Cross border, also called cross-border trade, is the name given to the process of selling products from one country to another. In e-commerce, it can be defined as the commerce made through a virtual store like yours for consumers abroad.
The cross border proposal, therefore, is to reach international consumers. More than that, this business model aims to build an e-commerce brand with global relevance and authority, with a view to increasing revenue.
Regardless, the power of cross-border trade is enormous. To give you an idea, according to a Zion Research report cited by Market Finder , cross-border e-commerce reached US$562,1 billion in 2018 and is expected to reach US$4 trillion by 2027.
In such a scenario, the cross border could be the next step to be taken by e-commerce brands that are already well established nationally. This business model may be the next stage of growth for your company. Keep reading and learn more!
E-COMMERCE CROSS BORDER NUMBERS AND TRENDS
The cross border is on the rise. But he is like a big wave that only the most prepared surfers are able to ride. If you are one of these surfers, then you better not miss the opportunity. The wave comes strong:
- 82% of the world's online consumers already shop abroad, according to Fierce Retail cited by VTEX;
- 67% of global consumers shopping abroad are shopping because prices are lower outside their own country, according to Invesp infographic;
- 66% (approximately) of consumers of the main global e-commerces contribute at least 10% of their monthly online spending to international trade, according to Invesp;
- 22% of shipments of physical e-commerce products are estimated to be the amount that the cross border will represent in 2022, as per Statista data cited by CED Commerce;
- 51% of consumers plan to increase their international online shopping habits, according to the International Post Corporation report cited by Citcon;
- 80% of retailers worldwide agree that cross border is profitable, according to data from the eMarketer cited cited by Syncee.
Catching the cross border wave, however, requires care. Soon after, I present some obstacles that you may face in this endeavor. Be aware of these obstacles and get ready!
CHALLENGES AND ADVANTAGES
To enter the cross border you must keep in mind that the challenges are not few. For starters, take into account that customers abroad are looking for exclusive products that are not available in their countries. In addition, they look for products with cheaper prices.
Also remember that at the cross border you run the risk of credit card fraud. There is the issue of product returns, which can cause a lot of logistical inconvenience. Furthermore, it is necessary to understand the governmental regulations and taxes of the countries where you intend to operate.
Cross-border trade also has complications with foreign languages, problems with sending goods, problems with payments and currencies, difficulties with the application of Marketing, among other factors.
To enter this market, you will ultimately need a robust e-commerce platform like VTEX , for example, which features VTEX Global Checkout , offering a way for consumers from other countries to add their billing and shipping information for products sold on your e-commerce site.
I take this opportunity to inform you that e-Plus Agency has been VTEX certified since 2015, having produced more than 400 national and international e-commerce projects since then. Therefore, the e-Plus Agency team can help your company implement a cross-border e-commerce platform using VTEX technologies. Contact us if you need assistance!
As you can see, the obstacles are great. But the benefits are great. Cross border provides a global reach for your e-commerce brand, thus increasing the number of consumers and your company's revenue. Therefore, it is worth investing in this business model!
As soon as you can, click on " Aliexpress or Amazon " and discover what Brazilians prefer when shopping internationally!
