Cross-Border eCommerce Industry is Expecting Huge Growth in the 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 leading to an increase in the demand for the cross-border e-commerce market. Moreover, cross-border e-commerce offers a lot of advantages for SMEs to expand their businesses and become multinational. It also presents OEMs an opportunity 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 countries’ 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. Ecommerce 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 eCommerce industry. Mobile commerce accounted for roughly 40% of the total eCommerce sales in 2019. Further, for cross-border eCommerce, close to 30% of the population uses either smartphones or tablets for their purchases.
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 the consumers while displaying various products to choose from at affordable price-points.
Besides, the advent of private-label and direct-to-consumer-based business models is also creating a positive outlook for market growth. This enables the 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 eCommerce is not new, but the speed at which goods are crossing borders is developing rapidly to mark their online presence together with ease of carrying out business are some factors that are anticipated to drive the market growth of the B2B sector in this market. Business-to-business e-commerce supports businesses by decreasing cost and improving efficiency by making labor-intensive automatic in addition to manual procedures and proposing customer self-service options.
Cross-border Ecommerce Market is segmentation.
In the report, the market is segmented into Platform, Product, Services, and region.
Based on Platform
Based on Product
- Food & Beverages
- Personal Care
- Furniture Products
- Consumer Appliances
- Smartphones & Allied Products
- Fashion & Apparel
Based on Services
- Digital Content
- Travel and Leisure
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.
From a geographic segmentation perspective, the report focuses on regions with a material and significant effect on the overall market value. The report’s broad level coverage includes the regions of Global, North America, Europe, APAC, MEA, and LatAm.
Asia-Pacific was the highest revenue contributor, accounting for estimated to reach $ XX million by 2026, with a CAGR of 23.3%. LAMEA is estimated to reach US $ 111.76 Bn by 2026. Asia-Pacific and North America collectively accounted for around xx% share in 2019, with the former constituting around xx% share.
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 to expand 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 agreed to upgrade their existing free trade pact, securing a better deal for both countries through expanded market access, widened tariff-free schemes, and expedited exporters’ processes.
Cross-Border eCommerce Growth Trends
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