

EUR 1501 167.55

EUR 222 23.00

Uruguay UYU 5352 200.00

United 

States USD 200 200.00

Venezuela VEF 635 100.00

Vietnam VND 1,000,000 45.84

Country Value (local) Value (USD)

1 Customs duties

2 Value-added tax

3 Weight limit applies

4 Postal shipments only

5 Noncommercial shipments only

6 HS headings 0401-0406, 1702-

1704,2101-2102; chapters 6, 7, 8, 19

7 Commodities in HS chapters 28–96

8 Applies to air freight

9 Some exceptions apply

10 Commercial samples

11 Personal-use items only
Index 169

Index

A

abbreviations, 166

ACE. See Automated Commercial 

Environment

address-verification system (AVS), 55

advertising. Seedigital advertising

Africa

Kenya, 88–89

South Africa, 91–92

Alibaba, 15, 21, 76, 88, 108–109, 158, 160

Alignment Simple Solutions, 80–81

Alipay, 56, 109

Allopass, 136

Amazon, 19–21, 160

Alignment Simple Solutions, 80–81

Benelux Union, 130

Canada, 93, 94

China, 20–21, 108

France, 135–136

Germany, 139

India, 111–112

Japan, 115–117

Kenya, 88

Mexico, 100

Nordic regions, 145

Peru, 103

Republic of Korea, 121–123

Singapore, 126

South Africa, 91

United Kingdom, 149

Americas

Brazil, 13, 15

Canada, 93–97

Colombia, 98–99

Mexico, 100–101

Peru, 102–106

Ameroc Export Inc., 76–77

AMIPCI. See Mexican Internet Association

Annual Online Fraud Report, 54, 55

anti-diversion clause, 49–50

Apple, 160

applications or apps, 19

arms trade, 49

Arnold, Paul, 49–50

ASBANC. See Asociación de Bancos del Perú

Asia-Pacific region

Australia, 11, 12

China, 107–110

India, 111–114

Japan, 111–116

market size, 8

middle-class growth in, 11

Republic of Korea, 121–125

Russia, 13

Singapore, 126–129

social media users, 22

Trans-Pacific Partnership, 158

Asociación de Bancos del Perú, 106

Australia, 11, 12

Automated Commercial Environment, 48, 

63, 160

AVS. Seeaddress-verification system

B

B2B. Seebusiness to business (B2B)

B2C. Seebusiness to consumer (B2C)

B2E. Seebusiness to everyone

B2G. Seebusiness to government (B2G)

