Cross Border E-Commerce Market

Global Cross Border E-Commerce Market Size (2024 to 2032)

The cross border e-commerce market is predicted to be at USD 3,441.16 billion in 2024 and is esteemed to grow at a CAGR of 21.6% during the forecast period to reach USD 16,450.29 billion by the end of 2032.

Current Scenario of the Global Cross Border E-Commerce Market

Cross-border e-commerce is the latest trend across the countries. Customers buying any object from a seller in other countries is a cross-border e-commerce. E-commerce is not a new phenomenon in today's world.  Penetration of various e-commerce platforms in the marketplace made cross-border e-commerce transactions simpler. Amazon, eBay, and Alibaba are some online platforms offering excellent services for cross-border transactions. Amazon was first launched in 1994 in the USA. Since then, the e-commerce platform has completely changed. Initially, the demand for online shopping was a big challenge for the common people, and the launch of these applications made it simple and easy to buy or sell items beyond the countries. Many people looking to set up an online shopping platform can take advantage of cross-border e-commerce to prevent further complications. Cross-border e-commerce channel also offers great deals for the local business holder to expand their portfolio through various forms using this system without zero knowledge in technical skills. 

MARKET DRIVERS

The increasing urban population across the world is driving the growth rate of the cross-border e-commerce market.

Urban people mostly prefer unique ways of purchasing objects at any cost, and e-commerce platforms will help them find those products. Cross-border e-commerce systems make transactions between sellers and customers easy, and people are more inclined to purchase their favorite products from other countries with easy steps. This application transformed the scale of the e-commerce platform and provided huge advantages for buyers and sellers. 

In addition, the launch of various online shopping applications on smartphones and tablets is fueling the growth rate of the cross-border e-commerce market.

The Gen Z population is more inclined to use smartphones at a younger age, and the public's awareness of the presence of various online shopping applications can boost the size of the market. The rising number of online shoppers globally can leverage the share of the cross-border e-commerce market. It is expected that more than 425 million people rely on online shopping by 2027, whereas in 2023, there will be 250 million annual online shoppers in India. E-commerce platforms have changed their structure with the emergence of COVID-19. In the past, every individual used to seek offline purchase options, but when the lockdown restrictions hit the world, people started to focus on online shopping, which transformed the structure of e-commerce. This attribute substantially levels up the growth rate of the market. 

MARKET RESTRAINTS

Stringent rules and regulations by government officials over international trading are merely limiting the growth rate of the cross-border e-commerce market.

The rules and regulations vary depending on the country. Some countries have one particular product totally, whereas it is legal to buy or sell the same products in another country. For instance, Canada has complete restrictions on selling or buying raw milk or unpasteurized milk, whereas in India, it is quite common to purchase those. 
Another factor that hinders the growth rate of the cross-border e-commerce market is the applicable tax charges. The price of the items sold in other countries may vary according to the tax policies as the governing foreign taxes are applicable, and they differ from country to country. These products are delivered with extra shipping costs, which usually decreases the number of online users. The shipping charges for online shopping from other countries will be relatively very high when compared with the charges in the same country, which means it eventually reduces the number of users and parallelly degrades the size of the cross-border e-commerce market. 

MARKET OPPORTUNITIES 

The cross-border e-commerce market share was ascribed to holding prominent growth opportunities during the forecast period.

The transformation of e-commerce in a more positive way than expected is revolutionizing the interest in cross-border e-commerce platforms among the public. Creating awareness through social media content influencers and various TV shows can impel the growth rate of the market during the forecast period. Advancements in technological development and the launch of specific software features for websites in online payment sectors are attributed to boosting the share of the market. 
According to the United Nations Conference on Trade and Development (UNCTAD), the growth rate of the international e-commerce platform has no boundaries from the past few years, and the value even reached trillions of dollars figures in 2022. 
Also, launching advanced features in transportation and logistics companies that are adopting a high level of Internet of Things that can deliver products to every corner of the world without any difficulties is quietly gearing up the growth rate of the cross-border e-commerce market in the future period. 

MARKET CHALLENGES

Factors like different time zones and significant delays in delivering the products may pose a major challenge for the market's key players.

The products may take a longer time than expected due to various reasons, which acts as a constraint for the growth rate of the market. Also, cross-border payment issues hit the landscape of the market growth rate, where local businesses prefer to accept only local payment methods due to a lack of awareness of the utilization of advanced technologies in some areas. 

