CodeinWP is a Romanian-based SaaS company that focuses solely on WordPress and primarily works with agency partners and freelancers.
In addition to the usual ecommerce needs of a SaaS company, CodeinWP has to work through complicated VAT and tax compliance rules, as well as multi-language/multi-currency challenges.
To expedite and streamline their online sales processes, and confront their regulatory difficulties, CodeinWP turned to FastSpring for their main shopping cart software system. The full-stack platform FastSpring offers handles CodeinWP’s affiliates & partners, their VAT/tax compliance, and the enhancement of their sales process from beginning to end.
Complex VAT and tax handling was taking up too much time.
Companies who sell to the EU must collect a Value-Added Tax (VAT) on all goods and services if their business meets an annual minimum income threshold that varies depending on which country you do business in. If you’re an international company like CodeinWP, that means you need to be fluent in dozens of different tax codes to be legally compliant. It’s only getting more complex with 10 more countries working on adding digital tax compliance.
“Basically, if you’re on your in-house shopping cart, you need to hire another person full-time just to handle all the effort that goes into staying up-to-date with [VAT/tax handling],” says Ionut Neagu, founder.
When VAT regulations initially entered the EU scene, CodeinWP faced a complicated situation. Romania lacked a central office for collecting EU-related VAT, so the German tax office contacted them and asked them to pay VAT on sales toward German customers.
CodeinWP realized that outsourcing all the headache-inducing worry over complex international taxation and frequent regulation changes would allow them to focus on managing their business and selling their products. As a Merchant of Record, FastSpring does for them what mere payment processors do not: Takes care of every tax code no matter the country, allowing the back office to always be up-to-date and tax compliant.
The bottom line is that VAT/tax compliance can complicate a business’ sales process, but their are ways to alleviate that headache. When these intricate back-end issues are taken care of for you, your business has more time to focus on optimizations to increase sales, and ultimately grow the business.
CodeinWP needed additional flexibility and improved performance.
Upselling/cross-selling and optimizing a website for conversions are essential to growing customer sales. Unfortunately, if a company is not based in the US, there may be limited options for doing so. CodeinWP found that in Romania, they could neither get a Stripe account nor pre-authorized PayPal payments, which kept them from being able to have one-click upgrades/upsells.
FastSpring solved this problem for them as well. CodeinWP cites the upselling/cross-selling tools as “great” and “optimized for conversion quite nicely.” And with FastSpring’s payment platform working for them, CodeinWP’s clients can now upgrade to a higher-tier subscription with just one click. What’s more, there’s no need to re-enter their payment details. The entire process is designed to carry customers through from their very first step until they make the purchase.
CodeinWP also found that integration with FastSpring is seamless from start to finish. Google Analytics and GTM integration is automatic, meaning they don’t need to risk poor performance of extra ecommerce tracking plugins. Furthermore, multiple languages & currency options mean that CodeinWP can be confident FastSpring will enable them to expand their market to any country without problems.
In addition to all the benefits CodeinWP realized by switching to FastSpring, there are a few services the digital platform offers that EU sellers find convenient, including:
- Supports both web and pop-up checkout solutions in an attractive, intuitive layout that keeps customers on your website (rather than redirecting them elsewhere).
- Takes advantage of revenue enhancing subscription models with recurring billing and complete customization.
- Offers top-notch personalized and responsive customer service methods for your company and your customers in every situation.