Koen van Gelder
Team Lead E-commerce
Since the turn of the century, online shopping has gone international. Transnational trade has existed since time immemorial, but buying and selling on the internet and shipping across borders is an innovation brought about by digitalization and broader internet access around the globe. Cross-border e-commerce is the name given to sales and purchases made across borders. These commonly occur from one country where online retailers and manufacturers offer their products to another country where the consumer is based, though they can also involve business-to-business transactions. Borderless commerce comprises sales of physical and digital products, with physical items representing 97 percent of what is traded cross-border online worldwide.
Chinese e-commerce businesses are the most chosen for purchases from abroad, accounting for three in ten cross-border online orders in 39 surveyed countries worldwide in late 2022. China ranked as the primary market for the most recent cross-border purchase in leading economies such as the United States, the United Kingdom, and Japan.
Still, the key reason global consumers resort to cross-border e-shopping is that products are more affordable than other available offerings. And what mainly turns them into loyal customers is being satisfied with the items received.
A world of opportunities
Every day more companies are embarking on cross-border sales. And not for nothing: by selling internationally, online merchants can build their brand globally, diversify markets, make sales in far-world regions, and increase revenue. In times of macroeconomic crises, cross-border e-commerce still offers the opportunity to ship products to almost 200 territories and billions of consumers worldwide, and even buy supplies from other countries. More than anything, the success of a cross-border e-commerce business relies on its ability to reach international online shoppers and turn them into customers.Chinese e-commerce businesses are the most chosen for purchases from abroad, accounting for three in ten cross-border online orders in 39 surveyed countries worldwide in late 2022. China ranked as the primary market for the most recent cross-border purchase in leading economies such as the United States, the United Kingdom, and Japan.
What hinders borderless commerce?
Reaching online consumers based abroad is easier said than done. Over 55 percent of recently surveyed supply chain professionals said cross-border e-commerce is difficult. A language barrier usually prevents international audiences from accessing certain websites. Companies should also consider that product features tailored to domestic markets may not work everywhere. Moreover, online merchants must accept payment methods that foreign shoppers can pay with while also provide reliable shipping. Shopping internationally poses inherent risks to any online transaction, such as fraud; costly, lengthy, or unpredictable delivery; and regulations such as customs fees and taxation increasing the final price of goods even more.Still, the key reason global consumers resort to cross-border e-shopping is that products are more affordable than other available offerings. And what mainly turns them into loyal customers is being satisfied with the items received.
