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.
