For first time, cross-border eCommerce exceeds US$2 trillion in 2023 -Juniper Research

KUALA LUMPUR, April 4 (Bernama) -- A new study from Juniper Research has found the value of cross-border eCommerce will exceed US$2.1 trillion in 2023, from US$1.9 trillion in 2022. (US$1 = RM4.213)

This growth of over 13 per cent 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, according to a statement.

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 cross border eCommerce vendors offer localised eCommerce models, or they will lose out to options that better serve consumer appetites.

The research found 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 accepting payments and other logistical issues are seamlessly handled.

In addition, the research found physical goods will account for over 97 per cent 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 payments vendors support a wide range of local payment methods, in order to capitalise on this sizeable opportunity.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

-- BERNAMA