Services
View GuideSelling Abroad Online
Why might I want to sell online? Selling online offers a competitive edge to small businesses seeking to expand into new markets. It is often a lower cost, lower risk business model for small businesses starting out in international trade. Retail e-commerce sales worldwide have seen a rapid increase in recent years. E-commerce can be a quick and effective way to attract more customers. By selling online, it is possible for you to reach a new global customer base with lower overhead than if sales were only made through physical stores. How can I sell online? From online marketplaces and platforms to social media and e-commerce websites, there are a wide range of digital sales options in addition to traditional or physical stores. Some of the most common ways to sell online are listed below. Marketplaces: These could be general or specialized by market sector (for example textiles, or electronics). General marketplaces are suitable to sell products or services with mass appeal when branding is not a business priority. In contrast, specialized marketplaces enable businesses to position their brands, find market niches, and offer customized value propositions to clients. Listing websites: These are useful for MSMEs with business models that focus on buying and re-selling common items. They are also appealing for businesses that sell by offering competitive prices or promoting additional features of goods and services advertised on the web. Social media: Social media platforms enable businesses to create customized webpages linked to online e-commerce sites and marketplaces with mass reach. Your own online webshop: Building and maintaining your own online shop can be effective, you can engage a commercial company /website builder to do this for you. This is the quickest, easiest route to creating a sleek, professional online presence for your ecommerce business. Many companies also offer competitively priced template sites that you customize. Or, if you have the knowledge and skill, you can code your own. What should I consider before selling online? A starting point is to plan a sound e-commerce sales strategy and get customer feedback on products and services. Either through social media or direct contact channels, you can reach out directly to potential customers to understand their needs and find target markets domestically and/or internationally. Understanding your customer base can help you customize products and services and identify market entry options. Other things to consider include payment methods, as well as the shipping and returns policies that may be best suited for your customers. These may vary depending on the market. You should also research market access requirements that may affect your products and services(see the Trade4MSMEs guides on services export potential and services contact points)Services Contact Points have more information. Many businesses can benefit from online communities and training courses about online sales methods and e-commerce strategies. Links to Supporting Information WTO (World Trade Organization) regional initiatives on e-commerce WTO | Electronic commerce UNCTAD Global E-Commerce Jumps to $26.7 Trillion, Covid-19 Boosts Online Retail Sales | UNCTAD Statista Global retail e-commerce sales 2026 | Statista International Trade Centre (ITC) ecomConnect: ecomConnect | E-commerce Community Engagement Platform for Everyone Is an e-commerce online community Trade4MSME Guide Export Potential Guide Trade4MSME guide Services Contact Points ITC Online training courses ITC SME Trade Academy – Catalogue (intracen.org) ITC ITC SME Trade Academy – Summary of Introduction to E-commerce (intracen.org) ITC ITC SME Trade Academy – Summary of Using Virtual Marketplaces for your E-commerce Initiative (intracen.org) ITC ITC SME Trade Academy – Summary of Creating Quality E-commerce Content (intracen.org) ITC ITC SME Trade Academy – Summary of E-Commerce for your B2B Business (intracen.org) Google Free Online Marketing & Career Courses – Google Digital Garage – Google Digital Garage (learndigital.withgoogle.com) Google Skillshop tutorials on using Google Ads Google Ads : Google (exceedlms.com) and Get a business online – Google Digital Garage (learndigital.withgoogle.com) PayPal How to Sell Internationally | PayPal US
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Trade Insurance
What are the challenges and risks in international trade? Transactions across borders can be complex and risky. From not getting paid to geopolitical crises, businesses that trade across borders face many uncertainties. These can partly be eased by insurance. From the moment a transaction is started, there can be doubts about the trustworthiness of a business partner, whether the specified amount and quality of goods will be shipped, when the goods will be received, and more. Businesses should consider which risks they are most likely to face with any given transaction and weigh up the costs and potential benefits of purchasing some form of trade-related insurance. What types of trade-related insurance are available and what do they cover? Bonds are a financial product that ensures payment of a transaction. It is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in cases where the issuer of the bond or security has defaulted on payment. Credit insurance is a frequently used type of trade insurance. Importers guarantee to exporters that they will pay them in full when the contractual conditions are met. If the buyer does not fulfil the contract and defaults on payment, the insurance company compensates the seller. Foreign exchange risk insurance is a forward operation where a contract can be arranged with a financial institution to buy/sell currency on a specific date at a pre-defined exchange rate. This type of insurance is offered by financial institutions to lessen the loss from exchange rate fluctuations. Financial guarantees are binding, non-cancellable promises backed by banks or insurers to underwrite a contract and make payments to a recipient if terms are not met. Besides protecting the exporter against non-payment, guarantees can also protect importers against the risk that the supplier will not fulfil the contract. Political risk insurance covers the risk of the overseas government intervening in the investment, and if events that are considered “political” in nature interfere with a transaction. Examples of the latter situation include the expropriation of assets or the outbreak of violence. Although sometimes sold separately, it is important to note that many credit insurance contracts also cover political risk. Product liability insurance covers risks from litigation if the product fails to comply with national regulations. Surety is a guarantee issued by a third party to pay the loss suffered by one party in a contract in the event of complete failure to fulfil a contract. In this case, the third party assumes the responsibility of paying the contract. Transit insurance, for merchandise that is currently being transported, includes: Marine cargo insurance, which protects the shipment of merchandise via a cargo vessel, including from ship to terminal. Air cargo insurance, which provides protection against loss, damage, and sometimes the delay of shipments via aircraft. Ground transportation insurance, which is available for additional coverage for goods shipped by road and rail. This type of shipper is usually already liable for delivering the merchandise as received, with certain exceptions. Links to Supporting Information Trade Finance Global Risk and Insurance – Trade Finance Global An overview of the various types of trade insurance available and guides on how they work. Trade Finance Global Bond Insurance Policy Information on Bond Insurance
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Trade Finance Providers
What kind of trade finance lending do I need? Small businesses and new exporters can often find it difficult to access credit and finance, there are however lots of different resources MSMEs (Micro and Small Medium Enterprises) can explore. Who are the Trade Finance Lenders? There are several types of trade finance lenders to consider. Below are brief descriptions of some of the most common: Corporate and Commercial Banks: These banks can provide a range of trade credit options to businesses, including accepting letters of credit or bills of exchange, or facilitating documentary collection (see Trade4MSMEs guide on Trade Finance). Corporate banks typically service very large transactions, whereas commercial banks are more accessible to smaller traders. Alternative Finance Providers: These are non-bank lenders. These can include private investment, crowd-funding options, or other fintech that allows users to access financial services other than through a traditional bank. Alternative, or non-bank, finance can sometimes be more accessible to smaller traders because they do not face the same regulations as traditional banks, which can make traditional banks unwilling to spend the resources required to enable smaller transactions. Alternative finance providers based on new technologies may also be able to look at different types of collateral, which can open new areas of funding for businesses including Supply Chain Finance (SCF) (see Trade4MSMEs guide on Supply Chain Finance). Development Finance Institutions (DFIs): These provide trade finance help to businesses to promote economic development. They might be funded by national governments and tend to be country or region-specific. DFIs usually operate as joint ventures in emerging markets and can provide insurance and guarantees against political and socio-economic risk to encourage investment. Like commercial banks, they may also provide standby letters of credit, invoice discounting facilities, and project finance from mid-term to long-term projects. Although DFIs may have an overall objective of increasing small business finance, they often do not lend directly to businesses. Export Credit Agencies (ECAs): This financing is used to assist exporters through loans, loan guarantees, and insurance. The transactions supported by ECAs are capital intensive, such as machinery for large-scale projects. They have long-term financing maturities with attractive conditions, as they are usually provided through government financing facilities. ECAs may have minimum requirements, such as the size of a transaction, which could exclude certain smaller traders. What do I need to access this finance? Lenders have different requirements and criteria to access their financing options based on the level of risk, interest rate, and repayment conditions. If you are interested in accessing trade finance, first understand your financial needs and then reach out to your targeted lenders. Links to Supporting Information International Trade Centre (ITC) How to Access Trade Finance A guide for small exporters. Trade4MSMEs guide Trade Finance Introduction Trade4MSMEs guide Supply Chain Finance United Nations OHCHR | Development finance institutions OECD (Organization for Economic Cooperation and Development) Development finance institutions and private sector development – OECD The ITC’s SME (Small and Medium Enterprises) Trade Academy Export Finance and Payments Course Online training course Trade Finance Global Trade Finance Explained, an SME Guide for Importers and Exporters, is a publication co-authored by Trade Finance Global, the ITC, the Federation of Small Businesses (FSB), the Institute of Export & International Trade (IOE&IT), the British Exporters Association (BExA), the Forum of Private Business (FPB), and the International Finance Corporation (IFC).
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Trade Finance Introduction – for Businesses
What is trade finance and why may I need it? There are many definitions of trade finance, varying by organization and purpose. Trade finance...
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Supply Chain Finance
What is Supply Chain Finance (SCF)? Supply Chain Finance (SCF) is a cash flow solution that businesses can adopt to help free up working capital stuck in global supply chains.
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Incoterms
What are Incoterms? Incoterms is an abbreviation for “International Commercial Terms.” Issued by the International Chamber of Commerce (ICC) and globally recognized, they prevent confusion in foreign trade contracts by clarifying the obligations of both the buyers and sellers and provide a standard list of global terms and acronyms used in trade. Why would I use Incoterms? Different practices and legal interpretations between traders around the world necessitated a common set of rules and guidelines, which led to the development of Incoterms. These are terms that hold a common, precise, and defined meaning. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms rules are there to guide you. Various parties involved in both domestic and international trade use Incoterms as a shorthand to help understand one another and the exact terms of their business arrangements. Given the clarifying advantages of incoterms, it is recommended that they be used in a sales contract. What are the different Incoterms that have been developed? The ICC updates Incoterms every 10 years to align them with the latest trading practices. The most recent version is Incoterms 2020. Some examples of Incoterms include: Rules for any Mode of transport Ex works (EXW): These imply minimum obligations on the seller, requiring goods to be collected and loaded onto a vehicle by the buyer. Delivered at place (DAP): This requires the seller to deliver goods ready for unloading at the destination place agreed by the buyer. Delivered duty paid (DDP): This states that the seller is responsible for all costs and risks of delivering goods to the buyer, including goods clearance and handling customs formalities. There are others in this series Carriage and Insurance Paid to (CIP): This requires the seller to obtain insurance in addition to complying with obligations on handing over goods to carriers and clearing goods for export. Rules for sea and inland waterway transport Free alongside (FAS): This requires the seller to bear risks until goods are either procured or placed alongside a ship/vessel nominated by the buyer. The buyer is responsible for carriage of the goods from the shipment port onward and handling all import formalities. Free on board (FOB): This deems that the seller is the one to deliver goods on board the ship agreed by the buyer. Once the goods have been loaded on board the vessel, the responsibility for carriage of the goods and all import formalities transfers to the buyer. Cost and freight (CFR): CFR is similar to FOB but requires the seller to bear risks until goods are placed on board the vessel at the delivery port and costs to the destination port. The seller must also manage all export formalities and unloading costs when goods reach the destination port. The buyer is responsible for insuring the goods once the goods have been loaded on board at the departure port. Cost, insurance, and freight (CIF): CIF is similar to CFR but requires the seller to insure the buyer’s risk of loss or damage from the shipment port to the destination port, at least. For detailed information about Incoterms 2020, see the ICC’s new e-commerce platform in both print and digital formats, which can be purchased online for a fee. The edition is also translated into twenty-nine languages. You can contact your local ICC country office and representatives for their help and for more information. You can also visit the websites of some international law firms to learn more about different types of incoterms. Where can I get training on how to use Incoterms? The ICC national committees worldwide organize different training seminars, online courses, and certificate programs on Incoterms and other related topics. Their Incoterms 2020 professional certification covers each Incoterm’s rules and the corresponding obligations. It is especially helpful for professionals involved in trade and international business transactions, including those working in legal and regulatory affairs. Links to Supporting Information ICC International Chamber of Commerce (ICC) website and ICC Knowledge 2 Go Guide to Incoterms 2020 ICC local ICC country office and country representatives Contact information for your local International Chamber of Commerce Aceris Law Aceris Law also provide information on incoterms ICC ICC Incoterms 2020 Certificate. IOE&IT Export essentials: Incoterms and selling goods overseas – The Institute of Export and International Trade
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Legal Entity Identifier
