Online retail is a five-trillion-dollar market – and it’s growing fast. During the pandemic, millions of house-bound consumers embraced ecommerce for the first time, delivering a decade’s growth in a matter of months.
The result? Consumers are getting braver. The benefits of greater convenience and choice provided by sellers from all over the world has triggered a boom in cross-border demand.
But while the global opportunity is huge, uncertainty about customs clearance, taxes and import restrictions in unfamiliar markets is, we believe, dissuading many retailers from capitalising. Some retailers are turning away new customers to avoid the extra cost of compliance and potential fines. And some are even turning off cross-border trade completely.
With governments introducing VAT rate changes to fuel growth through Covid-19, the impact of Brexit on businesses trading between the Europe EU and the UK, plus the introduction of UK & and EU ecommerce reforms - this year has been a tidal wave of change like no other.
The promise of a global market is that new customers are only a click away. The reality is that each click is a compliance risk that many businesses are unwilling to take.
The newest start-ups want to scale without the fear of fines and penalties. Every retailer, big and small, wants to maximise the global opportunity without risking their reputation, ensuring customers receive the same smooth experience, wherever they are in the world.
The opportunity created by digital is too big to ignore
And yet many global strategies are being diluted by the complexity of international tax law, with many brands preferring to shut down international operations than wade through red tape.
Each year, Avalara processes billions of tax transactions, helping the biggest platforms and the smallest start-ups to realise their global ambitions. Avalara’s automated SaaS solutions are easy to integrate into existing business applications, while our data updates continuously - meaning you can keep pace with each new directive and regulation, no matter where you trade.
Every commercial decision has a tax implication. But the world is too big to be limited by uncertainty. Make sure you maximise every growth opportunity.
To help exporters take advantage of the global opportunity, on 20-21 October 2021 Avalara is hosting Inspire - a free to attend two-day virtual conference where retail giants including Mary Portas and Theo Paphitis will be providing advice about how businesses can accelerate their exporting strategies. Sign up here to secure your spot.