Global Cross-Border E-Commerce Market to Hit Revenue of USD 16,454.9 billion by 2032 | 3% of US/Canada E-commerce Revenue is International, Says Astute Analytica
The cross-border e-commerce market is booming, fueled by rising internet access and demand for unique products. Sustainability-focused shoppers drive a need for eco-friendly logistics and packaging. Challenges lie in complex regulations and shipping costs, but the overall outlook remains highly positive.
New Delhi, March 14, 2024 (GLOBE NEWSWIRE) -- The global cross-border e-commerce market was valued at US$ 2,830.7 billion in 2023 and is expected to reach a valuation of US$ 16,454.9 billion by 2032 at a CAGR of 21.6% during the forecast period from 2024 to 2032.
Cross-border e-commerce has become a significant aspect of the global economy, with a notable rise in international transactions and the volume of global trade. Astute Analytica finds that a staggering 73% of online consumers engage in cross-border purchases across the Europe region and region generated more than 171.2 billion euros in revenue last year. However, this trend is not limited to Europe; the U.S. and Canada are also experiencing steady e-commerce growth. Wherein, Mexico and Brazil emerging as significant markets with unique digital shopping experiences. As per recent World Bank Report, the global e-commerce revenues are projected to reach a remarkable $7.391 trillion by 2025, showcasing the sector's rapid expansion.
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Technological advancements have played a crucial role in connecting businesses with international customers, enabling them to explore new markets and reach a wider audience. The surge in online shopping, evolving consumer behavior, and innovations in logistics and fulfillment are among the top trends driving the growth of cross-border e-commerce. Localization strategies, which include adapting e-commerce shops to local languages and customs, are essential for businesses to effectively tap into foreign markets.
Asia-Pacific and European markets display diverse characteristics and growth potentials. In 2022, the share of cross-border sales in total e-commerce sales varied across Asia, with China scoring the highest in a ranked development index at 71.4. South Korea (66.7) and Singapore (65.5) followed, with Japan (61.1), Thailand (58.8), Malaysia (57.7), and Indonesia (54.3) trailing behind. In Europe, the UK maintains a stable and growing e-commerce market, and the Czech Republic is one of the fastest-growing markets in the region. The EU is working towards regulatory consistency to facilitate cross-border e-commerce within its member states.
*Key Findings in Global Cross Border E-commerce Market *
Market Forecast (2032) *US$ 16,454.9 billion*
CAGR 21.6%
Largest Region (2023) Asia Pacific (88%)
By Platform Business-to-Consumer (B2C) (69.8%)
By Payment Method Digital wallets (46.4%)
By Category Physical Goods (55.6%)
By Services Travel And Leisure (33.4%)
By Offering Assorted Brands (86.3%)
By Enterprise Size Large Enterprises (77.8%)
By Age Group Adults (65.2%)
By Sales Channel Marketplaces (88.2%)
Top Trends · Exponential growth in consumer adoption of digital payment methods, including mobile wallets and BNPL schemes
· Integration of AI in product recommendations and personalized shopping experience
Top Drivers · Globalization and the widespread use of the internet have made it easier for sellers to offer their products in any country
· The rise of mobile devices and the increasing adoption of mobile shopping have fueled the growth of cross-border e-commerce.
Top Challenges · Dealing with multiple currencies and payment methods can be complex and requires careful consideration
· Cross-border transactions may involve additional costs such as import duties, taxes, and shipping fees.
· Tailoring marketing strategies and promotions to local markets is crucial for attracting and retaining customers in cross-border e-commerce
*Challenges and Solutions in Cross Border E-commerce Market *
Despite the incredible prospects, cross-border business faces a series of problems. Some of them are navigating customs, logistics, and international regulations. To break this down even further, businesses should be aware of hidden costs that may turn consumers away, accepting local payment methods as key to success, and the risks there are when it comes to fraud or security issues says one research analyst. To get around these challenges companies should build a comprehensive e-commerce plan with an international target market in mind. Set up shop for international sales and consider joining forces with third-party logistics providers to ensure money saving practices.
