Online integration is important in an increasingly connected business market. The internet has provided vendors with a virtually limitless supply of resources that has helped them expand their global reach, but a number of factors have hurt several organizations' efforts to sell overseas, particularly in the United Kingdom.
According to an article in Econsultancy, many UK organizations in the B2B sales industry are having a hard time reaching out to a global customer base, mainly because they aren't able to manage the requirements of international trade.
A study conducted by data management firm Stibo Systems and eCommerce agency Salmon backs up this assessment. According to the results, while 72 percent of businesses are able to sell internationally, only 40 percent manage to do so online. What's more striking is the fact that 67 percent actually have online offerings. Essentially, this means that a large quantity of B2B companies, conduct international business and have online offerings but can't manage to combine the two.
Part of the problem is the high fees assessed to companies selling overseas.
Simon Walker, the director of eCommerce innovation at Stibo Systems, commented on the findings in a recent statement.
"British businesses are innovative and dynamic, as this research shows, and have expanded considerably overseas in recent years," he said. "However, this research has highlighted how this expansion is being stifled by the cost of doing business."
Companies in the United States should be just as concerned about this trend. Not only could international trade regulations impact the global growth of domestic B2B vendors, the overall sentiment surrounding the study speaks volumes about the way fees can impact online selling efforts.
Essentially, this study suggests that if companies feel they cannot afford transactions, they will limit their efforts to increase business. In the eCommerce era, companies should be embracing sales and payments innovation, not shying away from it.
That's why it's so important to obtain the best solutions to process B2B payments. Vendors can at least increase their domestic presence without having to worry about climbing processing fees if they obtain the tools needed to submit Level 3 data. By doing this, vendors will pay the lowest possible interchange rate, thus increasing the value of their transactions.
The marketplace is only going to get more competitive. Companies that are equipped with the solutions needed to adopt new sales channels and payment methods will find themselves in a favorable position in their respective industries.