REPORT COVERAGE

SEGMENTAL ANALYSIS 

Global Cross Border E-Commerce Market Analysis By Product Type

The travel and tourism segment is ruling with the dominant share of the market, whereas the fashion and beauty segment is inclined to lead with the fastest growth rate throughout the forecast period. Government organizations in all the countries are expanding their investment in tourism to build the economy that was disrupted due to the penetration of COVID-19. E-commerce platforms are outraging in reaching out to customers to book or search for round-trip plans. 
Gen Z people are more conscious of fashion and beauty products. Growing awareness of the use of various online shopping applications can promote the growth rate of the market. Sellers are mostly inclined to sell beauty products on different platforms to gain profits. Their strategy to create the popularity of the newly launched products on social media platforms like Instagram, Facebook, and others is attributed to escalating the growth rate of the market. 
The electronic appliances segment is expected to grow steadily throughout the forecast period. Frequently changing technologies in electronic devices and the launch of new devices, which are attracting the attention of customers, are slightly expanding the growth rate of the market. 

Global Cross Border E-Commerce Market Analysis By Application

The B2B and B2C segments are leading with the same growth rate during the forecast period. Offering great discounts in exchanges regardless of the business locations of the marketplace business holders can lucratively enhance the B2B segment's growth rate. The increasing adoption of new technologies in e-commerce and a growing number of people purchasing from online stores for various collections in one place are rapidly gearing up the market size. 

REGIONAL ANALYSIS

Factors like high disposable income, especially in urban areas, and growing prominence for international brands all over the world, especially in developed countries like the US and Canada, are ascribed to boosting the growth rate of the North American cross-border e-commerce market. The US and Canada are well-developed countries where people are more inclined to start businesses to sell their products internationally. High support from government authorities in easing exchange rates and trade restrictions has been witnessed in leveling up the market share. There are no trade restrictions between Canada and the United States, conquered in having the highest share of the cross-border e-commerce platform. 
Asia Pacific's cross-border e-commerce market size is expected to have the dominant growth rate during the forecast period. China is the major country holding the largest share of the market. US, Canada, and Mexico are mostly inclined to purchase consumer goods from China due to their affordability. More than half of Americans place online orders through Chinese websites. Major websites like Shein, Temu, and Others offer great deals for foreign customers that straightly showcase growth opportunities for the cross-border e-commerce market. The growing concern about the economic crisis has raised the need for affordable goods through various online platforms, which is also a factor in the growth of the market in the Asia Pacific region. 
Europe is esteemed to have the fastest growth rate throughout the 2024-2029 period. The presence of high-quality fashion and beauty products is one of the primary factors that will help the market grow in this region. The UK, Germany, Spain, Italy, and France are rich in delivering high-fashion outfits every time, which is set to create huge growth opportunities for the cross-border e-commerce market in the coming years. 

KEY PLAYERS IN THE GLOBAL CROSS BORDER E-COMMERCE MARKET

• EBay
• AliExpress
• JD
• Tmall Global
• Wish
• Lazada
• ETao
• Taobao
• Amazon
• Newegg

RECENT HAPPENINGS IN THE GLOBAL CROSS BORDER E-COMMERCE MARKET

• In 2023, eBay focused on empowering Indian sellers to explore globally with the launch of a seller guide. The company's idea is to focus on enabling to focus on small and medium-scale businesses to explore more than 190 countries. The seller guide launched by eBay provides complete information on cross-border e-commerce with a complete roadmap. This guide will enable businesses to tie up with international countries that expand their product portfolios. 
• In July 2018, The Luxembourg Ministry of the Economy signed a memorandum of understanding with the Public Customs Center for Imported Materials of Henan (HIMPBC) to test the logistics of cross-border e-commerce in Europe as part of the European pilot plan. HIMPBC provides integrated logistics solutions for e-commerce consumers and seeks to create a similar model for Europe in partnership with logistics companies such as Cargolux.

DETAILED SEGMENTATION OF THE GLOBAL CROSS BORDER E-COMMERCE MARKET INCLUDED IN THIS REPORT

The global cross-border e-commerce market is divided based on product type, application, and region.

By Product Type

• Fashion and Beauty
• Electronic Appliances
• Food and Beverages
• Toys and Games
• Travel and Tourism

By Application

• B2B
• B2C
• C2C
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa