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Selling across borders online: 6 things Thai SMEs need to prepare before opening a store on an international platform.

ขายของข้ามพรมแดนออนไลน์สำหรับ SME ไทย เตรียมเอกสารและโลจิสติกส์ส่งออก

If you are thinking of...Selling goods online across borders. Whether you're selling through Amazon, Lazada, Shopee, or other platforms, the first thing to know is that opening a store doesn't mean you'll start selling immediately. The journey from your online store to international customers involves logistics, customs documentation, product standards, and platform regulations that you need to meet first.

Why a platform is more than just a sales channel.

Platforms like Amazon or Alibaba don't just showcase your products; they determine how visible your products are through ranking systems, fees, and constantly changing terms and conditions. If you simply think, "Just open a store and start selling," you might find yourself losing sales because the platform adjusts its algorithms or increases fees without prior notice.

This isn't something to be afraid of and avoid starting, but rather something to plan carefully before actually investing.

Logistics is the point at which a deal either succeeds or fails.

International online customers expect two things simultaneously: fast delivery and reasonable shipping costs. If you ship directly from Thailand for every order, the cost per item might be higher than expected, and delivery times could exceed the platform's standard.

Some platforms have their own fulfillment systems, such as Amazon's FBA, which allows you to store your stock in overseas warehouses first, and then the platform ships it when an order is placed. This speeds up delivery times, but there are storage and fulfillment costs that need to be carefully calculated before making a decision.

Documents required before shipping goods across the border.

actionSelling goods online across borders.What many people overlook is the documentation, which varies depending on the destination country and type of goods. Generally, the following documents are required:

  • Commercial Invoice The declared value of the goods must be the actual value, not an adjusted figure to avoid taxes, as this may result in the package being held at customs at the destination.
  • Packing List Matches the actual product in the box.
  • HS Code The correct HS Code is needed for each type of product, because an incorrect HS Code may result in higher taxes or delays at customs.
  • Certificate of Origin For goods that are eligible for tariff reductions under the FTA.
  • Product Standard Document Such as FDA, CE, or other certifications as required by the end market, especially for food products, cosmetics, and health products.
  • EORI or Tax ID information. For recipients in some countries, such as the European Union.

Product standards required by international markets.

Products that sell well in Thailand do not necessarily meet the standards of every market. Common examples include food products that require local language labels specifying ingredients, expiration dates, and nutritional information according to the format prescribed by each country, or cosmetics that must be registered before being sold in certain markets.

It is advisable to verify with the relevant authorities or import experts of the destination country before actually shipping the goods. If the goods do not meet standards, they may be rejected at customs or recalled from the platform, affecting both costs and the seller's rating.

The risks of over-reliance on platforms.

actionSelling goods online across borders.Using a platform can genuinely reduce the cost of entering the market, but there are risks that must be acknowledged, such as platforms suddenly adjusting fees, changing product visibility conditions, or suspending accounts without prior notice for policy violations.

One way to mitigate this risk is to avoid placing all your products on a single platform and to try to build your own customer base concurrently, for example, through email or your brand website, so that your business doesn't become solely dependent on the platform's system in the long run.

Cross-border payments that require advance planning.

One thing many people don't consider at the beginning is receiving payments from overseas. Most platforms transfer money to sellers through their own systems, which may have different currency conversion fees and payment cycles. Some platforms require a bank account in the country where you are selling, or require the use of an intermediary service like Payoneer or Wise.

You should check this before opening your store, because if your account settings are incorrect or incomplete, it may cause money to remain in the system without actually being received.

6 things to check before starting to sell cross-border products online.

If you're planning to expand into international markets through a platform, consider using this list as a checklist before you begin.

  1. Choose a platform that suits your product and target market, not just the biggest one.
  2. Prepare all necessary export documents, including invoice, packing list, HS code, and any certificates required by the destination market.
  3. Check the product standards of the destination country, especially regarding labeling, ingredients, and registration.
  4. Calculate the actual logistics costs, including shipping fees, fulfillment fees, and return handling fees.
  5. Set up your payment system correctly before opening your store.
  6. Plan to diversify your sales channels to reduce the risk of relying on a single platform.

Planning ahead for shipments is better than trying to solve problems after the goods are stuck at customs.

actionSelling goods online across borders.This presents a much wider channel for Thai SMEs, especially those in processed food, health and beauty, and unique Thai lifestyle products. However, the ease of opening a store doesn't automatically mean everything will be smooth sailing.

What distinguishes successful SMEs in international markets from those who give up halfway is having their back-end systems ready before actually receiving orders. This includes documentation, logistics, product standards, and payment processing. If you would like to learn more about exporting and international logistics, please continue reading. smeshipping.com There is related information available for you to read.

Source: Department of International Trade Promotion (DITP)

Selling across borders: Check the terms and conditions before making a decision.

When selling across borders, start by thoroughly checking all documents, costs, and destination conditions before confirming the price. Then, use cross-border sales as a topic of discussion with the buyer to confirm responsibilities and deadlines.

Before actually shipping, you should review the cross-border sales process again, including the product codes, required documents, and the responsible party at the destination, as the details of cross-border sales may vary depending on the market and trade conditions.

For more official information, please check: Related sources of information

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