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According to the Research, up to 20% of cross-border shopping will be represented by ecommerce

Alex admitad


More and more often consumers are interested to buy products online from the overseas countries through cross-border ecommerce channels; sometimes due to less level of prices in comparison to their home markets. When domestic market has fewer online retailers or fewer product options online, local pricing is higher than prices of overseas products even with added duties, taxes, and shipping costs, consumers tend to buy from foreign eshops because it is more affordable.

This time the Asia-Pacific Region in general, and, particularly, China is rapidly becoming the largest cross-border ecommerce region in terms of exports and imports. Supporting this trend, European and American companies will gain higher revenues.

Forrester Analyst Michael O'Grady, told that cross-border marketers need to understand why consumers shop cross-border and emphasizes these elements in the marketing and advertising strategy:"Consumers shop across borders to find cheaper goods, to find goods that are not available in their domestic market, or to shop at international retailers they can trust."

Another aspect is product authenticity. We all note the quality of real Сhampagne, Parma ham, Japanese cooking knives, Chinese tea and porcelain, Italian shoes, Cuban cigars and French perfume. This helps authentic markets to stay leaders in these niche sales in cross-border ecommerce, if they can guarantee the quality and authenticity.

O'Grady (Forrester analyst) said China will drive cross-border imports and exports. Half of global cross-border ecommerce spend will come from APAC this year. China is also one of the top countries favored by cross-border shoppers worldwide.

Logistics is one of the most important factors of success in cross-border trade. The turnover between the key Chinese trade platforms and Western countries is growing and the data collected by admitad depicts this trend. According to admitad’s recent reports and forecasts, admitad advertisers from China will receive $500 million in revenue by the end of 2017. These numbers reflect on high ROI that is 10 to 1 in cross-border ecommerce at admitad. Coming to shares in purchases by region, Chinese cross-border trade in 2017 shows that Europe’s share is 69%; US and Canada consist 14%; Asian countries 10% and the rest of the world – 10%. This is important to note that, in Russia, which is one of the key importers of Chinese goods, the period of delivery from China will be shorten up to 10 days.

What is the future lane? Ecommerce growth in Asia and the emergence of new ecommerce markets in Africa and the Middle East will obviously change global ecommerce in future. But right now we witness the popularity in such ecommerce niches as apparel, including luxury goods, and International bookings and travel services that are also rapidly raising in terms of market size and cross-border purchases.