The value of cross-border e-commerce will exceed $3,3-trillion in 2028, from $1,6-trillion in 2023, according to a new study from Juniper Research.
With disposable income rising in developing markets, eCommerce merchants and marketplaces are pivoting towards them. Given the prevalence of alternative payment methods in developing markets, such as mobile money, cross-border merchants must effectively match consumers’ payment preferences, or they will quickly lose out to better-localised rivals.
Cross-border e-commerce transaction values are expected to grow by 107% globally over the next five years, while domestic e-commerce transaction values will grow by 48% over the same period, demonstrating that much of the growth in the e-commerce payments market is in the cross-border area.
This is due to the rapid expansion of key marketplaces, and how they have differentiated themselves.
The research found that, in an increasingly social media-dominated advertising landscape, the leading vendors are effectively marketing directly to consumers.
Central to competing with domestic merchants is appealing to digitally engaged users in a direct way; making social media advertising vital for success. Cross-border merchants must therefore correctly identify the right social media and digital advertising channels in each market, or risk losing out in the battle for tech-savvy consumers.