B2Wdigital.com, 22

background checks, 56

"ballparking," in tariff calculation, 60

BeCommerce, 133

Belgium, 130–134

Benelux Union, 130–134

big e-marketplaces, 15, 18–21

bill of lading, 49, 160

Bing, 28, 72–73, 160

BIS. See Bureau of Industry and Security

Black Friday, 87, 101, 127, 148, 152, 160

blog, 31, 73, 81, 83, 160

Bongo International, 9, 30

booted off, 160

Brazil, 13, 15

brick and mortar, 160

brokerage fees, in Canada, 97

BSF Almacenes del Perú, 103

Bureau of Industry and Security (BIS), 47–50

business matchmaking, 78–79, 160

business model, 160

distributor, 161

platform, 164

business to business (B2B), 7, 160

business to consumer (B2C), 7, 160

business to everyone (B2E), 7–8

business to government (B2G), 7, 160

buying agents, Korean, 123

buying holidays

Benelux Union, 132

Black Friday, 87, 101, 127, 148, 152, 160

China, 109–110

Chinese New Year, 110, 161

Christmas, 161

Cyber Monday, 105

France, 137

Germany, 140

India, 113

Israel, 87

Japan, 118

Kenya, 90

Mexico, 101

Nordic region, 148

Peru, 105

South Africa, 92

United Kingdom, 152

C

C2C. Seeconsumer to consumer

Canada, 93–97

brokerage fees in, 97

cross-border consumers, 15, 93–95

data collection, 95–96

duties and taxes, 12, 96

intellectual property rights, 95

NAFTA, 43, 44, 45, 94, 164

textile and apparel rules, 38

card security code (CSC), 55–56

carriage paid to (CPT), 57, 161

CCL. SeeCommerce Control List

certificate of export declaration, 161

certificate of origin, 42–45, 161

CFR. Seecost and freight

chargebacks, 55

checkout, 29–30

China, 107–110

Alibaba, 15, 21, 76, 88, 108–109, 158, 160

Amazon, 20–21, 108

cross-border consumers, 13, 107–108

economic reform in, 158

knockoffs in, 110

market size, 8

mobile e-commerce, 29, 109

Singles' Day, 109–110

as top online exporter, 15

Chinese New Year, 110, 161

Christmas, 161

CIF. Seecost, insurance and freight

classification codes, 36–40, 59

CM-CIC Paiement, 136

CNIL. See National Data Processing and 

Liberties Commission

Colombia, 98–99

Commerce Control List (CCL), 47

commercial invoice, 44, 48, 161

Communications Authority of Kenya, 90

consignment, 161

Consumer Affairs Committee (Kenya), 92

Consumer Contracts Regulations of 2013 

(United Kingdom), 153

consumer(s)

