Geography? YES Geography has everything to do with returns, loss of revenue, chargebacks, fraud and lost inventory.
Whether you sell tangible or intangible goods online, you MUST know your global Geography.
If you sell anything that has to do with technology, it’s better to exclude some countries, rather than just targeting revenue to prove that your company is successful.
Experience has taught me that sales to under developed countries, or countries that do not have technology readiness, will result in loss of revenue and inventory.
Let’s say you sell to Albania as an example.
First and foremost, you need to know that their postal services are iffy at best, especially if an order comes from any town other than Tirana, which is their capital.
Second, if you are lucky enough and your item arrives, 8 out of 10 sales will become claims, returns and chargebacks because your product will not work at this country.
The same applies for downloadable products (intangible goods and services). Your back end MUST be able to disable any service as soon as it becomes a refund or chargeback because it is not as described. This is the most common reason for chargebacks and claims from such countries. Your sales and marketing teams are promising something that customers will take your word for it, believe in it and buy it.
So do your company a favor and learn your Geography, and also eliminate sale to some countries. It is a thousand times better to have solid sales in fewer countries, than global sales with problems, returns, cancellations and chargebacks.