International selling is a business’s single greatest growth opportunity! with cross-border ecommerce increasing 344% since 2016 and totaling $1.2 trillion in 2022. But why is it so hard to capitalize on? When you sell across borders! the liability and complexity compound as you enter more geographies: you have to deal with evolving duties! taxes! and regulations per market! not to russia email list mention the risk of fraud and currency fluctuations. This makes global expansion a slow and costly endeavor that can cause brands to leave money on the table and miss opportunities for growth.
What you’ll learn in this post:
This is why leveraging a merchant of record can be a game-changer for ecommerce Unlock Global brands looking to expand globally. Merchant of record products offer a solution to the overwhelming financial responsibility! liability and operational work business owners face when entering new and overseas markets. Their role is to make global selling simple! so you can expand rapidly the happy company 5 reasons for happiness management in your company to international markets without getting into the we!s of country-level tax and regulation.
Let’s take an in-depth look at what a merchant of record is and how cuba leads leveraging one can benefit your business.
What is a merchant of record (MoR)?
>Managing your own global selling vs. using an MoR
Benefits of using an MoR
When you should use an MoR
Markets Pro: The simplest way to go global with Shopify
Merchant of record FAQ
What is a merchant of record (MoR)?
>A merchant of record (MoR) is the company that sells products or services to the final customer! and the legal entity those customers pay when making a purchase. The MoR takes on the financial responsibility and liability of payments! billing! sales! taxes! refunds and chargebacks! and more.
In a traditional business model! most brands act as their own MoR without even knowing the term for it! as they are solely responsible for their own sales! taxes! and refunds. As a business owner looking to expand! you can continue to act as your own MoR! but each new market will bring a whole new set of financial and legal complexity that can slow down your business. Alternatively! a third-party solution can act as an MoR on your behalf.
Put simply! an MoR handles how you! the merchant! get paid for your services/products when selling globally. Its roles include (but aren’t limit! to):
Handling international payments
>Maintaining merchant accounts
Being liable for transactions
Collecting and remitting sales taxes (including local taxes! if applicable)
Keeping up to date with local sales and tax laws
Managing interactions with local tax authorities
Using a third-party MoR allows you to focus on other parts of your business! like creating great products and developing marketing to drive awareness to overseas customers.
Managing your own global selling vs. using an MoR
Acting as your own MoR
An MoR solution takes on much of the complex work that comes with selling internationally. If you choose to keep these tasks in-house! you’ll be responsible for everything that must occur for a transaction to take place.