Cross-border B2C e-commerce spend to break the $1 trillion barrier

spike

New data has found that $1,120 billion will be spent by global online shoppers on international e-commerce websites and digital services in 2022. This will represent around 20% of total global e-commerce spend across physical goods and digital services.

According to Kaleido’s new report on B2C cross-border e-commerce: Market outlook 2021, regional growth of cross-border sales will outstrip domestic e-commerce growth in all regions. Cross-border e-commerce will witness an average annual growth rate of 14% over the next five years, compared to 9% accounted for by domestic e-commerce spend. The research found that cheaper goods and, importantly, shipping are key drivers behind cross-border growth.

Kaleido estimated high adoption of cross-border orders across Europe and Latin America; with cross-border e-commerce spend in both markets accounting for over 35% of total e-commerce spend in 2020, compared to a global average of 19%. Additionally, goods sourced from China and shipped globally are rapidly gathering pace: this has even impacted traditionally domestic e-commerce markets, such as Japan and Germany.

Marketplaces Fuelling Cross-border Spend

The majority of the leading marketplaces are taking advantage of this growing opportunity to reach new global customers and markets. Kaleido forecasts that the total cross-border spend on online marketplaces will represent just over 70% of the total cross-border spend in 2020.

The research found that cross-border marketplaces remain very strong versus retail websites, with Asian marketplaces proving particularly popular for both a regional and global audience. However, a notable exception was found to be North America, owing to the depth of retail and marketplace goods available domestically, leading to more specialised retail purchases when shopping from foreign merchants.

e-commerce Transaction Value Online vs Mobile

Cross-Border Remains Unimpacted During COVID-19

The COVID-19 crisis has led to a worldwide increase in digital spend and looking forward, Kaleido believes that the longer-term growth trends will be largely unaffected by the pandemic, as migration will continue apace from the offline space. The research found that growth in cross-border e-commerce will continue in 2020, with transaction volume reaching 26 billion, up from 22 billion in 2019.

“Despite the current economic climate, cross-border e-commerce has presented merchants with significant growth opportunities, across both retail and marketplaces,” Nitin Bhas, Strategy & Insights Lead at Kaleido Intelligence.

“This means that offering a seamless user experience becomes the biggest challenge; including preferred payment options, removing language barriers and customer support, including returns and refunds.”

Source Article

Next Post

EPC publishes first SRTP scheme rulebook for industry review

Following a three-month public consultation, and in close collaboration with stakeholders from the entire payment value chain, the EPC has published the first version of the Single Euro Payments Area (SEPA) Request-To-Pay (RTP) scheme rulebook – SRTP. EPC publishes first SRTP scheme rulebook The SRTP scheme covers the set of operating […]