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~ ChannelEngine ~

CROSS-BORDER

E-COMMERCE:

BENEFITS, CHALLENGES &

TIPS TO SUCCEED

Text: Matt Hopkins // Photos: Freepick

Consumers are already very familiar with cross-border e-commerce, but for many online
sellers, it’s a different story. Despite the huge promise cross-border e-commerce offers, the
perceived barriers often prevent sellers from taking the plunge. And they’re missing out
on a huge opportunity. In this article, we’re going to dive into the details of international
e-commerce. We’ll look at typical selling models, challenges, benefits, and ways you can secure

successful international sales from the start.

ow big is international e-commerce? reach another 1330 million (1.3 billion) new customers.
Cross-border sales are taking a bigger share of
Honline sales each year. In 2022, international The benefits of cross-border selling include:
e-commerce made up 22% of all online sales. A big chunk of • Market expansion. As illustrated above, each
this comes from B2B marketplace sales (think Alibaba, for additional region can massively increase sales
example)—B2B e-commerce is estimated to be about 63% of potential. A US brand expanding to China and
total online sales. Latin America can increase its customer base by
594%.
Focusing on just the retail segment, cross-border e-commerce
will be worth US$4.8 trillion in 2025—growing to nearly • Potential for less competition. Especially for unique
US$6 trillion by 2027. These figures show that international brands and products. A great example is Apple,
e-commerce (for both B2B and B2C) will exceed US$3.5 which expanded into Japan in 2003 after saturating
trillion in value by 2027. As cross-border e-commerce has the US market. Despite the established position
grown by 50% in the last 6 years, the figure will probably of domestic electronics brands in Japan, their
be even higher. For brands and retailers looking to unlock unique offering enabled the brand to gain traction
new sources of growth, international e-commerce is a logical internationally.
option.
• Leverage differences in buying power. You can get
The benefits of cross-border e-commerce better margins in high-GDP countries or where
Cross-border selling offers huge benefits for sellers. The most the wealth gap is large. Looking at a nation’s GDP
obvious is a much bigger market reach—and this means growth is an important consideration when assessing
massive sales growth potential. For example, let’s imagine international expansion.
your brand currently targets consumers in the US; this means
you can reach a maximum of 289 million potential buyers in • Outsmart seasonality. Sell seasonal goods (e.g.,
2027. fashion) in both hemispheres and get better sell-
through, in combination with higher margins.
By expanding sales to Latin America, you can add another International selling is a recommended way to clear
388 million customers, add China to the mix, and you could seasonal stock at good prices. Australian retailer

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