Some people refer to it as the “new flex”. Others liken it to “shapeshifting”. Whatever you call it, the retail industry has had to take the standard notions of business agility to a whole new level – with many having to reinvent themselves virtually overnight as a result of the lockdowns. At the start of a new year, how can businesses capitalise on what they’ve learned?
In an era where change often feels like it’s the only constant, retailers have come to realise that they require more resilient systems that enable their organisations to shapeshift without unravelling – whether it’s accelerating their digital transformation, adopting rapidly scalable logistics, flicking between local and global sales, or offering goods and services across different platforms in-person or digitally. For instance, having access to a mixture of small and large suppliers means businesses can be more responsive to changes in supply and demand. Likewise, having a robust and flexible payment system is essential.
“[During the pandemic], we saw unprecedented change for our businesses, and many of them have had to evolve their business models significantly to continue to survive,” says Linda Weston, head of core product at Barclaycard Business. “For many customers, that has been about transitioning their businesses from being bricks and mortar, face-to-face type organisations to transacting more in a digital environment.”
She notes that these transformations aren’t just about striving to maintain revenues in the midst of a crisis, but also about growing your customer base. Thanks to the acceleration of e-commerce, retailers have been able to look beyond their prior horizons, entering overseas markets and expanding into new territories. “There has been a huge growth of businesses moving online and also looking to attract new customers outside of their existing customer base – whether that’s different sectors or different geographies,” says Weston. “It can be a real eye-opener once you’re in that e-commerce environment. Especially if you sell something unique, you can attract customers from such a broad demographic, and the world is your oyster.”
Expanding horizons and upping your online game
Small- and medium-sized enterprises (SMEs), in particular, have much to gain from upping their online game. “Business owners have realised that generating an e-commerce business is easier than they thought, and it allows them to consider their cross-border capability,” says Weston.
However, while it’s exciting to realise the new possibilities and potentials of cross-border e-commerce trade, it can be perilous without good advice and knowhow.
Nick Maynard, head of research at financial and payment technologies analysts Juniper Research, urges those making the leap to cross-border trading to “take the time to understand their target markets”. He says: “Payment methods vary drastically across different geographies, so ensuring that they accept the methods popular in these areas is essential.
“Also, an understanding of fraud trends will ensure that sellers can mitigate the most common fraud methods in the target market. A robust gateway with local experience can help resolve these issues and is increasingly vital as e-commerce becomes more globalised.”
Mastering foreign exchange and improving transparency
The UK e-commerce trade association IMRG reported a 57% year-on-year increase in outbound e-commerce sales from the UK in 2020. But it can be all too easy for businesses to lose revenue from cross-border card payments because of currency fluctuations.
To assist, Barclaycard Business has introduced Multicurrency: an integrated foreign exchange (FX) solution that enables customers to accept payments quickly and efficiently in more than 100 currencies. “One of the key things businesses need to manage if they are selling abroad is currency fluctuation, so they don’t end up out of pocket,” says Weston. “If the FX suddenly changes, they could potentially be operating at a loss.
“Barclaycard Multicurrency provides our customers, all of whom depend on cashflow, with greater financial certainty. For example, it allows them to accept payments in the cardholder’s local currency and settle in pound sterling. Moreover, they can fix the exchange rate for one or seven days, so they have clarity of what funds they will receive for sales and adjust their price accordingly.”
Weston points out that Barclaycard Multicurrency doesn’t require any additional integration on the merchant’s side and says that Barclaycard payment gateway customers could also take advantage of e-commerce dynamic currency conversion (eDDC). This product enables purchasers with cards issued overseas to choose whether they’d prefer to pay you in their local currency – with the listed price automatically applying relevant foreign exchange rates and fees.
“Transparency for online consumers is hugely important,” Weston adds. “The earlier you can give transparency of the transaction cost in the customer checkout journey, the higher the conversion rate.”
In a world where businesses use both bricks and clicks – and also need to shapeshift to keep pace with change and consumer expectations – offering transparency and having the confidence of an innovative, trusted and secure payment partner such as Barclaycard is business-critical.
To find out how Barclaycard could help your business with a range of physical and virtual payment solutions, click here
