Cross-Border Ecommerce

Ecommerce refers to trade in goods and services via electronics has grown exponentially, and SMEs can now connect with consumers in domestic and foreign markets in ways that in ways that were not possible without ecommerce technology. In particular, Small and Medium Enterprise have gained a lot from ecommerce in the domestic markets by simplifying the shopping experience and product delivery.

In this generation of technology dominating the world, the Internet has created infinite opportunities for International trade. It has decreased the geographical distance between buyers and sellers and has changed the way the individuals and companies conduct business, trade, or communicate.

What is Cross-border Ecommerce?

Cross-border ecommerce is an online trade between a business (retailer or brand) and a consumer (B2C), or between two businesses (B2B), often brands or wholesalers, across two countries.

Cross-border ecommerce has gained a lot of momentum as customers are more interested to purchase products from outside countries at reasonable costs. On the other hand, it is a massive opportunity for Manufacturers, Wholesalers, Distributors to sell these products at wholesale/retail price to the buyers and make more profits from the global market and establish themselves as a International brand.

What are the benefits of Cross-border Ecommerce?

There are numerous benefits of Cross-border ecommerce and it has grown exponentially over the past few years and it is here to stay with an expectation of reaching $900 billion market size.
International ecommerce has opened up doors for all size of the business in this post-modernization era where you can establish a benchmark by harnessing the power of international ecommerce. With a growth rate of 200%, cross-border ecommerce has enabled SME’s to go international and launch their business into foreign marketplaces right from their native country. With the number of online shoppers increasing significantly giving multiple benefits to the SME’s, we present you the top 7 benefits of Cross-border ecommerce.

1.International Expansion:

Cross-border e-commerce benefits both the sellers and customers as the Businesses gets an opportunity to launch their business in the international markets without having a physical store.

On the other hand, they can reach out to their target audience who are “Ready to Buy” customers waiting for international brands to cater them with their products. Regardless of geographical limitations businesses can have their presence in any country and create an international brand by offering a compelling range of products to end customers at an affordable price and on time delivery.

2.Increased Revenue:

To generate higher revenue a product needs a higher demand, and if the audience size is higher then there are more chances of increasing revenue. In Cross-border e-commerce businesses get an unparalleled opportunity to drive through international market.

3.Brand Awareness:

Brand awareness is the first validation in ecommerce as the customers prefer validation over preference. A business or a brand must improve brand awareness because fitting the needs don’t suffice unless the brand awareness is not taken seriously. Brands will have higher visibility and more trust over local markets when they enter international markets.

Hence, It will be recognized as an International brand when they start exploring the international markets.

4.Maximizes selling of low demand domestic ecommerce products:

The challenge for a domestic business is to maximize the sale of low demand for domestic products. Given the option to “Go Global”, SME’s will have a higher opportunity to maximize the sale of their overall products or the low demand product can become a highly demanded product in the international market.

5.Increased Access to End Customers:

When you understand your target audience and its demographics, you need to work on the pricing by offering the products at best price, optimized images, and quality content to attract more customers from the international market.

6.Opportunity to build good international customers:

Genuine and good quality product offered at the affordable and competitive price will facilitate the customers shopping with your brand frequently. May it be domestic ecommerce or Cross-border ecommerce you need to maintain the quality of the product, quality of the image, quality content with right set of information to take the decision.

“A satisfied customer is the best business strategy of all”


7.Increase Business Sustainability:

Cross-border ecommerce is a growing and emerging business channel for many of the well-known brands across the globe. As the size of the cross-border ecommerce is so large and the reach is so extensive that it is a win-win game for all the businesses due to the high probability of business sustenance.

What are the risks of Cross-border Ecommerce?

Well every business has challenges and hurdles that a business should be ready to deal with, and of course yes both ecommerce and global ecommerce has something holding up the growth a business.

Specifically if you look at the challenges in Cross-border ecommerce, there are plenty and can be overcome easily. Let’s have a look at the top major cross-border challenges that you should fix.

1. Fraud undoubtedly one of the biggest challenge faced by businesses who allow customers to purchase their products from other countries. So, choosing the right payment service that is aware of the the end customer behavior is really critical.

2. Logistics and reverse logistics is something that costs a lot to businesses when it comes to shipping and reverse logistics in terms of returns. This can negatively impact the perception of your business by local customers.

3. Regulations of local government bodies and taxation needs detailed examination and can affect your business negatively in terms of trade bans and financial losses.

4. Payment methods and payment processing is the most critical aspect of cross-border ecommerce. A strong payment payment processing system is absolute need for business in global ecommerce. Payment mechanism preference varies across the world, and a thorough research about your potential market and their payment preferences will help you in long run.

5. Organizational readiness is one of the challenge international ecommerce and the discussion remains incomplete we don’t focus on the business’s own readiness or to adapt the international ecommerce or selling abroad. To tap the international market you need to develop a deep understanding of local taste to sensitivity for cultural factors.

