Ecommerce without boundaries is cross-border eCommerce, officially International eCommerce, when merchants can reach consumers located in other countries and jurisdiction without bothering about the International boundaries and vice versa. In today’s globalized market internet is giving the opportunity to consumers to shop globally. Customers can compare prices, connect with other customer worldwide for product reviews, put orders and transfer payments via their smartphones or tablets anywhere, anytime. Not only for the benefit of the consumers but for the Merchants, Banks and Payment Service providers can make their money from this presented by Global eCommerce. It has grown so quickly in recent years that 25% of Paypal’s transactions are now cross-border, about 2,000 CB transactions per minute. According to pymnts.com, it’s a huge opportunity for worldwide merchants amounting to $4 trillion.
To build a cross-border capable merchant, a company would have to: (1) Establish a legal entity overseas (2) Establish relationship with local acquiring banks and processor (3) Build checkout pages that accepts local payment methods and currencies (4) Present these pages in local languages (5) Optimize the pages for any kind of device (6) Calculate and remit local taxes (7) Figure out cost of shipping, logistics, customs and duties.
Borderfree, the market leader in global cross-border eCommerce services, on June 17, extended its platform to an additional 120 countries and 15 currencies. Merchants under this platform can now make business to customers in 220 countries and in more than 74 currencies. Borderfree will be initiating to close the gap between US and UK merchants with the world using their technology and services, handling everything for global marketing, website localization, compliance, multi currency pricing, payments, fraud management, global logistics and local market intelligence. Borderfree, which is partner to the world’s iconic brands such as Macy’s, DKNY, Neiman Marcus, Saks fifth Avenue, Land’s End and Sears was recently acquired by US- bases mailing and shipping giant Pitney Bowes at $395m.
Google and Ingenico are jointly helping European merchants to grow sales, beyond their own borders. Google will help online businesses to generate more online traffic and Ingenico will help to translate this traffic into sales by utilizing payment technologies, ranging from local transactions, to data analysis and risk management.
China is expected to become the largest eCommerce market in the world this year with USD 296 billion eCommerce value and a projected value of $1.1 trillion by 2016, USD 27.4 billion of which being via a mobile device. Ecommerce still only makes up 8% of total retail at present, but with 190 million online shoppers there is significant growth potential.
Canada is a great example of an emerging market, as 37% of the world’s cross-border power shoppers live in Canada. The US and Canada share a common language and 75% of Canadians live within 100 miles of US border. 15% of French cross-border shoppers purchased goods from Canadian online retailers, which confirms the fact that language is a key driver. This is even more apparent the European Market, sharing borders and one currency unified in SEPA. Over 75% of German online retailers successfully sell in German-speaking neighboring markets such as Austria, Switzerland and the same accounts for France, whose shoppers and merchants engage in cross-border eCommerce with Switzerland, Belgium and Luxembourg.
The Latin America region is currently boarding the on-ramp to what forecasters see as a steep eCommerce growth curve ahead. In fact, Forrester Research estimates combined eCommerce revenue in Brazil, Argentina and Mexico will increase from $20 billion in 2013 to $47 billion in 2018.