Merchant of Record: selling globally without the fiscal complexity

When a brand sells in international markets, tax management, regulatory compliance, and local payment methods are an operational barrier. The Merchant of Record model transfers that responsibility to a specialised third party.

Selling in ten different countries means managing ten different tax regimes, ten sets of local regulations, payment methods with very different penetration rates by market, and compliance requirements that change constantly.

For many brands, that operational complexity is the main barrier to internationalisation. Managing fiscal and regulatory operations in each market matters more than demand or the product.

The Merchant of Record model solves that: a third party acts as the official seller in each market, assuming fiscal responsibility, regulatory compliance, and local payment method management. The brand sells; the MOR handles the complexity.

At Elogia we operate the channel strategy that accompanies that model: acquisition, conversion, marketplaces, and data, coordinated with the MOR infrastructure so the full channel operates in an integrated way.

Team in motion, energy and dynamism

What we do

Channel strategy for MOR models

We design the acquisition, conversion, and marketplace strategy adapted to the MOR model. Prices, available payment methods, and the purchase experience vary by market and must be coordinated with the MOR provider.

Technical integration with MOR platforms

We coordinate the technical integration between the ecommerce, the MOR provider, and marketing tools so that conversion data, prices, and product availability are synchronised in real time.

Conversion optimisation by market

Ecommerce conversion rates vary significantly depending on available payment methods. In some markets, the absence of a relevant local payment option can cut conversion in half. We work with the MOR provider to ensure the payment method offering is optimised for each market.

Frequently asked questions

A Merchant of Record is an entity that acts as the official seller of a product in a given market. It assumes responsibility for charging the customer, managing applicable local taxes (VAT, sales taxes), complying with local regulations, and handling returns. The brand whose product is being sold receives the net amount after the MOR's fees.

A marketplace like Amazon or Zalando also sometimes acts as a MOR, but it is a distribution channel with its own rules and brand positioning. The pure MOR model allows the brand to retain control over the purchase experience, pricing, and customer relationship, while outsourcing the operational fiscal complexity.

For brands that want to sell directly to consumers in multiple international markets without having to set up legal entities in each market or manage local fiscal complexity. It is especially relevant for digitally native brands with digital or globally shippable physical products, and for brands looking to scale internationally without proportionally increasing their administrative structure.

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