According to a new report published by Allied Market Research, titled, “Cross-Border B2C E-Commerce Market," The cross-border b2c e-commerce market was valued at $784.56 billion in 2021, and is estimated to reach $7938.2 billion by 2031, growing at a CAGR of 26.2% from 2022 to 2031.
The benefit of cross-border B2C E-commerce market is that a seller gains the first-mover advantage, which allows them to build strong brand awareness with potential customers before their competitors do. Moreover, cross border ecommerce benefits both sellers and brands as there is access to new markets as no matter how healthy the sales volume are at the moment, cross-border selling can grow by opening online storefront to more untapped markets. Furthermore, online trade between B2C for imported goods such as spices, crockeries, home décor, and carpets is increasing among consumers. They can easily buy and sell these products on e-commerce websites, thereby consumers can purchase products from across the world sitting at the comfort of their home. In addition, sellers get to conquer new territories by extending access to their products to millions of potential customers who do not have the chance to buy their products. Thus, these are the major cross-border B2C E-Commerce market trends.
Furthermore, major market players are undertaking various strategies to increase competition and offer enhanced services to their customers. For instance, in December 2021, cross-border trade platform Shypmax by tech logistics platform Shiplite, secured an exclusive partnership with the Netherlands-based B2C Europe. B2C Europe is part of Maersk and specializes in business-to-consumer parcel delivery services in Europe. The collaboration will enable Indian businesses to cost-effectively deliver their products to customers based in Europe, including the UK, using a single-window platform. Moreover, under the collaboration, Indian companies, especially small and medium enterprises (SMEs), direct-to-consumers (D2C), business-to-consumers (B2C), and e-commerce firms, from over 27,000 pin codes, can deliver any product across European markets through Shypmax. Therefore, these strategies will further increase the cross-border B2C E-Commerce market growth.
On the basis of category, the apparel and accessories segment is the highest growing segment. This is attributed to the fact that cross-border E-commerce platforms gives an opportunity to customers to purchase the latest collections and low cost and wear their favorite brands. Moreover, more people than ever are using online E-commerce websites for their apparel and accessories purchases. Thus, the amount of revenue being created by those people has allowed businesses to grow and is now integral to their success.
Region wise, Asia-Pacific attained the highest growth in 2021. This is attributed to presence of a large consumer base in the Asia-Pacific is anticipated to drive the development of the market. Moreover, growing trade relations of nations in the region is anticipated to offer tremendous market growth opportunities.
COVID-19 had a negative impact on the market as the international borders were closed during the lockdown period and therefore, no trading activities could take place at that time. Moreover, the international routes were also sealed so that no one can enter or go out from their own respective country due to the fear of spread of the virus. Therefore, as there were no delivery channel available during the lockdown, the cross border b2c e commerce market had to suffer huge loss during that period.
Key findings of the study
- By offering, the assorted brands segment led the cross-border B2C E-Commerce industry in terms of revenue in 2021.
- By payment method, the credit/debit cards segment accounted for the highest cross-border B2C E-Commerce market share in 2021.
- By end user, the adults segment accounted for the highest cross-border B2C E-Commerce market size in 2021.
- By region, Asia-Pacific generated the highest revenue in 2021.
The key players profiled in the cross-border B2C E-Commerce market analysis are Alibaba Group Holding Limited, Anchanto Pte. Ltd., BoxMe, Deutsche Post DHL Group, Fruugo.com Ltd., Joybuy.com, SIA Joom, Paypal, pinduoduo.com, and Shein. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.