Cross Border E-Commerce Market

Global Cross Border E-Commerce Market Size (2024 to 2029)

The global cross-border e-commerce market is predicted to reach USD 2,064 billion in 2024 and USD 6,820 billion by 2029, growing at a CAGR of 27% during the forecast period.

Globalization has improved the volume and variety of cross-border transactions in services and products through the rapid and widespread diffusion of technology.

Current Scenario of the Global Cross Border E-Commerce Market

Cross-border e-commerce is international online commerce. It involves buying and selling products in online stores across international and national borders. Trade is between a business or retailer or brand and customer. There are several categories of cross-border e-commerce, such as entertainment and education, clothing and accessories, consumer electronics, home furnishings, personal care and beauty, health and nutrition, footwear and clothing, and food and drinks. The payment method for cross-border e-commerce includes digital wallets, credit/debit cards, and internet banking. Cross-border e-commerce is used by adults, teens/millennials, or older people.

MARKET TRENDS

Cross-border e-commerce in Europe is expected to experience substantial growth during the forecast period due to the maturity of e-commerce markets and the presence of developed economies, resulting in high consumer spending, high internet penetration, and mobile and emerging industry growth rates.

MARKET DRIVERS

Logistics-related issues such as shipping costs, long delivery times, import regulations, and return logistics are major challenges customers might face in online cross-border shipping. The customer should consider using a vendor who can offer a solution to overcome these challenges. International shipments include various costs such as border tolls, brokerage fees, duties, inspection fees, warehousing fees, fees, and taxes. Since each country has its own set of regulations, cross-border logistics present challenges.

MARKET RESTRAINTS

With the convenience of e-commerce, consumers expect shorter delivery times, real-time tracking, safe delivery, and more. Difficulty in handling reverse logistics and last-mile delivery are also some of the main logistics problems of cross-border trade. Consumers' preferred payment options vary by country. For example, a local payment method called "Konbini" accounts for one-sixth of e-commerce payments in Japan. On the other hand, Spain uses Visa, MasterCard, and American Express, while Asian consumers prefer DO options. Therefore, accepting payment options according to the requirements of each country is a challenge.

Impact of COVID-19 on the Global Cross Border E-Commerce Market

Coronavirus has accelerated the transition to online shopping, demonstrating that a strong e-commerce strategy is crucial for merchants as consumers increasingly realize the convenience and simplicity of shopping online. Cross-border e-commerce has seen strong positive growth, with global markets rebounding and even surpassing pre-pandemic figures after a slight year-over-year sales decline following the COVID-19 outbreak in December 2020.

REPORT COVERAGE

KEY PLAYERS IN THE GLOBAL CROSS BORDER E-COMMERCE MARKET

Some of the main players operating in the global cross-border e-commerce market are AirBridgeCargo Airlines, eBay, AliExpress.com, ASOS, ACES, BigCommerce, Jagged Peak, Amazon.com, Pitney Bowes, Tmall, Eunimart Multichannel, and JD. com, Vipshop and Zalando.

RECENT HAPPENINGS IN THE GLOBAL CROSS BORDER E-COMMERCE MARKET

• In July 2018, The Luxembourg Ministry of the Economy signed a memorandum of understanding with the Public Customs Center for Imported Materials of Henan (HIMPBC) to test the logistics of cross-border e-commerce in Europe as part of the European pilot plan. HIMPBC provides integrated logistics solutions for e-commerce consumers and seeks to create a similar model for Europe in partnership with logistics companies such as Cargolux.

DETAILED SEGMENTATION OF THE GLOBAL CROSS BORDER E-COMMERCE MARKET INCLUDED IN THIS REPORT

The global cross-border e-commerce market is divided based on category, payment type, offering, end-user, and region.

By Category

• Entertainment and Education

• Clothing and Accessories

• Consumer Electronics

• Home Furnishings

• Personal Care and Beauty

• Health and Nutrition

• Footwear

• Food and Beverage, etc.

The clothing and accessories segment is expected to have the largest market share during the foreseen period due to the peak use of cross-border B2C e-commerce in apparel and accessories.

By Payment Type

• Digital Wallets

• Credit / Debit Cards

• Online Banking

• Others

The digital wallet category is expected to have the largest share, as this payment method is the most widely used.

By Offering

• Internal Brands

• Matching Brands

The batching brands category will likely have the largest market share, as these brands are in the highest demand.

By End User

• Adults

• Teens/Millennials

• Seniors

• Others

The adult segment is supposed to have the highest market share due to the use of cross-border B2C e-commerce, mainly by adults.

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

Among these regions, Europe is supposed to be the dominant region during the foreseen period due to the increasing number of online shoppers. The UK is anticipated to make a significant contribution to the target market in Europe during the forecast period.