Cross-Border E-Commerce Industry to Witness Huge Growth in Upcoming Year
The cross-border e-commerce industry is witnessing growth due to the unavailability of products domestically, affordable costs, consumer-focused targeting by market players, and higher quality of goods. Moreover, cross-border e-commerce offers a lot of advantages for SMEs to expand their businesses and become multinational, and also presents an opportunity for OEMs to sell their products directly to consumers, relieving them from the complex supply chain.
According to AllTheResearch, “The global cross-border e-commerce market was valued at US $578.57 Bn in 2019 and is expected to reach US $2,248.57 Bn by 2026, expanding at a CAGR of 17.4%.”
Cross-Border E-commerce Market Drivers
Growing digital adoption index across regions: Digital adoption index is a global index measuring every country’s digital adoption across three dimensions of the economy, such as government, business and people. For organizations, digital technologies provide efficiency and connectedness and allow organizations to survive in a world where technology is highly prevalent. E-commerce players have made use of digital transformation to increase their footprint in their respective markets.
Rising usage of smartphones and tablets by millennials, supporting the market growth of cross-border e-commerce: The growing penetration of budget smartphones is a key factor that has led to the robust growth of the e-commerce industry. Mobile commerce accounted for roughly 40% of the total e-commerce sales in 2019. Further, for cross-border e-commerce, close to 30% of the population uses either a smartphone or a tablet for their purchases.
Growth Factors
The market is further driven by the increasing preference for online shopping, especially among women, and the growing influence of social networking platforms on shopping habits. Online retail channels provide a hassle-free shopping experience to consumers while displaying a wide variety of products to choose from, at affordable price points.
The advent of private-label and direct-to-consumer-based business models are also creating a positive outlook for market growth. This enables organizations to collect and use consumer data and provide personalized products and experiences to the consumer.
The Segment study of the Platform includes an analysis of B2B, B2C and C2C markets. Cross border e-commerce is not new, but the speed at which goods are crossing borders is developing rapidly, as well as the ease of carrying out business. Business-to-business e-commerce supports businesses by decreasing cost and improving efficiency.
Cross-Border E-commerce Market Segmentation
In the report, the market is segmented into Platform, Product, Services and Region.
Platform Overview
- Business-to-Business
- Business-to-Consumer
- Consumer-to-Consumer
Product Overview
- Food & Beverages
- Personal Care
- Furniture Products
- Consumer Appliances
- Smartphones & Allied Products
- Fashion & Apparel
- Others
Services Overview
- Digital Content
- Travel and Leisure
- E-Tailing
- Financial
- Others
The key and positive trends of the segment include:
- The key effect blockchain’s popularity will have on cross-border e-commerce is how simple it makes international online payments.
- Blockchain has reduced cross-border remittance, ranging from 5% to 20% to below 3% and guaranteeing real-time payment at the same time.
- Blockchain platforms are making it easier and more efficient to track products, shipments and present inventory.
Regional Overview
From a geographic segmentation perspective, the report focuses on the regions that have a material and significant effect on the overall market value. The broad-level coverage of the report includes the regions of Global, North America, Europe, APAC, MEA and Latin America.
Major Cross-Border E-commerce Market Investment Scenario
European warehouse demand surges as e-commerce giants like Amazon and Alibaba snap up space: Investors are pouring money for the expansion of warehouses in Europe as online shopping revives during the COVID-19 pandemic. The surge in warehouse demand has driven vacancy rates in Europe to a record low of around 5%, and the number is still declining.
China and New Zealand signed an agreement to upgrade their existing free trade pact, securing a better deal for both countries through expanded market access, widened tariff-free schemes, and expedited processes for exporters.
Find more information about the report here.
The cross-border e-commerce industry is witnessing growth due to the unavailability of products domestically, affordable costs, consumer-focused targeting by market players, and higher quality of goods. Moreover, cross-border e-commerce offers a lot of advantages for SMEs to expand their businesses and become multinational, and also presents an opportunity for OEMs to sell their products directly to consumers, relieving them from the complex supply chain.
According to AllTheResearch, “The global cross-border e-commerce market was valued at US $578.57 Bn in 2019 and is expected to reach US $2,248.57 Bn by 2026, expanding at a CAGR of 17.4%.”
Cross-Border E-commerce Market Drivers
Growing digital adoption index across regions: Digital adoption index is a global index measuring every country’s digital adoption across three dimensions of the economy, such as government, business and people. For organizations, digital technologies provide efficiency and connectedness and allow organizations to survive in a world where technology is highly prevalent. E-commerce players have made use of digital transformation to increase their footprint in their respective markets.
Rising usage of smartphones and tablets by millennials, supporting the market growth of cross-border e-commerce: The growing penetration of budget smartphones is a key factor that has led to the robust growth of the e-commerce industry. Mobile commerce accounted for roughly 40% of the total e-commerce sales in 2019. Further, for cross-border e-commerce, close to 30% of the population uses either a smartphone or a tablet for their purchases.
Growth Factors
The market is further driven by the increasing preference for online shopping, especially among women, and the growing influence of social networking platforms on shopping habits. Online retail channels provide a hassle-free shopping experience to consumers while displaying a wide variety of products to choose from, at affordable price points.
The advent of private-label and direct-to-consumer-based business models are also creating a positive outlook for market growth. This enables organizations to collect and use consumer data and provide personalized products and experiences to the consumer.
The Segment study of the Platform includes an analysis of B2B, B2C and C2C markets. Cross border e-commerce is not new, but the speed at which goods are crossing borders is developing rapidly, as well as the ease of carrying out business. Business-to-business e-commerce supports businesses by decreasing cost and improving efficiency.
Cross-Border E-commerce Market Segmentation
In the report, the market is segmented into Platform, Product, Services and Region.
Platform Overview
- Business-to-Business
- Business-to-Consumer
- Consumer-to-Consumer
Product Overview
- Food & Beverages
- Personal Care
- Furniture Products
- Consumer Appliances
- Smartphones & Allied Products
- Fashion & Apparel
- Others
Services Overview
- Digital Content
- Travel and Leisure
- E-Tailing
- Financial
- Others
The key and positive trends of the segment include:
- The key effect blockchain’s popularity will have on cross-border e-commerce is how simple it makes international online payments.
- Blockchain has reduced cross-border remittance, ranging from 5% to 20% to below 3% and guaranteeing real-time payment at the same time.
- Blockchain platforms are making it easier and more efficient to track products, shipments and present inventory.
Regional Overview
From a geographic segmentation perspective, the report focuses on the regions that have a material and significant effect on the overall market value. The broad-level coverage of the report includes the regions of Global, North America, Europe, APAC, MEA and Latin America.
Major Cross-Border E-commerce Market Investment Scenario
European warehouse demand surges as e-commerce giants like Amazon and Alibaba snap up space: Investors are pouring money for the expansion of warehouses in Europe as online shopping revives during the COVID-19 pandemic. The surge in warehouse demand has driven vacancy rates in Europe to a record low of around 5%, and the number is still declining.
China and New Zealand signed an agreement to upgrade their existing free trade pact, securing a better deal for both countries through expanded market access, widened tariff-free schemes, and expedited processes for exporters.
Find more information about the report here.