Cross border ecommerce or international ecommerce is defined as the phenomenon of online trade transactions between business and consumers (B2C) and business to business (B2B) located in different countries. Cross-border ecommerce is estimated to reach $1 trillion in 2020. According to Forrester, cross-border shopping will make up 20% of ecommerce in 2022, with sales reaching $627 billion. Thus, online retailers have the potential incentive to invest in ecommerce website solutions to prepare their business for cross-border ecommerce in 2020. However, before you plan your international journey, let’s explore why people are choosing foreign retailers to make their purchases.
Reasons for Cross-border Ecommerce Sales
1.Simplicity: With smartphones in hand, people are finding it more comfortable to order from a foreign online retailer with ease. They are attracted to international retailers when they are unable to find those products locally and when those products are available at cheaper rates as compared to local prices. Additionally, people are buying from foreign websites in search of the brands and specialty products that are not available in their country. The retail giants, Amazon, eBay, Alibaba, are driving cross-border sales at a faster pace.
2.More payment options: The next reason for an upsurge in this trend is due to the increase in the payment options available to the consumers. Unlike previously, now, consumers can pay using wallets that are globally accredited like PayPal, Skrill, and Google Pay that facilitate online payment worldwide.
3.Better logistics: With an increasing number of logistics management service providers across the world that are offering quality services driven by speedy delivery, trustworthy transactions, and online tracking of the package, the confidence among customers has increased as far as the cross-border purchase is concerned.
Here are a few points you must consider before you craft a strategy for international e-commerce.
Things to Consider to Get your Business Ready for Cross-border Ecommerce in 2020
1.Global Distribution Partners: The most significant risk when you expand globally is logistics. It is essential to choose a third-party logistics provider carefully after thorough check and assessment. Since high stakes are involved, it is not recommended to rely on mediocre companies for this service.
2.Market Situation: China, South East Asia, Australia, France, Mexico, and Latin America are way ahead in generating cross-border sales as compared to other countries. Big brands are expanding omnichannel strategy by including international ecommerce in its umbrella. Thus, when you chalk out a plan, you must understand the market conditions, the expectations of local consumers, and other parameters before launching your store.
3.Tech Integration: To attract customers from different nations, you must embrace tech advancements in your ecommerce website solution to support the sophisticated needs of the consumers. For example, using Chatbots can help you to cater to your customers 24*7 and understanding their unique requirements. Moreover, you can provide a seamless experience by integrating all touchpoints with using technology.
Cross-border ecommerce is rapidly gaining traction and will continue to rise in 2020 as more and more retailers will invest in quality ecommerce website solutions for enhanced user experience. With 5G data speed, it is now easier and faster to connect with the target audience globally. However, the bottom line is how your brand interacts and engages with the customers.
If you are looking eagerly to expand internationally and are planning to upgrade ore face-lift your website for a global audience, Katalyst Technologies can help. We are a leading provider of digital and ecommerce website solutions with immense domain expertise and strong industry presence. Our experts can help you from end-to-end while you plan for ecommerce international expansion.
Connect today.
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Brian Burell has completed his education in Computer Science and then he has started working in Digital & eCommerce, Enterprise Application and SCM segment for Katalyst Technologies Inc. After getting more than 7 years of experience in software solution, he found best interaction model of success. He really enjoys her success in software industry for start-up business and also in extending current model with highly reflective ROI.