behavior and preferences, 14–15

geography, 13

purchases of, 14

consumer to consumer (C2C), 7, 161

contract, 161

copycatting, 110

copyright, 35, 50, 161. See alsointellectual 

property

cost and freight (CFR), 161

Costco, 93

cost, insurance, and freight (CIF), 57, 58, 161

counterfeit, 161

country briefs, 85–153. See alsospecific 

countries

Country Commercial Guides, 50

country-level domain codes, 27

country of origin, 42–45

determining products, 43–44

documentation of, 44–45

free trade agreements, 43, 44, 45

country-specific payment cards, 54

CPT. Seecarriage paid to

credit cards, 54–56

CROSS. SeeCustoms Rulings Online Search 

System

cross-border e-commerce

barriers to, 11–12

categories of sellers in, 12

consumer behavior and preferences in, 

14–15

definition of, 8

drivers of, 10–11

geography of consumers, 13

products and purchases in, 14

size of market, 8–10

top three exporters, 15

U.S. advantage in, 14

CSC. Seecard security code

currency

managing strong dollar, 40

websites and, 29–30

currency converter, 29–30

customer service, 13, 15

customs broker, 60

Customs Rulings Online Search System 

(CROSS), 37

Cyber Monday, 105

D

Dangdang (China), 108

data collection

Benelux Union, 133

Canada, 95–96

European Union, 27, 142

France, 137–138

Germany, 141–142

India, 114

Israel, 87

Japan, 120

Kenya, 90

Mexico, 101

Nordic region, 148

Peru, 105–106

United Kingdom, 153

data mining, 33

Data Protection Act (United Kingdom), 153

DCS. Seedestination control statement

DDP. Seedelivered duty paid

DDTC. See Directorate of Defense Trade 

Controls

DDU. Seedelivered duty unpaid

de la Flor, Lisa, 82

delivered duty paid (DDP), 57, 58

delivered duty unpaid (DDU), 57, 59

delivery locations, alternate, 62

de minimis value, 12, 168

Denmark, 131, 144–148

destination control statement (DCS), 49–50

DHgate.com, 22

DHL, 161
170 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

digital advertising

Benelux Union, 131

Canada, 94, 96

China, 108

France, 135

Germany, 139

India, 112

Japan, 116

Kenya, 88

Mexico, 100

Nordic region, 145

Peru, 103

South Africa, 91

United Kingdom, 150

Digital Single Market, 148

Directorate of Defense Trade Controls 

(DDTC), 49

distributor, 40–42, 161

distributor business model, 161

documentation

bill of lading, 49

certificate of export declaration, 161

certificate of origin, 42–45, 161

classification codes, 36–40

commercial invoice, 44, 48, 161

contract, 161

destination control statement, 49–50

export packing list, 162

return merchandise authorization, 62

dollar, strong, managing, 40

domain name, 27

Dutch Data Protection Authority, 133

duties. Seetariffs

duty-free goods, 13, 168

E

EAR. SeeExport Administration Regulations

EAR99, 47, 48

eBay, 14, 18–19, 162

Benelux Union, 130

Canada, 93

France, 135

Germany, 139

India, 112

Israel, 86

Nordic region, 145

Peru, 103

Republic of Korea, 121, 122, 123

Scott Eder Gallery, 66–67

Singapore, 126

South Africa, 91

SPF Depot, 72–73

United Kingdom, 149

ECCN. SeeExport Control Classification 

Number

e-commerce

cross-border, 8

definition of, 7, 162

growth and projected growth, 9, 157

mobile-friendly, 19, 29

pain points in, 157

reasons for buying online, 10–11

size of market, 8–9

types of, 7–8

E-Commerce Europe, 145–147, 162

e-commerce platforms, 8, 17–23

big marketplaces, 15, 18–21

checklist for, 20

company websites, 17–18, 25–33

home shopping on television, 23

niche or regional marketplaces, 21–22

social media, 8, 22

eCRATER, 80, 162

Eder, Scott, 66–67

electronically supplied services (ESS), in 

European Union, 142–143

Electronic Money Project (Peru), 106

e-marketplaces

big, 15, 18–21

company website vs., 25–26

niche or regional, 21–22

EMCP. SeeExport Management and 

Compliance Program

England, 149–153

e-procurement, 7

ESS. Seeelectronically supplied services

Etsy.com, 22

EU. SeeEuropean Union

Euromonitor International, 162

Europe

Benelux Union, 130–134

duties and taxes, 12

E-Commerce Europe, 145–147

e-commerce purchases, 15

France, 135–138

Germany, 139–143

Nordic region, 144–148

United Kingdom, 15, 149–153

European Single Market, 148

European Union (EU)

