Global eCommerce
ASBDC – September, 2013
Kathy Marshalek / Earl Gregorich
10 things you probably don't know about ecommerce.
1. By connecting a modified domestic television with a phone line, Michael Aldrich
invented online shopping in 1979.
2. Although Amazon launched in 1995, the first yearly profit wasn't until 2003, and as of
June 2012, the average order value was $47.31.
3. Because of forced account registration, online users abandon their shopping carts 26%
of the time.
4. Netflix wasn't the first online DVD subscription service — Blockbuster announced
Blockbuster.com in 2004, but it's unclear whether services such as Netflix and Redbox
led to its ultimate bankruptcy.
5. During the third quarter of 2012, $4,423 was transacted per second via PayPal.
6. Zappos' referrals from social media per order yield $0.75 from Pinterest, $2.08 from
Facebook and $33.66 from Twitter.
7. Approximately 46% of online users consult social media before a purchase decision.
8. 71% of shoppers believe they'll get a better deal online than in stores.
9. In 2010, Groupon turned down Google's $6 billion offer and became an IPO the
following year.
10. Consumers spend between $1,200 and $1,300 on online shopping per year.
SBDC & ITAC Wright State University, Dayton, OH
www.sbdcwsu.com
Global eCommerce
ASBDC – September, 2013
Subject (or Topic)
Kathy Marshalek / Earl Gregorich
Visit
Call
Internet Advertising &
Marketing
http://business.ftc.gov/documents/bus28-advertising-andmarketing-internet-rules-road
Currency Exchange
http://www.xe.com/currencyconverter/
International
banker
Determining Duty Rates
http://export.gov/logistics/eg_main_018130.asp
Freight Forwarder
Embargoed Countries
http://www.pmddtc.state.gov/embargoed_countries/
State Dept.
Export Documentation
http://www.ups.com/ga/CountryRegs?loc=en_US
Various Sources
Export Screening Lists
http://export.gov/ecr/eg_main_023148.asp
USDOC
Export Licensing
Regulations
http://www.bis.doc.gov/index.php/exporter-portal
USDOC/BIS
Export Red Flags
http://www.bis.doc.gov/index.php/enforcement/oee/com
pliance/23-compliance-a-training/51-red-flag-indicators
Going online E-exporting
for small businesses
https://new.export.gov/basic-guide/11-going-online
Harmonized Tariff
Schedule Numbers (HTS)
http://hts.usitc.gov/
Freight Forwarder
Incoterms
http://www.iccwbo.org/products-and-services/tradefacilitation/incoterms-2010/the-incoterms-rules/
Freight Forwarder
Languages Spoken in Each
Country
http://www.infoplease.com/ipa/A0855611.html
Marketing & Educ. Data
http://export.gov/
Schedule B numbers
http://www.census.gov/foreign-trade/schedules/b/
Freight Forwarder
Shipping Options
USPS - https://www.usps.com/business/manage-globalshipping.htm
Local Post Office
FedEx - https://smallbusiness.fedex.com/international
Local FedEx Office
UPS –
http://www.ups.com/content/us/en/shipping/time/service
/shipping/
Local UPS Office
DHL - http://www.dhlusa.com/en/express/export_services.html
Your local DHL
Office
SBDC & ITAC Wright State University, Dayton, OH
www.sbdcwsu.com
Global eCommerce
ASBDC – September, 2013
Kathy Marshalek / Earl Gregorich
Step-by-Step Guide to Going International Online
Use these steps as a guide to creating your website and marketing your company overseas using the
internet and key service providers.
1. Select A Domain Name (http://www.export.gov/sellingonline/eg_main_020789.asp)
Selecting a domain name for your company's international website(s) is the first important decision
you'll make and can potentially have significant marketing implications.
2. Register at Search Engines (http://www.export.gov/sellingonline/eg_main_020790.asp)
Help potential customers find your website by registering with the major search engines in the countries
you wish to target.
