The online tail now wagging the retail dog as e-commerce surges globally

via Flickr © Hamxa Butt (CC BY 2.0) By next year, cross-border trade will be 38 per cent of all e-commerce transactions made around the world

E-commerce value will be more than US$2.1 trillion, up 13 per cent year-on-year

Physical goods account for more than 97 per cent of cross-border eocommerce spend, digital goods for less than 3 per cent

“Marketplace model” key to sector growth, and relies heavily on the power and dominance of big vendors such as Amazon

A new report from Juniper Research finds that, by next year, cross-border e-commerce will account for 38 per cent of all the e-commerce transactions made around the world and that by 2023 the value of the sector will be over US$2.1 trillion. Given that it will be $1.9 trillion this year, the forecast figures indicate a sector growth of 13 per cent year-on-year.

The new paper, “Cross-border eCommerce: Emerging Opportunities, Future Challenges & Market Forecasts 2022-2026”, adds that the ‘marketplace model’ is a key to the growth of cross-border e-commerce transactions. An online marketplace is a site where there are multiple sellers and purchasers buying through the same website, and buyers can make purchases without having to leave a given website or app. Dominant vendors such as Amazon are in a good position here, selling goods to customers on behalf of cross-border vendors and providing a quick and easy way to get to a big and diverse audience of buyers whilst enabling and assuring that the acceptance of payments, and the provision of finely-tuned and robust logistical systems and issues are seamless.

Co-author of the research, Nick Maynard, said: “The marketplace model within eCommerce takes the complexity away, meaning that cross-border merchants can provide a localised service. As such, marketplaces are an excellent way to gain immediate […]

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