What is Cross border e-commerce?
Cross border e-commerce which is also termed as International e-commerce enables the online shoppers to make purchases from e-commerce players/online sellers or e-commerce websites of other countries across the globe. It is growing at a fast pace with the increasing international shoppers. Understanding this many online retailers have expanded their business into new geographical areas by introducing various product ranges in the global market.
Online shoppers prefer to shop from other countries for getting products at lower prices/discounts and due to unavailability of their desired/specialty products in their country. With the growth in technology, shoppers are familiar about various country’s products, purchasing, shipping and taxation processes. Cross border e-commerce is complicated due to international payments, high shipping costs, long delivery times, language barriers and inferior products that does not match description but many online shoppers prefer to shop cross border.
According to the recent reports by AliResearch
, cross border e-commerce contributes 25 percent of overall global e-commerce sales and it is expected to reach one billion by 2020. About 67% of global customers shop abroad. Canada, US, Australia, China, Singapore, Japan and India are prominent countries to carry out overseas shopping.
When businesses focus on cross border e-commerce they can avail various commercial opportunities. E-commerce firms has to come out of the border and expand internationally in order to attain the benefits out of it.