Cross-border e-commerce market is expected to grow at an average rate of 25 percent between 2015 and 2020, which is twice the pace of domestic e-commerce growth.
This is according to DHL Express' report titled 'The 21st Century Spice Trade: A Guide to the Cross Border E-Commerce Opportunity'. The study looks at the markets and products that offer the highest growth potential, the motivations and preferences of customers making international online purchases, and the success factors for online retailers that wish to expand overseas.
The study revealed that online retailers that extend their offerings to international customers saw their sales increasing by 10 to 15 percent on average. Retailers that incorporated a faster shipping option into their online stores grew 1.6 times faster compared to other markets too.
"Shipping cross-border is much, much easier than many retailers believe, and we see every day the positive impact that selling to international markets can have on our customers' business growth," said Ken Allen, CEO, DHL Express.
The report also noted that consumers who conduct cross-border purchases do so because of rising consumer education and e-tailer awareness. Consumers cited better product availability and trust, as well as attractive offers as motivators for shopping with overseas online retailers.
They also highlighted logistics, trust, price and customer experience as the main factors hindering them from cross-border purchases.
To overcome these challenges, DHL Express recommends e-commerce players to deploy off-the-shelf solutions, such as payment providers and programmes that localise a website's check-out experience. Such retailers should also partner global logistic partners that can help identify the right trade-off between centralised and local warehousing and fulfillment, as well as provide fast, reliable and flexible deliver options.
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