Cross-border E-commerce helps retail companies to eliminate middlemen and directly sell to the end consumers reducing the overall product cost and providing them with a reliable understanding of consumer response
The global Cross-border E-commerce market is anticipated to increase at a 25.1% CAGR to reach value USD 3,042.2 Million in 2028
Although restrictions imposed by the government created panic in the cross-border supply and logistics, the lockdown proved to change consumer behaviour towards online purchase of goods and services which in turn led to the rise of the cross-border E-commerce market. The shutdown of marketplaces and many shopping malls to comply with the social distancing norms led to a new era in the E-commerce market. The interest of consumers to try quality products from different parts of the world also enhanced market growth. Several restrictions were imposed during the Covid19 period and borders were completely closed for international trade. Although some supply and logistics companies managed to continue their operations much of the work got affected thus delaying the overall delivery process. Many medium and small retailers shifted to the E-commerce marketplace to protect their business in the Covid19 period and turn reached a global set of consumers and made international sales.
Clothing and footwear are the primarily sold products in the Cross-border E-commerce market
Owing to the better quality and luxury consumers prefer to purchase products from international brands which act as a catalyst to the growth of the cross-border E-commerce market. Clothing and footwear hold the largest share of this market. To succeed in this segment businesses must have an accurate knowledge of the international market, consumer trends and regional insights. Consumer fashion sense changes rapidly which leads to the rising sale of clothing and footwear in the global E-commerce market. While making an online purchase it is very important to make the process easy and hassle-free for the consumers. Shoes are the next most trending in the list of international purchases. Many millennials are addicted to the trendy international shoes and clothing sense adopted from the western culture which boosts the international cross-border E-commerce market. Footwear from different parts of the world is high in demand and mostly attracts the younger section of society.
The Asia Pacific accounts for the fastest growing Cross-border E-commerce market
With the rising availability of internet technology and smartphone to individuals, there has been an increased demand for international online purchases. The Asia Pacific comprises a large consumer base with an interest in cross-border marketing and thus boosts the regional market. The growth of industries and improved standard of living give rise to the need for luxurious products and thus fuels the cross-border E-commerce market. Moreover, the immense growth of trade in this region significantly contributes to market growth. North America holds the second largest share in this segment due to the demand for good products at reasonable prices. The Asia Pacific accounts for approximately 60% of the total world population and most of it has shifted to digital payment methods which boost online purchase platforms. The government of this region is also taking initiatives to enhance international trade and many relaxations are also being given on foreign duties to ease the overall trade process. China is the largest exporter in the Asia Pacific region and many other countries purchase a huge amount of products from China.
With widespread digital access, consumers are now able to connect to the global E-commerce platforms giving a significant risk to the market.
Having a direct idea of consumer needs and regional trends brands can effectively customize their products to increase the growth and usage of products in different parts of the world. Recent consumer purchase trends depict the need for the best quality products irrespective of the source. This helps local retailers, market and sell worldwide by producing quality goods and services. Cross-border E-commerce provides equal opportunity to all types of sellers along with the best insights on global trends and consumer requirements. Consumers buy products from other countries due to the availability of quality products at reduced prices thus giving a boost to the cross-border E-commerce market. The global cross-border E-commerce market is estimated to reach USD 2.3 Billion at a CAGR of 14.2% during the forecast period.
The increase in the internet and technology drives the growth of this market. The cross-border E-commerce market helps in reducing the turnaround time for consumers as well as sellers. Many businesses are using the digital E-commerce platform to reach a global audience. There has been a substantial rise in online purchase preference which ultimately fuels the cross-border E-commerce market. The unavailability of some products in the domestic region is also a major factor adding to the growth of the cross-border E-commerce market. Cross-border E-commerce transactions are paperless and help to reduce the overall purchase time. Regarding the factor of trust, consumers may consider it safer and more suitable to purchase from an E-commerce marketplace rather than a retailer’s website. This would help small business to reach a large volume of global customers.
Cross-border E-commerce is completely dependent on efficient supply and logistics support which may sometimes lead to severe failure due to mismanagement. Government restrictions imposed on cross-border trade can also slow down the growth of this market. Cross-border E-commerce got a boost during the Covid19 period since many consumers shifted to online purchases of goods and services. This shift to online purchases is likely to continue post Covid19 as well.
Cross-border E-commerce has helped retailers to achieve international sales and acquire volumes of global customers. The rise in cross-border E-commerce techniques enables brands to analyse country-specific demographics and provides easier management of cross-border logistics. The foreign exchange duties and policies should be properly conveyed to consumers during cross-border sales which in turn will contribute to trust and brand loyalty. A global E-commerce market provides a competitive price range of products and supports multiple payment methods.
The primary market players are Amazon.com, eBay, Shipping Cart, Cnova, Box Me, VeePee, Apple, DHL Group, Fruugo, Asia Commerce, Pay Pal, Alibaba Group, Apple, Achanto, Sing Post, Asos, Wish, AliExpress, Tmall Global.
Recent Innovations in the Global Crossborder E-commerce Market: a Snapshot
- Assiduus, an E-commerce marketplace accelerator company launched a real-time consumer dashboard in July 2022 that will help companies analyse their sales data across various E-commerce marketplaces and their website in a much easier way.
- Klarna in May 2022 launched an excellent facility by using virtual tools to boost cross-border sales. Traditional stores will be able to video chat with buyers across the world.
Cross-border E-commerce Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 2.3 Billion.|
|Growth Rate||CAGR of 14.2% during 2021-2028|
|Segment Covered||Type, Payment Method, End-use, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Amazon.com, eBay, Shipping Cart, Cnova, Box Me, VeePee, Apple, DHL Group, Fruugo, Asia Commerce, Pay Pal, Alibaba Group, Apple|
Key Segments of the Cross-border E-commerce Market
Type Overview, 2022-2029 (USD Billion)
- Consumer electronics
- Personal care and beauty
- Home furnishing
- Entertainment and Education
- Accessories and Apparels
Payment Method Overview, 2022-2029 (USD Billion)
- Credit or Debit card
- Digital Wallets
End-use Overview, 2022-2029 (USD Billion)
- Senior citizens
Regional Overview, 2022-2029 (USD Billion)
- North America
- Asia Pacific
- Middle East and Africa
- South America