Cross-border e-commerce in Europe is reaching a turnover of US$ 255 billion. This is a whopping increase of over 30% compared to the previous year.
Not surprisingly, online stores contributed to nearly half of that turnover. Business-to-consumer e-commerce is the biggest winner, with a turnover for goods hitting almost US$ 800 billion.
What does this mean for e-commerce businesses?
This means that there is an excellent opportunity to expand. The increase in cross-border e-commerce shows that the market still has endless possibilities for businesses to grow beyond domestic borders.
But what’s holding companies back? In many countries, there are trade barriers.
Germany leading e-commerce
Germany is a leading e-commerce market, its online stores luring international customers and generating nearly US$ 50 billion in cross-border turnover. This is a whopping increase of almost 30%.
According to Statista, in 2019, e-commerce websites from foreign countries accounted for more than 21% of the entire e-commerce revenue. “Three years later, the market share of cross-border e-commerce rose to 26%.”
Turning to the UK, it presented the lowest turnover, falling by more than 2%. Online stores in the UK generated US$ 30 billion.
Competition and innovation
When the playing field is opened to a larger landscape audience, it also opens up for intense competition from rivals, not only on local soil but abroad. To stay relevant, companies must constantly innovate in logistics, customer experience, and product offerings.
Market dynamics always throw a curveball at your business when you least expect it. To curb this, companies should do thorough market research and develop personalized strategies that help the company’s specific needs.
Brand positioning is one of the critical aspects that will set your company apart from the competition, locally and globally. Businesses can invest in building strong brand identities to deliver consistent value and quality to customers, no matter where they are located.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