Directive 2000/31/CE of June 8, 2000, 138

intellectual property protection, 35, 

141, 148

Mini One-Stop Shop (MOSS), 143

personal data restrictions, 27, 142

textile and apparel rules, 38

trade agreements, 158

U.S.–EU Safe Harbor program, 28, 142

value-added tax, 20, 59, 142–143

EU-U.S. Privacy Shield Framework, 28, 142

Export Administration Regulations (EAR), 

47–50

Export Control Classification Number (ECCN), 

47, 48

export controls, 47–50

Export-Import Bank of the United States, 162

export license, 47–50, 162

Export Management and Compliance 

Program (EMCP), 48

ExportNow.com, 22

export packing list, 162

EXW (ex works), 57, 162

F

Facebook, 8, 22, 162

Federal Data Protection Act (Germany), 142

FedEx, 9, 162

fence (intermediary), 162

Financial Study Association of Amsterdam, 

162

Finland, 144–148

Flipkart, 111, 112

forms. Seedocumentation

framing, 114

France, 135–138

fraud, 54–56

chargebacks and, 55

excluding high-risk countries, 56, 70–71

minimizing, 55–56

free carrier, 162

free on board (FOB), 57, 162

free trade agreements, 44, 158

chart of, 167

definition of, 162

KORUS FTA, 121–122, 125

NAFTA, 43, 44, 45, 94, 164

Trans-Pacific Partnership (TPP), 158

U.S. partners, 165

freight costs, 162

freight forwarder, 163

fukubukuro (lucky bags, Japan), 118

fulfillment, 29–31

Benelux Union, 130

Canada, 94

France, 136

Germany, 139–140

Japan, 116

Kenya, 88

Mexico, 100

Nordic region, 145

Peru, 103

Singapore, 127

United Kingdom, 150

fulfillment service, 30, 163

G

Gann, Gary, 80–81

General Rules of Interpretation (GRI), 38

Generation Z, 157

Geobytes, 71

geolocation, 56, 71

Germany, 139–143

Gililland, Pat, 72–74

glossary, 160–165

goods and services tax (GST), Singapore, 128

Google, 15, 19, 25, 28, 163

Alignment Simple Solutions, 80

SPF Depot, 72–73

VTO Saddlery, 70

Google Analytics, 33

Google Image Search, 32

Google Shopping, 22, 80

government procurement, 7

GRI. See General Rules of Interpretation

Groupon, 91, 104, 126, 152, 163

H

Hague Agreement Concerning the 

International Deposit of Industrial Designs 

(Hague System), 51

handling (preparation) fees, 57–58, 63

Harmonized System (HS), 36–40, 59, 

163–164

Harmonized Tariff Schedule (HTS), 36, 38

Hatsu-uri (Japan), 118

HiPay, 136

holidays. Seebuying holidays

home shopping, television, 23

hosting service, 27–28

HS. See Harmonized System

HTS. See Harmonized Tariff Schedule

hyperlinking, 114

I

ICT infrastructure, 128, 163

IDA. SeeInfocomm Development Authority

iDEAL payment system, 130

IFAL. See National Institute for Transparency, 

Access to Information, and Protection of 

Personal Data

IIPA. SeeInternational Intellectual Property 

Alliance

import regulations, foreign, 50

Incoterms, 57, 163

India, 111–114

ban on foreign direct investment, 111–112

economic reform in, 158

Infocomm Development Authority (IDA, 

Singapore), 127–128, 163

Information Commissioner’s Office (United 

Kingdom), 153

inland revenue, 163

Instagram, 163

insurance, 63

intellectual property, 163

intellectual property protection, 35, 50–51, 

163

Canada, 95

China, 110

European Union, 35, 141, 148

Germany, 141

India, 113

Israel, 87

Japan, 119, 120

Kenya, 90

Mexico, 101–102

Nordic region, 148

Peru, 105

South Africa, 92

Special 301 Watch List, 95

United Kingdom, 152–153

intellectual property rights (IPR), 163

intellectual property theft, 163

Internal Revenue Service (IRS), 163

International Intellectual Property Alliance 

(IIPA), 95

internationalized domain names, 27

internationalized website content, 28

International Traffic in Arms Regulations 

(ITAR), 49

Internet access, expanding, 159

Internet protocol (IP), 163

Internet protocol (IP) geolocation, 56, 71

iOffer.com, 22

IP. SeeInternet protocol

IP address, 56, 71, 163

i-parcel, 9, 30

IPR. Seeintellectual property rights

IRS. SeeInternal Revenue Service

Israel, 86–87

ITAR. SeeInternational Traffic in Arms 

Regulations
Appendix 171

J

Jabong (India), 111, 112

Japan, 115–120

JD.com, 108, 109

jikgu (Republic of Korea), 122–123

Jingdong Mall (China), 108

Jordana, 82–83

Jumia (Kenya), 88, 89

K

kaymu.com, 22

Kenya, 88–90

keywords, 31

knockoff, 82, 110, 163

Korea, Republic of, 121–125

buying agents, 123–124

cross-border consumers, 10, 121–125

