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International E-commerce Expansion Flashcards

7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A US e-commerce brand wants to enter the German market. Which payment method is most critical to offer German consumers?

    Answer: SEPA Direct Debit and invoice-based payment (Kauf auf Rechnung)

    German consumers strongly prefer SEPA Direct Debit and buy-now-pay-later invoice methods (Kauf auf Rechnung), which account for a large share of German online purchases.

  2. What is 'cross-border e-commerce' VAT OSS (One Stop Shop) in the EU primarily designed to simplify?

    Answer: VAT registration and reporting for merchants selling to multiple EU member states

    The EU VAT OSS allows non-EU and EU sellers to register in one member state and report VAT for all EU sales through a single return, eliminating the need for multiple VAT registrations.

  3. Which international shipping Incoterm places maximum responsibility and cost on the seller, including import duties at the buyer's country?

    Answer: DDP (Delivered Duty Paid)

    DDP (Delivered Duty Paid) means the seller assumes all costs and risks, including import customs duties and taxes, until goods are delivered to the buyer's named destination.

  4. An e-commerce merchant notices extremely high cart abandonment specifically in Brazil. The most likely root cause is:

    Answer: Absence of Boleto Bancário as a payment option

    Boleto Bancário is the dominant offline payment method in Brazil; without it, a large segment of Brazilian shoppers who lack or distrust credit cards cannot complete purchases.

  5. When expanding to Japan, which cultural e-commerce consideration is most important for product pages?

    Answer: Highly detailed product descriptions, dense information, and multiple images

    Japanese consumers expect exhaustive product information, extensive imagery, and detailed specifications before purchasing, reflecting a high-context culture with low tolerance for ambiguity.

  6. A company selling cosmetics internationally must be aware that products legal in the US may be banned in the EU because the EU restricts over how many cosmetic ingredients?

    Answer: Over 1,300

    The EU Cosmetics Regulation restricts or bans over 1,300 substances, compared to only about 11 restricted by the US FDA, creating significant compliance differences for international sellers.

  7. What is 'landed cost' in international e-commerce?

    Answer: The total cost of a product including shipping, customs duties, taxes, and insurance to its destination

    Landed cost is the complete cost to deliver a product to a buyer's door, encompassing product price, freight, insurance, customs duties, and all applicable taxes.