There was a time, not too long ago- when eCommerce was considered traditional retail with wings (somehow reminds of the Red Bull ad). And then came the sometimes misplaced expectations of growth, breaking star-studded valuations etc. The dust then settled and thence came the realization that there is no silver bullet, multichannel needed to evolve- it did, and then some.
The advent & growth of online marketplaces, huge investments & more recently –consolidation, has been a game changer for both: Small/mid-sized brands, who can leverage these platforms for new revenue streams and Big players, forging strategic partnerships, undergoing Offline to Online; Online to Offline transformations.
Traditionally B2B centric 3PLs also are adapting to the opportunity by undertaking eCommerce Fulfilment & expanding their reach: with last-mile fulfillment at one end & crossing borders at the other.
The customers too are an evolved lot. They now shop for brands & not channels, what was showrooming for them is now web rooming. For them, the line between Online & Offline is increasingly getting blurred & more so – the line separating geographies.
With surging demand Global brands & products are increasingly featuring in both offline shelves and online catalogs. eCommerce is gradually moving towards transforming the world as one- unified market- “In-store Global. Online Local”. Crossing geographical borders via eCommerce hence is not new but its growth is.
The time is Right & the time is Now. And Right Now – Global B2C cross- border e-commerce is set to double over the next five years to reach $424 billion by 2021, with Asia, Europe, and North America accounting for 40%, 25%, and 20%, respectively.
China, Europe & US, in terms of eCommerce prospect base, tick all 3 checkboxes viz. Sizeable, “digitally equipped” customers – who love to shop. And while these locations are also the markets for growth in Cross-border e-commerce, India & SE Asian countries are catching up fast. With internet penetration, growth in eCommerce, these countries are both the consumers & a growing supplier base for the same.
The primary reason for customers to go shopping across borders:
Electronics, Health & Beauty products, Apparels & books seem to be the most popular purchase categories world over, apart from travel /events.
Few motivators for a business selling Cross-Border to locations (see figure 2) are:
In a broad sense, there have been three approaches towards their Cross-border efforts:
Barriers & possible ways around them:
So if there is need & the market is great, why are people not buying more Cross-Border? Greener pastures come with fences & challenges.
To read in detail, visit: https://goo.gl/WUpZ9X
We recently concluded a webinar titled “eCommerce Fulfilment: From First Mile to Cross Border“, in association with Economic Times Retail & DTDC. The webinar talked about how eCommerce fulfillment today, is the cornerstone of the strategic approach to leverage new revenue streams. You can view it here
Watch this space for the next in this guest series.
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Read MoreVinculum Limited, a global enabler of multi-channel retailing will be showcasing its offerings in the domain of offline to online to offline transformation, multi-channel inventory & order management, consistent product information across channels and cross-border fulfillment, at The Retail’s Big Show (NRF) Booth #530, Jan 15-17, 2017, Jacob K. Javits Convention Center, New York City.
The three-day event is one of its kind and has evolved as a platform for companies in the IT industry to collaborate and grow by sharing knowledge, and networking with industry counterparts. It is a place for organizations to showcase innovations in product and service designs, and share insights on transforming the retail landscape for the future.
While over 33,000 retailers and thought leaders connect and gauge the future of technology in the retail industry, Vinculum Limited, a TiE Billion Dollar Baby and a Red Herring Global 100 company will have its will be engaging with the eCommerce ecosystem participants and discussing success stories of:
Come visit us at Booth #530 for a live chat, product showcases and other exciting conversations with our experts over a cuppa.
Know more – http://bit.ly/2intyYZ
Special Promo Code: All retail members get complimentary registration for the exhibit hall or 20% off a full conference pass with invitation code: 3241 – Register here: https://goo.gl/Ndn8qR
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