Upsurge of Global Online Selling
Not very long ago, the boom of Ecommerce was considered to be simple conventional retail that had wings. Gradually, with the affirmative possibilities of growth of Ecommerce across the domestic boundaries, the era of digital commerce set in all over the world. The onset of several online marketplaces, large investments and consolidation became a key player for sellers and brands leveraging new revenue streams from global online selling. Accordingly, 20% of most Cross-Border sales have been reported to have an average basket value of US$ 200+ boosting overall sales by a minimum of 10%. Cross-Border Ecommerce as such, is transforming the online business world into a single unified platform.
Demonstration of Cross Border Ecommerce Opportunities- Sizing the Game
A recent report ‘The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity’ by DHL Express, one of the leading international logistics providers, highlights on the considerable growth opportunities of global online selling. The report states that Cross-Border Ecommerce provides much higher growth rates to online sellers than any other retail or local Ecommerce markets. Some of the key stats supporting this fact are as following:
- Cross-Border market will supposedly grow two times than domestic market.
- Cross-Border market will possibly grow three times from 2015 to 2019 at an average annual rate of 25%. Expected valuation to rise from US$ 300 Billion in 2015 to US$ 900 Billion in 2019.
- 71% of all international online sellers estimate the share from Cross-Border revenue to rise up in near future.
The global online selling space is undergoing an impelling time. Technological advancements have diminished the barriers of international boundaries thereby allowing exponential growth for cross-border traders.
Cross-Border Ecommerce Disparity
If the region-wise prospect base of global online selling is to be closely examined, it can be seen that the ‘digitally equipped customers’ are mostly dispersed over North America, Europe, South East Asia and China. The population and percentage of internet penetration of each of these regions are as following:
- North America has a total population of 579 million of which 89% has access to the internet.
- Europe has a total population of 743 million of which 74% has access to the internet.
- South East Asia has a total population of 561 million of which 36% has access to the internet.
- China has a total population of 1,382 million of which 52% has access to the internet.
Therefore, it goes without saying that with increased internet penetration in these areas, the customer base for Cross-Border Ecommerce is really high.
Significant Aspects of Better Customer Acquisition and Sales
The Cross-Border Ecommerce algorithm is very simple and lucid. More the online traffic, higher the sales opportunities. Though the opportunities might appear alluring, the reality is real-time customer acquisition and driving sales from global online selling is a daunting task. Some of the significant aspects that can boost cross-border customer acquisition and sales are as following:
- Wider range of product categories
- Better availability of products
- Impressive product quality
- Better conditions
- Appealing offers
- Popularity and trustworthiness of the marketplace
Bigger Prospects Run Bigger Risks
Building a flourishing Ecommerce market across the borders is exponentially challenging. With all sorts of marketing, operational and logistics challenges, global online selling is not at all an easy task. Also, international economic risks and cultural preferences often hinder global Ecommerce growth. It is always prudent to seek guidance from an Ecommerce enabler like Eunimart.
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