Research from Forrester shows that cross-border trade globally will grow much more strongly than domestic trade in the UK, US and EU over the next ten years. The report reveals that cross-border sales will grow 17% between 2017 and 2022, compared with just 12% for e-commerce generally.
It’s barely surprising that the big reasons why people buy cross-border are to get goods they can’t find locally and to make savings. Slightly more surprising is it to note that two-thirds of cross-border online shopping is done through the various marketplaces. The boost in cross-border trade has several reasons: the localization quality of marketplace and e-commerce sites has improved. They are way better in serving international customers. More choices and better logistics when it comes to fulfilment are a big help too. One more accelerator of cross-border sales is the bigger choice when it comes to international payment. The popularity of mobile, especially in countries where many (or most) people don’t have a desktop or laptop computer is also crucial.
The biggest cross-border shoppers will be the Chinese. according to the Forrester research, half of the global cross-border shopping trade will be from China in 2017. It is expected that this number will grow. It is said that 200 million Chinese shoppers will buy overseas on 2020. This would mean the total number of imported goods bought online will reach $245 billion. The key position is reserved for Alibaba, which has been continuingly promoting its Tmall proposition.
The deal between Stipe and Alipay and WeChat’s will grease the wheels as well, while it will be easier for Chinese shoppers to make cross-border payments.