Cross-border eCommerce: 4 Trends to Watch in 2023
eCommerce has continued to exhibit year-on-year growth in terms of volume and value, with cross-border purchasing becoming an increasingly popular element of the online shopping experience.
As we discuss in our latest research, there are several major factors that will impact the cross-border eCommerce market this year, including:
#1: Marketplace Diversification
With increased eCommerce spending in recent years, there are a variety of eCommerce marketplaces to use, all of which provide different experiences. However, eCommerce marketplaces being businesses must take measures to utilise their online presence as a means to drive consumer spending and consolidate their offerings in one place.
For some, this is an omnichannel approach that builds off existing infrastructure, like supermarkets which provide typical eCommerce in addition to grocery products. For those with greater online presence, this has been seen through a variety of means. Subscription services like Amazon Prime not only offer eCommerce benefits like faster and free shipping, but also an entertainment landscape including eBooks, video and music streaming, and more.
Others, meanwhile, might provide practical services with real-world use functionality, like Rakuten or Mercado Libre providing financial and telecommunication services which are consolidated around the marketplace. Going beyond being a simple marketplace is crucial to stand out in eCommerce, and providing consumers with a wealth of reasons to utilise platforms contributes to success.
#2: mCommerce and Flexibility
The utilisation of mobile devices, and marketplaces adapting to their global prevalence, have resulted in the use of mobile devices for eCommerce to rise faster than other devices.
Penetration of mobile phones is very high and increasing in developing countries, broadening the scope of available consumers. Not only does using mobile phones for eCommerce provide increased flexibility in how customers shop, like having the ability to shop from anywhere or the increased prevalence of digital wallets like Apple Pay for added convenience, this has additionally provided marketplaces new means for users to engage with the marketplace.
Listing a product through a phone comes with added benefits, such as speed of listing upload or utilising gamification to attract users more often and incentivise spending. Reducing friction in eCommerce has become more prevalent and unique, and this is a driving force for the overall rise in market values.
#3: Adaptation to Current Events
The Russian-Ukrainian War resulted in significant changes being made to the cross border eCommerce landscape.
Sanctions against Russia from many Western businesses has resulted in cross-border trade to and from Russia decreasing heavily, but has meant the rise of parallel imports of Western goods through countries not sanctioning Russia. Furthermore, many countries have decreased deliveries to Russia and Ukraine due to the conflict, resulting in another market becoming impaired.
The influence of the war has affected many economies, and by extension, currency values; not only was this effect noticeable through shortages of popular imported products like wheat across Europe, but the economic turbulence experienced globally has reduced consumer spending due to disposable income being less prevalent. Indeed, several eCommerce marketplaces reference the latter point for a fall in overall profits in the 2022 fiscal year, despite an overall rise in purchases.
#4: The Aftermath of COVID-19
2023 marks three years since the COVID-19 pandemic was officially classified as a pandemic, influencing the eCommerce landscape considerably.
The drastic change in consumer shopping behaviour influenced by lockdowns across nations and health risks meant Internet-based shopping was the predominant shopping method for many globally. This facilitated the creation of an online presence for many merchants and businesses, including through the use of established eCommerce marketplaces. The pandemic served as an example of how some small and medium businesses were able to pivot to accommodate sudden changes in the market.
In 2023, whilst the influence of the pandemic has diminished, this does not mean that eCommerce growth has slowed. Improvements to logistics networks, the rise of automated delivery systems, and growth of available marketplace products show the lingering impact of the pandemic, utilising the experience for development.
Want more insights and statistics?
Download our latest cross-border eCommerce whitepaper, which examines how eCommerce marketplaces provide a plethora of benefits for both consumers and small-to-medium-sized merchants for international expansion. You can also visit our infographics area, where you'll find an infographic containing our latest cross-border eCommerce market statistics.
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