Changes in consumer behaviour mean new opportunities for retailers in cross-border e-commerce

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The growth of the e-commerce sector has been nothing short of remarkable. Worldwide online retail sales are anticipated to hit more than US$5.5 trillion in 2022, with the figure expected to exceed US$7.4 trillion by 2025¹.

There has been a particular uptick in customers engaging in cross-border e-commerce. Between 2016 and the end of this year, the share of the global e-commerce market held by cross-border transactions is forecasted to rise from 15 per cent to 22 per cent². Furthermore, a report estimates the value of worldwide cross-border e-commerce will reach US$2.1 trillion in 2023 and account for 38 per cent of all e-commerce sales – 13 per cent higher than 2022’s US$1.9 trillion figure³.

These numbers represent a marked shift in consumer behaviour in terms of how and where consumers choose to spend their money. According to an Ipsos survey commissioned by PayPal, 57 per cent of online shoppers currently participate in cross-border e-commerce, with 42 per cent of them more confident about making purchases from international merchants than before. It is clearly an advantageous time for e-commerce businesses to cultivate an overseas customer base.

Consumers are the driving force behind trends

There are a number of reasons for the surge in cross-border e-commerce. Covid-19 – and its associated lockdowns – forced many shoppers to redirect their purchases from bricks-and-mortar operations to online vendors. This exposed them to a wide range of retailers beyond their immediate domestic market, meaning an improvement for customers in terms of choice, quality, pricing and payment options. The development and adoption of digital technologies has also been a significant contributor, particularly in the Asia-Pacific.