Nexway: Is Your eCommerce Strategy Ready for Expansion?

For ambitious eCommerce businesses, global expansion represents a world of opportunities. While digital commerce inherently enables reaching international customers, achieving sustainable global growth requires choosing the right operational strategy. 

Understanding the available approaches – and their implications – can make the difference between stagnation and successful expansion. Nexway provides the tools for eCommerce businesses, whatever their approach. 

Understanding Your Strategic Options

Direct Merchant Model with PSP Integration

Many businesses begin their international journey by operating as their own merchant and partnering with a Payment Service Provider (PSP). 

This approach naturally appeals to growing businesses, offering direct control over the payment process whilst maintaining lower initial operating costs and flexibility in payment provider selection.

However, businesses often encounter a growth ceiling with this model. As international sales increase, the challenges begin to multiply. 

Organisations frequently find themselves struggling with complex tax obligations across multiple jurisdictions, whilst trying to navigate varying compliance requirements by region. 

The management of payment infrastructure becomes increasingly resource-intensive, and businesses face mounting challenges with fraud risks and chargeback handling. Additionally, the limited integration of local payment methods can hamper growth in specific markets.

The Merchant of Record (MoR) Strategy

As businesses scale, many turn to a Merchant of Record model to overcome these limitations. An MoR partner takes on comprehensive responsibilities that transform how businesses manage their international operations. 

This includes handling complete tax liability management and remittance, processing multi-currency transactions, ensuring compliance with local and international regulations, providing robust fraud protection, managing chargeback handling and integrating local payment methods across different markets.

Hybrid Approaches

Forward-thinking businesses are increasingly adopting hybrid strategies that combine different models. Some maintain direct merchant relationships in their established markets whilst leveraging MoR services for new market entry. 

This flexible approach allows companies to implement market-specific solutions based on local requirements and their operational capabilities.

Signs It's Time to Evolve Your Strategy

Companies often realise they need to adjust their approach when they experience several common challenges. 

These typically include plateauing international sales despite growing traffic, mounting tax and compliance complexities that become increasingly difficult to manage, rising operational costs in new markets, increasing fraud and chargeback rates that eat into profits and limited resources for managing global operations effectively.

Nexway's Flexible Partnership Approach

Understanding that one size doesn't fit all, Nexway stands out in the market by supporting multiple operational models. 

The company offers a full-service MoR solution for businesses seeking comprehensive support, while also providing hybrid model support for enterprises with existing infrastructure. 

Its customisable solutions adapt to each business's growth trajectory, ensuring scalability and flexibility.

Nexway distinguishes itself through its ability to scale services based on client needs, support various business models simultaneously, provide expertise across different operational approaches, offer flexible integration options and maintain high-touch support regardless of the chosen strategy.

Beyond Traditional MoR Services

Nexway's 360° digital solutions extend far beyond basic MoR services. Its integrated platform combines advanced subscription management capabilities with sophisticated fraud protection systems. 

The solution encompasses comprehensive compliance monitoring, multi-market payment optimisation, and customised checkout experiences, all working together seamlessly to support international growth.

Making the Right Choice

The path to international success isn't linear, and your strategy shouldn't be either. Some businesses may start with a PSP whilst managing operations directly, others might be ready to transition to a full MoR model, and some may benefit most from implementing a hybrid approach. 

Regardless of the chosen path, Nexway provides the flexibility and expertise to support your journey, allowing you to focus on growth whilst they handle the complexities of international commerce.

The decision to evolve your international ecommerce strategy should be based on your organisation's unique needs, growth trajectory and operational capabilities. 

Nexway's adaptable approach ensures that whether you're just beginning your international expansion or looking to optimise existing operations, you'll have the support and solutions needed to succeed in the global marketplace.

Ready to explore how Nexway can support your international strategy? Consider how their flexible solutions could align with your business goals and help overcome your current challenges in the global marketplace.

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