Cross-border e-commerce to exceed $2 trillion for first time in 2023
Juniper Research: Cross-border e-commerce to account for 38% of all e-commerce transactions globally by value in 2023
A new study from Juniper Research has found that the value of cross-border e-commerce will exceed $2.1 trillion in 2023, from $1.9 trillion in 2022. This growth of over 13% in a single year reflects the increasing success of marketplaces which offer goods across borders, as well as the rising viability of cross-border sales as an e-commerce model.
The new research, "Cross-border e-commerce: Emerging Opportunities, Future Challenges & Market Forecasts 2022-2026", found that as e-commerce models diversify, including models such as buy now pay later and click and collect, cross-border options must also keep pace, by agreeing local distribution and payment partnerships. The research recommends that cross-border e-commerce vendors offer localised e-commerce models, or they will lose out to options that better serve consumer appetites.
Marketplace model critical to cross-border growth
The research found that the marketplace model, where large vendors, such as Amazon or Wish.com, sell goods to users on behalf of cross-border vendors, will be critical to growth. This model represents an easy way to access a large audience, while ensuring that accepting payments and other logistical issues are seamlessly handled.
Research co-author Nick Maynard elaborated: “The marketplace model within e-commerce takes the complexity away, meaning that cross-border merchants can provide a localised service. As such, marketplaces are an excellent way to gain immediate access to an existing user base, albeit one that can be restrictive compared with having a direct-to-consumer relationship.”
Physical goods dominating cross-border e-commerce spend
The research found that physical goods will account for over 97% of cross-border e-commerce spend in 2023, with digital goods making up the remainder. It identified the maturity of cross‑border export of physical goods as a business model as a major factor in this difference, as well as increasingly cost‑conscious end users. The research recommends that payments vendors support a wide range of local payment methods, in order to capitalise on this sizeable opportunity.
The full report can be found here.