Success or failure of sailing depends on "payment"
"The importance of payment has gradually increased with the growth of offshore business." A senior person of cross-border e-commerce said so.
Payment is the "last mile" of the shopping trip,The smoothness of the payment process is crucial to improving the consumption experience and ensuring the implementation of income.Especially for overseas retail merchants, facing the global market, multiple channels and rapidly changing overseas local payment scenarios, they often lack an overall and efficient solution.
At this stage,"Payment" does not have a self focusing effect like "marketing flow" or "supply chain logistics"The overseas retail merchants' understanding of overseas payment habits and payment trends still needs to be deepened, and more attention and investment are needed in the payment process.
If not, the "payment" link may become a constraint to the overseas expansion of Chinese consumer retail merchants.
Fortunately, everything has two sides. From another perspective, if properly used, payment can provide a driving force for overseas operation growth in a strategic sense.Payment is not only a subordinate department, but also an engine for business growth, enabling businesses around the world.
The optimization and improvement of overseas payment process itself contributes to sales growth, while payment data analysis can feed back retail brands and have higher value.Overseas merchants who make good use of payment can rely on the insight of payment data to lead the direction of overseas growth strategy, test the effectiveness of overseas sales results, attract the favor of overseas investment institutions, and make the voyage more stable.
In view of this, this Green Book specially invitesThe core role of China's retail outbound payment ecosystem, from the perspective of cross-border e-commerce merchants, outbound retail brands, international payment service providers, overseas station building SaaS service providers, venture capital institutions, etcShare the payment experience of overseas business expansion. On this basis, this Green Book deeply analyzes the significance of the payment business module for the overseas strategy of China's retail industry, and looks forward to providing reference and inspiration for overseas retail merchants and brands.
Catch the opportunity of blue ocean, and retail is just in time
The global epidemic that has lasted so far has brought unprecedented challenges to the consumer retail industry, and the evolution of new overseas consumption patterns and habits is also generating new demand. Thanks to China's perfect supply chain infrastructure, the promotion of favorable policies and the rise of outbound digital marketing, the outbound trend of retail brands only increased during the epidemic. At present, the global consumer retail market is recovering steadily, and overseas online shopping is growing rapidly, providing more opportunities for Chinese enterprises to go abroad.
At the same time, the epidemic has also brought profound changes to the behavior of overseas consumers. Overseas consumers have increased their preference for regional brands, increased their demand for comfortable consumption experience and non-contact consumption scenarios, and paid more attention to the sense of social responsibility of the brand and the charity accompanying consumption. Overseas merchants must keep pace with the times, actively track the latest trends of overseas consumer retail, and timely adjust strategies to meet challenges.
"If you know nothing about a certain market, you should go to the payment first. This idea is actually right.".
Many retail merchants go to sea from third-party cross-border e-commerce platforms. The third-party platform has a huge public domain traffic, which can reduce the difficulty of overseas sales platform construction and management costs, and help merchants quickly convert goods into profits. On the other hand, third-party platforms often have many restrictions on customer data acquisition, creating private domain traffic, and lack flexibility in the selection of payment schemes.
As the situation goes on, many cross-border e-commerce companies begin to gradually turn to DTC independent station mode, with a dual approach. At this point, the payment problem began to highlight: which platform should overseas independent stations use to build their stations? Or self employed development team for website construction and operation maintenance? Under these two scenarios, how should independent stations choose overseas payment service providers to connect with overseas local payment channels? How to ensure that these channels are widely used by local consumers? How about the risk control ability and anti fraud ability of payment service providers? How to achieve the contradictory goal of "increasing the payment success rate" and "reducing the rejection rate" at the same time?
The problem is far from over. Which link should overseas merchants start to consider the payment issue from the establishment of independent stations? After the payment service provider is determined, how to connect internally? Is it necessary for overseas merchants to establish a special "payment technology team"? Which department should this team belong to? Technology? operate? Finance? sale?
The above problems have made many overseas merchants helpless, and the next challenges may be even more daunting. In the process of building a global brand, the retail industry's "experiential consumption" business model will eventually guide brand merchants to actually land overseas, take root in offline scenarios, and do heavy IP operations. Under the background of traffic barriers, different cultures and unfamiliar markets, the costs and barriers of overseas online to offline transformation have risen rapidly.
How to break through these obstacles and achieve the breakthrough and transformation of retail outbound?
Return to the payment perspective.In this Green Book, we have correspondingly explored the payment strategies under three different cycle stages and business models of retail shipping:
- Cross border e-commerce platform+online independent station+offline dealer model
- Cross border independent station+boutique station e-commerce mode
- Brands going to sea+overseas local IP operation mode
For online e-commerce business, payment is the basis for independent stations to finally confirm the success of transactions, and payment behavior preference is also an important part of the research on consumption habits in overseas markets.Research on payment preference is an important step to do well in localized business.
For offshore offline retail business, the overseas local offline payment ecosystem is also a very complex system, including POS hardware and software manufacturers, acquirers, offline store purchase, sales and inventory, and ERP software service providers. How should merchants access these complex systems in multiple overseas markets? Compared with online payment, offline payment methods in overseas regions are more different and change more rapidly. How can overseas merchants build confidence and ensure synchronization with the local market? Even more, how can offline and online channels be connected to enable overseas and local consumers to obtain a consistent consumption experience? How can merchants unify inventory, order and customer data from different channels to present an integrated digital ecosystem to support deep customer insight and rapid business decisions?
In all these cases, the pioneers of the retail industry at sea have provided us with useful reference with practical actions. In this Green Book, we will reveal the answers to the above questions one by one through in-depth expert interviews.
Re understanding the definition of overseas payment
When we talk about overseas and local payment, what are we talking about?This is actually a fundamental and primary problem.
find by hard and thorough search,The essence of payment is a highly professional financial sub field. A seemingly ordinary overseas order actually has a complete financial and technical route behind it.
However, the details of payment processing are far from the public perception. In reality, overseas merchants are often troubled by the failure to clarify the basic concept of payment. For example, what is the underlying logic of foreign card acquiring, fraud prevention risk control, payment success rate optimization, and 3DS authentication? What are the differences between the acquiring company and the acquiring bank? Such details are often confusing.
To this end, this Green Book, combined with Adyen's knowledge accumulation in Global Payment Research Society, systematically combs the "knowledge collection of overseas payment", helps overseas retail merchants to cross the complex barrier of payment terms and rediscover the connotation and extension of overseas payment.
Overseas exhibition and global competition are the general trend of China's retail brand expansion. This torrent is also driving more changes in overseas payment. In the future, Adyen and 36Kr Global Research Institute are willing to work together with overseas retail merchants to face challenges and continue to explore a feasible way to optimize and upgrade overseas payment.
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If you are interested in learning more about the retail offshore payment solution, please contact us.
Contact Adyen
- Email: robin.wang@adyen.com
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Contact 36Kr Global Research Institute
- Email: academy@global.36kr.com
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