Astute Analytica’s study also finds that currency and payment options is a critical challenge brands must address in order to make the selling process much easier and sales higher. Additionally, international shipping can be very unpredictable when it comes to cost. Consumers also frequently look at return policies before committing to purchases so brands need to pay close attention their localization and translation strategies for better chances at capitalizing on cross-border selling opportunities.
*Physical Goods Garner More than 55.6% Revenue of Global Cross Border E-Commerce Market *
According to our latest report, clothes and accessories are the most sought-after items for cross-border e-commerce because of their variety. Consumer electronics like smartphones and laptops are also popular because online platforms make it easy to find brands from all over the world. In third place is beauty and personal care products, which offer similar benefits as consumer electronics. They allow users to find global brands that can't be found in their own countries. But in the last couple of years there has been a surge in demand for some types of home products such as furniture and decor as more consumers seek unique styles that aren’t available locally.
Europe and America have strong markets for watches, jewelry, and accessories because people there appreciate quality and unique designs. Demand for specialized products like matcha and baby items has risen quickly with the growing influence of social media on cross-border e-commerce marketplaces, according to Astute Analytica’s findings. The China export market alone is expected to grow significantly by 2024. Fashion, beauty and food are top draws in Europe/America; electronics, clothing and beauty products are most popular in Southeast Asia; while Latin America’s top three categories are electronics, home goods and toys.
Credit cards continue to dominate payment methods across Latin America while marketplaces remain popular shopping destinations. However, companies should keep an eye out for future trends such as matcha, gluten-free pasta, mushroom coffee mixtures, air purifiers, smartwatches/power banks/smart home devices – these will likely boost cross-border e-commerce growth by 2024.
*Cross-Border E-Commerce Growth and Trends in 2023*
· In Europe, cross-border online sales are predicted to reach 65% by 2025. Hybrid marketplaces with an increasing share of third-party (often China-based) sellers will drive GMV growth.
· China's cross-border e-commerce imports and exports reached 2.11 trillion yuan ($307 billion) in 2022, an increase of 9.8% year-over-year. Exports were 1.55 trillion yuan, up 11.7%, while imports were 0.56 trillion yuan, up 4.9%.
· Online global sales accounted for 22% of all retail sales in 2023, a significant increase from just 14% in 2019.
· In 2022, 49% of the $270.1 billion in cross-border retail goods purchased online by U.S. consumers came from China-based merchants, and 12% from the U.K.
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*Cross-Border E-Commerce Market in the Asia-Pacific Region: Land Full of Opportunities and Hurdles *
The Asia-Pacific region is a vibrant and different place with substantial prospects for development in cross-border e-commerce. Policymakers, consumers, and businesses alike are progressively worried about the progression of e-commerce, governance issues, logistics, and de minimis regulations as they modify in size and complexity. The location's e-commerce policy and regulatory landscape are complex, with national and multilateral governance playing a part in shaping the growth of cross-border e-commerce. These guidelines can impact everything from the simplicity of online deals to the efficiency of logistics and customs processes.
Payment approaches are a significant problem for brands growing across borders in the Asia-Pacific region. Dealing with several currencies and the intricacy of customs clearance procedures in various countries provides considerable challenges. Solutions such as DutyPlus can assist companies integrate localized payment techniques and streamline payments throughout the supply chain, which can result in faster shipments and smoother customs treatments. Compliance with Anti Money Laundering (AML) steps along with Know Your Customer (KYC)/Know Your Business (KYB) risk assessments is also essential to prevent finesse and guarantee protected payment-related data.
In China, there is a strong demand for luxury items, beauty products, personal care items, and clothes from cross-border retailers. Nevertheless, concerns about shipping costs and delivery speed are significant barriers. India's e-commerce market is set for rapid expansion, with customer service communication being a vital factor for consumers. Japanese customers prioritize high-quality products and do not usually buy them on non-Japanese websites, which stresses localization's significance. Korean customers usually go window shopping at physical stores before looking for goods online at lower prices. Shipping costs as well as delivery time are their main concerns.
