AliExpress, Amazon, Wish, eBay, Shopee, Etsy, Lazada & Mercado Livre Drives Global Reach for Millions of Merchants
New data from fintech research specialists Kaleido Intelligence has found that $1,120 billion will be spent by global online shoppers on international shopping websites and digital services in 2022. This will represent around 20% of total global eCommerce spend across physical goods and digital services.
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“Despite the current economic climate, cross-border eCommerce has presented merchants with significant growth opportunities, across both retail and marketplaces. This means that offering a seamless user experience becomes the biggest challenge; including preferred payment options, removing language barriers and customer support, including returns and refunds.”
According to Kaleido’s new report on B2C Cross-border eCommerce: Market Outlook 2021, regional growth of cross-border sales will outstrip domestic eCommerce growth in all regions. Cross-border eCommerce will witness an average annual growth rate of 14% over the next five years, compared to 9% accounted for by domestic eCommerce spend. The research found that cheaper goods and, importantly, shipping are key drivers behind cross-border growth.
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Kaleido estimated high adoption of cross-border orders across Europe and Latin America; with cross-border eCommerce spend in both markets accounting for over 35% of total eCommerce spend in 2020, compared to a global average of 19%. Additionally, goods sourced from China and shipped globally are rapidly gathering pace: this has even impacted traditionally domestic eCommerce markets, such as Japan and Germany.
Marketplaces Key in Fuelling Cross-border Spend
The majority of the leading marketplaces are taking advantage of this growing opportunity to reach new global customers and markets. Kaleido forecasts that the total cross-border spend on online marketplaces will represent just over 70% of the total cross-border eCommerce spend in 2020.
The research found that cross-border marketplaces remain very strong versus retail websites, with Asian marketplaces proving particularly popular for both a regional and global audience. However, a notable exception was found to be North America, owing to the depth of retail and marketplace goods available domestically, leading to more specialised retail purchases when shopping from foreign merchants.
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