Cross-border e-commerce in China holds a specific distinction where international companies are allowed to sell certain goods to Chinese consumers online, through platforms such as Alibaba’s Tmall Global and Kaola, at preferential duty rates and without a license to operate a business in the country. And while we may not be able to pin down exactly the reasons why this should be the case, that it suggests a market rich with opportunity for experienced cross-border sellers. Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. Wix vs Shopify (Nov 2020): Which is the Absolute Best? Cross-border insights: 1. Technology plays a major role in the cross-border e-commerce and it is not the only force at work. Mobile-centric retail experience – mobile devices are already a key platform for digital content and communications, and the same is becoming true in the retail and commerce domain. It needs investment (payment processing, staff and logistics) and should be done in a staged manner for maximum impact. According to marketing research firm Coleman Parkes, 21-40% of a business’s contributions are a direct result of e-Commerce and that number is expected to grow rapidly over the coming years. A desire for technology that drives cost efficiency and cross border e-commerce is a priority for postal operators, according to a new survey by Escher, which supplies software platforms for postal and logistics organizations. Wix Ecommerce Review: The Good, The Bad and The Ugly (Dec 2020), Squarespace Review (Dec 2020) - 11 Pros and Cons of Using Squarespace, Square Online Review (Dec 2020): Everything You Need to Know, What is Ecommerce? Logistics and reverse logistics is also just as important and can negatively impact the perception of your business by local customers. Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. Hendrik Laubscher has a decade's worth experience in ecommerce. And Single’s Day is a testament to that fact. And 53% of those who bought products in other countries used the address of a family or a friend in another country. Besides basic installation and configuration (with your shipping, payment, taxes, currencies and contact details) you will also get your products imported to your new website. In other words, the ecommerce competition is very low in this area with high demand. Moving from 2D to 3D customer perspective – the range and depth of customer data insight will proliferate over the next 10 years. Regulations – local government and taxation needs thorough examination and could potentially negatively impact your business. The contents of this post have been extracted and contributed to The New Spaces website by Jamil Ahmed. No enterprise has a market share of more than 25%. The invention and popularisation of cryptocurrency and other payment options whereby international payment is now a matter of seconds. via marketplace platforms such as Amazon or eBay. What we see in our research ‘the state of cross-border e-commerce in Europe’ is that the UK is one of the leading countries on our continent with regard to (1) the number of online retailers offering international shipment in their web stores (50 – 70%) and (2) attracting a good share of cross-border web visitors (> 30%, whilst the European average is 23,6%). In summary – cross border ecommerce is here to stay and needs to be considered accordingly as a growth strategy for an ecommerce business. The increasing popularity of tablets and smartphones, allows consumers worldwide to compare prices, connect with other consumers via social media, to discuss products and services, to select a web shop independent of its location and to transfer payments via their PC, laptop, mobile phone or tablet at any place, anytime, anywhere. It would seem that trade via cross-border e-commerce is the next frontier for engagement between the Association of Southeast Asian Nations (ASEAN) (namely, Malaysia, Singapore, Thailand, Indonesia, Philippines, Vietnam, Cambodia, Brunei, Myanmar and Laos) and China. Nearly half of all French consumers regularly buy from cross-border merchants and 19% of all online sales in 2016 were made on non-domestic websites, four point higher than the European average of 15%, most frequently Germany, the UK, Belgium, the US, and China. Customer experience is definitely the key to strengthening the cross-border sales. A set of legal notices were published on 2 June amending the Value Added Tax Act as regards cross-border sales of goods and services to final consumers. There are many reasons why … Partners which have acquired expertise in the technical, innovative and legal aspects of online sales can help merchants to manage transactions over one secure payment gateway. Pairing the two allows you to find and retain cross-border customers in any new international market. Guaranteed means that it’s not about the promise of a great … Plus 5 of the Best Payment Gateways Compared for 2020. The Internet enables consumers to shop globally, by purchasing products and services across their border, driven by a common language, a common border, special offers, or simply because the product or service isn’t available in the consumer's own region. Generally, there are 3 main risks which influence cross-border e-commerce: By 2020, over a 2 billion e-shoppers, or 60 percent of target global population, would be transacting 13.5 percent of their overall retail consumption online, equivalent to a market value of US$3.4 trillion. Second, identify where your projected concentration of sales is going to be and find out by far the most advantageous physical location in the new selling area for Cross Border E Commerce for your projected business model. With cross-border ecommerce accounting for the fastest growing segment of Russian ecommerce, we decided to take a look at what is driving online shoppers to venture outside of their national borders. I personally view these as fads where as cross border ecommerce has potential to be the future of ecommerce. "E-commerce trade volume reached about 1 billion yuan between January and September. There are many ways depending on how invested you want to be and how quick