Just over a year ago, FedEx Corp. purchased a startup called Bongo International, which helped retail merchants navigate the complex world of cross-border transactions. This week, the Bongo service was vastly expanded and re-launched under the brand FedEx CrossBorder in the company\u2019s latest venture into the rapidly changing world of e-commerce.
\n\u201cActually, it\u2019s about time we dropped the \u2018e\u2019 and just called it \u2018commerce,\u2019\u201d Chip Hull, vice president of the new CrossBorder, recently told Air Cargo World. \u201cThis is really how most commerce is being done now. The flow of information is exceeding the flow of goods.\u201d
\nAccording to latest FedEx estimates, e-commerce is now a US$1 trillion-per-year industry in terms of sales, and is expected to double in about four years. \u201cIf you\u2019re not dealing in the e-commerce space now, you\u2019re at risk of falling behind,\u201d Hull added.
\nFor the last year, FedEx has been working to make the Bongo service scalable as a global product so it can handle this immense volume. The result is CrossBorder, a subsidiary of FedEx\u2019s freight forwarding arm, FedEx Trade Networks (FTN). By instantly calculating the usual cross-border trade hassles, such as regulatory compliance, package tracking, customs, duties and currency exchanges, CrossBorder simplifies international shipping and speeds up the process in a single platform.
\n\u201cOnly about one-third of U.S. based global e-commerce sites accept foreign currencies,\u201d Hull said. \u201cResearch tells us that customers are more likely to abandon shopping carts that only show U.S. dollar pricing.\u201d CrossBorder accepts more than 80 currencies and offers 15 payment options, he added, and can also handle multiple delivery options to more than 200 countries in FTN\u2019s network.
\nCrossBorder also arranges all transportation options for international shipping, including air, ocean, road or rail modes, which eliminates transactional costs, he said.
\nThe service benefits both B-to-B and B-to-C customers, Hull said. \u201cThe interface makes it look just like a domestic shipment, but now there is an option for international shipping. We do the same consolidation and shipping, exactly like we do for domestic transactions,\u201d he said. \u00a0\u201cAnd all of this is done seamlessly, so there will never be a supplemental bill sent to the consumer or the merchant.\u201d
\nAnother major feature is the secure payment processing and fraud protection, Hull said. \u201cCross-border trade usually has two to three times more fraudulent activity than domestic service,\u201d he said. \u201cWith CrossBorder, we\u2019re able to reduce the amount of fraud to at least as low as the domestic level.\u201d
\nMost importantly, Hull added, the portal is entirely customizable. \u201cWe cater to however the customer wants the portal to be set up,\u201d he said. \u201cWe can tailor it to whichever currency you prefer in your browser and select any local language you prefer.\u201d CrossBorder can also work within a business\u2019 existing website and shopping cart platform, which allows merchants to maintain their brand identity.
\nFedEx CrossBorder is now available in the United States and Europe, but will soon be expanded to other global regions, \u201cas our customers will dictate,\u201d Hull said.
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"