Cross-border business in a country like India is an extremely profitable yet hectic venture. It thus requires the best SOR solution in India and the best MOR solution in India. Companies operating on international platforms want to venture into different markets to increase revenues and gains. India with its trillion-dollar market place provides a lucrative trade opportunity to these companies. A diverse population increasingly exposed to the internet and affluence is in forever demand for the goods they see online. Thus, ecommerce platforms and other SaaS services have gained popularity. But survival in a country whose rules and regulations are multifaceted and consumer behavior is dynamic requires localized SOR solutions in India. MOR and SOR solutions in India are becoming a resort for cross-border online businesses and services to thrive.
IS THERE A SOR SOLUTION IN INDIA? SIGNIFICANCE IN INDIAN LANDSCAPE
Transact Bridge has developed the most practical SOR solution in India that assists businesses ranging from small-scale ones to giants. The Seller of Record solution in India carries legal responsibilities for the risks of selling goods and services. Seller of Record (SOR) refers to the entity legally responsible for executing sales transactions. SOR assumes a multifaceted role in the transaction process. The role of SOR involves the broader responsibility of overseeing the entire sales transaction, from compliance and taxation to customer service and support.
Key functions are:
- Providing exceptional customer service is paramount for building trust and loyalty. SOR plays a pivotal role in addressing customer inquiries, resolving disputes, and ensuring a positive shopping experience for buyers.
- Managing taxation is a critical aspect of global commerce. SOR oversees the collection and remittance of taxes applicable to sales transactions, ensuring compliance with tax laws and regulations across different jurisdictions.
- Managing refunds and returns efficiently is crucial for maintaining customer satisfaction. SOR processes refund requests promptly initiates returns, and ensures compliance with refund policies while minimizing the impact on the merchant’s bottom line.
- Dealing with chargebacks is an inevitable part of conducting business. SOR manages chargeback disputes, investigates the validity of claims, and represents the merchant’s interests in dispute resolution processes.
Thus, to deal with the Indian audience that prefers purchasing from trusted and secured businesses the above-mentioned aspects assume prominence. Prompt and quick customer service addressing issues, transparent refund and return policies gain the trust of the customers so that they come back for repeated purchases. On the part of the merchants, chargebacks and managing tax compliance relieve them of many hassles to ensure they navigate the market effortlessly to build their business. Broadly, Seller on record solutions in India help mitigate risks associated with non-compliance, fraud, chargebacks, refunds, and returns, safeguarding the reputation and financial interests of the business. It addresses how to do compliance in the Indian market.
HOW SOR DIFFER FROM TRADITIONAL MOR SOLUTIONS?
MOR Solutions in India and SOR Solutions in India are services that complement each other in assisting a business to operate successfully in India and yet are different from each other in terms of the service that they provide.
The role of the Seller of record is to oversee the legal and financial components of a transaction. This involves monitoring regulations, tax obligations, and general legal compliance to ensure adherence. However, the Merchant of Record has a broader set of responsibilities. MoR also assists in payment processing to address how to get payment solutions for India, order completion, and even customer service. SOR acts as a legal entity that has the right to sell the goods under its name, becoming the buyer and seller of the goods when an order is placed and MOR only acts as an intermediary. Through a subscale or flash sale, ownership passes from the merchant to the SOR and from the SOR to the consumer at the time of purchase. Other prominent differences are:
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- Under MOR, control over customer data and online stores lies with the intermediary. This has an impact on the customer experience by limiting the brand’s responses. By contrast, with SOR merchants can manage their data and stores, providing transparency and flexibility to push customer satisfaction.
CASE STUDIES: SUCCESS STORIES BACKED BY MOR AND SOR SOLUTIONS
Amazon’s clever implementation of the MoR model has assisted it to become one of the largest e-commerce platforms in India. By taking responsibility for transactions, Amazon has built a trusted marketplace that accommodates thousands of sellers and offers a vast product range to Indian consumers, significantly contributing to its rapid growth in the region.
Back in 2013, Amazon started selling in India, and by the financial year 2022, Amazon Marketplace reported the highest revenue of 214.62 billion Indian rupees. The company has a strong brand, a loyal customer base, and a deep understanding of the Indian market. With continued investment and innovation, Amazon is likely to remain the leading e-com which was made possible when the brand started its trade in India with Merchant of Service Solutions.
There are several brands on Amazon selling from all different corners of the world that have penetrated the Indian market by selling their products on Amazon. Amazon, in this case, provides Seller on record solutions in India resulting in small brands often backed by a single or few people. Opting for SOR solutions in India made it possible for these businesses to sell internationally with little resources drawing huge revenues.
CONCLUSION
Seller On Record solution in India is an essential contemporary of the MOR solutions in India. The two models are distinctly developed but may appear similar. When venturing into the Indian market opting for either of the two services becomes essential, however, it is extremely important to scale the pros and cons of them both to analyze which solution fits your business. The choice depends on your target audience, resources you are ready to employ or already have, your business goals, and what is sustainable to it. The Seller of Record model is advantageous for e-commerce companies that ship their products internationally. The company gets to dodge the hassles of tax compliance and financial regulations while remaining in charge of customer experience and cash flow.
