New service globalizes online retailing

By Staff -- Logistics Management, 4/1/2000

The Internet is making retail products easily available to consumers around the world. But many online retailers are finding that they're not ready to meet the challenge of serving overseas customers.

Enter GlobalNet Systems of Renton, Wash., and its Electronic Global Access Program or "eGAP." GlobalNet was established last year by three former Danzas Corp. top executives. The system allows online retailers to communicate with customers in their own language and currency, says Ronald S. Ruzicka, executive vice president.

Here's how it works: An Internet retailer provides GlobalNet with details of its products and services. GlobalNet's partner, E-translate, translates that information into foreign languages selected by the retailer. That information resides in the eGAP database. When customers go to the retailer's site, they choose among the languages offered, which instantly links them to the appropriate segment of the database.

When the consumer makes a purchase, eGAP calculates the shipping costs and duties, then displays the door-to-door delivered cost. The consumer may choose to pay in a local currency using a variety of credit card options. "American retailers so far allow payments in dollars with Mastercard and Visa ... We let [customers] pay with what they're familiar with," Ruzicka says. Transactions are conducted through a London bank, which pays the retailer in dollars. GlobalNet makes its money from arbitrage on currency conversions and commissions.

GlobalNet's role doesn't end once the sale has been made. Retailers ship orders to distribution centers operated by American Fast Freight Inc. (AFF) of Kent, Wash., GlobalNet's investor/partner. AFF consolidates shipments for air or ocean transportation, handles export documentation, and performs value-added services. The eGAP system also manages insurance, returned-goods authorizations, and claims.