Today’s modern customers are savvier than they ever were. Searching, reviewing and buying products are seamless experiences these days, all owing to the cross-border e-commerce marketplaces. And it is a proven fact that marketplaces are the future of the cross-border e-commerce phenomenon. It is estimated that about 14.6% of the total global retail sales can be attributed to the e-commerce and by 2020, the figure will reach $4 trillion. A Forrester research even suggests that domestic transactions will be outpaced by cross-border transactions at a compound rate of 17% from 2018 to 2022.
With regards to the e-commerce market size, the Asia Pacific Region was leading with 12.1% e-commerce sales followed by Western Europe and North America, accounting for 8.3% and 8.1% respectively. In 2017, China alone had e-commerce sales accounting up to $1.8 trillion. In the next two years, US, UK, Japan, India and Germany are expected to grow their marketplaces and play important roles in cross-border e-commerce.
Payment in Marketplaces
So, let’s now ponder over how and why are the leading global marketplaces gradually becoming the future of cross-border e-commerce by reducing the barriers of entry into the international scenario.
First, an international marketplace advocates hassle-free payment processes. In some countries, payment by credit cards is the most accepted method while in some PayPal is in use. Again, in India, payment by debit cards and cash on delivery are among the most preferred methods. Leveraging the marketplaces cuts down the hassle of taking care of all these nuances. Marketplaces have all these selections ready with their partnership with the payment vendors further offering customization.
There is also a significant reduction in the transaction fees which is quite beneficial in overseas selling.
Localization is the key
The marketplace e-commerce strategy is based on localization and merchandising. Cross-border e-commerce marketplaces aim at the betterment of the customer’s experience. As such, a marketplace translates your businesses’ product listings in their local language by creating engaging content and copy that the buyers can relate to. Even the volume of content varies. For instance, North American cross-border customers do not prefer long copies while Asians feel more secure when they have detailed product information before buying. Localizing and catering to the differing requirements and preferences of the worldwide customers is the very basis of success in e-commerce. And without the team that a marketplace boasts of, this is impossible to achieve.
Cross-border e-commerce marketplaces also promise robust and scalable infrastructure. The delivery options and preferences across the globe vary widely. For instance, US customers prefer home delivery and again 57% of shoppers worldwide expect to be able to return their online orders to a store for a refund or replacement as and when applicable. Even the prospective cross-border sellers are advised to use the marketplace’s logistics infrastructure. It is less complex and much more cost-effective.
Wrapping it up
Going by the statistics and every other consideration, it can well be concluded that Cross border e-commerce marketplaces are going to rule the future of e-commerce. And the more the businesses leverage them, the more profitable it is.