5 Challenges in Handling International Orders for Your Philippine-Based Business

Expanding your business to an international audience opens the door to tremendous growth opportunities. The international stage offers a chance to tap into a diverse customer base, increase brand visibility, and potentially multiply revenue streams. It also enables you to build partnerships with suppliers and distributors worldwide, paving the way for long-term scalability and success.

However, while the rewards are enticing, entering the international market is not without its challenges. You’ll be navigating unfamiliar terrain and face numerous obstacles, such as logistical complexities and regulatory hurdles, that will make scaling operations more intricate. You’ll also need to adapt to different market expectations to ensure your business meets the demands of a global customer base. Recognizing these hurdles and preparing to address them is key to maximizing the benefits of this endeavor. Thus, this article will highlight the common challenges many Philippine-based business owners face when handling international orders, and provide actionable insights to help you overcome them effectively.

Payment Processing

Handling payments from international customers can be more complicated than local transactions. Currency conversions, fluctuating exchange rates, and varying international fees can lead to discrepancies between what customers pay and what businesses actually receive. Moreover, not all international payment systems are universally accepted, making it more difficult to offer a seamless and convenient checkout process. That said, it’s crucial to partner with a fintech company that offers the best payment processing solution that has multi-currency support.

Maya Business offers internet payment solutions that can simplify cross-border transactions. With our Dynamic Currency Conversion service, international customers can choose to pay in either the merchant’s local currency or their own card’s currency. What’s more, our solutions are simple to use. Our flagship payment gateway product, Maya Checkout, for instance, can be easily integrated into your e-commerce website, enabling you to accept payments from various payment options like credit cards, debit cards, and e-wallets. If you don’t have a website, you can use Maya Invoice Payments to send online invoices to your customers’ respective emails.

Furthermore, our payment ecosystem is equipped with robust security measures, such as advanced encryption and fraud detection tools, to ensure that every online payment processed through our solutions is protected against unauthorized access and fraudulent activities. Offering secure and efficient payment methods enhances the purchasing experience for international customers while safeguarding your business.

Logistical Issues

As an owner of a Philippine-based business, shipping products internationally presents several logistical challenges. For instance, the distances between the Philippines and key global markets are considerable, and this often leads to higher shipping costs and extended delivery times. These added complexities make it more difficult to guarantee fast and reliable shipping for international customers, which can result in customer dissatisfaction and lost sales. Managing international shipments also requires you to deal with a variety of shipping carriers, each with its own schedule, cost, and regulations. The differences in services and timeframes can complicate coordination and tracking, leading to potential errors or delays in fulfilling orders.

Customs regulations are another significant hurdle in international logistics. Each country has its own set of import and export rules, tariffs, and documentation requirements. Missing or incomplete documentation, such as invoices, certificates of origin, or proper product classifications, can hold up shipments at customs, costing time and money. Furthermore, fluctuating tariffs and duties may lead to unexpected costs, which could impact profit margins or delay the delivery timeline.

To overcome these logistical challenges, it’s a good idea to partner with experienced logistics partners who specialize in international shipping. These providers can help navigate the complexities of customs regulations and offer insights into the most cost-effective and reliable shipping routes. Another option is consolidated shipping. Grouping multiple orders into a single, larger shipment can help reduce per-unit shipping costs, allowing you to manage costs more effectively—especially when dealing with smaller orders or shipping to regions with higher transportation fees. It's also important to provide customers with clear, realistic delivery timelines to manage their expectations. Since international shipments can sometimes be delayed due to factors like customs processing, businesses should proactively communicate with customers to minimize frustration.

Finally, be sure to understand and adhere to the customs rules of each destination country. This is crucial to ensure smooth customs clearance, which helps avoid delays, fines, or even the rejection of goods.

Inventory Management Across Borders

When shipping products internationally, managing inventory becomes increasingly complex. Since you’re fulfilling orders across multiple regions, ensuring that stock levels are accurately tracked and efficiently distributed becomes a major challenge.

One way to address this, if you have the means, is to store your products closer to key markets. This helps streamline the fulfillment process by shortening the distance between your inventory and your customers, reducing shipping costs, and improving delivery times. Partnering with third-party logistics providers or fulfillment centers located in key international markets allows you to store your products locally and fulfill orders more efficiently.

Additionally, working with reliable suppliers who can manage the production and shipping of goods directly to international markets can streamline the process and ensure that you’re always ready to meet demand without overstocking or running into shortages.

Furthermore, consider using inventory management software designed for international operations. These systems help track stock in real time, allowing you to monitor inventory across multiple locations and adjust your supply chain as needed.

Language and Documentation

Different countries have their own language and labeling requirements, as well as shipping documents, and as such your products must meet these specific regulations to avoid complications at the border. Inaccurate translations or failure to comply with local documentation standards can lead to misunderstandings or even product rejections at customs, which could cause delays and additional costs. For instance, certain products might require safety certifications, warnings in the local language, or specific product labels to be legally sold in some countries.

Thus, you should invest in professional translation and localization services for product labels, marketing materials, and legal documents. Localization ensures that your business not only speaks the language but also conforms to local standards. Moreover, make sure your team is familiar with the documentation requirements for each international market. This includes commercial invoices, packing lists, certificates of origin, and any product certifications that may be required by local authorities. Working with experienced customs brokers or freight forwarders can help ensure that all required documentation is in place, reducing the likelihood of shipment delays or compliance issues.

Global Customer Expectations

Meeting the expectations of international customers is one of the most critical yet challenging, aspects of selling abroad. Customers from different countries have varying preferences, and what works in one market may not be as well-received in another. In some countries, for instance, consumers may expect expedited delivery while others might be more focused on sustainable packaging. Failing to meet these differing expectations can result in dissatisfaction and impact your reputation. Therefore, thoroughly researching the cultural and commercial norms of each country you’re selling to can help you understand the priorities of each market and tailor your offerings to match these needs. For example, in Japan, consumers often value high-quality packaging and detailed product information. Consumers in Scandinavian countries, on the other hand, may place a strong emphasis on environmentally friendly packaging.

In addition to this, offering support at hours that align with your customers' local time can go a long way in building trust and ensuring satisfaction. Consider integrating chatbots to provide 24/7 assistance on your website so that customers can get immediate answers to common questions. However, for more complex inquiries, ensure that a human agent is available to step in during business hours, when needed. You can also offer self-service resources like a comprehensive FAQ section or downloadable product manuals that customers can access at any time. Providing timely and localized support shows your international customers that you’re committed to meeting their needs, which can ultimately help build long-term loyalty and satisfaction.

Entering international markets presents both significant opportunities and potential difficulties. On one hand, it allows you to tap into diverse customer bases and open up new revenue streams. On the other hand, it requires you to overcome various challenges that test your ability to efficiently manage operations across borders. Fortunately, with the right strategies and tools, you can face these obstacles with confidence and strengthen your business’s position globally.

Enhance Your Business’s Payment Processing for International Customers with Maya Business Solutions

Sign up for Maya Business so that you can make full use of our business solutions. Creating an account gives you access to Maya Checkout and Maya Invoice Payments, allowing you to improve your business’s payment processing for international transactions.

Setting up a Maya Business account also lets you open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Furthermore, you’ll be able to send money to your partners and suppliers for free via InstaPay and PESONet, letting you save more.

Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, allowing you to have another funding source to further develop your business. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.

Sign up for Maya Business today to enjoy the benefits of Maya Business solutions.