BUDDING entrepreneurs have been urged to start a cross-border e-commerce business, as billions of people now shop online.
“In 2020 the cross-border e-commerce is expected to account for about $900-billion GMV [gross merchandise value], translating into a roughly 22-percent share of the global e-commerce market,” e-commerce Business Consultant Michael Jan Menzon said.
Menzon said more consumers opt for cross-border e-commerce shopping mainly due to better product availability, especially in mature e-commerce markets such as Japan, Germany and the United Kingdom.
“Having an attractive offering [including price] stands out as key to convincing international consumers to act,” he said during the Philippine Export Competitiveness Program information session.
To start a cross-border e-commerce business, Menzon said entrepreneurs should identify their cross-border business opportunity, have understanding of local tastes and rules, and provide shipping options.
He also underscored the need for global local site showing tailored assortment, and informing of worldwide shipping and multiple easy locally preferred payment options.
Menzon added finding the right partner is also imperative in order to facilitate easy market entry.
Cross-border e-commerce generally defines international online trade when consumers buy online from merchants located in other countries and jurisdictions.
It can refer to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B), or between two private persons (C2C), including through marketplace platforms, such as Amazon, eBay and Lazada.