reshipment, 124

social media users, 22

trade agreements with the United States, 

121–122

KORUS FTA. See U.S.–Korea Trade Agreement

Kruse, Patrick, 68

L

landed cost, 12, 37, 57

Law of Protection of Personal Data (Peru), 

105

Leaguedi, Sophia, 76–77

lessons learned, 163

Alignment Simple Solutions, 81

Ameroc Export Inc., 77

Jordana, 82–83

Ruffwear, 69

Scott Eder Gallery, 67

SPF Depot, 73–74

VTO Saddlery, 70–71

Wheeling Truck Center, 79

licenses, 47–50, 162

licensing, 163

LinkedIn, 73, 163

links, website, 32

localized domain name, 27

localized website content, 28

logistics companies

app checklist for, 30

cross-border capabilities, 9

fulfillment services, 30

logistics performance index, 165

Luxembourg, 130–134

M

Madrid System for the International 

Registration of Marks, 51

manufactured products, country of origin, 44

marketing partners, 79, 164

marketing sites, 18, 25

marketing strategy, 164

market price, 163

market size, 8–10

Meh.com, 10

MercadoLibre.com, 22, 98, 100, 103

Mercatrade.com, 22

metadata, 32

meta tagging, 32, 114

METI. See Ministry of Economy, Trade, and 

Industry

Mexican Internet Association (AMIPCI), 101

Mexico, 100–101

cross-border consumers, 13, 100–101

NAFTA, 43, 44, 45, 164

middle class, global growth in, 11

Middle East

Israel, 86–87

United Arab Emirates, 13

Millennials, 157

Mini One-Stop Shop (MOSS), 143

Ministry of Economy, Trade, and Industry 

(METI, Japan), 119

MiPyMEs (Colombia), 98

Miva, 70

mobile e-commerce, 19, 29

China, 29, 109

France, 136

Germany, 140

India, 113

Israel, 86

Japan, 116–117

Kenya, 89

Mexico, 101

Nordic region, 146–147

Peru, 104

Singapore, 128

South Africa, 92

United Kingdom, 151

Modelo Perú, 106

Moneo, 136

money-saving motivations, 10–11

MOSS. See Mini One-Stop Shop

M-Pesa (Kenya), 89

multichannel approach, 164

Multichannel Merchant, 17

multiple items, classification on, 38

Myntra, 111, 112

N

NAFTA. See North American Free Trade 

Agreement

National Data Processing and Liberties 

Commission (CNIL, France), 137–138

National Institute for Entrepreneurs (Mexico), 

101

National Institute for Transparency, Access to 

Information, and Protection of Personal 

Data (IFAI, Mexico), 101

national treatment, 50

Netherlands, 130–134

Newegg.com, 22

NLR (No License Required), 48

Nordic Patent Institute, 148

Nordic region, 144–148

North American Free Trade Agreement 

(NAFTA), 43, 44, 45, 94, 164

Northern Ireland, 149–153

Norway, 144–148

Norwegian Data Protection Authority, 148

O

Obon (Japan), 118

Ochugen (Japan), 118

Office of Foreign Assets Control (OFAC), 49

Office of the U.S. Trade Representative, 44

OLX (Kenya), 88, 89

omnichannel selling, 15, 145, 147

1688.com, 21

online purchases, drivers of, 10–11

P

packing list, export, 162

Paris Convention for the Protection of 

Industrial Property, 50–51

Patent Cooperation Treaty (PCT), 51

patents, 35, 50–51, 164. See alsointellectual 

property

payment

Benelux Union, 130

China, 109

collecting information for, 53

Colombia, 99

delivered duty paid (DDP), 57, 58

delivered duty unpaid (DDU), 57, 58–59

France, 136

fraud and, 54–56

Germany, 140

Incoterms, 57, 163

India, 112

Israel, 86

Japan, 116

Kenya, 89

Mexico, 100

Nordic region, 146

options for international countries, 53–56

Peru, 104

South Africa, 91

tariffs and taxes in, 58–61

third-party services for, 54, 56

transactional sites for, 17–18, 25

United Kingdom, 151

website utility for, 29

payment cards, country-specific, 54

payment disputes, 54

PayPal, 19, 54, 56, 74

Paysafecard, 136

Payvision, 9, 127, 164

PCT. SeePatent Cooperation Treaty

PECR. SeePrivacy and Electronic 

Communications Regulations

personal data. Seedata collection

personal exemption limit (PEL), in Canada, 

96

Personal Information Protection and 

Electronic Documents Act (PIPEDA, 

Canada), 96

Peru, 102–106

Peruvian Institute of Electronic Commerce, 

106

photos, website, 32

Pinterest, 164

PIPEDA. SeePersonal Information Protection 

and Electronics Documents Act

platform, 164

platforms, e-commerce. Seee-commerce 

platforms

PostNord, 145–147

preparation fees, 57–58, 63

pricing, 40

Privacy and Electronic Communications 

Regulations (PECR, United Kingdom), 153

procurement, government, 7

product mix, 164

product(s)

