How To Select The Best International Payment Method

Today trade is domestic but, at the same time, global. You can sell from your home, town, or city to anywhere in the world. Through a web page, a blog, or even without an internet presence, just by having a small place on platforms like Amazon, you can have customers for your products or services anywhere in the world. But what is easy for you is also easy for your competitors.

And how can we stand out from the rest? Do you know that the means of payment you establish for your sale can give you an advantage?  

International Means Of Payment As A Competitive Advantage

Finding clients not only in your country but anywhere in the world has never been so easy. The massive use of new technologies has allowed all kinds of people in different countries to have more powerful mobile phones than the computers of a few years ago and much faster broadband connections for little money. Thanks to this, platforms or online stores have been developed in different countries, such as Amazon, where anyone can buy or sell. 

These platforms achieved something impossible a few years ago: any consumer can buy a product in a store in another country and receive it at an acceptable price and within reasonable times. Thus, Amazon or Ali Express have not only managed to revolutionize electronic commerce itself, but they have done so on a global level, further promoting international trade. 

But the Internet has not only allowed the globalization of electronic commerce. It has also made it easier for sellers from all over the world to have information at the click of a button about the profile of their consumers in a country, the contact details of different importers, distributors, or retailers, or the offer of the competition present in that country. This has made it easy to reach any client or intermediary in different international markets.  

Although what is easy for us, it is also easy for any competitor in different countries worldwide. Therefore, there is a paradox that being so easy to reach any customer globally, and it is increasingly difficult to get them to choose us and buy from us. And so, the important thing for the success of any sales project, whether in our country or anywhere else in the world, is not knowing how to reach our potential customers, but how our commercial proposal is more attractive to them than that of our competition.

Although we can use marketing or commercial promotion to get noticed, these are still communication tools that must contain a message, a reason, or several that move a client, who does not know us, to value and buy our offer.

One Of These Reasons Is The Means Of Payment

Knowing in detail and using the different means of payment that exist today at an international level can help us make our commercial proposal stand out to a potential client compared to others, it can give us an advantage when negotiating with him, or to get the maximum benefit from a sale in other markets (or at least not to lose a considerable part of it along the way). And not only that, but using specific documentary means of payment allows us to accept risky sales operations, either due to the type of client or the country in which they are located, which would otherwise be unfeasible.

Select The Best International Payment Method

But how should we select the best means of payment for an international sale? First of all, it is necessary to know the operation’s risk. For this, we must assess the risk that our buyer does not pay, through his purchase history and size, the risk of the country where we are going to send the merchandise, and the amount of the sale. Usually, the risk assessment of the operation is carried out by the bank with which you work.

Secondly, we must have the offers presented by the different banking entities updated since differences in the commissions or interest rates applied can mean that in large or repeated operations, a considerable amount of the benefit ends up in the hands of the financial entity. Likewise, we must be clear about the insurance amounts and their premiums, since sometimes it is simpler and cheaper to use a simple means of payment covered by insurance instead of using a documentary means of payment.

Then we will have to agree on the type of payment with the client. Although in first operations or test orders, pay in advance is usually used, a very comfortable formula for the seller, since it avoids the risk of a process without any financial cost, in more extensive operations, there is usually a negotiation with the client that sometimes it is much more complex than negotiating the price of a product. 

In any case, knowing and having experience in the different options allows the professional and the company to propose a more significant number of votes than others. And this sometimes means that a customer chooses one offer or another.

Also Read: Four Trends That Will Mark Connectivity In 2022