you want to move but for a quick, low cost and low risk method, trying via cross-border e-commerce is the simples. Mexico – is a long term market due to the. Why is e-Commerce such an important part of today’s world? At the same time, consumer behaviors and expectations are evolving. The last 2 years e-commerce has seen distributed eCommerce websites – Twitter and Pinterest, and recently conversational e-commerce has emerged as a contender for the future. We strive to provide easy to read reviews that will help you choose which ecommerce platform is right for you. 2. Why is cross-border ecommerce on the rise? Cross-border ecommerce can refer to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B), or between two private persons (C2C), e.g. The new rules extend the scope of the Mini One Stop Shop scheme currently applicable to the B2C supplies of telecommunications, broadcasting and electronic (TBE) services to a One-Stop … Cross-border e-commerce has gained a large momentum due to customers buying products from other countries. Cross border ecommerce refers to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B) or between two private persons (C2C). Conversational e-commerce is seen as a potential use case for customer service which involves the use of technology to help with communication. Earlier cross-border payments are difficult and should be managed to ensure that customers are not surprised by additional government levies when items arrive at their final destination, understanding local taxation and ensuring that the customer pays accordingly is crucial otherwise the purchase will be returned and create an aggravated customer that will harm business and brand. Conclusion: It is easy to conclude that Cross-border ecommerce opens plethora of new avenues to ambitious businesses and assures an expansive global footprint; however, important considerations such as taxes/regulations, logistics/delivery, availability of the preferred payment methods and understanding of the local market is extremely important. Cross-border e-commerce makes up 21% of the total global online trade. It's no wonder, then, that switching your business to an e-commerce model would come with a huge amount of advantages. Consumers prefer to pay in local currency; global expansion requires multi-currency conversion and settlement in currencies defined by major card schemes, including interchange rates. Cross-border sales represented 12% of all e-commerce in 2015 and were expected to reach 17% by 2023, worth an estimated US$736 billion. Conversational ecommerce is seen as a potential use case for customer service which involves the usage of technology to help with communication. This website uses cookies to ensure you get the best experience. Catalin did a great job at recommending the right ecommerce platform and kickstarting our marketing. Where are the opportunities for cross border ecommerce? Basic Shopify vs Shopify vs Advanced Shopify. Simply put, because the world is moving more and more into the digital realm every day. That’s why it’s important to have a two-tier strategy: a strong marketplace shop and a relevant, localised retail website. The Internet might be the single most important facet of modern society, governing everything from political discourse and higher education to the way we conduct ourselves and our businesses. Annual report highlights importance of cross-border e-commerce. Selling abroad is becoming very popular. Before we go much further, as we travel through cross-border commerce, it is important to understand key terms that will be discussed. Key Cross-Border Commerce Terminology. The content is noisy and clear: Usually do not believe that there is no reason to convert Cross Border Ecommerce or that English is utilized in other nations! That number would be higher, but for concerns about shipping and customs duties that would be levied on the products. Why cross border e-commerce works The primary factor for Chinese consumers to engage in cross-border e-commerce is to ensure they products of high quality. As mentioned earlier cross border payments is difficult and should be managed to ensure that customers are not surprised by additional government levies when items arrive at their final destination. India currently has 462 million internet users with 100 million internet […] Selling Products Online: The Best Ways to Sell Digital Goods-Tools &Tricks, How to Choose the Best Ecommerce Platform for SEO (Nov 2020), The Best Ecommerce Platforms & Shopping Carts for Multi-vendor Ecommerce Marketplaces, How to Create Your Own Shopify Store in Less than 15 Minutes (Nov 2020). He lives in South Africa but travels globally to experience ecommerce in locations worldwide. New business models are appearing that will have a profound influence across the e-commerce and wider retail value chain. Top 50 Ecommerce Marketing Tips to Outrank Competitors. Logistics in cross-border ecommerce is getting even more complicated due to the increasing popularity of online stores and courier companies. There are 3 main risks that influences cross border ecommerce: By 2020, over 2 billion e-shoppers, or 60 percent of target global population1, would be transacting 13.5 percent of their overall retail consumptions online, equivalent to a market value of US$3.4 trillion (Global B2C GMV, growing at CAGR of 13.5 percent from 2014 to 2020) according to Accenture. Consistent and predictable logistics is a requirement for a business that is wanting to capitalise on cross border ecommerce. For example access to niche products and new products, which are not yet available from domestic retailers. A”One size fits all” approach might prove to be a pitfall. There are several reasons that more consumers are turning towards cross-border purchasing, one being that it is often cheaper to get the same product from an international distributor, with another being the huge diversity of … Subscribe to our newsletter and access exclusive content and offers available only to MonsterPost subscribers. Merchants which offer free or cheap delivery attract more consumers. Expansion through cross-border e-commerce can only be realized after online Merchants have overcome a number of challenges. Time to get yourself a slice of that pie, we say! Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. He contributes to a variety of publications and is fascinated by all things ecommerce (marketplaces, emerging markets and cross border global ecommerce). These are fads whereas cross-border e-commerce has potential to be the future of e-commerce. However there are many other factors that play in as well. Its Future of Post survey is based on feedback from 129 respondents from 52 national posts services around the … Japan is a great place to do business. International e-Commerce is called cross-border e-commerce, when consumers buy online from merchants, located in other countries and jurisdictions; it is a phenomenon that has quietly gained huge momentum as customers purchase products from outside their borders. In the survey, around 62% of those surveyed only shopped domestically,36% shopped domestically and cross-border while 2% shop only cross-border. The last 2 years ecommerce has seen distributed ecommerce (buy buttons  on certain social networks – Twitter and Pinterest) and more recently conversational ecommerce has emerged as a contender for the future. distributed ecommerce (buy buttons  on certain social networks, Chinese cross border ecommerce is worth $60 billion but legislation might impact it, Australians like buying clothes from online businesses, fastest growing e-commerce segment in France, staggering rate at which the market for ecommerce is growing at, Shopify Reviews (Dec 2020): Is Shopify the Best Ecommerce Platform? This is being driven by the huge growth in Smartphone sales volumes, which will reach 2.05 billion by 2020. Significant VAT Changes For Cross-border E-Commerce From 2021. Operated by Jetimpex Inc. All rights reserved. International e-Commerce is called cross-border e-commerce, when consumers buy online from merchants, located in other countries and jurisdictions; it is a phenomenon that has quietly gained huge momentum as customers purchase products from outside their borders. 3PL: 3PL stands for “third-party logistics” and is a provider of outsourced logistics services. 2020 Premium & Free Instagram Highlight Covers for Your Business, Digital Black Friday Deals 2020 – 100 Offers and Discount Codes, How to Create a Compelling Black Friday Email Design. Feel free to follow us, © 2020 ecommerce-platforms.com | operated by Reeves and Sons Limited | 18 Ashwin Street, E8 3DL, London, UK, Why Cross Border Ecommerce is the Future of Ecommerce. Sales and incomes increase. The traditional e-commerce market is dominated by Alibaba (about 60-70% of market share) while cross-border e-commerce is relatively fragmented. The last 2 years e-commerce has seen distributed eCommerce websites – Twitter and Pinterest, and recently conversational e … Marketing strategies will have to be customized, to reach a different audience in a foreign market and a different infrastructure might require local logistic and delivery services. It is an online trade business (retailer or brand) and a consumer (B2C), or between two private persons (C2C), e.g. 12 countries make up 80% of the world’s cross-border shoppers It needs investment and should be done in a staged manner for maximum impact. Lower Cost than traditional shopping and selling:- Selling products and services online is less costly … Posting contributed articles about the major web design highlights and novelties. 55% are willing to pay extra for a guaranteed good experience. Come across a handful of useful tutorials and guides shared by experts in the web design and online marketing fields. In summary – cross border e-commerce is here to stay and needs to be considered accordingly as a growth strategy for an e-commerce business. As the customers need fast Cross border eCommerce companies with efficient delivery services, companies offering service within this field can face more hardships than ever. Customers trust the quality of the product if the description is in their native languages. via marketplace platforms such as Amazon or eBay. Top 10+ Best Online Course Platforms Reviewed and Compared – How To Sell Your Online Courses in 2020? The reasons why cross-border e-commerce is on a rapid rise include: The continuous simplification of the means of payments internationally. WooCommerce vs Shopify (Nov 2020): Which One Is the Absolute Best? Merchants and payment service providers profit the opportunities, presented by global e-commerce; banks have come to realize, that offering acquiring services to successful stakeholders engaged in online trade, can be more profitable than selling banking products. After days of researching on my own, Catalin helped me to find the right solution for my site in 2 minutes. Speaking about wearable’s, there is a lot of excitement about wearable technology, and although the ecosystem is still emerging, the number of wearable devices coming to market is increasing. Cross border ecommerce is becoming increasingly streamlined and it is believed to account for $ 14 trillion in sales in the last year alone. Online retailers service providers have hardly been affected by the economic crisis; in an age when international expansion through global online trade has become big business. 08.10.2020 How to Work with a Trade Partner on a Cross-Border E-Commerce Platform in China Due to the COVID-19 pandemic, the enforcement of social distancing, lockdowns and other measures has driven up the demand for online shopping in China. This service allows you to get your new store installed and configured without losing products from your existing website. In the same year, cross-border sales boomed reaching USD$4.3 billion, a massive increase of 26% when compared to figures from 2015. Around the globe, and many people do are able to read reviews that will help you which... Clicks and conversions to turn plenty of visitors into customers expansion through cross-border.. Around 62 % of customers switch brands due to poor service the use of technology help. 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