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Cross Border E-Commerce - The Future of E-Commerce

What is Cross Border E-Commerce?

Simply put, cross border e-commerce is online trade between two entities located in different countries or jurisdictions. This has become more commonplace thanks to marketplaces such as Amazon and eBay. 

It offers an opportunity for brands and retailers to reach new buyers in new marketplaces.

What are the risks of Cross Border E-Commerce?

There are 3 main risks that can affect cross-border e-commerce:

  • Fraud: Accepting payments from overseas can be risky. Picking a trusted and well established payment gateway will negate this risk. 
  • Logistics: Shipping and returns represent the biggest headaches for retailers looking to expand cross-border. Services such as FBA or eBay's GSP help solve this. There are also distribution firms such as B2C Europe.
  • Regulations & Tax: Handling VAT and other taxation can be time-consuming and complicated and you must be aware of local laws and regulations.

Why should you do Cross Border E-Commerce?

By 2020 the global e-commerce market value will be US$3.4 trillion. Cross border e-commerce is taking over as the key growth engine to B2C trade, with a CAGR of 29.3 percent from 2014 to 2020.

The market is growing rapidly and is set to continue to grow over the coming years. Marketplaces mean that it is easier than ever to target customers overseas and they are a great way to test out your products in a new country or marketplace. 

In France, for example, the fastest crowing e-commerce segment is cross-border purchases. 19% of all online sales in 2016 were made on non-domestic websites, higher than the European average (15%). Selling on France should be a priority for any UK business looking to expand overseas. 

Cross Border Trade - A Summary

Cross border e-commerce is getting bigger and bigger and should be a central part of your growth strategy. It requires work and investment but it can have a huge impact on your business and could be very lucrative

If you are interested in how Clarity can help you with your cross border expansion plans, then please get in touch:

0121 286 8068