The biggest cross-border ecommerce survey identifies law, legislation, language, localization and logistics as the key drivers for online merchants’ successful entrance into a local market. Worldwide merchants, PSPs, acquirers and consultants were polled on their cross-border business drivers and challenges, resulting in the most comprehensive report on global cross-border ecommerce available; Key Business Drivers and Opportunities in Cross-Border Ecommerce 2015.
Cross-border purchases accounted for around 20 percent of all global online trade in 2014, and this is expected to continue growing at a steady 27 percent, reaching USD 1.6 trillion by 2020. The survey showed that in 2015, there was a fundamental shift in cross-border ecommerce, driven by merchants and by online marketplaces. It is getting smoother, faster, and cross-border payments are becoming cleaner, improving the user experience for cross-border shoppers.
Only by a successful consideration of the five Ls can merchants with overseas aspirations pursue a profitable cross-border online business. The study revealed that marketplaces are the ideal starting point for merchants to gauge market potential without a large investment. Collaboration with these platforms is the perfect way for SMEs to build trust and awareness, and learn the five Ls. Additionally, this will support merchants to further develop a local presence and increase their profitability.
Language and localization are extremely important to consider when embarking into overseas markets, particularly between West and East where there are large cultural divides. Besides translation, localization covers local imagery and design preference, color meaning and navigating potentially sensitive cultural references. Research showed that merchants are actively seeking out overseas customers by deploying more sophisticated localization methods and genuinely adapting for different cultures and languages.
Tax laws and compliance to local legislative measures have to be well thought-out by overseas merchants when first embarking on cross-border expansion. Consumer rights laws governing returns management, customer complaint procedures and rights to receive refunds differ considerably from one region to another. Similarly, privacy and data protection laws about retaining customer data vary from country to country. Finally, logistical operations; stock handling, fulfilment, delivery and returns have to be managed properly offshore. Merchants need to ensure control of the quality of a customer’s experience once a delivery has left their country.
Payvision’s third annual cross-border ecommerce report is the result of a collaborative survey by Payvision and CardNotPresent.com. Including in-depth cross-border data, online payment preferences and influential ecommerce trends in key markets, this white paper is the most thorough report on global cross-border ecommerce available. Download your free copy of the report Cross-border Ecommerce Report.