What is a legal entity identifier (LEI)? A Legal Entity Identifier (LEI) is a 20-character, alphanumeric code that provides unique identification to businesses and other entities participating in financial transactions. The LEI contains information on business ownership structures, that regulators require in order to assess financial risks and therefore promote market integrity. LEIs are part of global standards that rely on high data quality for enhancing transparency in marketplaces. More information on what an LEI is can be found at the Global Legal Entity Identifier Foundation’s (GLEIF) website, and at LEI Worldwide in the links below. How can my business benefit from having an LEI? Although an LEI is not a legal requirement, it does provide benefits to businesses, such as international recognition and credibility with investors and customers, because LEI data will optimize business procedures for market transactions. Having an LEI number can also enhance business security by providing more detailed information about suppliers and partners when doing business overseas. An LEI may encourage a financial institution to give your company a loan, and an LEI can help your business to comply with many international regulations, secure your brand identity, and enhance reporting requirements. How can I get an LEI? LEI Worldwide has a website where you can sign up to get a new LEI code or renew an existing one. The process begins with completing an application form, with basic company details such as name, addresses, and telephone number. You will also be asked to provide ownership information for your company with supporting documents. Once you submit your form, you will receive a confirmation within a few hours, depending on the country where your business is located. It is important to note that although LEIs can provide a number of benefits, they do require an annual fee. Learn more about the LEI application process at the LEI website. Where can I learn more about LEIs? Some institutions offer online materials and courses that can help you learn more about LEIs and the legal landscape around business and trade. Global Legal Entity Identifier Foundation (GLEIF): The GLEIF has an online archive on their website of videos and podcasts that explain relevant LEI facts so that you can make the most of their potential benefits. Links to Supporting Information Global Legal Entity Identifier Foundation’s (GLEIF) website Introducing the Legal Entity Identifier (LEI) – LEI – GLEIF Legal Entity Identifier (LEI) Worldwide What is a Legal Entity Identifier – LEI Worldwide (lei-worldwide.com) Learn more about the LEI application process at the LEI website LEI Application – How to get an LEI Code – LEI Worldwide (lei-worldwide.com)
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Assessing E-Commerce Readiness
How can an e-commerce readiness assessment support my business? Selling online has advantages over selling in traditional shops and stores. Businesses can reach customers worldwide and enter new markets quickly and easily. Geography no longer creates the same physical barriers to trade. It is always best to check that you have everything in place before you start. An E-commerce readiness assessment can help you evaluate what stage you are at. What is an e-commerce readiness assessment? An E-commerce readiness assessment is the starting point to help any businesses understand what is needed to design an online sales strategy. An e-commerce readiness assessment is a tool that evaluates the capabilities needed to set up and run a successful online business. It will help you evaluate strengths, as well as identifying areas that need improving. It shows that by investing in market research, online payment systems, developing good fulfillment and logistics, and creating great customer service experiences, will help build a more successful business. What is the structure of an e-commerce readiness assessment? The International Trade Centre ITC has developed a quick and easy short quiz to check your businesses readiness to start online sales. It will look at the following five sections: E-commerce planning: This involves getting you to think about your product and services value proposition, ask yourself why customers should buy your products. It gets you to think about your ideal target customers. Confirm if your products or services comply with regulations in your target markets. Online presence: This involves identifying whether you are going to run your own e-commerce website, or if you will list products and services in marketplaces. Digital marketing: This involves looking at the extent to which businesses use digital marketing to promote their online sales and monitor digital goals and key performance indicators (KPIs). Shipping and inventory: This involves checking that your inventory, fulfillment and shipping options meet the expectations of your customers. Confirming that you can manage the customs import duties, taxes and other charges needed is essential. Customer service: This involves understanding what good customer service is and that your business is supplying the right information about products and services. Coupled with the ability to communicate, interact and build trusted relationships with your customers and clients, will ensure your business will thrive. Links to Supporting Information ITC International Trade Centre ITC ecomConnect – Readiness an e-commerce readiness assessment quiz ITC International Trade Centre How to Start Your First E-commerce Business | ecomConnect ITC ITC ecomConnect – Calculator & Video tutorials from ecomConnect Strive Community’s Ecommerce Training Toolkit ecomConnect IOE&IT Export essentials: How to make the most of ecommerce platforms – The Institute of Export and International Trade
