If your Black Friday e-commerce strategy isn’t already set in stone, it’s time you got a move on. Judging by the previous year’s numbers, the long weekend following Thanksgiving is set to be a big one when it comes to online sales. So, don’t miss out and consider investing in the services of a Merchant of Record.
Exactly how good were the figures for Black Friday weekend in 2021? Well, Thanksgiving Thursday reached $5.1 billion in online sales and Black Friday racked that up to $8.9 billion. Small Business Saturday hovered around the $23.3 billion mark, with 58% of sales made via online portals. By Cyber Monday, shoppers were in full swing and eager to bag great deals on their favourite sites, thus reaching $10.7 billion in online sales. Even though these figures have the potential to be tempered this year by inflation, consumers are still keen to do their holiday shopping at the end of November.
So, what is a Merchant of Record, and where does it fit in with regard to e-commerce? A reliable Merchant of Record takes care of all the backend administrative, legal, and fiscal considerations involved when selling products directly to consumers over the internet. It means a far lighter load for your team, especially if you plan on selling globally — and the chances are you do if you’re on a growth trajectory.
By using a Merchant of Record, your business is freed of the many concerns surrounding being compliant while also offering amazing customer experiences. Essentially, it allows you to concentrate on marketing and converting leads on Black Friday weekend in order to maximise revenue and profits.
Understanding Merchant of Record Responsibilities
Despite the numerous benefits of working with a Merchant of Record, some e-commerce sellers are still unconvinced about the need for such solutions. It’s possible they have misconceptions about the services a Merchant of Record can provide.
For instance, one common misconception is that working alongside a Merchant of Record can disrupt a merchant’s carefully designed customer experience. In fact, the majority of customers fail to even detect that the e-commerce stores they visit use a Merchant of Record. Instead, a normal, streamlined checkout process is maintained.
Another unfounded argument is that even the big players are reluctant, financially, to bring in a Merchant of Record. However, this couldn’t be further from the truth. A Merchant of Record eliminates any need for thriving businesses to build the complex infrastructure necessary to sell in international markets.
In addition, a Merchant of Record enables already-established brands to expand into global e-commerce by taking on a lot of the heavy grafting.
Companies that decide to join forces with a Merchant of Record don’t require extra staff to take care of processing payments, calculating taxes for each country, reconciling finances and remaining legally compliant across geopolitical borders. A Merchant of Record helps them save valuable money, time, and resources — and, critically, avoid all the risks associated with international sales. As a result, they become more competitive in the market.
Expanding Your Direct-to-Consumer Strategy and Footprint With Merchant of Record Services
The main takeaway is that a Merchant of Record minimises the risks and maximises the potential for growth. After all, Black Friday is not only popular in the United States, countries worldwide have jumped on the Black Friday weekend bandwagon. Amongst them are Germany, France, the UK, Finland and many more. Consequently, the opportunity to sell products online to these huge markets is greater than ever before.
It’s a tricky business navigating endless different payment types, negotiating with payment providers, dealing with chargebacks and everything else that goes hand-in-hand with accepting money from consumers who live abroad. The great thing about a Merchant of Record is that it allows you to advance with your ambitious direct-to-consumer strategy plans for Black Friday and more.
Best Practices for Leveraging Merchant of Record Services
Ready to make the most of your Merchant of Record partnership as we migrate into the biggest holiday season of the year? Here are a couple of Black Friday tips for e-commerce that we have put together for you:
Start selling globally online.
To make sure the maximum possible number of consumers buy from your online store, you must be able to deal with the variables that international transactions throw up. Fortunately, a Merchant of Record provides the support and protection necessary for you to be able to confidently advertise to buyers on a global scale.
Nothing stunts business growth more than limiting sales to limited locations. When you sell online internationally, naturally you increase brand visibility, but you also boost sales and ROI. A Merchant of Record makes sure that your business is performing to the best of its ability and that it reaches a global audience while also minimising any risks that come with that.
Consider Ways to Localise the User Experience.
No one can deny that if your product is more localised, you save on shipments, warehousing and returns. A Merchant of Record helps you to succeed internationally by lessening the workload. Case in point: Go Global Ecommerce works alongside big brands in order to optimise their value chain. We’re involved with all of the best-in-class players wanting to make sure they don’t fail because of factors that lie outside of their expertise. Contact us