3. Choose a Web Host (http://www.export.gov/sellingonline/eg_main_020791.asp)
Find a dependable web hosting service to house your localized website(s). Many hosting providers offer
additional value-added services such as site maintenance, search registration, site development, etc.
4. Content – Localize & Internationalize (http://www.export.gov/sellingonline/eg_main_020792.asp)
Target international customers by tailoring your website to local language and cultural tastes. Learn
more about selling globally from your e-commerce site with our Preparing Your Business for Global ECommerce: A Guide for Online Retailers to Manage Operations, Inventory, and Payment Issues manual.
5. Execute Orders (http://www.export.gov/sellingonline/eg_main_020793.asp)
Enable your customers to use a variety of payment options that meet local business practices and be
aware of other considerations when doing international business such as taxes, shipping, customs
duties, and after sales service.
SBDC & ITAC Wright State University, Dayton, OH
www.sbdcwsu.com
Global eCommerce
ASBDC – September, 2013
Kathy Marshalek / Earl Gregorich
Glossary of Terms
A2A
Account-to-Account
B2B
Business-to-Business
B2C
Business-to-Consumer
BIS
Bureau of Industry and Security (USDOC)
CVN
Card Verification Number
EAR
Export Administration Regulations (USDOC)
ELC
Export Letter of Credit
FDA
Food and Drug Administration
GST
Goods and Services Tax
HST
Harmonized Sales Tax
HTS
Harmonized Tariff Schedule
INCO
International Commerce Terms
IP Address
Internet Protocol – Unique numeric identifier for all devices accessing the internet
ITAC
International Trade Assistance Center
ITAR
International Traffic in Arms Regulations (USDOS)
NAFTA
North America Free Trade Agreement
OA
Open Account
P2P
Person-to-Person
PST
Provincial Sales Tax
SEO
Search Engine Optimization
SOP
Standard Operating Procedures
UL
Underwriters Laboratory
USDOC
U.S. Department of Commerce
VAT
Value Added Taxes
SBDC & ITAC Wright State University, Dayton, OH
www.sbdcwsu.com
Global eCommerce
ASBDC – September, 2013
Kathy Marshalek / Earl Gregorich
Red Flag Indicators
http://www.bis.doc.gov/index.php/enforcement/oee/compliance/23-compliance-a-training/51-red-flag-indicators
Things to Look for in Export Transactions
Use this as a check list to discover possible violations of the Export Administration Regulations. You
may also wish to visit our page that provides “Know Your Customer Guidance” at
http://www.bis.doc.gov/index.php/enforcement/oee/compliance/23-compliance-a-training/47-knowyour-customer-guidance
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The customer or its address is similar to one of the parties found on the Commerce
Department's [BIS'] list of denied persons.
The customer or purchasing agent is reluctant to offer information about the end-use of the
item.
The product's capabilities do not fit the buyer's line of business, such as an order for
sophisticated computers for a small bakery.
The item ordered is incompatible with the technical level of the country to which it is being
shipped, such as semiconductor manufacturing equipment being shipped to a country that
has no electronics industry.
The customer is willing to pay cash for a very expensive item when the terms of sale would
normally call for financing.
The customer has little or no business background.
The customer is unfamiliar with the product's performance characteristics but still wants the
product.
Routine installation, training, or maintenance services are declined by the customer.
Delivery dates are vague, or deliveries are planned for out of the way destinations.
A freight forwarding firm is listed as the product's final destination.
The shipping route is abnormal for the product and destination.
Packaging is inconsistent with the stated method of shipment or destination.
When questioned, the buyer is evasive and especially unclear about whether the purchased
product is for domestic use, for export, or for re-export.
If you have reason to believe a violation is taking place or has occurred, you may report it to the
Department of Commerce by calling its 24-hour hot-line number: 1 (800) 424-2980. Or, if you prefer,
to submit a confidential tip, use form “Confidential Enforcement Lead/Tip” Form at
http://www.bis.doc.gov/index.php/component/rsform/form/14-reporting-violationsform?task=forms.edit .
SBDC & ITAC Wright State University, Dayton, OH
www.sbdcwsu.com