With the reach of online customers growing each day, cross-border ecommerce growth is a real phenomenon today. Since the last few years, cross-border ecommerce is being facilitated by distributed ecommerce and now, it is taking the shape of conversational ecommerce too. The latter involves leveraging technology to develop the lines of communication with the customers with a view to offering the best customer service. Cross-border online shopping is the future of ecommerce and there is hardly any doubt about it. With a whopping 1.79 Bn online buyers as of 2018, which is estimated to grow to 1.92 by 2019, raises the next big question. “How big is the opportunity or how massive is the growth?”
Let’s dig deeper into the scenario.
The Global Growth Scenario of Ecommerce Sales
Research studies on the cross-border ecommerce market size point out to statistics that throw light on the exponential growth of global ecommerce. It is estimated that by 2020, about 60% of the targeted global population would be transacting 14% of their overall retail consumptions online. With about 2 billion e-shoppers, the cross border ecommerce sellers will leverage immense profits. The market value will increase by each day leading to an even higher rate of cross-border ecommerce growth.
Where are the Maximum Opportunities for Cross-border Ecommerce?
The cross-border ecommerce marketplaces are spread all over the world. Some of the countries hold special opportunities like the following:
China has a growing market for cross-border shopping. In fact, the Chinese cross-border ecommerce is worth around $60 billion. However, the interference of the government might slow down the rate to a certain extent. Once the legal loophole that is created by the backdoor allowing Chinese consumers to circumvent regulatory issues is handled, the sales are going to rise again. There is both loss of tax revenue as well as pressure from the retailers at home that are forcing the Government to take regulatory measures.
Cross-border ecommerce growth in Australia maintains a steady rise because of online shoppers who are fond of buying mostly clothing online. The cross-border ecommerce marketplaces dealing in the clothing industry does mention worthy business from Australian customers.
South East Asia, especially Indonesia and Singapore has an ever-growing global ecommerce sales, which is expected to reach $200 billion by 2025. The South East Asian market is also the largest markets of Internet users globally with about 600 million online shoppers, which makes the ecommerce growth even more impactful here.
Cross-border ecommerce growth is equally noticeable in France where cross-border purchases are among the fastest growing segment. Ecommerce sales take place on a regular basis, 20% of which are made on non-domestic websites. However, the transactions of French customers are relatively small compared to the aforementioned countries.
Mexico stands out by virtue of its long-term market due to its 21% growth rate of cross-border ecommerce sales. The country has the potential to emerge as the most important market in Latin American ecommerce once the security concerns over payment are sorted.
Thus, cross-border ecommerce is on the rise throughout the world and it is here to stay. All that it needs are investment and strategy to create the maximum impact, with an deliberate effort to improve the ROI.