We are living in the era of e-commerce. The marketplace has come to our doorstep. It is the transformation of commerce that relies on internet in a broader sense. We don’t need to make our way in the physical shopping mall. This has been a great scopes for the marketeers as well as the customers to be visible, accessible and flexible to each other. This article intends to describe ways to make global e-commerce easier for everyone.
Online platform has brought them close to each other. Anyone can shop online by his mobile or computer browser very easily. And the most attractive thing is, as the buyer, you will have many options to choose.
According to the source, consumers worldwide shopped in 2018 on the web $2.86 trillion, up from $2.43 trillion in 2017. Global e-commerce rose up to 18.0%, which was 15.3% in 2017.
According to China’s Ministry of Commerce, being the world’s No. 1 e-commerce marketplace, China witnessed online sales increase 28.0% to $877.00 billion in 2017 from $685.16 billion in 2017.
Global ecommerce trends
Breaking News: By the year 2021, the global ecommerce market size will reach to $3.5 trillion, which is equivalent to US$2.5 trillion in revenue
As per the source, global ecommerce market size in 2019 is $2.8 trillion (US$2.0 trillion), which is 11.3% larger than 2018. The market will grow by 25% by 2021.
Below is a list of top 10 countries in 2019, according to ecommerce market size.
- South Korea
Be the ‘born global’
The best option of e-commerce is to connect small businesses rapidly and efficiently to the customers. It has been popular because no effort is required to develop physical existence of the multiple marketplace. Therefore, e-commerce has turned cost effective where consumers also have their choices.
Survey has shown that the top most barrier to shopping across borders is information, that the internet has successfully overcome.
To set up a “born global” start-up or successful business, pick up the perfect niche and reach the target market around the globe from day one, e-commerce marketplace is the best of it’s kind.
Largest e-commerce marketplace of Latin America, “Mercado Libre” initiated in a garage in 1999 with 100 products on a website.
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Barriers to recover
However, it is not always easy to expand international e-commerce. Cross-border e-commerce depicts around 7% of total business-to-consumer e-commerce. The situation is even worse in some regions due to some barriers, like, cross-border ecommerce range, variation of buyers’ interest, limited access to e-payments, supply chain management, delivery logistics and prices, warehouse accessibility, product returns processes, post sale support, complex consumer protection regulations, tariff and levis, cost for e-commerce platforms, showroom, retailers protecting price differentials, bulk buying, lack of technical skills and business knowledge, regulatory transparency and cooperation, digitized customs, online consumer protection and capacity building, etc.
To make the leapfrog movement of the e-commerce more viable, accessible and penetrable, here are five areas need to address:
1. Slow (or, no) internet
Internet sources need to be smooth and faster to run the ecommerce. Around 4 billion people across the world yet to have access to or use the Internet. High speed internet is not affordable to many.
2. Lack of sufficient content
Lack of relevant content in the local market is a barrier to the growth of e commerce. Marketeers are not been able to develop attractive and useful contents for the prospective buyers.
3. skills gap
Marketeers don’t know how to attract the consumers due to skills gap. In some case, user are not capable to dive in e-commerce due to their technical skills, and language barriers.
4. Financial transaction
There are some complexities in financial transactions from the parties and sources in some countries. It is because of of barriers in banking, transaction platforms, policies and conversion of currencies.
5. Act on good data
Data collection process, methodology and policies in some cases is complex and confusing. Lack of e-commerce data hampers targeted policies and affects decision-making, strategies and investments of many companies.
6. Access for goods
there are some cross border barriers in shipment of goods in some regions. Members of World Trade Organization agreed a trade deal to withdraw red tape 6 years back.
The purpose of this treaty is to facilitates goods crossing borders in different regions with ease. Moreover, Trade Facilitation Agreement (TFA) promotes small business, startups and ecommerce to grow globally.
7. Higher cost of transaction
In some cases, operations like, lower value packages, higher carrying cost, and, extra transaction costs affect on retail costing. To grab the advantages of e commerce services and best e commerce business ideas, there are useful ways to make global e-commerce easier for everyone.
8. Delay in order and delivery
Some complexities in between order of the products in an online shop and delivery from it make considerably long delays. This kind of prolonged process may create demotivation, shift of market and clients, and lack of their interest.
9. Continental digital integration
E-commerce impact and responses are not equally thrived across all countries. Enforcement of regional markets in more number can help small businesses to execute business models in a successful way.
Due to higher demand, better opportunities, and business boom, high level of competition has brewed up in e-commerce sectors worldwide.
Giant companies are soaring up, that has made the competition higher for the start-ups and new business. Only innovative and blue ocean ideas will be able to escape competitors.
According to the source, some significant steps have been taken already to improve the globalization of e-commerce industry:
- The Association of Southeast Asian Nations (ASEAN) has been collaborating on digital integration since 2000.
- Asia Pacific Economic Cooperation (APEC) economies agreed to a Blueprint for Action on E-commerce in 1998 to work on both domestic and international flows.
- Pacific Alliance nations – including Chile, Colombia, Peru and Mexico – have included an e-commerce chapter in recent integration arrangements.
- The EU has goals to deliver an improved digital single market by 2020 to expand jobs and associated facilities.
To grab the advantages of e commerce services and best e commerce business ideas, there are several ways to make global e-commerce easier for everyone. Global economy has come up with great opportunities.
Digitization process, need for the consumers, use of technology and change in taste has made our choices ever changing. Need is the mother of all initiatives. Although, small businesses confront a lot of struggles to be global, improvement will be taken place gradually.