Advantages and Disadvantages of E-Export
E-export has many advantages due to the fact that it enables selling abroad without being subject to traditional export procedures, logistics operations, and even many of the costs in this field. For example, with Türkiye’s e-commerce infrastructure, it is possible to sell and deliver products directly to consumers in Germany without the need for personnel or a company in Germany. However, although it provides such convenience, e-export also has some disadvantages.
What Are the Advantages of E-Export?
If we examine the advantages of e-export in bullet points:
- Services or products sold through e-export can be delivered either directly to the end consumer with a B2C business model or from company to company with a B2B model, as in traditional export.
- In many countries, there is a special VAT exemption for e-export. For this reason, VAT refunds can be obtained.
- Sales abroad can be carried out without the need for the costs present in traditional export, consignment preparation methods, or investment requirements.
- Since payments in e-export are received in foreign currency, it is possible to make a profit without being affected by exchange rate fluctuations and even to earn higher-than-expected profits due to exchange rate differences.
- In e-export, since products that are light in weight and have low material value are shipped, shipment damages remain at manageable levels.
- For products sent via e-export (excluding exceptional products), a CE certificate is sufficient, and no additional special certification is required.
What Are the Disadvantages of E-Export?
As with any process, despite its many advantages, e-export also has certain disadvantages. Since product sales can be made within specific limits, it is not an ideal commercial method for large-scale export goals.
If we examine the disadvantages of e-export in bullet points:
- Because online payment systems must be used to receive payments in e-export, payment-related problems may occur due to restrictions on some payment systems such as PayPal.
- Return and exchange procedures can be complex and costly in e-export. Since sales are made directly to end consumers, the seller may have to deal with return and exchange requests.
- Since countries’ standards, taxes, labeling, and packaging procedures differ, it is necessary to make various adjustments for different countries when conducting e-export.
- The e-export process must be managed and monitored very well from start to finish. This process can be time-consuming and may also be costly.
- Unlike domestic online operations, it requires much greater responsibility and obligations.
- Since it is not always possible to respond quickly to demands and questions, establishing and managing customer relations becomes much more difficult.
- In addition to all these, logistics processes can occasionally become complex.
You can contact us to deliver your international shipments safely and as quickly as possible.
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