Global e-commerce growth shows no signs of slowing down with online sales predicted to reach 1.92 trillion dollars in 2016. To capitalize on this potential, e-tailers must consider how to create a seamless customer journey for online shoppers in their new markets.
Cross-border shoppers spend more
According to recent research from the Boston Consulting Group, annual cross-border e-commerce revenues will swell to between 250 billion and 350 billion dollars by 2025. Asia will account for 40% of those revenues, making it the center of the e-commerce world, while Europe and North America will account for about 25% and 20% respectively.
For online retailers, one of the greatest opportunities continues to lie in developing customer bases beyond their borders. Cross-border online shoppers have been shown to spend more than domestic shoppers, looking outside their home market for better prices and a bigger selection of products1.
Managing the logistics of cross-border e-commerce
The market is attractive, and there is a big growth potential. But e-tailers seeking to expand internationally will need to consider several factors to achieve success beyond their borders. Customers prefer to shop in their local language, pay in their local currency and use a familiar local payment method. E-tailers should also consider offering track and trace visibility and transparency when it comes to taxes, import duties and other customs formalities.
The two factors we see that are most likely to result in unsatisfied online customers are late deliveries and unexpected costs and charges at the moment of delivery. These challenges are often the result of limited internal expertise and appropriate technology.
While online retail giants such as Amazon have mastered the art of cross-border e-commerce, many medium and small enterprises are constrained to their neighboring countries to mitigate these challenges.
Online shoppers want transparency
To be successful in cross-border e-commerce, an e-tailer must be able to answer three key consumer questions: “What is the total cost of my order?”; “What is the status of my order at this moment?”; and “When will I finally receive my order?”.
Countless studies emphasize the importance of a quality e-logistics process, and this only increases in an international context. Failures in this area inevitably damage e-reputations. However, in practice, many companies do not have the in-house expertise and many logistics service providers fail to consistently provide sufficient transparency on the international level. At Landmark Global, this is what sets us apart. We have a lot of experience with cross-border and we know exactly what your international customers expect.
To win over cross-border customers, we ensure you are well informed from the start.
The key to success lies in the seamless integration of landed cost calculation in local currency multiple payment methods and delivery solutions. Consumers purchasing online should receive the same guarantees when buying from across the border as they do shopping online in their home country. What’s more, cross-border customers must enjoy the same track and trace functionality so transparency is guaranteed throughout the entire checkout process: from order to delivery to after-sales service.
Support for international growth
Everything revolves around convenience. E-tailers who make online shopping as convenient, simple and stress-free as possible will get the most repeat business and the highest cart values. By offering seamless, comprehensive service and maximum transparency, these e-tailers are creating a competitive edge and strengthening their market image. With our innovative Atlas solution, we have already proved to be a reliable partner to many successful e-tailers taking on the complete cross-border e-commerce process. Atlas integrates the landed cost calculation, local currencies, payment and delivery to more than 220 countries in one single API (Application Programming Interface). This allows e-tailers to retain ownership of their checkout page, focus on their core businesses and offer their customers a worry-free shopping experience no matter where in the world they may be.
1 Online Cross-Border Retail Forecast 2013-2018, Forrester Research.
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