Newcomers to independent websites often encounter a thorny problem when starting a project: Is it necessary to register an overseas entity from the very beginning? This is a problem that confuses many novice sellers. Today, I will provide you with a detailed analysis of the role and applicable stages of overseas entities, helping you avoid unnecessary costs and troubles.
I. The Role of Overseas Entities
Overseas entities are not useless; it’s just that they are applicable at different stages. Its main functions include:
(1) Register and open a payment channel
Overseas entities can register and open some fixed Payment channels, such as Stripe, Shopify Payment, some local payments, buy now, pay later, etc. These payment channels are indispensable in some markets and can enhance the payment experience and conversion rate of customers.
(2) Open a bank account
Overseas entities can open bank accounts locally to facilitate fund management and cross-border collection. This is very helpful for handling international business and optimizing financial processes.
(3) Meet the requirements for brand filing
Overseas entities can meet the brand filing requirements and be adapted to localized marketing. This is of great significance for brand building and market expansion, especially in a highly competitive market.
II.Why is it not necessary to register an overseas entity during the novice stage
Although there are many benefits to having an overseas entity, for beginners of independent websites, registering an overseas entity from the very beginning is not the best choice. The reasons are as follows
(1) The advertising placement methods and product selection directions have not been fixed
During the novice stage, the advertising placement methods and product selection directions have not yet been fixed, and the model has not yet been successfully established. It is possible that the track or target country may be changed halfway, making the overseas entity registered in the early stage useless.
(2) Increase additional costs
After registering an overseas company, one needs to bear fixed registration fees, annual fees, accounting fees, etc. If the direction changes later, a new registration will be required, which will waste both time and money.
(3) Payment and operation issues
For instance, a Hong Kong entity was registered during the preparatory stage, but the actual operating region is in Europe. Receiving euros through Hong Kong entities will encounter problems such as high rates and currency conversion fees, and it is also impossible to activate local payments in some parts of Europe. Ultimately, the entity still needs to be re-registered, which will increase the cost.
III. Better Solutions for Beginners
For beginners of independent websites, a better solution is:
(1) Use a domestic business license
At the beginner stage, using a domestic business license can smoothly run the initial independent website process. Paypal is chosen as the payment method, which is sufficient to support the requirements of the testing phase. Paypal is a globally widely used payment platform that can meet the payment needs of most customers. It is easy to operate and has transparent fees.
(2) Gradual upgrading
After the site has achieved a stable volume of orders and stable profits, local entities will be registered in the corresponding target countries, and payment methods and localized services will be upgraded simultaneously. This can avoid unnecessary costs in the early stage and ensure that every step of investment has a clear return.
Iv. Benefits of Freight Forwarders’ Shipping
In the operation of an independent website, choosing a professional freight forwarder’s shipping service can bring many benefits to new sellers:
(1) Reduce costs
Through centralized purchasing and optimizing logistics, freight forwarders can secure more favorable logistics prices for sellers and reduce operating costs. Meanwhile, freight forwarders can offer warehouse management services to help sellers plan their inventory rationally and reduce inventory costs.
(2) Enhance efficiency
The intelligent system of the freight forwarder can quickly handle purchasing and shipping requests, ensuring that orders are processed in a timely manner. Sellers do not need to worry about complex issues such as inventory management, packaging and shipping, and can focus on front-end marketing and customer management.
(3) Enhance customer satisfaction
Freight forwarders provide reliable logistics services to ensure that goods can be delivered to customers in a timely and safe manner. Meanwhile, the customer service team of the freight forwarder offers 24-hour support, which can promptly solve customer problems and enhance customer satisfaction.
(4) Flexible operation strategies
The freight forwarding model enables sellers to test the market and adjust product strategies more flexibly. Sellers can quickly launch new products, adjust the purchase volume and product types based on market feedback, and reduce market risks.
If you are looking for a reliable freight forwarder service provider, Smartdropping is a trustworthy choice. Smartdropping offers one-stop services, from procurement to delivery, fully ensuring your back-end operations.
Newcomers to independent websites do not need to rush to register an overseas entity when starting a project. Using a domestic business license and Paypal payment method is sufficient to support the initial testing and operation. After the site has achieved a stable volume of orders and stable profits, local entities will be registered in the corresponding target countries, and payment methods and localized services will be upgraded simultaneously. This can avoid unnecessary costs in the early stage and ensure that every step of investment has a clear return. Choosing a professional freight forwarder shipping service, such as Smartdropping, can provide you with reliable logistics support and flexible after-sales solutions, making the operation of your independent website more efficient and convenient. If you have more questions about independent website operation, please feel free to leave a message in the comment section and let’s discuss them together.
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