What D2C brands need to include in their 2023 growth strategy - Interview with Ted Rogers

Wednesday 8 February 2023 09:38 CET | Editor: Raluca Ochiana | Interview

The Paypers interviewed Ted Rogers, Chief Revenue Officer at Digital River, to find out what D2C brands need to include in their 2023 growth strategy.


Are marketplace platforms like Amazon or eBay friends or foes to D2C brands? What impact do marketplaces have on brands’ visibility?

The impact that marketplace platforms such as Amazon or eBay have on the strategies put in place by D2C brands is both positive and negative.

Positive: Shoppers love online marketplaces for convenience. Over half of all worldwide ecommerce revenue comes from online marketplaces such as Amazon and Alibaba. Because marketplaces are so popular, it’s difficult for brands to ignore where shoppers are.

Negative: In spite of larger sales volumes, marketplace platforms take a significant percentage of each sale, making for very slim revenue margins. Brands selling on marketplaces also have less control over the brand experience than selling directly to consumers. On top of the loss of brand control, brands generally lose all data regarding their end customer. They may know the volumes of what’s selling and where, but brands can’t build a direct connection to who is buying, how much they are buying, and how often they are buying.

How can a D2C brand create a better or more consistent payment experience for consumers in a new market where established players have strong roots?

Act like a local. The checkout experience should allow customers to pay in their local currency and with their preferred local payment methods. Without a localised checkout experience, brands risk high cart abandonment rates, leaving signific revenue on the table. Localised checkout is essential for growing your international ecommerce business and critical for conversion.

What are the key aspects of localisation that a business should consider when expanding into high-growth markets with competitive landscapes?

Beyond a localised checkout, brands have to take care of the entire customer journey from the moment the buyer lands at their store. Language consistency as well as transparent messaging on pricing leading up to the checkout will increase cart conversion rates. Translations are obviously important, as well as having local knowledge of cultural nuances.

Another important consideration for your store’s checkout is compliance. The global landscape of regulatory compliance is complex and ever-changing. If your store is not compliant with local regulations, you can put your business at risk. Local acquiring, where transactions are routed through local banks instead of foreign ones, is a way for brands to increase acceptance rates and customer satisfaction. No one wants to see card declines, and foreign transactions run the risk of having a higher decline rate.

How can brands reduce the costs and complexities of the supply chain?

Working with an established logistics partner drives down cost and complexity. A partner that handles large order volumes will be able to drive down freight rates. An experienced logistics partner can simplify customs clearance and properly calculate duties, taxes, and shipping so that customers aren’t surprised by additional fees upon delivery.

Solving international shipping is no easy task. Third-party logistics (3PL) firms can provide a simple solution for many brands. These companies have shipping networks in place, understand the nuances of different shipping regulations, and can help negotiate better rates. In effect, 3PLs will handle the challenges of cross-border shipping compliance for you, but that convenience comes at a price. While there is no single solution for international expansion, a strong network of expert partners can alleviate much of the stress of international selling. Shipping partners and tax experts can be a good place for brands to start learning about the requirements and considerations applicable to their specific products or services.

Brands might also consider partnering with a Merchant of Record (MoR) provider. MoRs act as international resellers, taking on the burdens of payment processing, tax compliance – even shipping – and all the international back-office operations risks that come with them. This can dramatically reduce the burden, cost, and risk of cross-border selling – and enable the brand to focus on the most important thing: building sustainable customer relationships.

What is Digital River's role in supporting D2C brands in their expansion journey?

Digital River helps brands enjoy fast, easy, risk-free expansion by acting as MoR and taking on complex back-office challenges related to international payments, fraud, taxes, and regulatory compliance. A single integration into a brand’s commerce platform of choice unlocks a global expansion accelerator that localises checkout experiences, increases conversions, and reduces risk.

Localising your checkout experiences is essential for growing your international ecommerce business – and now, with Drop-in from Digital River, it’s easier than ever to do. Drop-in is part of Digital River’s Global Seller Services, a MoR solution that simplifies checkout and all the complexities that happen after the ‘PAY NOW’ button. Brands choose Digital River for our 25+ years of ecommerce experience and guidance, along with our ability to eliminate risk and complexity.

This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2022–2023, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally.

About Ted Rogers

Ted Rogers started at Digital River in 2017 and brings a unique perspective to the business, with past roles spanning from marketing to credit and fraud to operations. He served first as vice president and general manager of MyCommerce, then vice president of global expansion and fulfillment operations, and Chief Marketing Office before being named Chief Revenue Officer. His focus lies in delivering value and driving growth for customers and partners by taking a global, scalable, and quantitative approach.

About Digital River

Digital River helps brands enjoy fast, easy, risk-free international growth in 240+ destinations with our back-end solution for payments, fraud, tax, and compliance. As Merchant of Record, we shoulder the financial and legal responsibilities so our clients can focus on customer experience. Much more than a global payment solution, we empower businesses to avoid the complexity and risk of keeping up with constantly changing regulations and the calculation, filing, and remittance of taxes in multiple jurisdictions.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cross-border payments, ecommerce, marketplace, merchant, regulation
Categories: Payments & Commerce
Companies: Digital River
Countries: World
This article is part of category

Payments & Commerce

Digital River

Discover all the Company news on Digital River and other articles related to Digital River in The Paypers News, Reports, and insights on the payments and fintech industry: