A new study from Juniper Research has found that the value of cross-border eCommerce will exceed $2.1 trillion in 2023, from $1.9 trillion in 2022.
This growth of over 13% in a single year reflects the increasing success of marketplaces which offer goods across borders, as well as the rising viability of cross-border sales as an eCommerce model.
The new research, Cross-border eCommerce: Emerging Opportunities, Future Challenges & Market Forecasts 2022-2026, found that as eCommerce models diversify, including models such as buy now pay later and click and collect, cross-border options must also keep pace, by agreeing local distribution and payment partnerships.
The research recommends that cross-border eCommerce vendors offer localised eCommerce models, or they will lose out to options that better serve consumer appetites.
Marketplace Model Critical to Cross-border Growth
The research found that the marketplace model, where large vendors, such as Amazon or Wish.com, sell goods to users on behalf of cross-border vendors, will be critical to growth. This model represents an easy way to access a large audience, while ensuring that accepting payments and other logistical issues are seamlessly handled.
Research co-author Nick Maynard elaborated: “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 access to an existing user base, albeit one that can be restrictive compared with having a direct-to-consumer relationship.”
Physical Goods Dominating Cross-border eCommerce Spend
The research found that physical goods will account for over 97% of cross-border eCommerce spend in 2023, with digital goods making up the remainder.
It identified the maturity of cross‑border export of physical goods as a business model as a major factor in this difference, as well as increasingly cost‑conscious end users. The research recommends that payments vendors support a wide range of local payment methods, in order to capitalise on this sizeable opportunity.
For more insights, download the free whitepaper: How the Globalised Economy Is Driving Cross‑border eCommerce