Cross-border e-commerce
Cross-border e-commerce has transformed the global commercial landscape. Thanks to the rise of the internet and digital technologies, it’s now possible for consumers to purchase products and services from sellers located in other countries with much greater ease. This ability to sell anywhere and anytime has significantly boosted companies’ revenues.
Advantages for consumers and businesses
For consumers, the ability to purchase internationally is revolutionary. Buying worldwide allows them to discover new products often at more attractive prices. For instance, travelers who fell in love with a product can easily order it once they return home. Consumers also gain access to exclusive products from other countries not available domestically. Platforms like Shein or AliExpress often offer lower prices than local stores, making international purchases even more appealing. Online commerce, whether cross-border or not, also offers undeniable convenience: consumers can order from home and receive items within a few days.
For businesses, increased sales and revenue are the primary advantages of international sales. According to CCI Paris Ile-de-France, in 2021, 2.48 billion people, or 31.9% of the global population aged 15 and over, made online purchases. E-commerce sales thus accounted for a fifth of global sales, totaling nearly $5 trillion in 2021. Becoming an international player also enhances credibility and consumer trust in the company. Moreover, an international presence allows maximizing advertising campaigns and expanding collaborations with other brands, thereby increasing visibility and commerce reputation.
Disadvantages for consumers and businesses
Cross-border e-commerce also presents disadvantages for consumers. Shipping costs can be very high, especially for products from the United States, where costs can reach €20. Delivery delays are also common. Ordering from abroad, consumers risk receiving lower-quality products, often not specified on the sales site, which can lead to disappointment upon receiving the package.
For businesses, customs and taxes pose a major obstacle. Crossing borders is not free, and companies must pay to transport their products. Although these costs can be significant, businesses can usually absorb them through increased revenues. It is crucial for businesses to adhere to the regulations and compliances of each country. Each country has its own laws and rules
Cross-border e-commerce offers significant opportunities for both consumers and businesses. Consumers benefit from a greater variety of products and attractive prices, while businesses see their sales and revenue increase. However, it is essential to skillfully navigate the challenges related to shipping fees, customs, taxes, and international regulations. By overcoming these obstacles, cross-border e-commerce can continue to thrive and transform global trade.
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