With an estimated growth rate of worldwide cross-border e-commerce being US$ 424 billion by 2021, there is a huge opportunity for the e-commerce players. Global e-commerce is predicted to double its growth in the next few years and as a potential e-commerce venture, all you need is a well-drawn cross-border e-commerce blueprint to succeed. Expanding your consumer market becomes convenient with these tips, steps and important insights.
Keeping Track of the Preferred Regions and Categories
Asian e-commerce players will find a better place for them in the international marketplace. With the region getting more affluent and digitally well-connected, the rise of the consumer middle class will follow. According to Emarketer, China alone is estimated to spend as much as US$160 billion in 2020. Next in line would be the Southeast Asian e-commerce market comprising countries like Singapore, Malaysia, Thailand and Vietnam. Even today, 55% of online shopping in Singapore and Malaysia is cross-border.
Product categories happen to be an important part of any cross-border e-commerce blueprint and accordingly, fashion and beauty products are the most popular, as per data from PayPal. Personal electronics and computer hardware are among the second most important category.
Choosing the Right Marketplace
If your cross-border e-commerce blueprint takes note of the leading global marketplaces, it is largely destined to bring you success. With respect to the matter, according to statistics revealed by Emarketer, mobile e-commerce is the biggest game-changer for cross-border e-commerce. Identifying the global as well as regional e-commerce marketplaces also help businesses in leveraging their reach and increasing their brand recognition.
The present-day cross-border customers look for the ability to compare prices with other countries. As such, price turns into a major driving force enabling consumers to also take advantage of lower taxes in some countries and exchange rates. A robust marketplace e-commerce strategy should ideally focus on catering to the shopper’s demand for higher variety, better quality and established authenticity. Some of the popular regional marketplaces to work with include Amazon, eBay, Flipkart, Lazada and so on. Brands have the choice to either work with the marketplaces directly or via specialist companies offering marketplace management services.
Tools to Streamline Cross-Border Operations
With technology playing a crucial role in cross-border e-commerce, here are some tools to streamline cross-border operations that brands might consider:
- Marketplace integration is one of the basic tools. With order management software enabling brands to identify the suitable marketplaces, several Indian brands are now selling in Southeast Asian marketplaces successfully.
- The listing services also play an important role in your cross-border e-commerce blueprint. With technological tools helping in an automatic listing of products onto marketplaces, brands/companies can save a lot of time and valuable resources.
- Efficient fulfilment, of course, adds the much-needed finishing touch. With the sales channels increasing in number each day, fulfilment is the key to successful cross-border e-commerce. Brands today focus on seeking the services of the third-party logistics providers for this purpose.
- The logistics provider, in turn, selects a good warehouse management system that has processes designed for successful fulfilment. They should also facilitate segmentation of orders and inventory along with ready integration with marketplaces.
With these being a part of the cross-border e-commerce blueprint, brands can venture out into the worldwide scenario with confidence.