categories of purchases, 14

classification codes, 36–40, 59

country of origin, 42–45

distributors for, 40–42

pricing of, 40

worldwide sales permission for, 40

Profeco (Mexico), 101

prohibited products

Benelux Union, 134

Canada, 97

France, 138

India, 114

Israel, 87

Japan, 118–119

Kenya, 90

Nordic region, 148

Peru, 106

Singapore, 128

South Africa, 92

United Kingdom, 153

ProSoft (Mexico), 101

provincial sales tax (PST), in Canada, 96–97

Q

QVC, 23

R

Rakuten.com, 22, 115–118, 123, 126

real-time calculation, 59–60, 61

regulations. See alsospecific countries

arms trade, 49

country of origin, 42–45

duties and taxes, 12–13

export controls, 47–51

intellectual property protection, 35, 50–51

product classification, 36–40

Remp, Chad, 78–79

reputation, of online sellers, 13, 83

return merchandise authorization (RMA), 62

returns, 62–63

right of priority, 50–51

RMA. Seereturn merchandise authorization

Ruffwear, 68–69

Rupa (Kenya), 88, 89

Russia, 13

S

sales channels, 17–23

sales permission, worldwide, 40

sanctions, 49, 164

Schedule B, 36–40, 59
172 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

Scotland, 149–153

Scott Eder Gallery, 66–67

search engine, 164

search engine optimization (SEO), 19, 31

search engine visibility, 28, 31–33

search widgets, 32

Sears Marketplace, 80, 164

SEO. Seesearch engine optimization

set, items shipped as, 38

shipping, 61–63

alternate delivery locations for, 62

choosing provider for, 61–62

delivered duty paid (DDP), 57, 58

delivery duty unpaid (DDU), 57, 58–59

Incoterms and, 57, 163

Japan, 118–119

Republic of Korea, 124

returns, 62–63

setting rates for, 61

standard terms for, 57

terms and conditions, 63

shopping carts, 29–30

Sickler, Tripp, 68–69

Singapore, 126–129

Infocomm Development Authority, 

127–128, 163

Smart Nation, 164

Singles’ Day (China), 109–110

Single Window Initiative, 159

small and medium-sized enterprises (SMEs), 

14, 15

Smart Nation, 126, 164

smartphones, 19, 29. See also mobile 

e-commerce

Snapdeal, 111, 112

social media, 8, 164

Benelux Union, 130–131

Canada, 95

China, 109

France, 136–137

Germany, 140

India, 113

Israel, 86

Japan, 117

Kenya, 89

Mexico, 101

Nordic region, 147

Peru, 104

Singapore, 127

South Africa, 92

United Kingdom, 151

social media stores, 8, 22

South Africa, 91–92

Special 301 Watch List, 95, 105

SPF Depot, 72–75

success stories, 65–83

Alignment Simple Solutions, 80–81

Ameroc Export Inc., 76–77

Jordana, 82–83

Ruffwear, 68–69

Scott Eder Gallery, 66–67

SPF Depot, 72–75

VTO Saddlery, 70–71

Wheeling Truck Center, 78–79

SUNAT (Peru tax authority), 102

supply chain, 164

Sweden, 144–148

T

Taobao, 108, 123, 126

tariffs, 12–13, 58–61

ballparking, 60

calculating, 59–61

classification codes and, 36–40

country of origin, 42–44

definition of, 58, 164

Incoterms and, 58, 163

managing customer expectations on, 58

narrowing geographic focus to manage, 60

narrowing product focus to manage, 60

third-party assistance with, 60–61

taxes, 58–61. See alsotariffs

television shopping, 23

Tencent (China), 109

terms and conditions, 63

terms of sale, 164

textile and apparel sets, 38

third-party payment services, 54, 56

Thuiswinkel.org, 132, 133

Tmall, 21, 107, 108, 109

Tmall Global, 21, 108

TPP. SeeTrans-Pacific Partnership

tracking orders, 62

trade agreements. Seefree trade agreements

trade facilitation, 158

Tradeindia.com, 22

TradeKey, 22, 76, 164

trademark, 35, 50–51, 164. See 

alsointellectual property

trademark infringement, 165

trademark law, 51

trade restrictions (sanctions), 49, 164

transactional sites, 17–18, 25

translation software, 66, 77, 165

Trans-Pacific Partnership (TPP), 158

TRIPS (Agreement on Trade-Related Aspects 

of Intellectual Property Rights), 51, 87, 92

troll, 69, 165

trust, in online sellers, 12, 13

Tumblr, 165

Twitter, 8, 165

U

United Arab Emirates, 13

United Kingdom, 15, 149–153

United Kingdom Trade Marks Act of 1994, 

152

United States

duties and taxes, 12

e-commerce advantage of, 14

export controls, 47–50

free trade partners of, 165

NAFTA, 43, 44, 45, 164

Schedule B codes of, 36–40, 59

Single Window Initiative, 159

as top online exporter, 15

Trans-Pacific Partnership (TPP), 158

United States–Peru Trade Promotion 

Agreement, 105, 106

universal product code (UPC), 165

UPS, 9, 30, 165

U.S. Census Bureau, Schedule B codes from, 

37–38

user-friendly websites, 31

U.S.–Korea Trade Agreement, 121–122, 125

U.S. Munitions List (USML), 49

U.S. Postal Service (USPS), 62, 71, 72, 165

V

value-added tax (VAT), 57

Colombia, 99

Europe, 20, 59, 142–143

Vendor Express (Amazon), 20

virtual company, 165

VTO Saddlery, 70–71

W

Wales, 149–153

Walmart, 22, 93, 108, 112, 123

web host, 27

WebPortGlobal.com, 22

websites, company, 25–33

advantages and disadvantages of, 26

building, 26

checklist for, 32

data mining, 33

domain name for, 27

e-marketplaces vs., 25–26

enticements to buyers, 32

hosting services for, 27

intuitive (user-friendly), 31

keywords on, 31

links on, 32

localized and internationalized content 

on, 28

marketing, 18, 25

metadata tags on, 32

mobile-friendly, 19, 29–30

order fulfillment, 29–31

original content on, 31

photos on, 32

real-time calculations on, 59–60, 61

search widgets and categories of, 32

terms and conditions on, 63

transactional, 17–18, 25

trust in, 12, 13

updating, 32

visibility of, 28, 31–33

WeChat (China), 109

Wheeling Truck Center, 78–79

wholesale products, country of origin, 43–44

widgets, 32

Winningham, Tess, 80–81

WIPO. SeeWorld Intellectual Property 

Organization

wire transfer, 54

World Bank, 165

World Bank’s logistics performance index, 

165

World Intellectual Property Organization 

(WIPO), 152

World Trade Organization (WTO)