Singapore’s sophisticated logistics infrastructure network including prominent global logistics centers connected to an extensive port network has placed it at the forefront of regional e-commerce game players. However, high logistical expenses remain a major challenge for Singaporean corporations engaging in cross-border e-commerce. The Singapore government has implemented laws to improve consumer belief in e-commerce, such as the Electronic Transactions Act and the Personal Data Protection Act. The increasing rate of online scams and cyber attacks is a danger that has been heightened by the pandemic.
The Southeast Asian e-commerce market is entering its next chapter, with Indonesia and Singapore leading in e-commerce penetration rates. The market is currently dominated by consumer-to-consumer marketplaces and focused on apparel and low-cost electronics .However ,the trend of diversifying sourcing channels and expanding digital purchases beyond these categories is growing. In Vietnam, social shopping platforms are gaining popularity, and consumers are willing to pay for professional handling of bulky items such as furniture. Rapid growth can also be seen within the E-grocery category.
*North America is Revenue Puller and Net Buyer in Global Cross Border Ecommerce Market *
By 2023, the United States is expected to be the world’s second-largest player in cross-border e-commerce by number of consumers, with 69.8 million. However, China leads by a long shot at 280.0 million, thanks to its much larger population. In Canada and the U.S., online orders from abroad account for about three percent of retail e-commerce revenue. More people in developing markets buy from foreign sites than those in developed markets do, a reflection of their lower incomes. Mexico has the highest share of cross-border online shopping among North American nations, at six percent. Survey data shows that 60% of Mexican and Canadian respondents bought from an international site in 2022 versus only one-third of U.S. respondents. The majority of U.S. online shoppers prefer to buy from local merchants; more than 60% said they primarily made purchases from U.S.-based e-retailers.
China was the most popular country for U.S. consumers to buy products from abroad in early 2022, followed by the United Kingdom, Canada and Japan. But high shipping costs and long delivery times frequently lead to cart abandonment by American consumers when they shop at retailers based in those countries — particularly the UK, where many brands have seen sales soar during the pandemic as Americans found them on social media or through influencers' endorsements. Nearly half of all cross-border e-commerce market share in Canada last year was captured by U.S.-based sellers; price was a significant factor driving Canadians to shop southward.
Canadians are most likely to purchase clothing internationally and Mexicans favor items from China or the United States because they believe these countries provide access to new products.
*Global Cross Border E-commerce Market Key Players*
· Alibaba
· AirBridgeCargo Airlines
· AliExpress.com
· Amazon.com
· ASOS
· BigCommerce
· eBay
· Eunimart Multichannel
· Jagged Peak
· JD.com
· Pitney Bowes
· Tmall
· Vipshop
· Zalando
· Other Prominent Players
*Key Segmentation:*
*By Platform*
· Business-to-Business
· Business-to-Consumer
· Consumer-to-Consumer
*By Payment Method*
· Digital Wallets
· Credit/ Debit Cards
· Internet Banking
· Others
*By Category*
· Physical Goods
· Apparel & Accessories
· Consumer Electronics
· Entertainment & Education
· Food & Beverage
· Footwear
· Healthcare & Nutrition
· Home Furnishing
· Personal Care & Beauty
· Others
· Digital Goods
· Software
· Music
· Movies
· E-books
· Online Courses
· Others
*By Offering*
· In-House Brands
· Assorted Brands
*By Service*
· Digital Content
· Travel and Leisure
· Financial
· Others
*By Enterprise Size*
· Large Enterprises
· Small & Medium Enterprises (SMEs)
*By End-User (Age Group)*
· Adults
· Teenagers/ Millennials
· Senior citizens
*By Sales Channel*
· Marketplaces
· Others
*By Region*
· North America
· Europe
· Asia Pacific
· Middle East & Africa (MEA)
· South America
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/*
CONTACT: Contact us:
Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/