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~ Digital River ~

Defining the cross-border commerce future is no easy feat. 2023 will again be a complex year
and also a transition year: the COVID crisis may be over—at least for the time being—the
container and logistic crisis is, so far, a mostly fixed issue, but the Big Tech crisis is still
developing, with unknown ramifications, and the Ukrainian war, unfortunately, rages on. A
new major concern – will inflation be replaced with a recession? How bad will it be? Under

these circumstances, brands should not anticipate a stable e-commerce or cross-border
commerce scenario. Nobody has a crystal ball. Brands need to be ready with a comprehensive
plan, including flexible strategies and tactics, to stay ahead of the curve..

igital River is in the business of enabling “Cross-border connectivity, for many businesses, is a whole
global commerce growth for brands who new arm that needs to be built from the ground up. To start
Dwant to expand quickly and efficiently from scratch at a time of massive flux in commerce, brands
wherever they want to be. In 2022, Digital River, in must navigate new legal quagmires and establish new
collaboration with industry experts, published an shipping routes, all with a ‘customer-f irst’ mentality – and
ebook sharing trends, analyses, and predictions on at an unprecedented breakneck speed. Brands are seeing that
the evolving global commerce landscape. It provides they need to meet expanding consumer demand seamlessly,
an insightful look into the core elements that define even from hard-to-reach corners of the globe.” Astound
success today and into the future. Let’s dive into it! Commerce commentary from Digital River’s Def ining the
Future of Cross-Border Commerce ebook
A global scenario requires a global mindset
Cross-border commerce is becoming the global standard, For these reasons, flexibility, standardisation, localisation and
slowly getting on par with traditional domestic commerce. robust logistics capabilities are paramount in 2023.
Shoppers are driving the shift – it does not matter to them
if the brand or product they desire is a domestic brand or Localisation: a must, not a plus
an international brand. In fact, international brands are The first requirement for success in the 2023 cross-border
often seen as more unique and, thus, more coveted. This commerce playing field is one word: localisation. According
doesn’t mean that shoppers will lower their expectations to Digital River research, successfully selling globally starts
for a seamless checkout experience. They still expect a fully with thinking locally. In fact, 41% of consumers worldwide
localised, personalised experience. have switched brands after having a poor experience due to
a lack of localisation, which includes language, currencies,
According to the Digital River report, it is estimated that payments, and customer service. A strong focus on hyper-
by 2023, nearly 20% of all e-commerce transactions will be localisation and transparent, trustworthy experiences can help
cross-border. Perhaps even more staggering is the percentage brands attract and retain shoppers from all corners of the
of worldwide shoppers who will buy across borders: by 2023, globe.
the percentage of consumers globally purchasing cross-border
will increase to roughly 45% of total global sales. Local payments increase conversions
Not having your shopper’s preferred local payment options at
Is your brand ready to expand globally? You’ve optimised your checkout can be a deal breaker. Payment preferences can vary
direct-to-consumer domestic business, and expanding your significantly from country to country, region to region. In
reach across borders is where you see growth opportunities? Asia, lifestyle super apps like WeChat and Alipay dominate
Keep in mind your competitive set will also expand, along the market with embedded digital wallets. In Europe and
with the complexities of localisation of payments, taxes, North America, stand-alone credit cards are still favoured,
compliance, and of course, logistics. but they are slowly moving to live within consolidated digital
wallets.
The key at this point of consideration is to evaluate partners
that can help you get to market quickly, efficiently, effectively Buy Now Pay Later (BNPL) is still a small share of the
and with significant risk mitigation. Partners may include global payment mix, but it is growing fast. And different
traditional marketplaces or an e-commerce platform partner providers dominate different regions. Depending on the
combined with a Merchant of Record solution. The latter average order size of your product mix, you may need more
combination allows brands to keep control of their branded than one BNPL offer to accommodate different levels of
shopper experience and the valuable data insights provided financing. There is already data that supports offering BNPL,
with each transaction. with vendors reporting 30% increases in conversions and
increased cart sizes.

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