The Essential Guide to Cross-Border E-commerce Success
Where's the charm in online stores?
In this era of digitization and globalization, cross-border e-commerce has become a popular entrepreneurial trend. Hey, have you ever thought about opening your own online store? Whether you're a professional or a student, as long as you have a phone and internet, you can easily open your own online store and earn more profits by leveraging price differences.
There are many benefits to opening an online store. Firstly, the threshold for opening an online store is relatively low. You don't need to bear the costs of renovation, rent, employee salaries, and electricity. Even if the business is not as expected, you don't have to worry about not making ends meet. Secondly, online stores have no time and location restrictions, you can operate your online store at any time, anywhere. In addition, online stores can also help you establish closer customer relationships, as every customer will leave their personal information at checkout, which is very helpful for your future sales strategy.
Common e-commerce platforms and how to choose
When opening an online store, choosing a suitable e-commerce platform is very important. There are many e-commerce platforms to choose from:
Amazon: Amazon is one of the largest e-commerce platforms in the world, with a large user base and a wide range of product categories. It provides many seller tools, such as FBA services, to help you handle storage, packaging, transportation, and customer service.
Shopify: Shopify is a powerful e-commerce platform that provides a one-stop e-commerce solution, including online store construction, payment processing, inventory management, etc. Its interface is user-friendly and easy to operate, suitable for businesses of all sizes.
Rakuten: Rakuten is Japan's largest e-commerce platform and has a wide influence globally. It provides comprehensive seller support, including sales tools, marketing tools, customer service, etc.
Shopee: Shopee is a major e-commerce platform in Southeast Asia and Taiwan. It provides many seller tools, such as free product uploads, free product promotion, one-click sharing to social media, etc., to help you increase sales.
Basic Store: $0.99 USD/per unit sold
Professional Plan: $39.99 USD/month
Commission: 5% - 20% depending on product category
Basic: $33 USD/month
Standard: $92 USD/month
Advanced: $399 USD/month
Registration Fee: about 552 USD (60,000 JPY)
Commission: 2% - 4% (Mobile devices +5%)
System Enhancement Fee 0.1%, Payment Processing Fee 2.5% - 3.5%
Basic Plan: $0 USD/month
Transaction Fee: 2.12% - 2.24% (varies by region)
How can iSunOne help you?
The iSunOne Global Visa Card is a stable and secure digital currency payment tool that allows users to directly convert digital dollars into dollars. For online store operators, the iSunOne Global Visa Card can provide the following help:
Global Payment: The iSunOne Global Visa Card can not only pay for the subscription fees of the above e-commerce platforms, but also be used at all online merchants that accept Visa worldwide. This is very convenient for online store operators, whether it is sourcing goods or handling cross-border transactions.
Digital Currency Payment: The iSunOne Global Visa Card supports USDT and USDC, two digital currencies. This can greatly simplify the currency exchange process and reduce transaction costs for online store operators who accept digital currency payments.
Convenient Recharge and Consumption: The iSunOne Global Visa Card supports one-click recharge, and you can consume globally after recharging.For online store operators who need to handle transactions frequently, this can greatly improve efficiency.
High Recharge Limit: The iSunOne Global Visa Card can be charged up to $25,000 each time, which can meet the needs of online store operators with large transactions.
No Need for a Bank Account: With the iSunOne Global Visa Card, you don't need any bank account and don't have to worry about the exchange cost between fiat currencies. This is a very good choice for online store operators who do not have a bank account or want to reduce transaction costs.
So, how to open an online store?
Does it sound a bit complicated? Don't worry, as long as you have determination, patience, and the right methods, you can open up your own world in the fertile ground of e-commerce. So, let's get started!
Determine your business model: You can choose to produce your own goods, or buy goods from suppliers for sale. You can also choose to operate by providing services.
Business registration and tax declaration: Please follow local laws and regulations. For example, if you are conducting cross-border e-commerce business in Hong Kong, you need to register your business and declare taxes on your profits.
Choose an e-commerce platform: When conducting cross-border e-commerce business, choosing a suitable e-commerce platform is very important. There are many e-commerce platforms to choose from.
Set up your online store: Including uploading products, setting prices, writing product descriptions, etc.
Set up payment and logistics methods: You need to choose a payment method, such as credit card, PayPal, etc., and set up logistics methods, such as SF, postal, etc. It should be noted that if cross-border logistics is involved, according to the laws and policies of the relevant regions, there may be additional expenditures such as tariffs, and there are different prohibited goods management methods.
Open a bank company account: In order to handle business-related financial transactions, you may need to open a bank company account.
Promote your online store: You can promote your online store through social media, SEO, paid advertising, etc., to attract more customers.
What is the difficulty in opening an online store?
However, for the general public, opening an online store is also a challenge. Taking Hong Kong local laws as an example, according to the guidelines provided by the Hong Kong Inland Revenue Department, all online stores need to apply for a business registration certificate at the Inland Revenue Department within one month after opening. Secondly, as long as your online store operates in Hong Kong, you need to declare profits tax on the relevant profits. In addition, you may need a bank account in the name of a company to handle business-related financial transactions in a compliant manner. These are all major challenges for many cross-border e-commerce operators.
What is business registration and tax declaration?
When conducting online store business in different regions, you need to comply with their respective business registration and tax declaration regulations.
Hong Kong: In Hong Kong, you need to register your business with the Business Registration Office. For tax declaration, you need to declare taxes to the Hong Kong Inland Revenue Department, including profits tax, etc.
United States: In the United States, you need to register your business at the state level. You can choose to register in your main business location or in a business-friendly state (such as Delaware). For tax declaration, you need to declare taxes to the federal government and state government. Federal tax declarations usually include income tax, employment tax, and self-employment tax. State tax declarations depend on the regulations of your state, which may include income tax, sales tax, use tax, etc.
Singapore: In Singapore, you need to register your business with the Singapore Company Registration Bureau(ACRA). For tax declaration, you need to declare taxes to the Singapore Inland Revenue Authority (IRAS), including corporate income tax, goods and services tax (GST), etc.
Japan: In Japan, you can complete the entire tax declaration and payment process online. However, an important prerequisite for using online tax services is: the company must have a legal residence in Japan, which is a necessary condition for obtaining a digital ID/electronic certificate.
More about business registration and tax declaration:
1, please see here to refer to the guidelines provided by the Hong Kong Inland Revenue Department;
2, please see here to refer to the guidelines provided by the U.S. Internal Revenue Service;
3, please see here to refer to the guidelines provided by the Singapore Inland Revenue Authority;
4, please see here to refer to the guidelines provided by the Japan National Tax Agency;
As long as you are prepared and choose a suitable e-commerce platform, you can successfully open your own online store and realize self-determination and financial freedom through cross-border trade. It's not as difficult as you might think. So, don't hesitate, act now!