Cross-Border E-Commerce: Issues with Compliance and Their Resolutions

By | November 21, 2024

According to Statista, retail e-commerce sales are predicted to surpass 6.3 trillion dollars globally in 2024 and continue to rise in the years to come. “Online sales have become more and more important in the retail industry. E-commerce made up more than 19% of global retail sales in 2023. According to projections, the online market will account for nearly 25% of all retail sales worldwide by 2027.
Nevertheless, importers and exporters must negotiate a maze of bureaucracy and difficulties in the global e-commerce landscape.

Legal Requirements for E-Commerce

Regulating the digital trade environment is difficult. Nonetheless, the cross-border trade of goods is governed by numerous laws. These regulations, which differ by area and evolve over time, are meant to safeguard customers and stop unlawful transactions. It is the duty of traders to understand and abide by all applicable e-commerce laws.

Before completing their first order, importers and exporters must have an internal compliance program in place due to the risks of non-compliance. Senior management supports a compliance program that includes internal policies to guarantee that all trade regulations are followed and that best practices are used throughout the import/export lifecycle.

Challenges of International Trade for E-commerce businesses

Think about just four issues that e-commerce traders face:

1. Choosing Appropriate Trade Partners and Markets


It’s crucial to conduct thorough research and make thoughtful decisions prior to entering a market and selecting international trading partners. Evaluate the risks associated with the nation, the buyer, the brokers, the shippers, and any other possible partners by conducting comprehensive risk assessments.

The International Trade Administration suggests that “investigate the political, economic, and financial conditions of the market.” “Select buyers and partners carefully to guarantee a fruitful and profitable partnership.”

2. Being Aware of International Trade Laws

Regulations governing e-commerce differ by nation and even by transaction. The country of origin, destination, product in question, quantities, end user, and numerous other transactional details determine which laws and licensing requirements apply. It is the duty of traders to comprehend and abide by all applicable laws.

Two essential components of compliance are precise product classification and exhaustive license screening. Before shipping an item to its destination, traders must know what kind of item or items they plan to sell and apply for any licenses or permits that may be required.

3. Overseeing Compliance with Cross-Border Logistics

Compliance with international shipping is essential for any e-commerce business. It takes much more than just packing an item and sending it to an international courier to fulfill an order.

The products must first be ready to meet regulatory requirements, such as labeling, appropriate certification, compliance with operational and environmental standards, and more, before they can be shipped. In addition, traders must establish connections with trustworthy couriers and brokers. Special handling or other particular compliance considerations are necessary for certain shipments. It is essential to prepare and maintain thorough documentation at every stage.

4. Providing Complete and Correct Data for Customs Clearance

The key to overcoming customs obstacles in e-commerce is compliance awareness, planning, and documentation. To guarantee seamless border crossings and precise duty computation, customs officials must be provided with all relevant information and required authorizations.

Shipment Detail:

Here are the shipment details that traders must provide in order to satisfy the fundamental requirements for customs clearance, as stated in CBP’s E-Commerce Elements of Compliance guide for importers to the United States:
• The item’s value or listing price (in US dollars); • A thorough product description
• The gross weight of each item (in pounds or kilograms); • The number of items in the package; • The country of origin (in English, as indicated on the products);
• Additional pertinent agency requirements, including permits, licenses, etc.

Naturally, requirements differ depending on the transaction and the country. All laws that are pertinent to their transactions must be followed by traders.

Cross-Border E-Commerce Solutions

Our powerful compliance software redefines trade operations by integrating all aspects of compliance management onto a single platform.

Global EASE assists traders in the following areas: identifying all possible partners and stakeholders; accurately classifying all products; comprehending licensing requirements and laws relevant to particular transactions; streamlining shipping and logistics through integration with freight forwarder and broker systems; and taking advantage of opportunities to increase profits, such as duty drawbacks, FTZs, and FTAs.
Enabling safe electronic data transfers and submitting applications for pertinent authorizations, such as licenses and permits
Using technology like Blockchain to maintain thorough and secure records; instantly preparing documents for internal or regulatory audit requests; and producing and submitting accurate customs documentation

Our software operates at scale, accommodating the demands of our clients, whether they are Fortune 500 behemoths or nascent e-commerce startups.