A new study from Juniper Research forecasts that 33 percent of ecommerce spend will be cross-border by 2028. As ecommerce growth shifts to developing markets, the cross-border ecommerce market is predicted to grow by 107 percent over the next five years, from $1.6 trillion in 2023 to over $3.3 trillion in 2028.
As more and more consumers shift to online shopping, it is becoming increasingly important for independent retailers to implement a well-thought-out, international ecommerce strategy to meet the needs of the modern-day customer and tap into both local and growing global demand. Tony Preedy, managing director of Fruugo, believes the strongest starting point for retailers is through cross-border marketplaces:
“In today’s connected world, retailers in one country are no longer limited to reaching nearby customers. Supported by the right platforms and tools in place, they can sell to customers all over the world with ease and can gain exposure to high-growth markets such as Eastern Europe, which saw rapid online sales growth in 2022.
“For many independent retailers, selling across borders can feel like an uphill battle as it requires resources and tools that they do not have in order to cope with the various complexities involved. However, the growth of digital marketplaces and the support they provide sellers has helped simplify the cross-border selling experience. In fact, most cross-border online sales are now made using these platforms.
“By selling on a marketplace, retailers benefit from placing their product in front of a new, worldwide audience that is continuously growing. The more marketplaces that sellers list on, the greater their total digital presence and the higher their overall sales. Many marketplaces also work on a ‘no sale, no fee’ basis, meaning retailers can sell their product with zero risk of loss – they will always be making a profit over the total transaction cost. With Juniper’s research predicting a rapid rise in cross-border ecommerce transactions, this provides a fantastic opportunity for retailers to quickly expand their brand at minimal risk to themselves.
“Retailers do not need to worry about the headaches that are often involved in traditional cross-border selling because marketplaces can minimise much of the technical work for sellers and help optimise marketing. For example, in many jurisdictions, marketplaces are responsible for the calculation and remittance of sales taxes depending on the type of goods and the customer’s location. They also integrate with local payment providers, screen orders for fraud, and take on the cost of currency conversion.
“Through marketplace selling, retailers are instantly equipped with all the tools and services required to effectively capitalise on the growing demand for cross-border ecommerce and will be provided with more opportunities to thrive on both a local and global scale.”