Key Takeaways  

• Organizations executing ecommerce transactions are subject to complex cross-border compliance requirements that can vary by each local destination.  
• Outsourcing back-office infrastructure using a merchant of record partner can help to simplify these responsibilities and protect organizations from compliance risks and penalties.  
• Digital River's Payments, Tax, Fraud & Compliance Management app in the SAP store integrates with SAP's commerce cloud to support compliant global ecommerce transactions that align with customer experience preferences. 

The Growing Role of Tax Compliance in Global Ecommerce  

Business Trends Impacting Global Ecommerce Brands  

• Buy now, pay later (BNPL): Companies view BNPL as "a new aged credit card" that enables one-click checkout and is currently driving adoption in the apparel industry among younger shoppers. However, with over 50 BNPL options globally, organizations face complexity to maintain a positive customer experience as they implement this popular payment structure across multiple BNPL providers.  
• Customers want familiar and local experiences: Customers expect online storefronts (even those abroad) to offer localized languages alongside preferred payment options, as well as local currency exchange rates. Digital River continues to evolve its payments platform and plans to deliver additional local payment methods in 2022 to support optimized conversions and drive global growth, Nyhus says.  
• Direct-to-consumer (D2C) model as a catalyst for the growth of social/mobile channels: Social media has become a vital ecommerce channel for global brands. Through social commerce, consumers leverage the various features of social networks to discover products that are relevant in their lives or their areas of interest. Brands are leveraging social media channels as part of their direct-to-consumer model to promote their ecommerce sites and products and drive traffic.  

Social & Mobile Sales Channels Add to Global Ecommerce Complexity  

How Digital River Helps SAP Customers Deliver Both "Local and Global" Ecommerce Customer Experiences  

What This Means for SAPinsiders  

• Customer experience is vital to global ecommerce growth. To attract new and returning customers, brands must manage the entire checkout process in a way that provides a great customer experience. Businesses that provide customers with highly convenient shopping experiences across the whole ecommerce lifecycle will be the winners in the long term. 
• Global ecommerce infrastructure solutions need to be flexible, scalable, and adaptive. There is no one solution for all locations, so it will be necessary for brands to have a flexible solution tailored to each region. 
• Prioritize solutions that support core strategic initiatives. Partnering with ecommerce experts that can take on the complexity and risk of international selling allows brands to focus on their core competencies. Brands should also look towards automation of back-office functions to simplify operations. These approaches allow for more time and energy to be spent on optimizing the direct-to-consumer strategy and the overall customer experience.