With consumers increasingly relying on online shopping — it is estimated that 95% of purchases will be made online by 2040 — E-commerce is opening the doors of opportunity to countless entrepreneurs. In this context, cross-border shopping is escalating and it is set to break the $1 trillion barrier in 2022, making up a grand total of 20% of E-commerce as a whole.
For businesses around the world, the rise in cross-border Ecommerce brings exciting opportunities to reach new customers and expand into new online markets and frontiers.
The value of cross-border E-commerce has been predicted to grow by 25% a year – almost twice as fast as domestic E-commerce. Cross-border E-commerce is simply the process of selling products or services via an E-commerce website to buyers overseas. You can be a traditional brick-and-mortar store or purely an online business – what matters is that you’re reaching international customers in the international markets. It’s worth bearing in mind though, that while the concept is fairly straightforward, being able to tap into new mindsets abroad and persuade folks to try your products or services is no easy task. Tastes, cultures, competition and even attitudes to buying from foreigners vary in each country, so you’ll need to plan carefully before diving in.
According to a report by Zion Research, the total value of all global cross-border E-commerce hit $562.1 billion in 2018 and is expected to reach over $4 trillion by 2027 – increasing at a CAGR of 27.4%.