E-COMMERCE  /  SME

By Percy Hung | First published: January 19, 2024  Updated: April 21, 2026

Percy Hung, a serial entrepreneur and CEO of revenue-based financing platform Choco Up, shares his top tips to manage the costs of expanding an e-commerce business.

• To successfully expand abroad, e-commerce businesses must plan for a variety of additional operating costs. 
• Brands should invest in localized marketing and reliable logistics solutions to gain a competitive edge in new markets.
• As cross-border expansion can bring unexpected cash flow issues, it’s best to secure flexible financing ahead of time.

I’ve always been driven by my fascination for how things work. It’s why I started my career in aerospace engineering. In the early stages of my professional journey, I was designing and improving prototypes as a product engineer for different multinational companies. But seeing how innovation and technology enabled business growth, I realized I had a deep passion for entrepreneurship.

Since 2015, I've established a fashion brand, LXN Collection, and co-founded Healthy Chicken Group, a Hong Kong-based concept restaurant. Now, I'm the CEO and co-founder of Choco Up, where I strive to help e-commerce companies grow and innovate with flexible financing options.

After more than a decade as a serial entrepreneur, I've picked up a few essential lessons on managing business costs, especially when it comes to scaling and cross-border expansion. Here are five things I wish I had known earlier, from tackling cash flow issues to investing in reliable e-commerce logistics.

1. Understand the hidden costs of cross-border e-commerce

With cross-border e-commerce, companies have to contend with different payment methods and currencies across multiple markets. Payment gateways typically charge several types of fees to process customer payments, such as foreign exchange rates and per-transaction fees. It’s crucial to take these additional costs into account when setting your pricing strategy.

Digital advertising is also key for e-commerce businesses to attract new customers, but increasing competition and stricter privacy regulations have driven up costs. Between 2023 and 2025, customer acquisition costs have risen by 40% to 60%. If your business is expanding across borders, you need a strong and localized acquisition plan to improve conversions and manage costs.

2. Saving for the short term – don’t skimp on e-commerce logistics

Logistics fulfillment is an aspect that e-commerce companies cannot afford to overlook. With so many products on the market offering similar price points and quality, it's often delivery speed and convenience that make your brand stand out.

In Asia Pacific (APAC), online shoppers have high expectations for the delivery experience. 65% of consumers say free shipping options motivate them to complete their purchases, and another 60% expect their orders to arrive within two to three business days. Brands that provide fast, affordable shipping will find it easier to drive conversions and improve customer satisfaction.

A reliable logistics provider can help e-commerce businesses balance speed and cost-effectiveness in cross-border fulfillment. By spending on logistics services that provide efficient worldwide delivery, you're likely to be boosting your bottom line in the long run. As the saying goes, sometimes you've got to spend money to make money.

3. Spending for the long term – invest in localization

To successfully break into a foreign market, e-commerce brands need to align with local behaviors and preferences. Localization is a priority that must be factored into your financial runway for cross-border expansions.

For instance, search engine Naver trumps Google if a company wants to be found in South Korea. Brands entering Thailand can connect with potential customers through the LINE messaging app, which is used by 80% of the population for daily communications, cashless payments, news updates, and more. Meanwhile, WeChat is the preferred messaging and social media app in China.

Globally, 93% of consumers want online companies to communicate with them in their preferred languages through all channels at all times. Without local language support, 82% won't buy from major consumer categories. This highlights the direct impact of localized marketing and communications on your company’s sales growth.

While you might be able to save costs by relying on generic marketing materials, your long-term success may suffer. To earn money from cross-border e-commerce, you first need to invest in localization tactics like:

• Customer support in native languages for better service
• Tailored promotions for local markets
• Marketing content that captures your brand identity while considering local cultural nuances

4. Plan ahead for cash flow issues

Cash flow is the lifeblood of every business. Without working capital, e-commerce businesses would not be able to pay suppliers, purchase stock, or cover logistics expenses. While loans can help you manage your cash flow, it’s essential to plan ahead. Loan applications from conventional banks can take up to 90 to 120 days for approval, which may limit your ability to bridge cash flow gaps in time.

The earlier you plan for cash injections, the better the funding terms you can negotiate. Traditional working capital loans usually come with set repayment timelines and interest rates. Fixed repayment rates, however, may not be ideal for e-commerce businesses that experience income variations. Having to pay a fixed amount when sales are seasonal can put pressure on cash flow.

Another common option is equity financing, which can result in lenders or investors taking a percentage of ownership in the company. Lenders who have equity may be entitled to a say in how your company spends its funds. Before embarking on cross-border expansion, it’s best to proactively explore your e-commerce financing options and weigh up their pros and cons.

5. Find a financial partner that supports your business goals

The right financial partner does more than unlock access to reliable funding – it should also provide tailored support to help your e-commerce business expand across borders.

A financial partner that understands the industry’s challenges and opportunities is vital to successful expansion. Look for a financing provider that trusts your company to make the final decisions and offers flexible repayment options that align with your long-term goals.

Ultimately, cross-border e-commerce expansion comes with unpredictable challenges. The best way companies can mitigate risks is to have enough capital on hand to cover unexpected costs.

Stay financially healthy as you scale

Understanding how to earn money from e-commerce starts with building a strong financial foundation. Strategic investing in key capabilities, such as e-commerce logistics and localized marketing, will pay off in the long run.

At the same time, plan for the additional costs of cross-border operations and secure financing early to support your cash flow. Get these fundamentals right, and you’ll be prepared to grow and compete in new markets.