Voice of the Industry

How your ecommerce business will succeed internationally

Friday 10 December 2021 09:21 CET | Editor: Anda Kania | Voice of the industry

Ecommerce will see further international growth in future. Michael Rogge, Director Sales Order-to-Cash at Arvato Financial Solutions, depicts how our AQOUNT O2C OS solution gives merchants the opportunity to scale their business while having their payment and finance processes under control

Branching out into new markets is a key to success for online retailers who aim to grow their business. But international expansion brings with it many challenges, in particular when it comes to payment and accounting. A scalable order-to-cash solution can make life easier for online retailers setting their sights on new pastures.

The internet has blurred the borders between countries. This is especially true within the EU, as a slew of online retailers has already discovered. And many more companies are set to follow their example, getting ready to enter new markets. According to a survey by Visa, 87 % of online retailers worldwide believe that seizing opportunities outside of their home markets will be one of the biggest drivers for growth within the next years. In a similar vein, figures collected for Germany are in line with international trends: 60 % of online retailers already sell abroad, while 73 % of the executives steering an ecommerce company that is still focused only on its home market want to expand their business internationally. But the devil can be in the detail – especially when it comes to payment and accounting. 

There are three big challenges facing retailers who plan to expand their business

First, online retailers need to implement the specific payment options for every country to ensure a smooth user journey and a high conversion. Another challenge is that during peak times, many more invoices and transactions have to be handled. If there is no highly automated accounts receivable management in use this can cause bottlenecks in resources. And finally, companies often worry about the time it will take to set up the financial processes for their cross-border expansion. Additionally, handling taxes is a challenge since online retailers have to deal with tax regulations that vary from country to country. Many companies are concerned that this will slow down the speed of implementation and, consequently, of the entire expansion project.

In order to overcome these issues, we at Arvato Financial Solutions have developed a completely new order-to-cash-platform called AQOUNT O2C OS. Along with the sales ledger accounting, payment capturing and a professional dunning flow, AQOUNT O2C OS ensures a highly automated reconciliation process for every single payment method. In addition, the AQOUNT team takes care of all manual tasks that still occur, like manual payment matching, chargeback-handling, payouts and even the month-end closing activities.

The foundation for expansion: payment and finance processes under control

Within AQOUNT O2C OS we have seamlessly combined many services to be able to accelerate business growth. The system reduces the complexity in payment processing by offering access to more than 100 local payment methods being docked to the webshops of merchants via one API – a detail that can be crucial. According to a survey Arvato Financial Solutions has published together with PPRO, 37.5 % of online shoppers in Europe cancel the order process if they cannot use their preferred payment method. But this is only one aspect of the customer journey. There are more challenges online retailers are facing regarding international expansion. To meet them, AQOUNT O2C OS contains a comprehensive kit of services online retailers need: subscription management, risk management, fraud management, payment processing, collecting service, accounts receivable management and marketplace enablement.    

All of these elements are essential for retailers who participate in the growing ecommerce sector. The European ecommerce market will continue its fast and dynamic growth with revenues that could reach over half a trillion Euro in the next few years. In such an endeavour, it is helpful to use a scalable order-to-cash-platform. AQOUNT O2C OS gives merchants the opportunity to scale their business and it can be rolled out quickly on an international scale. In AQOUNT O2C OS we have already created standardized bundles as an easy start to option for different business models and industries, so that the time to market can be improved.

Existing providers (e.g. Payment Service Providers or risk and fraud providers) can easily be connected to AQOUNT O2C OS via interfaces. AQOUNT O2C OS also has interfaces to many providers, so that technical integration is reduced to a minimum on the customers’ side. 

Ecommerce has experienced a huge surge during the COVID-19-pandemic and will undoubtedly see further growth in future. But the market has also become more competitive. Companies need to consider how they can secure and increase their market share by expanding internationally – something that should also be considered right from the beginning. An efficient and scalable order-to-cash operating system can help online retailers meet all the challenges of change and growth – thanks to the combined services in an all-in-one solution.

About Michael Rogge

Michael Rogge is responsible for Sales in the business unit Order-to-Cash at Arvato Financial Solutions. As a proven expert in the fields of payment, accounting and fraud management he has been with the company for 20 years. Michael combines experience in Key Account Management, Sales and consultancy to create a match that gives companies in the e-commerce, mobility and retail sectors valuable insight and above all an order-to-cash strategy that is focused on success.

About Arvato Financial Solutions

Arvato Financial Solutions provides integrated financial services in the order-to-cash life cycle to renowned international brands so they can focus on their core business. As their backbone to growth, the Arvato Financial Solutions team of 7,000 experts works to make sure client’s credit management runs effortlessly and efficiently.

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Keywords: financial services, Order-to-Cash, cross-border payments, B2B payments, ecommerce
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce