Cross Border Ecommerce: thinking outside the box

Why limit your online sales to just Germany when the diverse European market and global e-commerce platforms offer so much potential? Cross border ecommerce is a game-changer, especially in a region as heterogeneous as Europe in 2024.

Different countries sharing borders with Germany, such as France, Poland, or the Netherlands, present excellent opportunities for expanding your electronic commerce market reach and boosting sales.

When expanding your ecommerce business internationally, consider using external collaborations for logistics to handle import and delivery.

Additionally, ensure your ecommerce website supports local currencies and payment methods to enhance customer experience and satisfaction for international customers.

Understanding tax regulations and the currency exchange can also impact your international ecommerce strategy, aiding in smooth cross-border transactions.

To gain new customers in foreign markets, a well-planned ecommerce strategy is essential, focusing on the B2C model and ensuring your online business can cater to international needs. This global ecommerce approach will help tap into new markets and improve your ecommerce business’s reach beyond your home country.

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Cross border Ecommerce is becoming increasingly important

The shopping experience has changed over the last ten years. In the EU, the percentage of people buying online went up from 47% in 2013 to 70% in 2023. That’s a 23-point increase over the decade.

Some countries have seen even more dramatic growth based on Stackscale information For example:

Bulgaria increased from 12% in 2013 to 45% in 2023
Estonia went from 23% in 2013 to 73% in 2023
Romania rose from 8% in 2013 to 50% in 2023

With the general growth of the ecommerce market, cross-border ecommerce is also expanding. The Corona pandemic significantly contributed to this rapid growth.

According to Ecommercenews, In 2023, the European cross-border e-commerce market hit €237 billion in turnover, showing a 32% increase from the previous year. European online shops raked in €107 billion in cross-border turnover in 2023, up 1.4% from €105.5 billion in 2022.

Cross-border ecommerce sales made up 32% of the total online B2C turnover for goods in Europe, which reached €741 billion in 2023.

This difference can be attributed to the development stages of local ecommerce markets and geographical and linguistic factors, such as Belgium’s proximity to France.

The exponential growth of cross-border ecommerce presents both opportunities and challenges. For successful cross-border ecommerce, you’ll need to conduct thorough market research, adapt to local payment methods, and factor in cultural norms.

“Cross-border online trade in Europe varies greatly from country to country. Everyone has their very own preferences”.
Adrian Gmelch – Lengow SAS

Opportunities of Cross Border E-commerce for Global Growth

Expanding into cross-border ecommerce allows businesses to leverage new ecommerce opportunities by accessing untapped markets.

This approach can significantly increase market size, enabling businesses to reach a wider audience and cater to the growing global demand for their products or services.

Whether you want to enter a new b2b or b2c market, international selling boosts revenue and diversifies risk by not relying solely on one market.

Another opportunity is the ability to enhance business resilience by exploring various market insights and consumer behaviours across different regions.

These insights can be crucial for refining your cross-border ecommerce strategy and tailoring offerings to meet local preferences.

Businesses will need to navigate and overcome challenges for cross-border ecommerce, such as regulatory differences and logistical complexities.

Doing so increases the potential for cross-border ecommerce success, ensuring sustainable growth and competitive advantage.

Lastly, cross-border ecommerce strengthens your brand’s presence globally. Establishing a robust ecommerce presence internationally helps build brand recognition and trust among diverse customer bases.

Partnering with a third-party logistics provider can streamline ecommerce logistics and address any ecommerce issues that arise, facilitating smooth operations.

This approach positions businesses to achieve ecommerce success and capitalize on cross-border ecommerce growth, ultimately leading to long-term success.

Challenges of Cross-Border Ecommerce business

One of the key challenges of cross-border ecommerce is navigating the complexities of international regulations and compliance.

When you sell internationally, you’ll need to factor in varying tax regulations, import duties, and legal requirements that differ from your home market.

Ensuring compliance across multiple jurisdictions can be resource-intensive and requires careful planning to avoid disruptions in your ecommerce transactions.

