NEW YORK, August 31, 2021 /PRNewswire/ — — According to Zion Market Research, the global cross-border B2C e-commerce market generated US$562.1 billion in revenue in 2018 and is expected to generate US$4,195.4 billion by 2027. The cross-border B2C e-commerce market is expected to grow at a CAGR of nearly 28.4 percent between 2020 and 2027. With the rise of globalization, cross-border e-commerce business activities have gained traction as a result of the online sale of goods to customers in a variety of countries. This has resulted in tremendous growth of the global eCommerce business, which will drive the growth of the cross-border B2C e-commerce market in the coming years.In 2019, cross-border payment flows totaled nearly USD 130 trillion. Evidently, the e-commerce industry is constantly evolving and undergoing transformation as a result of the global spread of the COVID-19 pandemic, which has resulted in a significant shift in consumer purchasing behavior and an increase in online shopping activities. Furthermore, businesses are focusing on new cross-border ecommerce strategies in order to target potential customers across borders and increase sales. All of the aforementioned moves and factors will increase the size of the cross-border B2C e-commerce industry in the near future.
Furthermore, the COVID-19 pandemic has highlighted the importance of flexibility in cross-border B2C ecommerce transactions. Furthermore, with the outbreak of a pandemic, B2C brands must implement an effective multichannel business strategy to aid cross-border e-commerce activities. Firms are entering into business deals with customers through the direct-to-consumer (D2C) channel in recent times of pandemic, preventing product delivery delays. According to one study, more than half of customers used D2C to purchase consumable or durable products during the COVID pandemic. Apple, Inc. is the best example of a firm selling through D2C because it sells its products directly to customers through its online stores or contract manufacturers such as Foxconn, allowing customers in various countries to purchase its products online from its stores or from Foxconn. These strategic moves will increase market revenue over the forecast timeframe. Nonetheless, a lack of knowledge about regional tax regulations, compliance, and import/export legislation among cross-border product sellers can stifle cross-border B2C E-Commerce growth. Aside from that, a lack of awareness about various countries' data protection laws may pose a threat to the expansion of the cross-border B2C E-Commerce market in the near future.
Furthermore, cross-border B2C e-commerce activities have eliminated the majority of supply chain deficiencies, such as circuitous delivery routes. For example, eCommerce behemoth Amazon, based in the United States, has developed a multi-country inventory selling program aimed at streamlining cross-border B2C ecommerce transactions in Europe. As a result, cross-border B2C e-commerce market trends will improve.
Globalization & New E-Commerce Technologies Will Increase Market Size by 2027
The introduction of advanced e-commerce technologies, as well as the widespread availability of secure online payment options and transactions, has broadened the scope of the cross-border B2C e-commerce market. Furthermore, globalization and free trade activities, as well as favorable FDI policies adopted by the majority of developing and developed countries around the world, will promote cross-border B2C e-commerce business growth in the coming years.
With the COVID-19 pandemic spreading rapidly around the world and customers preferring online business transactions, the e-commerce industry is experiencing rapid growth and is the fastest emerging retail activity globally. Furthermore, despite the fact that the pandemic halted all activity in the first quarter of 2020, cross-border e-commerce saw significant growth in that year. According to reports, the second quarter of 2020 saw double-digit growth as a result of the use of advanced e-commerce technologies that were safe, secure, and supported by high internet speed. Furthermore, these technologies facilitated quick online transactions. PayPal and UPS, for example, saw double-digit growth in their cross-border shipment business during the April-June 2020 period due to the use of secure and novel ecommerce systems. All of the aforementioned factors are expected to drive market growth even after the pandemic. As e-commerce becomes the dominant channel for doing business across a wide range of industries, including clothing and apparel, computers, software, music, books & media, beauty & cosmetics, home & garden decorations, toys, sports, and movies, the cross-border B2C e-commerce market is expected to grow at the fastest rate in the coming decade.
The Asia Pacific market is expected to grow significantly between 2018 and 2027.
The growth of the Asia Pacific cross-border B2C e-commerce market during the forecast period can be attributed to the unique online shopping ecosystem available in countries such as China. Aside from that, Asia is expected to account for nearly 40 percent of cross-border ecommerce revenues in the coming years, driving regional market value. Furthermore, with the region's middle-class and affluent population rapidly adopting online shopping techniques and eCommerce business growing rapidly in most product categories such as consumer electronics goods, toys, clothing & apparel, personal care & cosmetics, and books & media, the cross-border B2C e-commerce industry in Asia Pacific is expected to gain traction during the forecast period.
Because the market is oligopolistic, only a few players control a large portion of the market share, and each player strives to capture the greatest possible share of the market, gaining a competitive advantage over its business rivals. Jagged Peak, ACES, Vipshop, eBay, AirBridgeCargo Airlines, JD.com, AliExpress.com, Pitney Bowes, Amazon.com, ASOS, BigCommerce, Eunimart Multichannel, Tmall, and Zalando are among the companies profiled in our report.
This review is based on a report by Zion Market Research, titled, "Global Cross-Border B2C E-Commerce Market By Category (Apparel and Accessories, Entertainment and Education, Consumer Electronics, Home Furnishing, Personal Care and Beauty, Healthcare and Nutrition, Footwear, Food and Beverage, and Others), By Payment Method (Credit/Debit Cards, Digital Wallets, Internet Banking, and Others), By Offering (Assorted Brands and In-House Brands), and By End-User (Teenagers/Millennials, Adults, Senior Citizens, and Others): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018–2027."
This report segments the global cross-border B2C e-commerce market into:
Global Cross-Border B2C E-Commerce Market: By Category
Global Cross-Border B2C E-Commerce Market: By Payment Method
Global Cross-Border B2C E-Commerce Market: By Offering
Global Cross-Border B2C E-Commerce Market: By End-User
Global Cross-Border B2C E-Commerce Market: By Region
By Region