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A Brilliant Hack

With this Hack, Online Retailers have a better Way of Keeping an Eye on their Finances

Business Insider, 13 November 2020: How do you establish simple payment types for customers in online retail, which also relieve operators of online stores? With this trick, this is no longer a problem.

What Matters in E-commerce

Online shopping has become an important part of our lives. That popular pair of shoes, the latest smartphone or a little something for your loved ones – more and more people are shifting their purchases from high-street to digital retail – now more than ever in the age of corona. In a recent study, almost 30 percent of respondents said they shopped online at least once a month. Just as many do so once a week.

A boon for all online retailers? Yes and no. Because it’s really the big fish who get to call the shots online. With their technologies, they shape the shopping behaviour of the users in the long term, and thus dominate the market. For smaller shops, keeping up requires constant vigilance. One of the most important aspects for both sides is financial clearing. Why is this particularly important, and how online retailers can use it to their advantage?

It’s All About Finances

What is important in order to ensure a successful customer journey in e-commerce? Speed! Customers who buy online do so mainly because it is faster and more convenient. Of course, online shops should meet this criterion in general: The website should load easily, registration should work with a few clicks, and the route to the checkout should not end in a confusion of forms. If all of that works, the payment is the concluding factor of any shopping experience.

Regardless of what amounts are involved, the users must feel that they are in safe hands and be able to select the right payment method in an uncomplicated way. If there are too many obstacles, many buyers won’t shy away from simply switching to another platform that sells similar or even identical products.

Simple Payment – for Both Sides

Payment clearing should be monitored closely by online retails. And in the best-case scenarios, the process will be not only uncomplicated for the customers, but also not generate any unnecessary work in the background.

What to look out for:

  • Credit Management: All payment transactions must be monitored and recorded in the accounts receivable accounting.
  • Receivables Management: It needs to be clear which receivables are still outstanding and when these claims must be enforced.
  • Security: The gathering and processing of the customer data must always be subject to the highest security standards.
  • When Internationality is Required: If the shop operates internationally, a variety of tax rates and exchange rates have to be taken into account. Sounds complicated? It is. Many online retailers don’t record these data themselves, but instead get in experts who have an overview of everything without any problems.

 

The Magic Word: Payment Clearing

As the term suggests, payment clearing above all involves clearing away the undergrowth of transactions. Online retailers who use the services of the outsourcing service provider nexnet have a clear view of which payments were made at what time and whether all of the data are correct. All transactions of the most common payment service providers – whether a fintech company or a conventional bank – are recorded right down to the level of individual transactions.

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For online retailers and their shops that have their eyes set on America, all exchange rates are processed on a daily basis and debited with the relevant tax rates.

Monthly closing statements are also created and transferred to the general ledger thanks to nexnet’s Payment Clearing service – the data are not only transferred accurately but also automatically.

All of the advantages at a glance: 

  • Payment monitoring at the level of individual transactions
  • Certified accounting for the complete end-customer business for all PSPs used
  • Audited monthly closing statements (SOX compliance)
  • Voucher management for cash vouchers or goods vouchers
  • Can be used internationally
  • Integrated receivables management and collection
  • 20 years’ experience in high-volume transactions business
  • Cross-sector independence (e-commerce, digital goods, mobility, mobility, retail)

The hack for secure accounting

Only few online retailers think directly of finances to when trying to fulfil their business dream. Yet these are the foundations of any successful business. If the operators of online shops manage to satisfy their customers with simple and secure processes, there’s usually an equally advantageous system at work in the background.

To ensure they avoid getting lost in the jungle of possibilities, nexnet supports retailers with Payment Clearing. This leaves them with more time to concentrate on their core business.