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What is Multichannel Selling in Cross-border E-commerce – $500+ Billion Market Size
Multi-Channel selling in Cross Border E-commerce is a strategy that targets customers across the globe via various ecommerce channels beyond a company’s website. Multi-channel selling has evolved from promotion to directly selling to consumers on social media, marketplaces, and other mediums.
It was perhaps not so long ago when ecommerce was restricted to online transactions as opposed to traditional retail. Over the years, with enormous growth and valuations, the cross-border ecommerce international market has crossed all boundaries. The market size counts at some $500 billion today. And there have been several reasons behind it, continuing to contribute to the growth significantly.
The advent and growth of this online international marketplace largely owes to the huge investments and also the consolidations. All these have been beneficial for the small and mid-sized brands and the big players alike. The former gets the opportunity to leverage the platforms for new revenue streams. The latter, on the other hand, forges the strategic partnerships undergoing online to offline transformations and vice versa. Ideally, even the B2B centric 3PLs are also making most of the opportunity by undertaking ecommerce fulfilment with an expansion of their reach.
The cross-border ecommerce international market has been able to grow and cross multiple channels also because its customers are an evolved lot today. They play a significant role in strengthening the marketplace ecommerce strategy devised by the businesses. For the cross-border customers, the online stores have successfully replaced the traditional showrooms and the channels don’t bother them anymore because they shop for brands.
Generally speaking, the time is right and the time is now for the cross-border ecommerce international market to grow even further. By 2021, it is set to reach $600 billion in Asia, North America and Europe itself accounting for 40%, 20% and 25% respectively. The share of online commerce was 12% in 2015 and it will surely reach the 15% mark in 2021.
The sizing strategy that the leading global marketplaces choose depends on the total population, percentage of people with internet penetration and the same with Smartphone penetration. Going by these three as the standards, China, Europe and U.S get the most numbers of the so-called digitally equipped customers with a keen interest in online shopping. However, India and the South East Asian countries are not too far behind. The markets are turning lucrative for both the businesses and the customers and are gradually emerging to be growing supplier bases.
The ecommerce market size operating through multiple channels is bigger for certain categories of products. These include electronics, health and beauty products, apparels and books. With regards to the main reasons that trigger the enormous growth of the cross-border ecommerce international market is the need for products not readily available in the home country.
Different countries further have different USPs and marketplace ecommerce strategy with respect to the products and services they sell online. So, people prefer US products for quality and Chinese ones for competitive prices. Accordingly, the businesses too, take varying approach like strategic, reactive and opportunistic depending on the product category and the nature of the target market.
With all these factors playing their individual roles, the cross-border ecommerce market is predicted to grow immensely in the future too.