The world of e-commerce has been experiencing huge expansion, so everyone believes that the elimination of the traditional brick and mortar stores, available in Europe and the United States, is very close. Despite that e-commerce raise is expected all over the world, e-commerce in Asia Pacific region will experience an extraordinary growth.
The e-commerce in the cross-border sphere will outdo the domestic performance with a 17 percent expansion rate when for the next few years the expansion rate is expected to be 12 percent. The expert of Semalt Digital Services, Igor Gamanenko explains how the field of e-commerce is developing in different regions.
Reasons Why Online Business Expands
The world’s online logistics facilitates doing business online, making it more convenient. There are many reliable payment methods that allow the safe exchange of products as well. Moreover, the penetration of smartphones in all continents enables the accessibility of internet services in both developed and developing countries, while SEO has become the tool for the online growth of the businesses.
With an increasing middle-class economy in the Asian continent, where people have the less level of satisfaction with their domestic products, e-commerce will hit a global sale of $627 billion by 2022. Most e-commerce deals revolve around the products that are not produced locally, so here China is taking the lion’s share of the online market.
Cross-Border Shopping In China
Thanks to SEO, online sales will perform better this year. China will lead the cross-border online business, reaching 200 million online shoppers by 2020 with the sales that amount in $245 billion according to Accenture. Along with this, competitive rivalry between China’s Alibaba and US’s Amazon on Chinese market enhances the adoption of good practices by online businesses.
The winning combination consists of such elements as including the payment of delivery to the product’s cost, regulatory compliance management, and thoughtful SEO practice. Regarding payment, Chinese online stores offer many payment methods that are secure and reliable. Platforms like Alipay (Alibaba) and Tencent (WeChat) have formed a great system that accepts payments from any country.
Cross-Border Shopping in Other Regions
According to the research conducted by KPMG in the Middle East and African regions, Arabic Africa experiences a massive appreciation of the cross-border online trade. For instance, the Middle Eastern version of Amazon – Souq – increased online sales in the region to more than 8 million items in early 2017 alone.
Products’ returns are quite costly according to American’s Federal Express Annual report of 2016. Today, clients can receive a refund of their purchase cost up to a certain percentage through the PayPal services.
Cross-Border Sales in America
A study, held by various research firms, indicates that cross-border sales in the US amount in about 36 percent of the country’s online business. More than half of all online sales go through the market places such as eBay and Amazon, while more than half of the cross-border sellers use USD as the most trusted currency. In this process, SEO plays a significant role in enhancing the online presence of the vendors.
The growth of sales at the online market is the process that involves observation and implementation of the best practices while abiding available stipulations. There is no wonder that efficient delivery services have become the alternative to traditional methods of shipment while using SEO allows expand firm’s presence globally. Therefore, considering both local and cross-border demand and specialties, custom regulation facilitates proper market planning.