As the world moves even more towards the digital side of things, selling products internationally has never been more attractive. Even more so now that people have gotten comfortable with online shopping since COVID-19. Although quite a few issues arise when pricing products for international purchase. This article highlights a few of those obstacles.
- Export Price Escalation: These include incremental costs like shipping, insurance, and tariffs. Sellers must factor these fees that they have incurred into their product prices.
- Inflation: When inflation rates are rampant, prices of products must adapt to keep up.
- Currency Movements: Exchange rates can also affect the way products are priced.
- Transfer pricing: This involves the trade of raw material, finished products or services.
Knowing how to resolve these issues, the seller can select a pricing strategy that best meets their needs.