Cross Border eCommerce Sales to Grow up to 20% by 2022
The Internet is a blessing for businesses around the globe. It has vanished the walls of restriction and connectivity between the buyers and sellers from different countries. One side where sellers are getting an opportunity to reach out to a global audience, at the same time it leverages buyers with the freedom to shop from anywhere in the world anytime.
It shouldn’t be a surprise if studies show that cross-border eCommerce sales are increasing rapidly across the world.
Here are few points that validate these statements of rising in the eCommerce business at the international level:
- According to FedEx, around 37% of Singles Day purchases that happened in China were all made by some of the renowned international businesses or brands.
- According to the experts, cross-border shopping and business will experience a growth of around 20% in terms of eCommerce sales by the year 2022. This will particularly prevalent in the Asia Pacific region, as this is the place that most of the imports and exports take place.
- This has led to the rise of online payment services that facilitates the service for payment in foreign currencies for international sales.
Sales related to international eCommerce are on the growth level. However, there are some international logistics challenges that need to be sorted out. Some of these challenges related to cross-border eCommerce are warehouse locations and relocations, increased dependency on unstable air cargo lines, and reduction in the need of intermediary site or seller.
In a period of just two years, cross-border eCommerce is expected to be a whopping $900 billion industry, which is a $600 billion rise from what it was in 2015. However, in-spite of this growth, the process still remains a bit complicated that many of us don’t realize. There are requirements of uniform and precise shipping rate calculations based on the nations where the purchase is taking place, and also the nation where the shipment will be delivered. All these shipping prices need to be included in the price of the item, which is not yet so accurate when it comes to the procurement departments. This can easily throw the whole supply chain management of the vendor in chaos.
Nevertheless, these challenges and issues are gradually becoming familiar to vendors and shipping agencies and efforts are being made to address them. Cross-border eCommerce is an emerging market that is experiencing a warp-speed growth.