Agreement on Trade-Related Aspects of 

Intellectual Property Rights (TRIPS), 

51, 87, 92

Trade Facilitation Agreement, 158

Y

Yahoo!, 28, 72–73, 118, 165

Yahoo Shopping, 115, 116, 117

Yihaodian (China), 108

YouTube, 165
Appendix 173

The U.S. Commercial Service (CS) is the export promotion arm of the U.S. Department of Commerce’s 

International Trade Administration. Our global network of more than 1,400 trade professionals is located 

throughout the United States and in U.S. embassies and consulates in more than 75 countries. Whether you’re 

looking to make your first international sale or expand to additional markets, we offer support, knowledge, 

and lucrative opportunities to increase your bottom line.

For more information on how CS can help your business increase its international sales, please visit 

export.gov/usoffices to contact one of our local offices or visit export.gov/industry to find a specialist in 

your industry.

U.S. Offices

Alabama

Birmingham

Alaska

Anchorage

Arizona

Phoenix

Tucson

Arkansas

Little Rock

California

Fresno

Irvine

Los Angeles (Downtown)

Los Angeles (West)

North Bay

Oakland

Ontario

Sacramento

San Diego

San Francisco

San Jose

Ventura County

Colorado

Denver

Connecticut

Middletown

Delaware

Served by 

Philadelphia, PA

District of Columbia

Served by 

Northern Virginia

Florida

Clearwater

Fort Lauderdale

Jacksonville

Miami

Orlando

Georgia

Atlanta

Savannah

Hawaii and 

Pacific Islands

Honolulu

Idaho

Boise

Illinois

Chicago

Peoria

Rockford

Indiana

Indianapolis

Iowa

Des Moines

Kansas

Wichita

Kentucky

Lexington

Louisville

Louisiana

New Orleans

Maine

Portland

Maryland

Baltimore

Massachusetts

Boston

Michigan

Detroit

Grand Rapids

Pontiac

Minnesota

Minneapolis

Mississippi

Jackson

Missouri

Kansas City

St. Louis

Montana

Missoula

Nebraska

Omaha

Nevada

Las Vegas

Reno

New Hampshire

Portsmouth

New Jersey

Newark

Princeton

New Mexico

Served by El Paso, TX

New York

Buffalo

Harlem

Long Island

New York

Rochester

Westchester

North Carolina

Charlotte

Greensboro

Raleigh

North Dakota

Fargo

Ohio

Cincinnati

Cleveland

Columbus

Oklahoma

Oklahoma City

Tulsa

Oregon

Portland

Pennsylvania

Philadelphia

Pittsburgh

Puerto Rico

San Juan

Rhode Island

Providence

South Carolina

Charleston

Columbia

Greenville

South Dakota

Sioux Falls

Tennessee

Knoxville

Memphis 

Nashville

Texas

Austin

El Paso

Fort Worth

Houston

San Antonio

Utah

Salt Lake City

Vermont

Montpelier

Virginia

Northern Virginia

Richmond

Washington

Seattle

Spokane

West Virginia

Charleston

Wheeling

Wisconsin

Milwaukee

Wyoming

Served by Denver, CO

About the U.S. Commercial Service
174 U.S. Commercial Service • Preparing Your Business for Global E-Commerce