Who is the eligible for Cross-border Ecommerce?

Cross-border ecommerce is an open opportunity for every business without limitations on any business type or category. However, there are a few categories which fall under the restricted category or which are not allowed by the Cross border ecommerce marketplaces.

What is the Market size and Future of Cross-border Ecommerce?

The market size of the Cross-border ecommerce is growing really faster than Market Size of Cross-border E-commerce

Cross-border e-commerce has grown into a large, rapidly growing ecosystem and has proven to be a great success story for many e-tailers, manufacturers, retailers, and distributors by helping them sell their products over the web directly to end customers.

The progress could be shown with proven numbers: in 2015, the cross-border e-commerce market accounted for USD 300 billion GMV, about 15% of e-commerce overall. However, this rapid growth has just begun and will continue: the cross-border market is expected to grow about 30% annually until 2020. This growth is nearly twice the rate of local e-commerce and a growth rate that most traditional retail market were dreaming to achieve.

In fact beyond 2020, all the evidence reveals that the demand for imported products is not going to recede. That said, considering the patterns according to which e-commerce companies expand their regional footprint today, one could assume that very e-commerce purchase will eventually become a local purchase.

“Consumers shop abroad for fundamental reasons: better product availability, attractive offerings, and trusted brands”

Future of Cross-border E-commerce and Growing Class of Cross-border Shoppers.

The existing researches performed on the behavior of cross-border shopping shows that customers across markets have become more sophisticated in finding the e-tailer of their choice and that they do not shop cross-border by chance, but with choice and consciously for fundamental reasons. According to Google’s Consumer Barometer, better product availability, a more attractive offering, and trust in brands and shops are the main reasons.

Looking at the future relevance of these reasons and strategic implications for e-tailers, availability and trust are most relevant for creating and maintaining a sustainable value proposition. Having an attractive offering (including price) stands out as key to convincing international consumers to act.

By 2020, it is forecasted to account for about USD 90 billion GMV, translating into a roughly 22% share of the International e-commerce market. This growth momentum yields unrivaled opportunity for many SME’s to scale their business into International markets.


How should you define your market entry strategy for Cross-border Ecommerce?

Well, before you venture into a new market, you should determine your market entry strategy and the same implies for Cross-border e-commerce. It is actually more than just a new marketing channel, which should be subject to a sound decision making process and decided by the person or organization who makes all high-level investment decisions.
Decide: Are you ready to expand Internationally?
There are a few fundamentals for a market entry strategy that is a mandate process for any business to take a decision on International Expansion.
Get clarity on the decision problem:
What is your vision or impact you want to create by going international? A possible motivation or vision can be, for example, being less depended on the local market or manufacturers can become an international brand.
Have the alternatives:
What is your plan and how are you going to implement it? Central or decontrol? An in-house dedicated team or external support agency? Possibly a solution based partner?
Specify the Criteria:
Who are you targeting in the new market? What regions you would be targeting? What is the demand of your product in your target regions? Increase market share, maximize profit, minimize costs? Define your framework. There could be a few conflicts with targets; therefore it is important to define your main target and add constraints.
Build a decision model:
It is a simplified representation of your choice, the criteria and all the concerns. You can call it a business case.
Data collection:
 One of the important task of taking a decision to enter into a new market. Data defines the business and it also gives you a prediction of your sustenance in the market with approximate number of sales. Collect the required data to make a decision model.

How does Eunimart help you in easing out your International Expansion through Cross-border Ecommerce?

Eunimart with its experience and expertise were able to solve all the challenges that a business faces in the journey of International Expansion through cross-border ecommerce. We have successfully decode the cross-border e-commerce and we call it as PLIM Model.
PLIM is a distilled for of the most important factors which, if followed diligently, will help SME’s increase their sales and margins.

1. Payments:
Payments are always the hardest area of cross-border e-commerce, no matter in which country you are trading. There are no easy solutions in this process when dealing with cross-border e-commerce.
2. Logistics:

Cross-Border E-commerce logistics has become fairly simple given that several International logistics companies are now providing end to end delivery. We help you in solving this with shipping, reverse logistics, customs and duties, and international shipping challenges.

3. Information Technology:
A SAAS solution is only as good as your business solution is. In order for the IT to work, it needs to be woven into a business solution. And yes, Eunimart has that solution for you with Data, Artificial Intelligence, and Many more for your International Expansion plans.
4. Marketplace:
We have the most well known marketplaces from different parts of the world with exclusively categorized marketplaces for particular product categories. Its important for you to understand which markets around the world are the relevant and have the highest value and demand of your products. Once the right markets have been targeted, it is necessary to identify the regional marketplace leaders to work with.
Our experts will guide you with the entire process of shortlisting or selecting the marketplaces which works best for your business. There are many such lucrative marketplaces out there to choose from, who would happily work with you given the right processes are in place.