# What is Cross-Border Commerce?

What is Cross-Border Commerce? Selling internationally — currencies, languages, taxes, customs, shipping reliability.

## How it works in practice

Cross-border opens a market worth billions but adds complexity. A common mistake: EU VAT registration is required above €10,000.

## Related metrics

- Incoterms — responsibility split between buyer and seller
- Customs Duties — affect the final price
- Payment Gateway — currency support
- Localization — translation plus adaptation

## Common misconception

'Going international just means shipping abroad.' A customer in Germany hit with an unexpected customs charge triggers a chargeback. Always use DDP.

## How to fix it

Not working? (1) a realistic shipping price, (2) is VAT registration required? (3) price in local currency.

## Real-world example

An Israeli diamond store selling to the US: prices in shekels, $45 shipping, no return policy. CR was near zero. Fixing it raised CR to 2.1%.

## Where to start

Before going cross-border: pick one target market, calculate total landed cost, run a 3-month pilot.

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Category: Logistics · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/cross-border-commerce