International Offices

Albania*

Tirana

Algeria

Algiers

Angola

Luanda

Argentina

Buenos Aires

Australia

Canberra

Perth

Sydney

Austria

Vienna

Azerbaijan*

Baku

Bahamas*

Nassau

Bahrain*

Manama

Bangladesh*

Dhaka

Barbados*

Bridgetown

Belgium

Brussels

Belize*

Belmopan

Benin*

Porto-Novo/

Cotonou

Bolivia*

La Paz

Bosnia and 

Herzegovina*

Sarajevo

Botswana*

Gaborone

Brazil

Belo Horizonte

Brasília

Recife

Rio de Janeiro

São Paulo

Brunei*

Bandar Seri 

Begawan

Bulgaria

Sofia

Burkina Faso*

Ouagadougou

Burma

Rangoon

Cambodia*

Phnom Penh

Cameroon*

Yaounde

Canada

Calgary

Montreal

Ottawa

Toronto

Chile

Santiago

China

Beijing

Chengdu

Guangzhou

Shanghai

Shenyang

Wuhan

Colombia

Bogotá

Congo (DRC)*

Kinshasa

Costa Rica

San José

Côte d’Ivoire*

Abidjan

Croatia

Zagreb

Cyprus*

Nicosia

Czech Republic

Prague

Denmark

Copenhagen

Dominican 

Republic

Santo Domingo

Ecuador*

Quito

Egypt

Cairo

El Salvador

San Salvador

Estonia*

Tallinn

Ethiopia

Addis Ababa

European Union

Brussels

Fiji*

Suva

Finland

Helsinki

France

Paris

Gabon*

Libreville

Gambia*

Banjul

Georgia*

Tbilisi

Germany

Berlin

Düsseldorf

Frankfurt

Munich

Ghana

Accra

Greece

Athens

Guatemala

Guatemala City

Guinea*

Conakry

Haiti*

Port-au-Prince

Honduras

Tegucigalpa

Hong Kong

Hungary

Budapest

Iceland*

Reykjavik

India

Ahmedabad

Bangalore

Chennai

Hyderabad

Kolkata

Mumbai

New Delhi

Indonesia

Jakarta

Iraq

Baghdad

Erbil

Ireland

Dublin

Israel

Jerusalem

Tel Aviv

Italy

Milan

Rome

Jamaica*

Kingston

Japan

Osaka-Kobe

Tokyo

Jordan

Amman

Kazakhstan

Almaty

Kenya

Nairobi

Korea, Rep. of

Seoul

Kosovo*

Pristina

Kuwait

Kuwait City

Latvia*

Riga

Lebanon

Beirut

Lesotho*

Maseru

Liberia*

Monrovia

Libya

Tripoli

Lithuania*

Vilnius

Macedonia*

Skopje

Madagascar*

Antananarivo

Malawi*

Lilongwe

Malaysia

Kuala Lumpur

Mali*

Bamako

Malta*

Valletta

Mauritius*

Port Louis

Mexico

Guadalajara

Mexico City

Monterrey

Mongolia*

Ulaanbaatar

Montenegro*

Podgorica

Morocco

Casablanca

Mozambique

Maputo

Namibia*

Windhoek

Netherlands

The Hague

New Zealand

Auckland

Wellington

Nicaragua*

Managua

Nigeria

Lagos

Norway

Oslo

Oman*

Muscat

Pakistan

Islamabad

Karachi

Lahore

Panama

Panama City

Paraguay*

Asunción

Peru

Lima

Philippines

Manila

Poland

Warsaw

Portugal

Lisbon

Qatar

Doha

Romania

Bucharest

Russia

Moscow

St. Petersburg

Rwanda*

Kigali

Saudi Arabia

Dhahran

Jeddah

Riyadh

Senegal*

Dakar

Serbia

Belgrade

Singapore

Slovak Republic

Bratislava

Slovenia*

Ljubljana

South Africa

Cape Town

Durban

Johannesburg

Spain

Madrid

Sri Lanka*

Colombo

Swaziland*

Mbabane

Sweden

Stockholm

Switzerland

Bern

Taiwan

Kaohsiung

Taipei

Tanzania

Dar es Salaam

Thailand

Bangkok

Trinidad and 

Tobago*

Port-of-Spain

Tunisia*

Tunis

Turkey

Ankara

Istanbul

Izmir

Turkmenistan*

Ashgabat

Uganda*

Kampala

Ukraine

Kiev

United Arab 

Emirates

Abu Dhabi

Dubai

United Kingdom

London

Uruguay

Montevideo

Uzbekistan*

Tashkent

Vietnam

Hanoi

Ho Chi Minh City

Zambia*

Lusaka

* U.S. Department of State Partner Post

1504-06-28

This book takes the mystery out of selling globally. 

Even the smallest business can now generate customers 

all over the planet, and get plenty of help doing it. 

Tomas Hult, Ph.D.

Director, Michigan State University International Business Center

Written in easy-to-understand language, you’ll learn 

how amazing technology can help you tap into a huge 

new customer base that’s hungry for U.S. products!

Maureen Pace

President, WebPort Global

Keep this book away from your competitors. It includes 

everything you need, from opening a “store” on social media, to 

getting paid, to selling to buyers all over the world.

Jim Blasingame

Award-winning author and host of the nationally syndicated The Small Business Advocate Show

U.S. Commercial Service

1401 Constitution Avenue NW

Washington, DC 20230

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PREPARING YOUR BUSINESS FOR GLOBAL 

e-COMMERCE U.S. COMMERCIAL SERVICE