Another significant challenge is handling logistics and supply chain management.

Expanding your business across borders means dealing with extended delivery times, higher shipping costs, and potential delays.

To address these issues, partnering with reliable third-party logistics providers is crucial.

Efficient logistics are vital for maintaining customer satisfaction and achieving successful cross border ecommerce.

Cultural differences and varying shopper behaviours present additional hurdles.

When entering new markets, you must adapt your marketing strategies to align with local preferences and purchasing habits.

Understanding the demand for your product in each target market is essential for capturing market share and realizing the benefits of cross-border ecommerce.

Taking one market at a time approach and leveraging market insights can help ecommerce leaders overcome these challenges and drive cross-border ecommerce growth effectively.

Online Stores Are The Perfect Showcase Abroad

Online marketplaces are particularly suitable for cross-border sales. Half of all online sales take place on these ecommerce platforms.

They grow faster than other sales channels, and customer trust in these platforms is usually very high.

The importance of ecommerce in facilitating cross-border purchases cannot be overstated.

It doesn’t always have to be top international online marketplaces like Amazon or eBay; regional platforms that are strong in the respective country can often be the better choice.

This way, you can quickly reach a broad, loyal target group via this sales channel. Leveraging regional marketplaces supports cross-border growth and market expansion for your ecommerce store.

This marketplace search function can be a great help when searching for the best online marketplace.

Selecting the right platform can help overcome the challenges of cross-border ecommerce and drive ecommerce success, enabling your business to reach customers worldwide and capitalize on the benefits of cross-border ecommerce as the market is expected to grow significantly in the following years.

The consumer electronics brand has numerous touchpoints where customers rate their products or simply ask questions. Without professional review management, this would hardly be possible. Samsung uses the gominga software for this.

Marcus Nessler

Head of Customer Experience - Samsung

Three Concrete Examples of European e-Commerce Platforms

France, in particular, is very suitable for selling products. It is the third-largest e-commerce market in Europe and is located right next to Germany.

The delivery time thus remains relatively low. France is known as a country of online marketplaces. Every second French person has ordered there at least once, and among the most visited e-commerce websites, they are almost exclusively online marketplaces.

The most crucial marketplace after Amazon is Cdiscount with 24.5 million monthly visitors.

The store reaches both French and Belgian customers. If you want to sell on Cdiscount, you absolutely need French product descriptions because French people see the French language as one of the most essential elements.

Since they have tremendous confidence in this marketplace, it is the perfect showcase for foreign merchants.

Lengow has a privileged interface with Cdiscount, making it very easy for merchants worldwide to sell their product catalogues there.

In addition to France, however, the Netherlands is also a perfect destination for cross-border sales.

With around 15 million products and over 8 million users, the online marketplace bol.com is one of the largest online stores there and in Belgium.

The platform’s awareness level is over 95 percent. Integration with Lengow is also quite simple here. A guide to bol.com is available here.

Third example: Poland is still relatively small as an e-commerce market but has enormous growth potential.

One online marketplace, Allegro, has made its mark there: With its 18.5 million customers a month, Allegro is the absolute market leader in Poland.

This marketplace accounts for around 40 percent of total Polish e-commerce sales.

Retailers who want to be active here need Polish product descriptions. A Polish return address is also recommended.

Optimized and Centralized Product Data is What Counts!

Of course, logistics is one of the most important aspects of a successful cross-border strategy, but one element that is often underestimated is the product catalogue.

For the international market, optimized product data feeds are another centrepiece for cross-border online commerce.

They must, therefore, be up-to-date, high-quality, and always adapted according to country and channel.

Cdiscount, for example, has requirements that are different from those of bol.com or Allegro.

Product titles and descriptions must be in the local language and appeal to the “foreign” e-shopper just as well as products from local suppliers.

Spelling mistakes are taboo here. Regional holidays, festivals and sales must also be considered for any discount campaigns or special offers.

With Lengow, for example, automatic rules can be set up in a product data feed to integrate such regional differences and thus increase sales success.